Azerbaijan to receive third tranche of ADB funding for water and sanitation programme

The national water operator in Azerbaijan, Azersu, is expected to receive the third tranche of multi-tranche financing facility (MFF) Water Supply and Sanitation Investment Programme from the Asian Development Bank (ADB) in 2013.

Azersu is currently working on the documentation for the third tranche.

Originally, a fund of $175m was planned for the third tranche of MFF to help cities Agjabedi and Balaken to implement water and sanitation projects.

The original amount may be reduced as one of the cities has not completed its documentation.

Azerbaijan-based ADB resident office spokesperson noted that the documentation allows the bank to plan the allocation for the tranche.

"We expect that this will happen in May 2013 in the amounts that were planned earlier," the spokesperson added.

"The reduction in funding could be linked with the fact that it is intended for one of these two cities, as construction documents on another city is not ready."

As part of the original plan, Azersu would also undertake the project work in other regions, provided the allocated funds are enough.

The second tranche of $300m from the ADB funded MFF programme was signed on 6 June 2012, and came into force in August 2012.

As part of the second tranche of funding, the Water Supply & Sanitation Investment Programe is being implemented in the cities of Agdash, Beylagan and Goychay, and in the autonomous republic of Nakhchivan.

The second tranche was extended for 24 years with a grace period of four years, while Azerbaijan is providing another $110m towards the project cost.

Azersu has allocated $130m for Nakhchivan and $170m for works in the cities of Goychay, Agdash and Beylagan.

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Image: Azerbaijan will use the third tranche of ADB funding to improve water and sanitation services in the cities of Agjabedi and Balaken. Photo: Courtesy of Roger McLassus.