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IDB launches consultations on financing for construction of first waste incineration plant in Azerbaijan

Business Materials 9 March 2010 17:57 (UTC +04:00)

Azerbaijan, Baku, March 9 / Trend I.Khalilova /  

The Islamic Development Bank (IDB) has initiated consultations with the Azerbaijani government on the project to build the first waste incineration plant with a capacity of 500,000 tons in Azerbaijan, IDB representative in Azerbaijan Tamerlan Tagiyev said today.

The bank sent a mission to Azerbaijan, which included the specialists from the technical, financial, legal departments, environmental experts and consultants," he said. "The mission will hold discussions in the Ministries of Finance and Economic Development, as well as at JSC Tamiz Shahar".

The mission will stay in the country until March 14.

The draft three-year program on cooperation of IDB with the Azerbaijani government provides allocation of loan of $120 million in 2011. However, if the relevant project documents are developed earlier, it can be approved in the earlier, the government believes.

In June 2009, the Azerbaijan Economic Development Minister, the country manager of the bank Shahin Mustafayev  met with IDB President Ahmad Muhammad Ali in Ashgabat during 34th meeting of Governors and appealed the Bank to accelerate the allocation of loan worth €100 million for this project.

The cost of the project is estimated at 346 million euro for 36 months.

The French company CNIM is the contractor of the project. The company has extensive experience in this field. It has built more than 120 waste burning plants worldwide. Currently, preparatory work is underway to start construction. The plant will be built within three years plus two years - the period of identifying defects and the next 20 years - the term of the operation CNIM.

Launch of the plant will reduce domestic wastes 10 times in Baku and three times in weight.

The plant is constructed on an area of 20 hectares not far from Balakhani polygon with a capacity of 500,000 tons of solid waste management per year. The plant is able to accept medical waste incineration in quantities up to 10,000 tons per year. The plant will use 231.5 million KW per hour of electricity per year for waste incineration. The plant will be commissioned in September 2012.

All technical issues concerning electric power transmission and issues related to tariffs will be discussed before putting the plant into operation.

Waste incinerators will have two lines each with a capacity of 250,000 tons and a power generation turbine. According to the project, the plant's power can be increased to 250,000 tons in the future. Precipitation ash may be used for the road construction.

So far, 80 percent of all household waste generated in Baku and Absheron was sent to Balakhani polugon for open dumping.

In 2008, Azerbaijani Economic Development Ministry entered into a contract with the French CNIM type "key" (turn-key), which will be implemented on a DBO (Design - Build - Operate). This means that the responsibility for the design, construction and management of the plant will be assigned to one contractor CNIM.

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