Water Company Developing Feasibility Study of Water Supply System Improvement in Azerbaijan
Azerbaijan, Baku / corr Trend S.Babayeva / Nizameddin Rzayev, Head of Azersu JSC, reported on 20 April that a credit agreement between the World Bank and Azerbaijan Government on the project of improvement of the water supply and sewerage of small cities in Azerbaijan might be signed in July-August 2007.
At present the feasibility study of the project is under way which will target the rehabilitation of the water supply and sewerage systems of twenty districts (Agstafa, Bilasuvar, Goranboy, Gabala, Guba, Saatly, Oguz, Khanlar, Tovuz, Zakatala, Hajigabul, Gazakh, Gakh, Mingachevir, Sabirabad, Samukh, Shamkir, Terter and Babek and Sharur districts of the Nakhchivan Autonomous Republic).
The WB will allocate $230mln for the restoration of the water and sewerage systems. The loan will be allocated in two equal installments ($115mln) through the International Bank for Reconstruction and Development for the period of twenty years with a five-year grace period.
According to the WB Strategy of Partnership with the Government of Azerbaijan (2007-2010), the project's credit is expected to be approved for the 2007 fiscal year. In 2007-2010, $200mln more will be spent on the development of the national water supply and sewerage system of Azerbaijan.