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| Loan Name | MFF-Water Supply and Sanitation Investment Program, Tranche 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Country | Azerbaijan, Rep. of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan Number | 2571 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Project Number | 42408- 02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fund Source/Amount[Approved] |
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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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Geographical Location | Goychay and Nakhchivan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Safeguard Categories
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| Environment | B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Resettlement | C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indigenous People | C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Environmental and Social Issues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Social Aspects | Tranche 1 will not have any land acquisition and resettlement (LAR) impact. The Program has made all efforts to avoid LAR impacts by choosing the appropriate design options and by prioritizing rehabilitation and reconstruction of existing facilities. New construction, to the extent feasible, will be done on unused lands already owned by the Government. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental Aspects | The provision of potable piped-water supply and wastewater collection and treatment will improve the environment in each participating town. The designs involve simple, appropriate, low-cost technology and do not pose any significant adverse environmental consequences. Tranche 1 of the Program has been categorized as B under ADB's Environment Policy (2002). Potential negative environmental impacts for each subcomponent are mainly short-term in nature during the construction period and can be minimized by the proposed mitigation measures and environmentally sound engineering and construction practices. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stakeholder Participation and Consultation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| During Project Design | Discussions were held with community groups of selected secondary towns, NGOs, and officials from rayon administrations, Sukanals, AzerSu, SAWMA of Nakhchivan, and the Cabinet of Ministers. Key discussion points comprised the program scope, and technical, institutional and financial sustainability issues concerning long-term operations and management of the WSS systems. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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). Expressions of Interest for investment program consultants have been invited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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). International competitive bids have been invited for water and sanitation works in Goychay and Nakhchivan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Responsible ADB Officer |
Vijay Padmanabhan |
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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 | 14 Oct 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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