Baku, Azerbaijan, June 8
By Azad Hasanli - Trend:
The World Bank (WB) may extend the closing date of the Integrated Solid Waste Management Project Additional Financing by 18 months from Sept. 30, 2016 to March 30, 2018, read a WB report.
This restructuring is based on a request from Azerbaijan's Finance Ministry, dated May 27, 2016, according to the report.
Despite successful implementation, the remaining time prior to project closure in Sept. 30, 2016 will not be sufficient to complete remaining activities, said the bank in its report.
"First, rehabilitation works at Balakhani landfill slowed down considerably in the first half of 2016 due to unfavorable weather conditions," said the WB. "Works are now back on track, but will require additional time to be finalized."
"Second, an area of seven hectares in the southern part of the landfill originally planned to be rehabilitated had been eliminated from the scope of works due to high bid prices," said the bank adding that project savings following the devaluation of the Azerbaijani manat in December 2015 have now enabled this originally planned work to be implemented.
This work is expected to commence in June 2016 and be completed around April 2017, added the WB.
The report said also that following completion of all civil construction, permits need to be obtained from relevant state bodies for the operations of the new facilities - a process that may take several months of reviews and approvals.
Disbursements stand at $37.2 million, equivalent to 80 percent of the additional financing, said the WB.
"Activities under the Additional Financing (AF) are progressing well," said the report. "These include the second phase of rehabilitation of the Balakhani landfill, the development of a national solid waste strategy, national investment plan including six to eight feasibility studies and related environmental impact assessments, and review and amendments to the legal framework governing the sector."
The WB Board of Directors approved in June 2013 the allocation of an additional loan worth $47.1 million for the Solid Waste Management Project. The project's total cost is $55.6 million.
The main project on the solid waste management was approved in June 2008. Its total cost is $41.5 million. All activities under the parent project have been completed successfully. These include the first phase of rehabilitation of the Balakhani landfill, closure and remediation of 154 hectares of wild dumps, procurement of secondary collection equipment, technical assistance to improve the solid waste management system in Baku, and capacity building for the state owned waste management company "Tamiz Shahar".
The parent project is fully disbursed.
Azerbaijan joined the WB in 1992.