ADB to allot $600m for urban services project
The Asian Development Bank (ADB) will allocate up to
$600 million in loans for water and sanitation improvements in
Azerbaijani towns.
The ADB board of directors on Wednesday approved a multitranche financing facility that will release loans periodically to support the government`s Water Supply and Sanitation Investment Program. The government has earmarked up to $200m for the eight-year investment program, with ADB financing up to $600m from its ordinary capital resources. In the first tranche, ADB will provide a $75m loan.
According to the ADB, Azerbaijan`s water and sanitation system is over 50 years old, and has fallen into decline following the collapse of the Soviet Union and the country`s independence in 1991. Services in many secondary towns are bad, with poor piped water quality, broken or clogged sewage pipes, and wastewater discharged directly into waterways. Water purchased from private vendors to augment supply is expensive, imposing a burden on the poor, the bank claimed.
``The investment program will improve the quality and coverage of water and sanitation for about 500,000 people in secondary towns and semi-urban areas outside the capital Baku. It will raise the quality and capacity of agencies tasked with planning, managing and operating services,`` said Matthew Westfall, Director of Urban Services for ADB`s Central and West Asia Department.
The multitranche financing facility establishes the foundation for an eight-year partnership between ADB and the government, allows for phased investments, and is backed by a clear strategy and program of reforms. The first tranche funds will reconstruct and build water and sewage infrastructure, expand the planning, technical and financial management capabilities of oversight agencies, and set up project management offices in the towns of Goychay and Nakhchivan. Subsequent tranches will carry out similar activities in other towns, the ADB said.
Shakeel Khan, the ADB project officer, says the program will improve public health and reduce waterborne diseases and medical treatment costs.
ADB`s first tranche loan of $75m has a 24-year term with a four-year grace period. The Azerbaijani government is providing $25m. The state-run water supplier Azersu will act as the executing agency for all project activities except those in the Nakhchivan Autonomous Republic, where the State Amelioration and Water Management Agency will execute the project.
The ADB board of directors on Wednesday approved a multitranche financing facility that will release loans periodically to support the government`s Water Supply and Sanitation Investment Program. The government has earmarked up to $200m for the eight-year investment program, with ADB financing up to $600m from its ordinary capital resources. In the first tranche, ADB will provide a $75m loan.
According to the ADB, Azerbaijan`s water and sanitation system is over 50 years old, and has fallen into decline following the collapse of the Soviet Union and the country`s independence in 1991. Services in many secondary towns are bad, with poor piped water quality, broken or clogged sewage pipes, and wastewater discharged directly into waterways. Water purchased from private vendors to augment supply is expensive, imposing a burden on the poor, the bank claimed.
``The investment program will improve the quality and coverage of water and sanitation for about 500,000 people in secondary towns and semi-urban areas outside the capital Baku. It will raise the quality and capacity of agencies tasked with planning, managing and operating services,`` said Matthew Westfall, Director of Urban Services for ADB`s Central and West Asia Department.
The multitranche financing facility establishes the foundation for an eight-year partnership between ADB and the government, allows for phased investments, and is backed by a clear strategy and program of reforms. The first tranche funds will reconstruct and build water and sewage infrastructure, expand the planning, technical and financial management capabilities of oversight agencies, and set up project management offices in the towns of Goychay and Nakhchivan. Subsequent tranches will carry out similar activities in other towns, the ADB said.
Shakeel Khan, the ADB project officer, says the program will improve public health and reduce waterborne diseases and medical treatment costs.
ADB`s first tranche loan of $75m has a 24-year term with a four-year grace period. The Azerbaijani government is providing $25m. The state-run water supplier Azersu will act as the executing agency for all project activities except those in the Nakhchivan Autonomous Republic, where the State Amelioration and Water Management Agency will execute the project.
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