Azerbaijan, Baku, 20 February / corr Trend I.Khalilova / The chief specialist of the Asian Development Bank (ADB), Shakil Khan, began his visit to Azerbaijan from 20 February to review the current situation and determine reasons for the delay in the realization of the project Improvement of Water Supply and Sanitary Services in Agdash, Goychay and Nakhchivan, the Baku Office of ADB said. During his one-week visit, he will determine measures to eradicate these problems.
"In addition, in the last three years, the project became more expensive, and therefore, a necessity arose to re-assess the project," the same source stated.
The design of the project was prepared in 2004 and since then prices for construction materials have significantly increased. Currently ADB is employing a consultant for the final estimation of the project.
The consultant is attracted through the agreement with Azersu, an Azerbaijani state water company, and the assessment will be carried out for Agdash and Gohchay, whereas the state organizations of NAR are answerable for the water network of Nakhchivan.
According to experts, there could be problems in connection with the financing of this project, as ADB does not allocate additional funds. In this respect it will be necessary to reduce expenses for institutional measures so as to direct necessary capital at financing the construction work. A tender has been announced to attract a contractor for the construction work.
Azersu, a State water company, has fulfilled the demand of the Asian Development Bank (ADB) to reform the structure of the water networks in the Agdash and Goychay Districts of Azerbaijan. The process of their reformation into a regional joint stock company is complete. The local executive departments were satisfied with their management, saying they possess the necessary authorities of the elected and the appointed. In compliance with ADB's terms, the municipalities are participating in the Council of Directors of joint stock companies that are involved in the water supply.
The institutional reforms are carried out with the assistance of Castaliya, a New Zealand company, and AzSpetsPromInvest Consulting Engineers (ASPI) of Azerbaijan. The consortium launched its services in March 2006. The contract was signed for 18 months and the cost of services is estimated to be $500,000.
The total cost of the project is $39.9mln. To finance the project, the ADB allocated $30mln, whilst $9.9mln falls on the Government. For the duration of the project, which is to be completed by 2010, reforms are to be carried out for the development of the water supply system and infrastructure in Agdash, Goychay and Nakhchivan.
