Azerbaijan : MFF - Water Supply and Sanitation Investment Program (Facility Concept)

Sovereign Project | 42408-013

The Asian Development Bank is working with Azerbaijan to improve water and sanitation services in towns and semi-urban areas surrounding the capital Baku. The program is improving water supply and sewer networks to areas in stages. 

Project Details

  • Project Officer
    Shen, Lu
    Central and West Asia Department
    Request for information
  • Country/Economy
  • Modality
  • Sector
    • Water and other urban infrastructure and services
Project Name MFF - Water Supply and Sanitation Investment Program (Facility Concept)
Project Number 42408-013
Country / Economy Azerbaijan
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0032-AZE: MFF - Water Supply and Sanitation Investment Program (Facility Concept)
Ordinary capital resources US$ 600.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services / Water supply and sanitation

Gender Equity and Mainstreaming Effective gender mainstreaming

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).

Physical investments from component A will provide (i) increased water supply coverage; more connections to piped networks; and reduced system leaks to ensure 24-hour supply of pressurized, safe drinking water; and (ii) increased wastewater disposal and treatment. Components B and C will finance nonphysical investments targeting (i) institutional improvements for WSS service delivery; (ii) capacity development for better system planning, operation, and maintenance; (iii) enhanced cost recovery through metering, billing, and collection tariffs; (iv) increased efficiency for timely processing of effective WSS projects; and (v) a twinning arrangement with an external WSS utility to support capacity development. Component C will include project management support; assistance to carry out due diligence for new tranches; help with gender, environment and social safeguards, governance, legal, financial, and administrative matters; design works for subsequent tranches; and general training and development.

Project Rationale and Linkage to Country/Regional Strategy
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 Nakhchivan water supply and sewerage network construction ongoing.
Implementation Progress
Description of Project Outputs

A: Water Supply and Sanitation Infrastructure Rehabilitated and Improved

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

A.2. Water quality monitoring system developed and implemented

A.3 Rehabilitated, replaced and expanded sewerage networks

A.4 New wastewater treatment plants constructed in participating towns

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

B.6 Consumers mainstreamed on Investment Program implementation

C. Program Management Facility established

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

Output A: Civil works contract for Nakhchivan water supply and sewerage (WSS) network awarded in May 2010. Civil works for Goychay WSS network and Nakhchivan water treatment plant (WTP) planned to commence in October 2011.

Output B: Tariffs increased in Feb 2011 to recover part O&M. Institutional effectiveness support being planned by Investment Program consultants.

Output C: Investment Program consultants appointed under AZERSU and SAWMA Program Management Facilities. Detailed designs for Agjabedi and Beylagan completed. Designs for Balakan are pending and await Government decision on the town jurisdiction and expanding WSS services.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects -
Involuntary Resettlement -
Indigenous Peoples -
Stakeholder Communication, Participation, and Consultation
During Project Design Town Water Users Association (TWUA) and nongovernmental organizations (NGOs) were consulted during project design.
During Project Implementation TWUA and NGOs will be consulted during project implementation. Local communities will also be consulted.
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 (2007, as amended from time to time).
Procurement All procurement under the MFF will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). A procurement plan will be prepared for each tranche under the MFF.
Responsible ADB Officer Shen, Lu
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Concept Clearance 07 May 2009
Fact Finding 03 May 2009 to 20 May 2009
MRM 07 Jul 2009
Approval 23 Sep 2009
Last Review Mission -
PDS Creation Date 27 May 2009
Last PDS Update 02 Sep 2011

MFF Facility Concept 0032-AZE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 800.00 Cumulative Contract Awards
ADB 600.00 - 0.00 0.00 %
Counterpart 200.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
MFF - Water Supply and Sanitation Improvement Program (Updated) Environmental Assessment and Review Framework Oct 2011
Water Supply and Sanitation Investment Program Environmental Assessment and Review Framework May 2009
Water Supply and Sanitation Investment Program Resettlement Frameworks May 2009

Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Azerbaijan: Water Supply and Sanitation Investment Program (Multitranche Financing Facility and Tranche 3) Validations of Project Completion Reports Aug 2020

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.