Business Opportunities

printer friendly version

TA 4465: Institutional Strengthening of the Water Supply and Sanitation Sector in Secondary Towns

AzerSu JSC
State Committee for Contstruction and Architecture of Nakhchivan Autonomous Republic
Tel. No. : 0099412-300131
Address : 67m Tbilisi av. Baku, 370112, Azerbaijan

TA Amount: (US$'000): 500.0

Objectives and Scope:

The WSS sector in Azerbaijan is characterized by institutional weaknesses, inefficient operations, outdated and dilapidated physical infrastructure, and severe financial constraints. As a result, consumers receive poor quality and low levels of WSS services. To improve the quality, reliability, and sustainability of WSS services in the towns of Agdash, Goychay, and Nakhchivan, ADB will provide a loan for the Urban Water Supply and Sanitation Project. In addition to physical infrastructure construction and rehabilitation, the Project will establish new water utilities in the project towns and create in them operational and managerial capacity by engaging the services of an experienced international operator on the basis of a performance-based management contract (MC). The Project will pilot test approaches for the WSS sector as a basis for sector-wide reforms in the country's secondary towns. The objective of this technical assistance (TA) associated with the loan is to help the Government to develop a cohesive policy for the operation and management of WSS services in the secondary towns, and to establish the JSCs within the context of effective legal, regulatory, administrative and institutional frameworks. The TA scope will include providing advice, guidance and assistance to the Government on

1. establishment of JSCs, development of their corporate structures based on the principles of good corporate governance, and training of the JSC Board members and staff;
2. the legal and institutional framework, human resources management strategy, and financial and accounting measures for the closure and liquidation of the existing SuKanals;
3. appropriate transaction advisory services for MC to be engaged to run the JSCs in the early years, including measurable performance criteria and an incentives-based remuneration structure;
4. development of project management procedures, and assistance to the PMUs on project implementation issues; and
5. support to public awareness and education campaign on WSS tariffs increases and water conservation.

Consulting Services:

An international consulting firm in association with domestic consultants will be engaged in accordance with ADB's Guidelines on the Use of Consultants by the ADB and Its Borrowers, and other arrangements satisfactory to ADB for selection of domestic consultants. The Quality Based Selection (QBS) method will be used for recruitment of the consulting firm due to the multi-disciplinary nature and complexity of the required tasks, and alternative methods and mix of expert skills for carrying out the TA.

It is preliminary estimated that the international expertise could include

1. institutional development specialist with experience in corporatization of (WSS) utilities, their commercialization, and legal issues;
2. transaction advisor for design and recruitment of MC;
3. project management specialist; and
4. legal support

The domestic expertise may include

1. legal expert with background and experience in Azerbaijan corporate law, restructuring of state-owned enterprises, corporatization, and regulation;
2. institutional expert with broad experience in WSS sector;
3. project implementation specialist;
4. social expert with experience in restructuring of state utilities; and
5. financial and other expertise as required.

Advance action for recruitment of consultants is approved by ADB Management.

Project Processing Stage: Approved by the Bank on 7 December 2004

Recruitment of Consultants: Expected to take place as soon as possible. Expression of interest is still accepted.

Project Officer:
Shane J. Rosenthal (632-6746)
Social Sectors Division, ECRD
E-mail: tsrosenthal@adb.org