Azeri iodine plant - is this local development?
Publisher: CEE Bankwatch Network
Volume: 4 pages, pdf
Description:
In 2008 the European Bank for Reconstruction and Development (EBRD) approved a USD 15 million senior loan for the USD 17 million Azer-Yod LLC iodine manufacturing project in Azerbaijan. The loan has been used for the purchase and installation of a new industrial line and acquisition of additional equipment which is to help increase the enterprise’s output and capacity. The majority of the plant’s products will be exported. The EBRD specifies that the project will contribute to development of the local private sector as well as regional economic diversification. The plant is located near Hasanabad, in the Neftchala district, 175 kilometres from the capital of Azerbaijan, Baku. The Neftchala district has been experiencing frequent disruptions of water and electricity supplies. The gas supply has also been unreliable, especially in winter, due to low gas pressure. As a result of these complications inhabitants are abandoning the countryside and moving to the city in pursuit of better living conditions. However, the lives of locals are made even worse because of environmental problems caused by the iodine plant.