IFC is implementing or has completed the following advisory projects:
CURRENT PROJECTS
Azerbaijan & Central Asia Microfinance Transformation Support Project
Azerbaijan Business Enabling Environment Project
Azerbaijan-Central Asia Leasing Facility
Azerbaijan Corporate Governance Project
Azerbaijan Energy Efficiency Survey Project
Azerbaijan and Central Asia Primary Mortgage Market Development Project
Micro Finance Bank of Azerbaijan/Supplier Finance Facility Project
SME Linkage Program
COMPLETED PROJECTS
CURRENT PROJECTS
Azerbaijan & Central Asia Microfinance Transformation Support Project
2008 – present
Supported with funds from the Ministry of Foreign Affairs of the Netherlands and IFC
The Project is centered in Almaty and its objectives are to assist and support Micro Finance Institutions (MFIs) based in Azerbaijan, Tajikistan, the Kyrgyz Republic, and Kazakhstan. It focuses on those institutions that wish to transform their activities from being traditionally credit based to being able to provide their customers with a broader range of financial services. Normally these services would include the acceptance of deposits and could also require profiling of institutions before they are able to obtain a full banking license.
In keeping with the IFC strategy for Central Asia, which is to support competitiveness of the private sector in areas with social development aspects such as micro loans to the poor, IFC brings additionality through the Project by aiming to combine advisory services with investment funds. This leverages the effectiveness of both components in enabling MFIs to expand their outreach and services and thereby help their clients to raise their standards of living and improve their livelihoods.
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Azerbaijan Energy Efficiency Survey Project
2008 – present
Supported with funds from IFC
The main goal of the project is to assess the current market for energy efficiency financing in Azerbaijan and to raise awareness among local financial institutions, small and medium enterprises (SMEs), and policy makers about existing opportunities for energy efficiency financing in the country. Similar surveys have been conducted in Russia, Ukraine, Armenia, Georgia, and Belarus.
By identifying best practices in SME energy efficiency and finance, the survey will also provide benchmarks with other countries and might lead to a more comprehensive program to increase energy efficiency in Azerbaijan and the region.
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Azerbaijan Business Enabling Environment Project
www.ifc.org/azbee
2008 - present
Supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO) and BP on behalf of its co-venturers
The project works to improve the business climate in Azerbaijan by streamlining select administrative procedures, such as registration, permits and licensing, thereby removing key regulatory barriers to business entry and operations.
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Micro Finance Bank of Azerbaijan/Supplier Finance Facility Project
2007 – present
Supported with funds from BP and its Oil & Gas Partners
The project leverages the large oil and gas presence in Azerbaijan to help develop local SMEs around BP’s supply chain. The project works to expand access to finance for local suppliers through the $15 million Supplier Finance Facility and Micro Finance Bank of Azerbaijan.
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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.
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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.
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The Challenge
In 2005, aimed at further development and increase of leasing industry in the region, IFC established the $30 million Azerbaijan-Central Asia Leasing Investment Facility (ACALF). The Facility evolved out of former SECO-funded leasing market development projects implemented by IFC in the region. In addition to investments, a more company targeted advisory services effort was required to build institutional capacity and in particular to strengthen the leasing business of institutions.
The IFC Approach
IFC launched a three-year dedicated Advisory Services Project that works closely with 12 Participating Financial Institutions (PFIs) to strengthen their leasing practices and procedures. The project provides training in 18 modules that cover a range of topics including corporate governance, risk management, leasing policies, internal control and audit. The project also offers the companies individual consultations to develop internal policies, guidelines, and procedures tailored to each participating institution. It also helps each PFI upgrade Management Information Systems to meet international standards. To improve the regulatory framework for leasing, the project also works with governmental bodies on policy aspects related to leasing.
Achievements to Date as of July 1, 2008
- Contributed to a market growth in leasing of $234.1 million in Azerbaijan and Central Asia since 2001
- Participating Financial Institutions (PFIs) have engaged in more than $110 million in leasing transactions since working with the project and have implemented 47 new policies and procedures
- Over 2007, PFIs increased their leasing portfolio by 44%
- The project has enabled client companies to attract $29 million in additional investment
- Helped governments draft and adopt 7 laws to facilitate leasing, including amendments to the Tax Code of Kyrgyz Republic and a new Tax Code in Uzbekistan
- The project developed 31 training modules, training 576 people in areas such as risk management, HR management, financial analysis, and monitoring of leases
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.
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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.
