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City and Regional Development Strategies for Three Cities in Azerbaijan

Baku, Azerbaijan (15 December 2005) - The Asian Development Bank (ADB), the United Nations Development Programme (UNDP) and the Ministry of Economic Development today signed a Cities Alliance grant agreement in the total amount of $548,000. The project will be undertaken in the pilot cities of Ganja, Sheki and Mingechevir and will aim to enhance the strategic planning, governance, and resource mobilization capabilities of Azerbaijan's cities and towns to contribute to economic growth and urban poverty reduction.

Hundreds of cities have participated in the City Development Strategy (CDS) process across the developing world, which has generated priority programs and projects in such areas as infrastructure, environment, and governance. The Cities Alliance project in Azerbaijan will be the first of its kind in the southern Caucasus.

Combined with related ADB cofinancing, the project will leverage $3,573,000 for this innovative pilot project. The Embassy of Israel is also participating in the Cities Alliance project, offering training and capacity building for urban and rural development through their MASHAV program.

"Introducing the CDS process into Azerbaijan at this important stage of our development seizes a unique opportunity to build upon the Government's commitment to regional development and poverty reduction, to assist key secondary cities, and to promote municipal planning and management", said Heydar Babayev, Minister of Economic Development.

The CDS strategic plans will be linked to ADB's lending and technical assistance programs in the areas of social infrastructure for regional towns, urban water supply and sanitation, microfinance, support to internally displaced persons (IDPs), energy and transport, as well as to the new national poverty reduction strategy (SPPRED 2006-2015).

"ADB views this important project as a fundamental building block to our sustained engagement in Azerbaijan's regional cities and towns and our commitment to reducing poverty", said Matthew Westfall, ADB's country director to Azerbaijan. "We intend quickly respond to the identified projects and programs with our forward pipeline of assistance".

The project will also introduce geographic information system (GIS) technology and satellite-based imagery, which will enable the Cities Alliance team to carry out rapid land use, resource and poverty mapping. The project, 18 months in duration, will be managed by the State Program for Poverty Reduction and Economic Development (SPPRED) Secretariat.

"We, as UNDP, are very pleased to join ADB in the first project partnership between the two organizations in the CIS to support the Ministry of Economic Development to promote regional development and reduce poverty in cities outside of Baku. This joint project will contribute to the achievement of the Millennium Development Goals in Azerbaijan", said David Eizenberg, UNDP's Acting Resident Representative in Azerbaijan.

The Cities Alliance is a global coalition of cities and their development partners, committed to address urban poverty reduction. The Alliance aims to build political commitment, partnerships and learning networks to achieve city-wide and nation-wide scales of action for strategic city development planning and for upgrading the living conditions of its poorest urban residents. Members include local authorities, represented by United Cities and Local Governments and Metropolis; the countries of Brazil, Canada, France, Germany, Italy, Japan, Netherlands, Nigeria, Norway, Sweden, United Kingdom and United States of America; ADB, UNEP, UN-HABITAT and the World Bank. The Alliance has committed $60 million to date, linked to over $6 billion in investments.

Visit www.adb.org/azrm to know more about ADB-assisted projects and programs in Azerbaijan.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 64 members - 46 from the region. In 2004, it approved loans and technical assistance totaling $5.3 billion and $196.6 million, respectively.