AIIB approves $45 million loan for seawater desalination project in Azerbaijan
The Asian Infrastructure Investment Bank (AIIB) has approved financing of a loan in the amount of $45 million for the project to build a seawater desalination plant in Azerbaijan.
The project provides for the development, construction, and operation of a desalination plant producing purified water from Caspian Sea water with a capacity of approximately 300,000 m³/day.
The plant will be located on the Caspian Sea coast, in the industrial zone of Sumgayit, and will become the first SWRO plant (desalination technology – ed.) in Azerbaijan.
It is also noted that this is the first public-private partnership (PPP) project implemented in the country's water sector.
The PPP agreement was signed by Acwa (Saudi Arabia) and the State Water Resources Agency of Azerbaijan for a term of 25 years from the planned date of the start of the project's commercial operation. The Ministry of Finance provides a guarantee mechanism for payment obligations during the operation period. ACWA Power is the sole sponsor of the project.
Caspian Sea Azerbaijan Project Company has also been established in Azerbaijan, which will act as the borrower for the project.
The plant is scheduled to be commissioned at the end of 2028. The total cost of the project is estimated at $431.5 million.
Source: Report
