OREANDA-NEWS. February 11, 2008.State Oil Company of Azerbaijan (SOCAR) has conducted public discussion of a programme of a future WBG project on ecological cleaning of Absheron oil polluted areas.

In the course of debates Javad Jabrailov, deputy chief of the SOCAR Department of Ecological Operations, said that on the basis of surveys it was selected three plots to be financed at the expense of a WBG loan.

The plots covers areas Mashtaga-Buzovna, Gala and Bibi-Eybat that have been recognized the most polluted. We have made a project feasibility study that has been submitted to the government and WBG,” Jebrailov said.

Besides, the best methods of cleaning of oil polluted lands have been discussed.

The Azerbaijani government is planning official project talks with WBG later this April and consideration of the issue by the WBG Board of Directors is scheduled for this June. WBG expects to disburse a $152 million loan for the project, but this amount can be changed as Azerbaijan has implemented the project programme partly.

The WB evaluation mission to specify the project budget is expected to visit Baku this month.

On December 12, 2007, within the Baku trip of WBG vice president for Central Asia & Europe Shigeo Katsu it was organized a visit to the Absheron Peninsula to familiarize with the situation. Thereby WBG stated of readiness to finance around $100 million to Azerbaijan for this project and possible increase of financing in case volume of works increases.

Earlier Azerbaijan was ready to raise $60-70 million from WBG, equally through IDA and IBRD. But currently total area of oil polluted lands on the Absheron Peninsula is 33,300 hectares, including 15,000 ha under authority of SOCAR. SOCAR allocated AZN 63 million for cleaning and recultivation of lands and State Budget AZN 18.5 million.

For next few years WBG is ready to finance $250-300 million for cleaning of ground waters, utilization of household wastes, cleaning of radio-active wastes of iodine-bromine production and cleaning of oil polluted lands. Up to $75 million will be allocated for the last two directions and cost of the first two is estimated much more.