ADB to announce tender on water project in Azerbaijan

Business Materials 9 January 2012 16:41 (UTC +04:00)

Azerbaijan, Baku, Jan.9 / Trend N.Ismayilova /

The Asian Development Bank (ADB) plans to announce tender on determination of contractors under the second tranche to improve water and sanitary services in Azerbaijan until the end of the first quarter, ADB Baku Office told Trend on Monday.

The visit of the Bank's review mission to discuss preparatory work for the project is expected to be in February, 2012. "But we should first have to present loan contract approved by the bank to the country's government for signing," the Bank said. The Bank also reported that tenders will be announced to select contractors to create distribution networks in Goychay, Agdash, and Beylagan. "The project also envisages inviting contractors to construct sewer facilities," the ADB office said.

The ADB management approved allocation of the second tranche to improve water and sanitary services in Azerbaijan in early 2012. The loan will be used for completion of work on water and sanitation improvement in Agdash, Goychay, Nakhchivan and Beylagan.

To date ADB has financed two water supply and sanitation improvement projects in Azerbaijan. The first, a $30 million loan assigned in 2004, saw the rehabilitation of the water supply system in Gekchay and Nakhchivan, under a project valued at a total of $39.9 million. That loan period expired on June 30, 2011.

As the cost of the project, approved for five years, increased and in order to give full coverage of works in the above regions, ADB assigned $75 million under the MFF as the first tranche, whereas the Government of Azerbaijan assigned $25 million. The loan, amounting to $300 million, will be allocated in the frame of the second tranche which was approved in early 2012.

All the project works have been completed. These include the construction of water intake and Azersu district offices.

Gemi Qaya is selected as a contractor for the construction work in Nakhichevan, and the executor of the project in this area is the State Committee for Land Reclamation and Water Management of the Nakhchivan Autonomous Republic.

In late 2011 the contractor invited to work on the Goychay project was the Turkish company, Atinak. The second contractor will be determined under the planned tender.

The MFF was approved to the sum of $600 million by the ADB Executive Board in September 2009. The ADB plans to approve the third, $175 million tranche of the loan on December 31, 2012.

The multi-tranche financing has been the basis of 8-years of cooperation between the ADB and the Government of Azerbaijan, taking into account step-by-step investment, supported by the strategy and the program of reforms in water and sanitation areas.

The consultant of joint-stock company, Azersu, under the Project is consortium AICO Consulting Ltd./European Consultants Organization.