Early Warning System

Countries

Azerbaijan

Geographic location where the impacts of the investment may be experienced.

Specific Location

Shaki city and the neighbouring villages (Okhud, Kish and Qokhmuq)

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Borrower

Government of Azerbaijan - Azerbaijan State Water Resources Agency

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Infrastructure
Water and Sanitation

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 103.40 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 89
Converted using 2025-10-23 exchange rate.

Project Cost (USD)

$ 108.05 million

Bank Documents

PSD Translation (Azerbaijani)

Primary Source

Original disclosure @ EBRD website

Updated in EWS Nov 11, 2025

Disclosed by Bank Oct 23, 2025

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of a sovereign loan of up to EUR 89 million to the Republic of Azerbaijan for the benefit of the Azerbaijan State Water Resources Agency, a government entity responsible for managing the water sector in Azerbaijan. The Bank will support the construction of water supply, sanitation and stormwater management networks and the biological treatment units of the Wastewater Treatment Plant ("WWTP") in the city of Shaki and the neighbouring villages.

The Project will support the development of a modern and resilient infrastructure to ensure uninterrupted water supply and wastewater management services and expand stormwater management infrastructure against flood risks in Shaki city and the neighbouring villages (Okhud, Kish and Qokhmuq). The Project is expected to have significant positive environmental impact by reducing pollution and emissions from untreated wastewater, improving surface water quality, and enhancing resilience to climate change risks.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Project is Categorised "B" under 2019 Environmental and Social Policy. Key environmental and social ("E&S") risks and impacts include Client E&S capacity and management systems, labour and working conditions during the project implementation, contractor management, construction related risks, in particular worker and community health and safety, exposure to noise, dust and vibration levels; temporary access restrictions, land acquisition and any associated resettlement and livelihood impacts; managing potential biodiversity and cultural heritage impacts; affordability, gender and gender based violence and harassment ("GBVH"), stakeholder engagement, grievance mechanism and emergency response.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

A sovereign loan of up to EUR 89 million. The EBRD loan is expected to be co-financed by an up to EUR 4 million investment grant (funding source to be confirmed).

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Fuad Abishev
fuad.abishev@toom.gov.az
+994 12 430 25 78
https://adsea.gov.az/
67 Moscow Ave, Baku 1012, Azerbaijan

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html