AIIB approves $45M loan for seawater desalination project in Azerbaijan

The Asian Infrastructure Investment Bank (AIIB) has approved $45 million in loan financing for a seawater desalination project in Azerbaijan, Report informs citing the AIIB.

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 cubic meters per day.

The plant will be located on the coast of the Caspian Sea, in the Sumgait industrial zone, and will become the first Sea Water Reverse Osmosis (SWRO) plant in Azerbaijan.

It is also noted that this is the first public-private partnership (PPP) project being implemented in the country's water sector.

The PPP agreement was signed between ACWA Power and the State Water Resources Agency of Azerbaijan for a period of 25 years from the planned date of commercial operation of the project. The Ministry of Finance provides a guarantee mechanism for payment obligations during the operational period. ACWA Power is the sole sponsor of the project.

In addition, Caspian Sea Azerbaijan Project Company has been established in Azerbaijan, which will act as the borrower for the project.