The World Bank approved a Rural Environment Project for Azerbaijan. The total amount of the project is US$17.72, including a US$8 million IDA credit from the Bank, a US$5 million grant from the Global Environment Facility (GEF), and a US$2.72 million Japan Policy and Human Resources Development Fund (PHRD) grant.
The project will help to improve bodiversity conservation and introduce more sustainable natural resource management and economic activities in two mountainous areas of Azerbaijan, to restore the ecological health and productivity of the areas‘ natural forests and pastures.
Azerbaijan joined the World Bank in 1992. Since then, commitments to the country total approximately US$711 million for 29 operations. While the overall economy in Azerbaijan is improving as a result of oil development, the situation in mountainous areas, where most people fall under the poverty line, is still difficult. With the end of the provision of reliable, highly subsidized gas and electricity following independence, many rural households have turned to wood from State forests for their energy needs. This is resulting in rapid deforestation as demand for wood fuel exceeds sustainable annual fuel wood by tenfold in some areas.
The Rural Environment Project will consist of three main components. The first component, Protected Area Establishment and Management, will support the legal establishment of the Shah Dag National Park, the expansion of Ordubad National Park, the creation and strengthening of modern park management institutions and systems, and the development and implementation of park management plans. It will also assist in the management of other types of protected areas surrounding the two national parks.
The second component, Community Level Investment in Sustainable Agriculture and Natural Resource Management, will help communities within and next to the two national parks to adopt more modern agricultural methods and more sustainable use of natural resources. This will result in less pressure on the natural ecosystems.
The third component, Rural Enterprise Development, aims to stimulate economic diversification in the areas through providing financial and technical support to local entrepreneurs.
„Creation of the national parks and other protected areas will help to protect the biodiversity of these very important mountain ecosystems, while also helping local communities to achieve better and more sustainable livelihoods through tourism and other types of economic activities,“ said Agi Kiss, head of the World Bank team designing the project.
By the time the project is completed, the Shah Dag National Park will have been established, covering about 113,000 hectares. Ordubad National Park will be enlarged to about 43,000 hectares, and a plan will be in place for establishing additional, less restrictive protected areas on some of the surrounding lands. In addition to these improvements, 9000 hectares will be covered by tree planting activities. Other project targets include at least 20% of households in participating villages adopting more modern and productive livestock husbandry practices, and the initiation of 150 or more environmentally friendly and financially sound Small and Medium Enterprises. The project also aims to increase public awareness and understanding of, and support for, national parks and protected areas.
„The project demonstrates the importance of the rural environment to the sustainable development of Azerbaijan, and the support of the international community towards that end, as exemplified by the cooperation of IDA and GEF,“ said Ahmed Jehani, World Bank Country Manager in Azerbaijan.