Azernews.Az

By Nigar Orujova

The World Bank, which is implementing an integrated solid waste management project in Azerbaijan, is due to approve additional funding for the project on May 30. The volume of the additional financing, which will be allocated by the WB's structural unit IBRD, amounts to $40 million, according to the bank.

Most of the extra financing will be directed to the reconstruction of the solid waste landfill in Balakhani near the capital Baku, to cover additional chargers of the project management, as well as work on technical training for future investments in the sector.

The project closes on September 30, 2013. However, an extension of the project for three years -- until September 30, 2016 -- will be required for the completion of work under the additional funding.

The Solid Waste Management Project was approved by the WB's board of directors in June 2008. A relevant loan agreement between the bank and Azerbaijan was signed on May 20, 2009. The total project cost is $41.5 million of which $29.5 million falls to the WB's 20-year loan and the rest is funded by the government of Azerbaijan.

The project, which is being carried out within the framework of Absheronenvironmental rehabilitation program, is aimed to support reforms conducted for systematic and continuous organization of solid municipal waste collection and utilization.

The activities outlined under the project are being conducted in five components, including increasing the potential and project management, strategic planning, establishment of TamizShaharcompany, its performance and development.

The project will provide an opportunity to solve the problem of solid municipal waste, to improve the environment in Baku, to eliminate the factors posing danger to the environment, for potable water and public health due to harmful waste.

Waste generation in the area of "Greater Baku"--a project on expansion and development of the capital city -- reached an estimated total of 1.8 million tons per year in 2012. The Greater Baku area's population is expected to continue growing at an average annual rate of about 1.3 percent, reaching about 4.3 million in 2030, the WB indicated with reference to the Ekodenge Strategic Plan Consultant Report 2012.

The population growth and higher incomes will further drive waste generation in Azerbaijan, particularly in the Greater Baku area and waste generation is projected to double in the next 20 years.

The WB predicts approximately 3.8 percent GDP growth during 2013-16. In order to sustain this growth, Azerbaijan will need to diversify its economy, introduce market-based policies and strengthen public services, the WB believes.