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Azerbaijan, WB ink loan agreement on complex management with domestic wastes

Business Materials 20 May 2009 14:50 (UTC +04:00)

Azerbaijan, Baku, May 20 / Trend /

A loan agreement was signed on the project on complex management with domestic wastes on May 21 as part of the ecological program implemented in Azerbaijan under the World Bank's financial support, the Economic Development Ministry reported.

Minister of Economic Development Shahin Mustafaev and World Bank Country Manager for Azerbaijan Gregory Jedrzejczak signed the contract with the WB.

The Economic Development Ministry's program envisaged forming a waste management system, to which the WB will issue loan worth $29.5 million, and Azerbaijan's part will be $41.5 million. It is planned to implement the project within 5 years. The loan is issued for 20 years.

The project provides not only analysis, but also the purchase of necessary equipment for the collection of waste, a certain work at landfill in Balakhani

Project activities will be implemented in five areas - institutional reforms, capacity-building and management, regulation and management  with the Balakhani solid waste, closure of sites and management of equipment for solid waste collection, development of an investment plan for the period after completion of the project.

Clean City JSC was established on the basis of the president's decree dated Aug. 6, 2008. "Clean City" will be engaged in deploying, disposing and recycling of household waste in Baku and Absheron, while cleaning and delivery of waste remains in the responsibility of the Baku City Administration. The main reason for the establishment of joint-stock company is to improve the environmental situation in the capital and Absheron.

Its work will be carried out in several key areas, particularly in the construction of the incineration plant for municipal waste with capacity of 500 thousand tons per year and production in the combustion process at 231 million kilowatt hours of electricity.

Another activity of "Clean City" JSC is to rehabilitate existing landfills for disposal of household waste in accordance with international standards, eliminate illegal landfills - the discharge of garbage, and  recycle in accordance with the overall development strategy.

Draft strategy for the management of solid wastes in Baku and Absheron has been developed by a consultant to the Ministry of Economic Development of Azerbaijan - the British Curry & Brown company. As part of a strategy, "Clean City" JSC was formed, originally as a 100-percent state-owned enterprise.

In the future, in line with the strategy, the municipalities and private sector may be involved for the various components (processing, transportation and disposal). The State may leave the joint-stock company in after a long period in 5-7 years.

According to official statistics, around one million tons of household waste is accumulated in Baku and beyond each year. There are three household waste landfills around Baku.

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