The Asian Infrastructure Investment Bank (AIIB) has approved a $45 million loan to support the construction of a major seawater desalination facility in Azerbaijan, marking a significant step towards diversifying the country's water supply infrastructure. According to the bank, the project involves the construction and operation of a reverse-osmosis desalination plant in the Sumgayit industrial zone, with a planned production capacity of 300,000 cubic metres of water per day. The facility will use reverse-osmosis technology to remove dissolved salts and other impurities from seawater, producing freshwater suitable for use following the necessary treatment processes.
At full operational capacity, the plant could produce approximately 109.5 million cubic metres of desalinated water annually, providing an additional source of freshwater for Azerbaijan. The project will be implemented through a public-private partnership (PPP), making it the first initiative of its kind in the country's water sector. The partnership agreement was concluded between Saudi Arabia's ACWA Power and the Azerbaijan State Water Resources Agency.
Under the arrangement, the agreement will remain in effect for 25 years from the date the facility begins commercial operations. The long-term partnership is intended to combine private-sector expertise in water infrastructure development and operation with public-sector oversight of a strategically important resource. The AIIB financing will support the development of the facility, although the bank's $45 million loan should not be confused with the total investment cost of the project.
The desalination plant is expected to contribute to Azerbaijan's efforts to strengthen water security amid growing pressure on conventional freshwater resources. Seawater desalination offers an alternative supply source for countries facing increasing demand from households, industry and economic development. For Azerbaijan, which has access to the Caspian Sea, the technology could provide additional flexibility in managing water resources, particularly in areas where demand places pressure on existing supply systems.
However, reverse-osmosis desalination also requires substantial energy consumption and careful management of concentrated saline discharge, making environmental safeguards and operational efficiency important considerations during implementation. The Sumgayit project represents a further expansion of cooperation between Azerbaijan and international financial institutions and private investors in strategic infrastructure. It also reflects the country's growing use of public-private partnership mechanisms to develop major infrastructure projects and attract international technical expertise.
The bank has not specified in the information provided when construction will be completed or when the plant is expected to begin commercial operations. Here we are to serve you with news right now. It does not cost much, but worth your attention.
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