On September 5, 2008 the Government of Azerbaijan and the World Bank signed Financing Agreements for a $230 million loan from the International Bank for Reconstruction and Development (IBRD) and $30 million credit from the International Development Association (IDA) for the Second National Water Supply and Sanitation Project in Azerbaijan. Agreements were signed by the Minister of Finance of the Republic of Azerbaijan, Mr. Samir Sharifov and World Bank Country Manager for Azerbaijan, Mr. Gregory Jedrzejczak. Also, project agreements with the implementing agencies – Azersu Joint Stock Company and Nakhchivan Autonomous Republic Amelioration and Water Management Agency (SAWMA) – were signed. The project will improve the availability, quality, reliability and sustainability of water supply and sanitation (services in selected rayons in Azerbaijan.  It will cover rehabilitation and reconstruction of water and sanitation infrastructure in the 21 rayons outside the Greater Baku Area, including five in Nakhchivan Autonomous Republic.

 

The Project consists of the following three components:

 

              Component A:   Rayon Investments. This component will finance the rehabilitation and reconstruction of water, wastewater, and septic sludge treatment facilities in at least 21 rayons of the country served by Azersu and SAWMA. The project will cover the rayon centers and the villages nearby, as well as villages along the mains supplying them.

 

                                                      

             Component B: Institutional Modernization.  This component will support implementation of capacity building and modernization of AzerSu (state owned water company) and its subsidiaries and SAWMA, to improve the efficiency and sustainability of water and sanitation services.

 

              

                                                     Component C: Project Implementation and Management.  This component will support project implementation by financing project management activities, including incremental operating costs and project audits.

 

 Azerbaijan joined the World Bank in 1992. Since then, commitments to the country total over $2 billion for 45 operations.