WB grants $1.5M to Azerbaijan for climate-resilient water supply project

The World Bank (WB) has allocated a grant of $1.5 million to Azerbaijan for the preparation of the Climate-Resilient and Efficient Water Supply project, Report informs, citing the World Bank.

The grant agreement from 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 funds are aimed at assisting in the preparation of a large-scale project designed to improve the water supply system in Baku. Specifically, the financing will support conducting a feasibility study, identifying priority investments, implementing digital water management solutions, enhancing energy efficiency, reducing non-revenue water (NRW) volumes, and eliminating water supply disruptions.

The grant covers 100% of the costs for consulting services across two key components: Part A (Feasibility Study and Procurement Support), which includes conducting a feasibility study, 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; and Part B (Environmental and Social Standards), which involves developing framework documents in accordance with 10 World Bank environmental and social standards and implementing the Environmental and Social Commitment Plan.

In addition, a portion of the funds will be used to prepare the project's environmental and social documentation in compliance with World Bank standards.

Implementation of activities under the grant is carried out by ADSEA. A specialized working group consisting of eight subject-matter experts (covering environmental issues, social issues, procurement, technical engineering, financial management, climate change, communications, and monitoring) is being established within the agency. The grant disbursement period runs through December 31, 2027.