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Ongoing Projects and Geographical distribution of the project

Current Activities 1

On-going projects
Water Supply and Sanitation
(LA) Provincial Cities Water Supply and Sewerage Project


Azerbaijan is an important junction tying together Asia and Europe as well as Russia and the Middle East. Occupying a geopolitically critical location in the Caucasus region, Azerbaijan is about one-fourth that of Japan in land area. An agricultural nation of approximately 8.5 million people (as of 2007), it holds abundant oil and natural gas resources in the Caspian Sea. In addition to constructing and improving water supply and sewer facilities, the Provincial Cities Water Supply and Sewerage Project will strengthen the maintenance and control system in 10 major regional cities. This will ensure a sanitary and sustainable living environment and contribute to geographically balanced social and economic development in the country. The cities that will receive the improvements are: Barda, Gobustan, Khachmaz, Khizi, Naftalan, Nefchala, Qusar, Salyan, Shirvan and Yevlakh.


The Project will improve water supply and sewage systems and enhance the Project

Implementation and management structure in regional core cities in Azerbaijan. The

Project will improve sanitation and the sustainable living environment in the relevant cities, further contributing to the geographically balanced social and economic development in the entire country of Azerbaijan.

Loan Agreement: May 29, 2009
Borrower: The Government of the Republic of Azerbaijan
Loan Amount: 32,851 million Yen
Repayment Period/Grace Period (years) Water supply portion: 30 / 10 years
Sewer works portion: 40 / 10 years
Consulting Services: 30/10 years
Interest Rate 
(% per annum)
Water supply portion: 1.4
Sewer works portion:0.65
Consulting Services: 0.01
Executing Agency Azersu Joint Stock Company,
Address: 67, Moscow Ave. Baku AZ 1012 Azerbaijan
Tel: +994 (12) 431-47-67 Fax:+994 (12) 431-51-51

Project Site/Target Area

10 regional cities in the Republic of Azerbaijan (Shirvan, Salyan, Neftchala, Khachmaz,Yevlakh, Barda, Khizi, Quzar, Gobustan, Naftalan)

Project Highlights

Current Activities 2

On-going projects
Electric Power
(LA) "Shimal Gas Combined-Cycle Power Plant Construction Project (Second Unit)"


Azerbaijan, which gained independence from the Soviet Union in 1991, has achieved an almost 10 percent annual growth in recent years, driven by oil and natural gas development. It is foreseen that expanding oil production will lead to further growth in the years to come. Meanwhile, a number of domestic power stations that were built during the Soviet era have been operating for more than 30 years, and their antiquated facilities have significantly lowered the capacity and reliability of power supplies. Thus, even though the overall rated installed power capacity of the country's power facilities totaled 5,556 MW in 2003, the actual available power supply remained 4,240 MW, which is unable to meet the current peak demand of 4,500 MW. Given the prospect of increasing power demand in parallel with vigorous economic growth (as attested by the annual average 6.5 percent growth of power demand from 2000 to 2003), and considering the need for additional reserve margin, strengthening power supply capacity in the shortest period of time is an urgent challenge facing Azerbaijan. The priority of this Project, which will strengthen the capacity of a power station near the capital city of Baku, is particularly high. This is because of the following reason: whereas about 60 percent of the country's power demand comes from Apsheron Peninsula, including Baku, in the eastern region, which is the country's industrial heartland and where the population is concentrated, about 80 percent of the existing power generation facilities are located in the western region.


Under the Project, a gas combined-cycle power plant (one 400 MW unit) will be constructed in the Shimal thermal power station located near Baku. The proceeds of the loan will be used for procurement of materials and equipment in constructing the plant and related transmission and substation facilities, construction and civil works, and consulting services. When completed, the Project is expected to increase the country's power supply capacity, thereby contributing to alleviating power shortages and developing infrastructure for economic development.

Loan Agreement: May 13, 2005
Borrower: The Government of the Republic of Azerbaijan
Loan Amount: 29,280 million Yen
Repayment Period/Grace Period (years) 40/10
Interest Rate 
(% per annum)
Executing Agency Joint-Stock Company "Azerenerji"
Address: 10 Acqademician Abdulkerim Alizade Str., Baku, 370005, Republic of Azerbaijan
TEL: +994-12-937358 FAX: +994-12-985523


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