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IFC is implementing or has completed the following advisory projects:
The Challenge Although Azerbaijan has seen large foreign investments coming into its oil and gas sector, local SMEs have difficulty accessing medium- and long-term funding. Therefore, they’re unable to expand their operations and participate fully in the oil and gas supply chain. Azeri banks have perceived these contractors as highly risky, and typically require high collateral (generally 150% of the loan amount). As a result, local SMEs have not been able to access financing on competitive terms. The IFC Approach IFC partnered with BP to help local SMEs participate more fully in the supply chain. IFC and BP have established the Supplier Finance Facility, a $15 million facility for BP’s local suppliers that is operated by the Micro Finance Bank of Azerbaijan (MFBA). To help SMEs access financing through the Supplier Finance Facility, the project identifies promising local suppliers of BP and works to build awareness of the SFF. The project also provides training on microfinance lending to MFBA’s loan officers (through its implementing partner LFS Financial Systems), to support MFBA’s expansion into three underserved regions of Azerbaijan. Achievements to Date as of July 1, 2008 Azerbaijan and Central Asia Primary Mortgage Market Development Project Phase 1, 2005 – 2006, supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO) Phase 2, 2006 – present, supported with funds from the Ministry of Economic Affairs of the Netherlands and the State Secretariat for Economic Affairs of Switzerland (SECO) The project focuses on improving the housing finance legislative framework in Azerbaijan and Central Asia by building institutional capacity for mortgage lending and raising mortgage awareness. By partnering with policymakers, banks, and key stakeholders in the mortgage market, the project works to increase access to affordable housing in Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan.  More...Azerbaijan-Central Asia Leasing Facility www.ifc.org/acalf 2005 – present Supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO) The project facilitates the development of the leasing industry in Azerbaijan, Kyrgyz Republic, Tajikistan and Uzbekistan by strengthening the capacity of selected financial institutions, improving their Management Information Systems, and facilitating improvements in the regulatory framework for leasing in each country. More...Azerbaijan Corporate Governance Project www.ifc.org/acgp 2003 - present Supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO) The project works to improve corporate governance practices at Azerbaijani joint stock companies and banks, thus helping them enhance their operations and increase their ability to attract financing and investment. To strengthen the national level of corporate governance, the project works with policymakers to improve corporate governance regulations throughout Azerbaijan. The project partners with educational institutions to assist them in developing corporate governance courses. The project also conducts a national public awareness campaign on the importance of corporate governance. More...SME Linkage Program 2002 Funded by IFC and Private Oil Companies This program, which is linked to IFC’s proposed investments in the Azeri, Chirag, and Deepwater Gunashli (ACG ) oilfield and the Baku-Tbilisi-Ceyhan (BTC) pipeline projects, is part of the Corporation’s strategy of working closely with clients and partners to provide developmental support through linkages to major investment projects. Linkage projects have been particularly successful in the extractive industries. The support is directed at expanding local supply and distribution chains to create more opportunities for smaller businesses and to assist in sustainable community development efforts. Specifically, the Azerbaijan small and medium enterprise linkage program is designed to improve the capacity and know-how of local Azeri companies active in the oil and gas service and supply sectors in order to help them benefit from investments in the oil industry. The Program’s clients benefit from (i) provision of targeted advisory services, (ii) improved access to finance and (iii) the creation of local business development service providers. | SITE TOOLS  
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