Azerbaijan : Promoting Heating Sector Decarbonization and Renewable Heat Integration (ADB-58381-001)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Azerbaijan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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."
Voting Date
Jan 30, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Azerbaijan
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 1.10 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.
Project Cost (USD)
$ 1.10 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.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 3, 2025

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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.

As stated by the ADB, the technical assistance (TA) aims to modernize Azerbaijan's heating subsector by advancing efficiency, sustainability, and decarbonization. It will enhance space heating (and potentially cooling) services, promote the integration of renewable energy through a small-scale pilot project, and strengthen the policy and regulatory framework. Key outputs include developing a national heating strategy and drafting a newheat law, with a focus on updating regulatory instruments such as the heat tariff methodology. The TA will also assess the performance of Azeristiliktechizat Open Joint-Stock Company (AIT), Azerbaijan’s primary state-owned heating operator, and provide actionable recommendations to improve corporate governance, optimize business processes, reduce reliance on state subsidies, and enhance operational commercialization.

The TA is aligned with the following impacts: (i) renewable energies integrated in all sectors of the economy; and (ii) heat supply subsector reforms accelerated, and efficiency increased in Azerbaijan. These impacts lead to the outcome of an improved legal and regulatory framework for decarbonization, financial sustainability, and increased efficiency of the heating subsector.

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

As stated by the ADB, the TA financing amount is $1.1 million, of which (i) $0.5 million will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF -other sources), and (ii) $0.6 million will be financed on a grant basis bythe Clean Energy Fund under the Clean Energy Financing Partnership Facility and is being administered by ADB. The key expenditure items are listed in Annex 1 (Cost Estimates and Financing Plan).


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.

ADB Team Leader:

Nana Gurgenidze - Senior Energy Specialist

No contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works