Azerbaijan, UAE to develop $5 billion modern waterfront zone around Lake Boyukshor
Azerbaijan’s Ministry of Economy and Modon Holding of the United Arab Emirates signed a cooperation agreement on the development of the “City Within a City” concept with the participation of Samir Sharifov, Deputy Prime Minister of Azerbaijan and Mohamed Hassan AlSuwaidi, UAE Minister of Investment during the plenary session of the First Azerbaijan International Investment Forum held in Baku today.
The document was signed by Mikayil Jabbarov, Azerbaijan’s Minister of Economy and Jassem Mohammed Bu Ataba Al Zaabi, Chairman of the Board of Directors of Modon Holding.
The concept, providing for investments of up to $5 billion, envisions the creation of a modern waterfront zone around Lake Boyukshor, including healthcare, commerce, education, and hospitality facilities.
Subsequently, with the participation of Deputy Prime Minister Samir Sharifov and Minister of Economy Mikayil Jabbarov, a signing ceremony was held for a series of documents concerning a seawater desalination project in Azerbaijan.
The Public-Private Partnership Agreement on the design, construction, financing, and operation of the Caspian Sea water desalination plant was signed by Zaur Mikayilov, Chairman of the Azerbaijan State Water Resources Agency, and Marco Arcelli, CEO of Saudi Arabia’s ACWA Power.
The Water Purchase Agreement for the sale of treated water was signed by Tahir Khalilov, Chairman of the Board of the United Water Supply Service of Large Cities under the Azerbaijan State Water Resources Agency, and ACWA Power CEO Marco Arcelli.
The Land Lease Agreement was signed by Azerbaijan’s Minister of Economy Mikayil Jabbarov, Chairman of the Board of the Economic Zones Development Agency under the Ministry of Economy Seymur Adigozelov, and ACWA Power CEO Marco Arcelli
The State Guarantee Agreement was signed by Azerbaijan’s Minister of Finance Sahil Babayev and ACWA Power CEO Marco Arcelli
The seawater desalination project is the first public-private pilot project to be implemented in Azerbaijan under the Ministry of Economy. Within the framework of the project, a desalination plant will be constructed in the Sumgayit Industrial Park to produce drinking water from seawater
The project, valued at $407 million, will have a daily capacity of 300,000 cubic meters. Under the agreement, ACWA Power will design, construct, and operate the plant for a period of 25 years.
The project aims to meet the growing demand for drinking water on the Absheron Peninsula and to diversify sources of freshwater. Its objectives include reducing the burden on the state’s drinking water supply system, fostering international expertise and technology transfer in this field, and attracting foreign investment into the national economy.
