The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-Hoon, "Korea Eximbank") announced on April 13 that it will provide a combined USD 65.5 million in EDCF* loans for the "Pirshaghi Sewage Treatment Plant Project" and the "Vocational Training Center Project" in Azerbaijan.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee.

Executive Director Yim Seong-hyeog of the EDCF Operations Group at Korea Eximbank met with Azersu (national water operator) Chairman Qorkhmaz Huseynov and Minister of Education Mikayil Jabbarov, and signed the two EDCF loan agreements in Baku, Azerbaijan, on April 11.

These are the first projects in Azerbaijan to be funded by EDCF.

The Pirshaghi Sewage Treatment Plant Project, for which EDCF will lend USD 43.5 million, is aimed at building sewage treatment facilities serving 11 areas near Baku, the capital city of Azerbaijan.

Upon completion, the project is expected to improve not only the living condition of the residents in the areas served, but also the overall environment of the country through enhanced water quality control in the Caspian Sea.

EDCF will also provide USD 22 million for the Vocational Training Center Project.

The purpose of the project is to train skilled human resources by passing on Korea’s vocational training system and know-how to Azerbaijan. Specifically, EDCF will help the country build a training center near Baku as well as provide equipment, develop teaching materials, and dispatch experts.

Once completed, the facility is expected to play a conspicuous role in training professionals in the basic fields of technology and thereby to lay the foundation for Azerbaijan’s continued economic growth.

After the signing ceremony, Executive Director Yim remarked, "Azerbaijan, with its abundant natural resources, is considered an important economic partner to Korea especially in the context of President Park Geun-hye's Eurasia Initiative," adding that "These projects will go a long way toward promoting the export of Korea's advanced technology to Azerbaijan and more broadly to Central Asia."

Azerbaijan is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west and Iran to the south.

It has a land area two-fifths that of the Korean Peninsula, with a population of 9.6 million.

With its rich reserves of oil and natural gas, the country has become a magnet for Korean investment in recent years.