Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 31 Jan 2007
PDS Updated as of 21 Oct 2013

Project Name Urban Water Supply and Sanitation
Country Azerbaijan
Project/Program Number 35087-013
Status Approved
Geographical Location Agdash, Goychay, and Nakhchivan
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Water supply and other municipal infrastructure and services
/ Water Supply and Sanitation
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2119Asian Development Fund20,000
Loan2120Ordinary capital resources10,000
Counterpart 9,900
TOTAL US$ 39,900

Safeguard Categories

For more information about the safeguard categories, please see

Environment B
Involuntary Resettlement C

Summary of Environmental and Social Issues

Initial environmental examination (IEE) was carried out for all subprojects and shows no significant adverse environmental impact. The IEE was approved by the Ministry of Ecology and Natural Resources of Azerbaijan.

Environmental Aspects
Initial environmental examination (IEE) was carried out for all subprojects and shows no significant adverse environmental impact. The IEE was approved by the Ministry of Ecology and Natural Resources of Azerbaijan.
Involuntary Resettlement
The Government will ensure and cause AzerSu to ensure that the construction of WSS services will be on the existing right-of-way or on state-owned land. The Project will not entail land acquisition from private ownership, and no persons will be adversely affected in terms of ADB's Involuntary Resettlement Policy (1995). In the event of unforeseen land acquisition from private ownership and/or resettlement, the Government and/or AzerSu will prepare and have necessary planning documents approved by ADB before award of civil works contracts, and implement any such resettlement measures in accordance with ADB's Involuntary Resettlement Policy (1995).
Indigenous Peoples
Most of the population in the project areas are Azeris; the Project will not affect any ethnic minority.

Stakeholder Communication, Participation and Consultation

During Project Design
Extensive public consultations took place during project preparation. As part of the Project s preparation a Social Assessment (SA) was undertaken between April 20th to June 15th 2003 to provide a picture of the existing user behaviour and needs, and to develop a participatory framework to ensure a sustainable water supply and sanitation project. The SA process included project household surveys; focus groups meeting; stakeholder consultation, and informal interviews with vulnerable groups and other members of the community to assess the realities of water. Public consultation to-date has played an important role in the preparation process to screen design options to minimize social and environmental impacts. Further public consultations will take place once the project begins, and within this process, the necessary documentation as needed for the consultative process will be made available in the Azeri language.
During Project Implementation
Consultations were held with Town Water Users' Association.


The project objective is to improve the quality, reliability, and sustainability of WSS services in the towns of Agdash, Goychay, and Nakhchivan. This objective will be achieved through (i) construction of new optimally sized water supply and sanitation infrastructure and strategic rehabilitation of selected facilities; and (ii) establishment of new water utilities as open joint stock companies (JSCs), and creating in them operational and managerial capacity by engaging the services of an experienced international operator on the basis of a performance-based management contract.

Project Rationale and Linkage to Country/Regional Strategy

To be determined. In the adoption of the State Program for Poverty Reduction and Economic Development, the Government stated its intentions to improve the performance of municipal WSS systems. The Government s recent focus on the development of regional infrastructure, including the WSS, is in line with its general policy to support non-oil development, particularly the utilities sector Also, a State Program on Socio-Economic Development of the Regions was recently adopted, which includes the proposed Project in the three towns

Development Impact

Improved living and health conditions of the population in the project area

Project Outcome

Description of Outcome
Provision of safe, reliable, and sustainable water supply services in Agdash, Goychay, and Nakhchivan
Progress Towards Outcome
Water intake facilities constructed in three towsn. Water is being supplied to Nakhchivan. On completion of new networks under the Water Supply and Sanitation Investment Program, water will be supplied in Agdash and Goychay.

Outputs and Implementation Progress

Description of Project Outputs
Constructed and rehabilitated water supply intake infrastructure Three new WSS utilities in the form of JSCs are established, and a foundation for their sustainable operations and management is instituted
Status of Implementation Progress (Outputs, Activities, and Issues)
Water intake works were commissioned in Agdash (November 2009) and Goychay (January 2010). Water intake works in Nakhchivan are complete and the executing agency proposes to construct a water treatment plant, under the recently approved Azerbaijan Water and Sanitation Investment Program. JSCs in three towns were established in 2008.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2007 Jan 31
Consulting Services
The Government will select and engage an international consulting firm in association with domestic consultants in accordance with ADB's Guidelines on the Use of Consultants, and other arrangements satisfactory to ADB for the engagement of domestic consultants. The consulting firm will assist the EAs and the PMUs in project implementation and management, preparation of detailed design, procurement and contracting, construction supervision, finance and accounting, and social and poverty assessments. The international consulting firm will be recruited using ADB's Quality and Cost-Based Selection (QCBS) method. A transaction adviser engaged under the associated TA will assist with recruitment of the MC for the operation and management of the new WSS utilities. The proposed MC will be recruited in accordance with ADB's Guidelines on the Use of Consultants, using the QCBS method with appropriate adjustments. The Project will provide about 68 person-months of international and 570 person-months of domestic consulting services to support project implementation, including detailed design and supervision. Consulting services will cover (i) project management, (ii) WSS engineering, (iii) detailed engineering design and construction supervision, (iv) financial management and accounting, (v) a WSP specialist, (vi) a procurement specialist-contract engineer, and (vii) a social specialist. Outline terms of reference (TORs) and overall details of the project are reflected on ADB web site ( Eligible firms having international association and sufficient experience, desirous of undertaking the assignment are invited to express their interest immediately to the undersigned stating background of their organization and details of professional experience to be assigned to deliver the required service.
Civil works estimated to cost more than $1 million and equipment and materials above $500,000 will be contracted using the international competitive bidding (ICB) procedures. Civil works valued at $1 million equivalent or less will be contracted out using the local competitive bidding (LCB) procedures in accordance with the tendering and bidding law and related regulations acceptable to ADB. Equipment and materials packages valued at or under $500,000 will be procured through international shopping (IS) procedures.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 24 May 2004 to 11 Jun 2004
Management Review Meeting 01 Jul 2004
Approval 07 Dec 2004
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2119 07 Dec 2004 29 Nov 2005 27 Oct 2006 30 Jun 2011 30 Nov 2011
Loan 2120 07 Dec 2004 29 Nov 2005 27 Oct 2006 30 Jun 2011 06 Feb 2012


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
01 Aug 2014 Loan 2119 20,549 0 98.00%
01 Aug 2014 Loan 2120 9,357 0 97.00%
Cumulative Disbursements
01 Aug 2014 Loan 2119 20,928 0 100.00%
01 Aug 2014 Loan 2120 9,671 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2119
Loan 2120

Contacts and Update Details

Responsible ADB Officer Vijay Padmanabhan (
Responsible ADB Department Central and West Asia Department
Responsible ADB Divisions Urban Development and Water Division, CWRD
Executing Agencies AzerSu Joint Stock Company (AZERSU)
Farid Mammadov

State Comm Urbn Plnng & Arhtcture of Nakhichevan
Asgar Asgarov


Project Website
List of Project Documents