ADB eyes financing for Caspian desalination plant in Azerbaijan

The Asian Development Bank (ADB) is considering financing the construction of a Caspian Sea water desalination plant in Azerbaijan, Olaylar informs citing the bank.

The proposed loan amounts to $140 million, divided into two $70 million credit lines. The total cost of the project is estimated at $407 million.

The project involves the design, construction, financing, operation, and maintenance of a reverse osmosis desalination facility. The plantchr("39")s design capacity will be 300,000 cubic meters of water per day, which can be increased to 330,000 cubic meters daily during peak consumption periods.

The initiative will be implemented under a 25-year public-private partnership (PPP) contract. All desalinated water will be supplied exclusively to the state operator, the United Water Supply Service of Large Cities. This project will be Azerbaijanchr("39")s first large-scale desalination facility and its first PPP project in the water sector, aimed at improving the quality and reliability of drinking water supplies for residential and commercial properties in Baku and the Absheron Peninsula.

The initiative is being implemented as part of the ADBchr("39")s Country Partnership Strategy for Azerbaijan for 2025-2029, which prioritizes the creation of environmentally sustainable and clean infrastructure.

Earlier, the Asian Infrastructure Investment Bank approved a $45 million loan for the construction of a desalination plant in the country. Spanish engineering firm Savener has been appointed as a subcontractor to HDEC Power China for the engineering and design of the facility. Savener was engaged by Huadong Engineering Corporation (part of the PowerChina group), which acts as the engineering, procurement, and construction (EPC) contractor, while Saudi Arabiachr("39")s ACWA Power is the project developer. The Spanish firm has already fully commenced work on the project.