BAKU, Azerbaijan, February 20. President of the Republic of Azerbaijan, Ilham Aliyev, has signed a decree on the reorganization of the “Regional Water Melioration Service” and the “United Water Supply Service of Large Cities,” Trend reports.
Under the decree, the “Regional Water Melioration Service” public legal entity operating under the Azerbaijan State Water Resources Agency (hereinafter – the Agency) will be reorganized into the “Regional Water Melioration” Closed Joint-Stock Company (CJSC), while the “United Water Supply Service of Large Cities” public legal entity will be transformed into the “Water Supply of Large Cities” CJSC.
According to the document, the “Regional Water Melioration” CJSC will operate as a state-owned commercial legal entity providing melioration and irrigation services, ensuring the operation and protection of state-owned melioration and irrigation systems, managing water facilities on its balance sheet, and delivering domestic, industrial, and other water supply services, as well as wastewater and stormwater treatment, across Azerbaijan’s districts and cities, except for Baku, Sumgayit, Ganja, Mingachevir, Nakhchivan and Shirvan.
The “Water Supply of Large Cities” CJSC will provide water supply and wastewater services in Baku, Sumgayit, Ganja, Mingachevir, Nakhchivan, and Shirvan.
The newly established companies will act as legal successors to the respective public legal entities, assuming their rights, obligations, and property. A Supervisory Board consisting of five members, including a chairman, will oversee each company’s activities, while day-to-day management will be carried out by an executive director appointed and dismissed by the Supervisory Board.
The decree also stipulates that the charter capital of the companies will be formed from the assets of the reorganized public legal entities specified in paragraphs 1.1 and 1.2, which will continue operating until the new entities are officially registered in accordance with the Law of the Republic of Azerbaijan on State Registration and State Register of Legal Entities.
The exercise of the powers of the general meeting of the Companies will be assigned as follows:
President of the Republic of Azerbaijan:
- Authority over the reorganization and liquidation of the Companies;
- Establishment of the executive body of the Companies.
Cabinet of Ministers:
-Approval of the Companies’ charters and determination of their authorized capital, as well as making amendments thereto.
Agency:
- Decision-making on transactions classified as specially significant, exceeding 25% of the net asset value, as well as transactions with related parties, the value of which, according to the opinion of an independent auditor, constitutes 5% or more of the Company’s assets;
- Appointment and dismissal of the Chairman of the Supervisory Board, in coordination with the President of the Republic of Azerbaijan;
- Appointment and dismissal of other members of the Supervisory Board.
Supervisory Board:
- Resolution of all matters assigned to the general meeting of shareholders under the Civil Code of the Republic of Azerbaijan, except for those explicitly reserved in this Decree.
Cabinet of Ministers of the Republic of Azerbaijan:
- Taking into account the provisions of this Decree, prepare proposals to improve regulatory legal acts within three months and submit them to the President of the Republic of Azerbaijan.
- Approve the Companies’ charters within two months and notify the President of the Republic of Azerbaijan;
- Address other issues arising from this Decree.
Agency:
- Ensure that, within one month from the state registration of the Companies in accordance with the Law of the Republic of Azerbaijan “On State Registration and State Register of Legal Entities,” the assets listed on the balance sheets of the relevant public legal entities under paragraphs 1.1 and 1.2 of this Decree are transferred to the Companies’ balance sheets;
- Take all necessary measures to resolve other issues arising from this Decree.
Ministry of Finance of the Republic of Azerbaijan:
- In accordance with paragraph 3.7 of the Presidential Decree No. 489 dated August 25, 2025, “On Additional Measures for the Organization of Effective Management of State Finances,” conduct a financial review of the Companies’ organizational structure, staffing, and payroll systems, and implement measures to optimize them.