Azerbaijan: Water Supply and Sanitation Investment Program - Tranche 1

Sovereign Project | 42408-023

Summary

The Water Supply and Sanitation Investment Program (the Investment Program) will improve the quality and coverage of urban services in secondary towns and peri-urban areas surrounding Baku. It will benefit approximately 500,000 residents.

The Investment Program has three components: (i) constructing water supply and sanitation (WSS) infrastructure to boost service coverage, quality, and reliability (Component A); (ii) developing institutional effectiveness, including management and governance (Component B); and (iii) instituting program management facilities to oversee program implementation and treatment of technical requirements such as those for environment and social safeguards and gender mainstreaming (Component C).

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Water Supply and Sanitation Investment Program - Tranche 1
Project Number 42408-023
Country Azerbaijan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2571-AZE: MFF-Water Supply and Sanitation Investment Program, Tranche 1
Ordinary capital resources US$ 75.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Water Supply and Sanitation Investment Program (the Investment Program) will improve the quality and coverage of urban services in secondary towns and peri-urban areas surrounding Baku. It will benefit approximately 500,000 residents.

The Investment Program has three components: (i) constructing water supply and sanitation (WSS) infrastructure to boost service coverage, quality, and reliability (Component A); (ii) developing institutional effectiveness, including management and governance (Component B); and (iii) instituting program management facilities to oversee program implementation and treatment of technical requirements such as those for environment and social safeguards and gender mainstreaming (Component C).

Project 1 has three components: (i) Water Supply and Sanitation Infrastructure Development; (ii) Institutional Effectiveness; and (iii) Establishment of Program Management Facilities at Project Management Offices (PM0s) of AzerSu and SAWMA to Oversee Program Implementation.

Project Rationale and Linkage to Country/Regional Strategy

Following the dissolution of the Soviet Union, the quality and efficiency of water service delivery declined in Azerbaijan, due to poor management and inadequate investments. The existing WSS system is over 50 years old. Water supply sources are in a poor state of repair, and other modes of supply (e.g., through private vendors) are expensive and/or unreliable. Water treatment facilities in secondary and small towns are either absent or largely dysfunctional. Despite an 83% piped-network coverage rate in these towns, the majority of residents do not have access to safe drinking water. The sewage system is in even worse condition. Pipes are broken or clogged with silt and debris, and wastewater is discharged into ditches or the nearest watercourses. Poor sanitation and leaking sewers create serious health risks and environmental hazards.

Insufficient and unreliable infrastructure and services are adding to household costs and are diminishing the quality of life in secondary towns. An intensive program of reforms and organizational development targeting service delivery bodies, coupled with long-term capacity programs and investments, is now needed to meet the targets under the state program on poverty reduction and sustainable development for 2008 2015. These actions are also needed to ensure 24-hour water supply and 80% 85% coverage in secondary towns.

A set of sequenced reform actions and sector investments will bring improvements in service delivery. The Investment Program responds to these needs by adopting a long-term and holistic approach in improving institutions, capacities and systems, and service delivery.

Impact Improved public health and environment in participating towns
Project Outcome
Description of Outcome Improved coverage, and the continuity and quality of water supplies and wastewater disposal in participating towns.
Progress Toward Outcome Works for water supply and sewerage system were completed in Nakhchivan and are at final stages in Goychay.
Implementation Progress
Description of Project Outputs

A. Water and Sanitation Infrastructure Rehabilitated and Improved

A.1 Reconstructed, and expanded existing piped-water supply systems, water works, and treatment facilities in participating towns

A.2 Water quality monitoring system developed

A.3 Rehabilitated, replaced and expanded sewerage networks

B. Improved WSS management and planning

B.1 Institutions improved for WSS service delivery

B.2 Capacity developed for better system planning, operations and maintenance

B.3 Cost recovery enhanced through metering, billing and collection tariffs

B.4 Efficiency increased for timely processing of effective WSS projects

B.5 Twinning arrangement finalized with an external WSS utility to support capacity development

C. Program Management Facility established providing effective support to AzerSu, SAWMA, and JSCs

Status of Implementation Progress (Outputs, Activities, and Issues)

Works are at final stage

Works are at final stage

Works are at final stage

Works are at final stage

Monitoring of water quality undertaken on regular basis

Works Ongoing in Goychay (AZERSU)

Completed in Nakhchivan (SAWMC)

Works Ongoing in Goychay (AZERSU)

Completed in Nakhchivan (SAWMC)

Nakhchivan WSS works completed; Goychay WSS and Nakhchivan WTP commence in Dec 2011

Completed for Agdash, Beylagan, and Goychay

Geographical Location Goychay and Nakhchivan
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The provision of potable piped-water supply and wastewater collection and treatment will improve the environment in each participating town. The designs involve simple, appropriate, low-cost technology and do not pose any significant adverse environmental consequences. The tranche 1 project has been categorized as B under ADB's Environment Policy (2002). Potential negative environmental impacts for each project are mainly short term during the construction period and can be minimized by the proposed mitigation measures and environmentally sound engineering and construction practices. An environmental assessment and review framework, prepared following ADB procedures (Appendix 13 and Supplementary Appendix G), follows the environmental assessment and review procedures in ADB's Environmental Assessment Guidelines (2003). The EAs will prepare initial environmental examinations for each project, as appropriate. The examination for the tranche 1 project shows no significant adverse environmental impacts (Appendix 14 and Supplementary Appendix H). As these examinations, including environment management plans, were prepared based on field reconnaissance survey and secondary reports, they will be updated during the detailed engineering design stage. The design and environment consultant will prepare contract-level and site-specific plans based on the updated and final environmental management plan. This will form the basis for issuance of bidding documents, and the environmental requirements will be reflected in the contractors' contracts. The contract-level and site-specific environmental management plan will guide the contractors during construction and will also assist the supervision consultant in tracking the contractors' implementation progress. The 2 EAs (AZERSU and SAWMC) regularly submit bi-annual environmental monitoring reports.
Involuntary Resettlement Temporary impacts were identified on the Goychay subproject. The Government prepared the necessary Land Acquisition Resettlement Plan (LARP). The initial LARP was reviewed and approved by ADB which was posted in the ADB's website on 25 July 2012. The Government, based on the Ministry of Finance's review, requested to revise the LARP and re-submitted the same to ADB on 24 December 2012. The latest LARP was posted in the ADB's website on 26 December 2012. Azersu submitted in April 2013 the Goychay LARP completion report. The completion report was disclosed in the ADB website on 10 May 2013. (AZERSU).
Indigenous Peoples The Project will have no expected impacts on indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive consultations have been undertaken with stakeholders, including project towns, nongovernment organizations (NGOs) and community-based organizations, elected representatives, administrative departments, rayon (town) administrations, and representatives of various government ministries. Meetings, focus group discussions with NGOs, and structured interviews were undertaken with stakeholders.
During Project Implementation Consultations ongoing with beneficiaries during project implementation.
Business Opportunities
Consulting Services Consultants will be recruited using ADB's quality-and cost-based selection procedures, and individual consultant selection procedures in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Expressions of Interest for investment program consultants have been invited.
Procurement All procurement under the MFF will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). International competitive bids have been invited for water and sanitation works in Goychay and Nakhchivan.
Responsible ADB Officer Faraj Huseynbeyov
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
State Amelioration & Water Mgmt Committee(SAWMCNARAsger AsgerovNAKHUWSS@MAIL.AZNakhchivan
AzerSu Joint Stock Company (AZERSU)Farid Mammadovf.mammadov@azersu.azBaku
Timetable
Concept Clearance 07 May 2009
Fact Finding 03 May 2009 to 20 May 2009
MRM 07 Jul 2009
Approval 14 Oct 2009
Last Review Mission -
PDS Creation Date 27 May 2009
Last PDS Update 13 Mar 2015

Loan 2571-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Oct 2009 17 Dec 2009 17 Feb 2010 30 Jun 2013 30 Jun 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 75.00 14 Oct 2009 72.61 0.00 97%
Counterpart 25.00 Cumulative Disbursements
Cofinancing 0.00 14 Oct 2009 69.43 0.00 93%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Water Supply and Sanitation Investment Program - Construction of Water Intake Facilities and Rehabilitation of Water Supply and Sewerage Networks in Agdash Town, Beylagan Town (Tranche 1 and Tranche 2) Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Dec 2014
Water Supply and Sanitation Investment Program: Nakhchivan City Water Supply and Sewerage Subproject (Tranche 1 and Tranche 2): Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
Water Supply and Sanitation Investment Program: Construction of Water Intake Facilities and Rehabilitation of Water Supply and Sewerage Networks in Agdash Town, Beylagan Town, and Goychay Town (Packages 1 and 2) (January-June 2014) Environmental Monitoring Reports Jul 2014
Water Supply and Sanitation Investment Program: Nakhchivan City Water Supply and Sewerage Subproject (Tranche 1 and Tranche 2): Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Jan 2014
Water Supply and Sanitation Investment Program: Construction of Water Intake Facilities and Rehabilitation of Water Supply and Sewerage Networks in Goychay Town (Package 1) (July-December 2013) Environmental Monitoring Reports Dec 2013
Water Supply and Sanitation Investment Program: Construction of Water Intake Facilities and Rehabilitation of Water Supply and Sewerage Networks (Tranche 1 and Tranche 2) (January-June 2013) Environmental Monitoring Reports Sep 2013
Water Supply and Sanitation Investment Program: Nakhchivan City Water Supply and Sewerage Subproject (Tranche 1 and Tranche 2): Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jul 2013
Water Supply and Sanitation Investment Program - Tranche 1: Goychay Subproject Resettlement Plans Apr 2013
Water Supply and Sanitation Investment Program: Nakhchivan City Water Supply and Sewerage Subproject (Tranche 1 and Tranche 2): Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Dec 2012
Water Supply and Sanitation Investment Program: Construction of Water Intake Facilities and Rehabilitation of Water Supply and Sewerage Networks (Tranche 1 and Tranche 2) (July-December 2012) Environmental Monitoring Reports Dec 2012
Water Supply and Sanitation Investment Program - Project 1: Land Acquisition and Resettlement Plan Resettlement Plans Jul 2012
Water Supply and Sanitation Investment Program – Nakhchivan City Water Supply and Sewerage Subproject (Tranche 1 and Tranche 2): Bi Annual Environmental Monitoring Report Period (01 January – 30 June 2012) Environmental Monitoring Reports Jul 2012
Water Supply and Sanitation Investment Program: Construction of Water Intake Facilities and Rehabilitation of Water Supply and Sewerage Networks in Goychay Town: Environmental Monitoring Report (January-June 2012) Environmental Monitoring Reports Jul 2012
Water Supply and Sanitation Investment Program – Nakhchivan City Water Supply and Sewerage Subproject (Tranche 1): Bi Annual Environmental Monitoring Report Period (01 July 1st – 31 December 2011) Environmental Monitoring Reports Jan 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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