Azerbaijan : AZE: Improving Financial Service Outreach for Agriculture - AccessBank Azerbaijan

Nonsovereign Project | 49093-001

One loan of up to $75 million to support farm investments and working capital and enterprises operating in the agriculture value chain through Access Bank Azerbaijan (ABA). ADB funding will improve rural income generation and livelihood in Azerbaijan. With only 16% of credit flowing to Azerbaijans regions, and only 5% to agriculture, finance is largely unavailable in rural Azerbaijan. Agriculture is fragmented into 1.2 million small farms employing 38% of the working population and contributing only 6.2% to GDP (2013). However, agriculture witnessed robust growth of 4% p.a. over the past decade and has substantial growth potential to meet growing domestic and import demand for food (fruits, vegetables and dairy products). Farms and MSMEs are the most important source for employment and income generation in the regions. Lack of funding is one of the main reasons limiting their growth.

Project Details

  • Project Officer
    Rublee, George Gordon
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Azerbaijan
  • Modality
  • Sector
    • Finance
Project Name AZE: Improving Financial Service Outreach for Agriculture - AccessBank Azerbaijan
Project Number 49093-001
Borrower / Company AccessBank Azerbaijan
Country / Economy Azerbaijan
Location Nation-wide
Type or Modality of Assistance
3253 Loan Ordinary capital resources USD 75.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Finance / Banking systems and nonbank financial institutions
Gender Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Rublee, George Gordon
Project Sponsor(s)
Description One loan of up to $75 million to support farm investments and working capital and enterprises operating in the agriculture value chain through Access Bank Azerbaijan (ABA). ADB funding will improve rural income generation and livelihood in Azerbaijan. With only 16% of credit flowing to Azerbaijans regions, and only 5% to agriculture, finance is largely unavailable in rural Azerbaijan. Agriculture is fragmented into 1.2 million small farms employing 38% of the working population and contributing only 6.2% to GDP (2013). However, agriculture witnessed robust growth of 4% p.a. over the past decade and has substantial growth potential to meet growing domestic and import demand for food (fruits, vegetables and dairy products). Farms and MSMEs are the most important source for employment and income generation in the regions. Lack of funding is one of the main reasons limiting their growth.
Objectives and Scope The expected outcome is improved ability of ABA to provide financial services to farmers, and agriculture MSMEs.
Status of Development Objectives The 2015 manat devaluation adversely impacted ABA's business and financial performance. As such as of end-June 2017, ABA tracked behind its development targets.
Linkage to Country/Regional Strategy The loan will reach agriculture MSMEs and farmers, providing longer tenors for their investments. This is consistent with government and ADB strategy to promote private non-oil activities.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects ABA will apply ADB's prohibited investment activities list; exclude subloans categorized A for environment; ensure that investments using ADB funds abide by applicable national laws and regulations, as well as ADB Safeguard Policy Statement (2009)
Involuntary Resettlement ABA will apply ADB's prohibited investment activities list; exclude subloans categorized A or B for involuntary resettlement; ensure that investments using ADB funds abide by applicable national laws and regulations, as well as ADB Safeguard Policy Statement (2009)
Indigenous Peoples ABA will apply ADB's prohibited investment activities list; exclude subloans categorized A or B for indigenous peoples; ensure that investments using ADB funds abide by applicable national laws and regulations, as well as ADB Safeguard Policy Statement (2009)
Stakeholder Communication, Participation, and Consultation ADB team conducted several consultations with potential end-borrowers and farmers in rural Azerbaijan.
Timetable for assistance design, processing and implementation
Concept Clearance 02 Feb 2015
Credit Committee Meeting 09 Mar 2015
Approval 22 Apr 2015
Last PDS Update 10 May 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.