AIIB approved a $45 million loan for a seawater desalination project in Azerbaijan

The Asian Infrastructure Investment Bank (AIIB) has approved financing of a $45 million loan for a project to build a seawater desalination plant in Azerbaijan.

This was reported by BAKU.WS with reference to the AIIB.

According to the information, the project involves the design, construction, and operation of a desalination plant that produces 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 (desalination technology - ed.) plant 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 Agency for Water Resources 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 operation period. ACWA Power is the sole sponsor of the project.

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

The plant is planned to be commissioned at the turn of 2028-2029.