International Fund for Agricultural Development (IFAD) began its activity in Azerbaijan in 1997.
On December 28, 2004 Ambassador of the Republic of Azerbaijan to Italy H.E. Mr. Emil Karimov was appointed as the Governor of IFAD for the Republic of Azerbaijan.
At the ceremony that was held on October 17, 2005 in Rome, on the occasion of the 60th anniversary of the Food and Agriculture Organization (FAO) of the United Nations, the Minister of Agriculture of the Republic of Azerbaijan Mr. Ismat Abasov met with the President of IFAD Mr. Lennart Bàge. At the meeting Mr. Ismat Abasov stated the achievements of the Government of Azerbaijan in the agrarian field and expressed his satisfaction with the cooperation between Azerbaijan and IFAD, and also had a brief discussion on the IFAD projects in Azerbaijan.
IFAD has contributed to the financing of three projects in Azerbaijan and will contribute to the fourth project, the Rural Development Project of the northwest districts of Azerbaijan. Counting this project, IFAD has financed the four projects in Azerbaijan for a total sum of over US$ 47 million.
IFAD’S goal in Azerbaijan is to support the government’s efforts to substantially reduce poverty and improve living conditions in the disadvantaged rural communities. IFAD provides support within the overall framework of the State Programme for Poverty Reduction and Sustainable Development, and in particular for the development of rural areas and for agriculture as a dominant force in the rural economy.
IFAD supports the irrigated sector in Azerbaijan, which is the main farming system and a key resource for rural employment and national food security. The organization also focuses on assisting disadvantaged communities in mountainous and highland areas. Interventions in the different fields support the development of small-scale farm units that contribute to protecting and restoring the environment.
The main priorities of IFAD's interventions in Azerbaijan are:
- improving the production, productivity and competitiveness of agricultural produce, through irrigation-system rehabilitation and participatory irrigation management; - improving product marketing arrangements and links; - encouraging developments off-farm income-generating activities; - improving access to rural finance; - supporting gender mainstreaming.
IFAD’s contributed projects in Azerbaijan
The first project, Farm Privatization Project, co-financed with the International Development Association of the World Bank, which covered six districts (Nakhchivan, Sharur, Khachmaz, Lankaran, Ucar, Barda and Salyan) of Azerbaijan, was implemented in 1997-2003.
The overall objective of this five-year project was to support the Government in its efforts to reform the agricultural sector through a pilot operation that targeted to farm privatization issues.
Project components were farm privatization support services, rehabilitation of main irrigation and drainage systems, community and women's development and project management.
This project in Azerbaijan had a significant impact on the country’s legal framework and agrarian reform strategy.
Total cost: US$ 28.8 million
IFAD Loan: US$ 9.3 million
The second project contributed by IFAD was Rural Development Programme for Mountainous and Highland Areas that covered five districts (Gadabey, Lerik, Shahbuz, and Gabala and Guba) and was implemented in the period from 2001 to 2009.
This programme covered the mountainous regions of Azerbaijan and Georgia. It had the aim of sharing knowledge and expertise to overcome common constraints and encourage synergies in mountain developments between the two countries. It was intended to be the first phase of a long-term development programme to be replicated in other mountainous areas. The programme addressed the specific needs of the communities of diverse ethnic groups living in districts with different types of mountainous terrain, different kinds of livestock management and crop production systems, and different climatic variations.
The programme was targeted on districts where a high proportion of the population live above an altitude of 500 meters, and where about 44 per cent of the people live above 1,000 meters. Farmers in these remote areas face difficulties including plots that are small on average and are often located on steeply sloping or degraded land, and a lack of pasture for grazing livestock.
The programme's objective was to improve living conditions and raise incomes for mountain communities in a way that is sustainable, while helping protect and restore the environment. Programme activities include:
- strengthening local capacity for better participation in the market economy; - improving access to financial, technical and commercial services; - developing community-based institutions responsible for rehabilitating and protecting the environment; - raising productivity for livestock and crops; - supporting the development of processing and marketing initiatives.
Total cost: US$ 10.0 million.
IFAD loan: US$ 9.0 million.
Thirdly, IFAD contributed to the North-East Development Project which will cover four districts in the north-east of the country and be implemented in the period from 2006 to 2012.
The project is located in a region that has a particularly high incidence of rural poverty. In 2002 an estimated 58 per cent of the local population was poor, and one quarter of them were extremely poor.
The general goal is to improve living conditions for households that depend on irrigated agriculture in the target area, by supporting increased food security and income-generating opportunities. Most of the households targeted have received plots of land through the privatization scheme.
Azerbaijan depends on a large extent of the irrigated sector for rural employment and for national food security. Neglect and lack of maintenance have made the extensive Soviet-era irrigation and drainage system extremely inefficient, leading to a decline in agricultural productivity. By 2002 the irrigation infrastructure in the target area was so degraded that only about 44 per cent of the area was under irrigation. The system needs major rehabilitation and improved management to ensure that it is carefully maintained and efficient in the future.
The project helps rehabilitate an irrigation area of about 30,300 hectares. Specific activities include:
- helping water users’ associations establish systems that are financially viable, equitable and sustainable; - helping small-scale farmers increase food production by introducing improved technologies; - improving marketing and processing opportunities; - making rural financial services available to small-scale farmers and other.
Total cost: US$ 25.1 million
IFAD loan: US$ 12.6 million
Lastly, the Rural Development Project will cover four districts (Agstafa, Gazakh, Shamkir and Tovuz) in north-west Azerbaijan. The loan agreement of this project was signed at the IFAD headquarters in Rome on June 17, 2008 by the President of IFAD Lennart Bàge and Ambassador of the Republic of Azerbaijan to Italy H.E. Mr. Emil Karimov. The duration of this project is designated to cover a five-year term.
Most people living in north-west Azerbaijan depend on irrigated agriculture for their livelihoods, but the local irrigation system is deteriorating because of neglect, lack of maintenance and lack of resources.
The main objectives of the project, which is directly supervised by IFAD, are to:
- rehabilitate irrigation infrastructure and introduce participatory irrigation management practices with the aim of ensuring efficient and sustainable system management; - ensure delivery of advisory services, technology transfer, and financial and enterprise support services, and establish a sustainable microfinance system with significant outreach into rural areas; - strengthen the capabilities of communities to look after their own affairs and plan and implement their own development initiatives more effectively.
The project will help small farmers and pastoralists improve crop and livestock productivity and diversify their incomes, while assisting them as they organize themselves to gain access to the many support services available from other agencies and projects in the area. The activities are focused on the most disadvantaged groups and on women.
The loan includes an allocation for technical assistance that will be used to:
- provide guidance for institutionalizing effective participatory irrigation management practices; - assist microfinance institutions in developing new products and marketing strategies and upgrading financial management; - help community-based associations acquire needed organizational, business and resource management skills.
Total cost: US$ 30.0 million
IFAD loan: US$ 17.2 million
On November 19, 2009 Mr. Ismat Abasov, Minister of Agriculture of Azerbaijan, had a meeting with Dr. Kanayo Nwanze, President of IFAD, where various aspects related to cooperation between Azerbaijan and IFAD and other matters of mutual interest were discussed.
On June 21-24, 2010 Mr. Kanayo Nwanze, President of IFAD, paid a visit to the Republic of Azerbaijan to attend the 21st Islamic Development Bank Annual Session.
On June 23, 2010 Mr. K. Nwanze was received by H.E. Mr. Ilham Aliyev, President of the Republic of Azerbaijan.
During the meeting President Ilham Aliyev gave advice regarding the achievements in agriculture and noted that the development of this sector is the number one priority challenge to be addressed. Mr. K. Nwanze congratulated President Ilham Aliyev on the notable development in the economy of the country from the day of its independence gained, and underlined the importance of such achievements for Azerbaijan. Also during the meeting various aspects related to the prospects of cooperation between Azerbaijan and IFAD and other matters of mutual interest were discussed.
In the framework of his visit to Azerbaijan, Mr. K. Nwanze had meetings with Prime Minister Mr. Artur Rasi-zade and Minister of Agriculture of the Republic of Azerbaijan Mr. Ismat Abasov during which relations and future cooperation prospects between Azerbaijan and IFAD were discussed.
