Azerbaijan, Baku /corr. Trend I.Khalilova / The World Bank (WB) and the Government of the Azerbaijan Republic signed a loan agreement for the $230mln National Water Supply and Sanitation Project for Azerbaijan. The loan agreement was signed by the Azerbaijan Minister of Finance, Mr. Samir Sharifov, and WB Country Manager for Azerbaijan, Mr. Gregory T. Jedrzejczak, a source at the WB Baku office reported. In addition, a project agreement was signed with the Head of Azersu JSC, Nizameddin Rzayev.
The total budget of the project and its components were estimated at $310mln, with $230mln to be allocated by the WB and the remaining funds to be allotted by the Azerbaijani government.
Two regions of the Nakhchivan Autonomous Republic (NAR) were included in the project and therefore, one more project agreement was signed with the Prime Minister of Nakhchivan, Alovsat Bakhishev.
The project, approved by the WB Board of Directors on 14 June 2007, includes three components.
In the first stage, work will be carried out in ten Azerbaijani regions (Agstafa, Bilasuvar, Geranboy, Gabala, Guba, Saatli, Oghuz, Khanlar, Tovuz, Zagatala, Hajigabul, Gazakh, Gakh, Mingachevir, Sabirabad, Samukh, Shamkir, Tartar as well as Sharur and Babak (the Nakhchivan Autonomous Republic). The project covers twenty regions of the country.
The second component finances the formulation of a Regional Development Plan for Greater Baku, which will provide the framework for future infrastructure investments (including water and sewerage investments) across the Absheron Peninsula.
The third component supports the development and implementation of key reforms needed for the modernization of Azersu and its subsidiary companies, as well as to the State Amelioration and Water Management Agency in Nakhchivan, in order to improve the efficiency and sustainability of Water Supply and Sanitation services.
The implementation of the project will be completed by 2012.