World Bank backs Baku water upgrade with $1.5 million grant

The World Bank has allocated a $1.5 million grant to Azerbaijan to support preparations for the Climate-Resilient and Efficient Water Supply project, Caliber.Az reports per local media.

The grant agreement under the Project Preparation and Implementation Support Trust Fund was signed on August 31, 2026, by Zaur Mikayilov, Chairman of the Azerbaijan State Water Resources Agency (ADSEA), and Rolande Pryce, World Bank Regional Director for the South Caucasus.

The funding will support preparatory work for a large-scale project aimed at modernizing and improving Baku’s water supply system. Key activities will include a feasibility study, the identification of priority investments, the introduction of digital water management solutions, improvements in energy efficiency, reductions in non-revenue water (NRW), and measures to address disruptions in water supply.

The grant will cover 100% of consulting costs under two main components.

The first component, focused on feasibility studies and procurement support, will involve assessing the proposed project, developing an investment plan for Baku’s water system with an emphasis on digitalization and energy-efficient solutions, and preparing tender documentation for future contracts.

The second component will address environmental and social requirements, including the preparation of framework documents in line with the World Bank’s 10 Environmental and Social Standards and implementation of the Environmental and Social Commitment Plan.

Part of the funding will also be used to prepare the project’s environmental and social documentation under the World Bank requirements.

ADSEA will oversee implementation of the grant-funded activities. A specialized working group comprising eight experts in environmental and social issues, procurement, technical engineering, financial management, climate change, communications, and monitoring is being established within the agency.

The grant disbursement period will run through December 31, 2027.

By Vafa Guliyeva