EBRD plans around €90 million loan for water infrastructure of Azerbaijan's Shaki district

The European Bank for Reconstruction and Development (EBRD) is considering providing a €89 million loan to Azerbaijan’s State Water Resources Agency (ADSEA) for the construction of water supply, sewage, and stormwater networks in the city of Shaki and nearby villages.

Biological treatment facilities are also planned to be built at the local wastewater treatment plant, Caliber.Az reports, citing the official website of EBRD.

The project aims to develop modern and sustainable infrastructure to ensure a reliable water supply and wastewater management, while expanding stormwater systems to prevent flooding in Shaki and neighbouring settlements — Okhud, Kish, and Gokhmug.

The project is expected to have a significant positive environmental impact by reducing pollution and emissions from untreated wastewater, improving surface water quality, and strengthening climate resilience.

Implementation of the project will represent an important step toward advancing the green transition by reducing water losses, increasing energy efficiency, and ensuring proper wastewater treatment.

The initiative also includes an inclusive transition component, providing training and professional development programs for water sector specialists.

The total cost of the project is estimated at €93 million, of which up to €4 million is expected to be secured through an investment grant. The EBRD Board of Directors is scheduled to review the loan proposal on February 11, 2026.

As of September 30, 2025, the EBRD’s active portfolio in Azerbaijan stands at €948 million, with 89% (€842 million) allocated to sustainable infrastructure development, 6% (€56 million) to financial institutions, and 5% (€49 million) to the corporate sector.

By Jeyhun Aghazada