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| MFF-Facility Concept | MFF - Water Supply and Sanitation Investment Program (Facility Concept) | |||
| Country | Azerbaijan, Rep. of | |||
| MFF-Facility Concept Number | OO32 | |||
| Project Number | 42408- 01 | |||
| Fund Source/Amount[Proposed] |
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| Thematic Classification |
Capacity Development
Environmental Sustainability Social Development |
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| Project Rationale | The quality, coverage and reliability of infrastructure and services have not kept pace with the rapid growth of the economy and population of secondary towns. Insufficient and unreliable infrastructure and services are adding to household costs, and diminishing the quality of life of all of the towns' population. An intensive program of reforms and organizational development of towns service delivery institutions, coupled with long-term capacity development and significant investment in infrastructure and services at the town-level, is necessary if the goals of the SPPRSD are to be met.
The increasing challenges and demands on the existing WSS infrastructure mean that WSS needs and services cannot be fully met through traditional government provision, subsidies, and transfers. Consequently, alternative sources of financing and new ways of providing infrastructure and services are required. Moreover, service delivery needs to be separated from centralized control; the skills of municipal staff and officials are required to be organized, exchange of experience at the local and international levels to be encouraged through various options such as institutional twinning. In parallel, the regulatory and institutional reforms necessary to support this transition need to be identified, detailed and effected. The changes required to put secondary towns on a more sustainable development trajectory cannot be achieved through a one-off project intervention. Previous external assistance has been piecemeal and has not been based upon an integrated approach to improve WSS services on a sustainable basis. A set of sequenced reform actions and sector investments are needed to bring about lasting improvements in service delivery. The proposed Investment Program is intended to address development needs of Azerbaijan's secondary towns through the adoption of a long-term and holistic approach to (i) build institutions, capacities and systems, and improve service delivery, (ii) promote reforms to bring about sustainable WSS service financing; and (iii) support the execution of priority components based upon a detailed sector analysis and the sector roadmap. |
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| Impact | The impact of the Investment Program will be an improved public health and environment for about 500,000 residents in the participating secondary towns, the peri-urban areas surrounding Baku, and other developing urban centers in the country. | |||
| Outcome |
Outcomes of the Investment Program will be: (i) strengthened financial, managerial, and technical performance of service providers; and (ii) improved coverage of safe, reliable and sustainable WSS facilities in the Investment Program area.
Status: Loan Processing underway |
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| Outputs |
The Program will comprise a WSS Sector Development Plan (WSSDP) for over a period of 8 years and an Institutional Development and Capacity Building Plan (IDCBP) for AzerSu, SAWMA, and affiliated Sukanals. The WSSDP will support the development of Government's sector policy and will address: (i) approaches to WSS service delivery, including operation, maintenance, and asset creation; (ii) investment plans; (iii) institutional arrangements and coordination framework; (iv) legal and regulatory framework; and (v) fiscal management practices. The IDCBP may potentially involve a twinning arrangement with a WSS company from more developed ADB member country over the medium term to meet the IDCBP's core objectives for sustainable development and operation of WSS services. The Program will comprise the following components:
Component A: Rehabilitation and improvement of municipal infrastructure in 6 towns, the peri-urban areas surrounding Baku, and other developing urban centers in the country (physical investment); Component B: Management improvement and capacity development for AzerSu, SAWMA, and affiliated Sukanals (non-physical investment); and Component C: Establishment of a Program Management Facility (PMF) to oversee the program development, implementation and management (non-physical investment). Status: Loan Processing underway |
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| Geographical Location | Agdash, Goychay, Nakhchivan, Balakan, Agdjabedi, Beylagan, the peri-urban areas surrounding Baku, and other developing urban centers. | |||
| Summary of Environmental and Social Issues | ||||
| Social Aspects | Preliminary analysis based on detailed engineering designs for WSS systems indicate no land acquisition and involuntary resettlement for PFR 1 subprojects. Due diligence is being carried out to verify the same. A Land Acquisition and Resettlement Framework (LARF) is being prepared for the Program. ADB's review of indigenous people (IP) indicates that the nature of population in the Program area does not include communities that could be treated as IP under the ADB IP Policy. | |||
| Environmental Aspects | Initial Environmental Examinations are being updated based on detailed engineering designs for WSS systems. An Environmental Assessment and Review Framework (EARF) is being prepared. | |||
| Stakeholder Participation and Consultation | ||||
| During Project Design | Beneficiaries, rayon administration, executing and implementation agencies, and NGOs will be involved during the project design stage to ensure demand driven outputs. | |||
| During Project Implementation | Beneficiaries, local NGOs, rayon administration, AzerSu, and the Sukanals will be involved in all stages of Program implementation. Periodic workshops, exchange visits of town communities, and special awareness programs for concerned Government officials and interested parliamentarians will help continued improvements in Program implementation and ensure its sustainability | |||
| Procurement | ||||
| 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). | |||
| Civil Works/Goods | 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 |
Shakeel Ahmad Khan |
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| Responsible ADB Department |
Central and West Asia Department |
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| Responsible ADB Division |
Urban Services Division, CWRD |
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| Executing Agencies |
AzerSu Joint Stock Company (AZERSU) Farid Mammadov Vice President Baku f.mammadov@azersu.az State Amelioration & Water Mgmt Agency (SAWMA) Asger Asgerov Managing Director Nakhchivan nakhuwss@mail.az |
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| Timetable | ||||
| Concept Clearance | 07 May 2009 | |||
| Fact-finding | 03 May 2009 to 20 May 2009 | |||
| Board Approval | 23 Sep 2009 | |||
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