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Azerbaijan appeals to World Bank for additional water project financing

Business Materials 22 January 2013 13:30 (UTC +04:00)

Azerbaijan, Baku, Jan. 22 / Trend I. Khalilova /

The Azerbaijani government intends to apply to the World Bank (WB) to obtain additional financing for its first project to improve the water supply and sewerage services in the country.

Azersu (Azerbaijani national water operator) told Trend on Monday that it planned to complete evaluating the project to determine the need for additional funding by mid-February.

The project covers the complete restoration of the water supply and sewerage system in the Shamakhi, Gabala, Saatli and Sabirabad regions. As a result of changing the design of the project, the need for additional resources was revealed for the last three regions.

"Additional funding is required to repair the waste water runoff facilities and construct a water pipe beginning from the Kura treatment plant which will provide the Qabala, Saatli and Sabirabad regions with drinking water," the company said.

The WB allocated $230 million for the first water project at a total cost of $310 million. The government allocated $80 million to finance the project. Initially, the project included 22 regions, but their number was reduced to four as a result of restructuring.

The project implementation period was extended until the end of February 2013 due to the unfinished work, whereas it was planned to be completed in January 2012.

The project will be implemented in parallel with the second national project concerning the water supply and sewerage services in Azerbaijan which must be completed in late February 2013. The number of regions covered by the second project has been also reduced from 20 to eight. As a result, the project will cover the full restoration of water and sewerage system in the Siyazan, Shabran, Agsu, Ismayilli, Masalli, Lerik, Yardimli and Jalilabad regions.

WB allocated $230 million through the International Bank for Reconstruction and Development and 30 million through IDA for the second water project at a total cost of $410 million. The government allocated $150 million to finance the project.

Azerbaijan has been a WB member since 1992.

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