The European Bank for Reconstruction and Development (EBRD) will provide a sovereign loan of 365 million euros for the reconstruction of water supply, sewerage and stormwater management, as well as the construction of a treatment plant in Azerbaijan's Ganja, Report informs referring to the EBRD.
The total cost of the project is 370 million euros.
The loan will be provided in several tranches and co-financed by an investment grant provided by an international donor.
The final approval of the loan by the EBRD Board of Directors is expected on November 6.
The Project will be implemented under the EBRD's Green Cities and aims to address the priority environmental challenge of 'water availability and quality' identified in the Ganja Green City Action Plan (GCAP). The Government prioritizes the Project considering the acute need of improvement of deficient urban water and wastewater infrastructure in Ganja.
Upon the Project completion it is expected that the entire city of Ganja will be covered by uninterrupted water supply and wastewater sanitation services, and flood risks will be decreased by introducing a stormwater management system. The Project will also have a significant positive environmental impact for the region by ensuring that the wastewater is treated before being discharged into the Ganja River.
The Project will promote the Green transition quality by improving water supply services, reducing water losses and ensuring adequate wastewater treatment in Ganja. The Project will also support the Well-governed transition quality through the development of a tailored Corporate Governance Action Plan.
The Project will consist of several tranches and involve a variety of water and wastewater investments for Ganja. Environmental and social due diligence ("ESDD") is currently ongoing. Initially, only the first tranche (Category B) involving the rehabilitation of the water supply and sanitation network, as well as stormwater management will be committed at signing. Further tranches, including a Category A tranche involving the construction of a new WWTP of over 150,000 P.E. capacity, will be subject to additional due diligence and disclosure, as required by the EBRD Environmental and Social Policy.
The borrower of the loan is Azerbaijan's Finance Ministry, and the beneficiary is the State Water Resources Agency.