EBRD plans to allocate around €90M to modernize Shaki's water infrastructure in Azerbaijan

The European Bank for Reconstruction and Development (EBRD) is exploring the possibility of providing a €89 million loan to the Azerbaijan State Water Resources Agency (ADSEA) for the construction of water supply, sewerage, and stormwater drainage networks, as well as biological treatment facilities at the wastewater treatment plant in the city of Shaki and surrounding villages, Report informs referring to the EBRD.

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 neighboring villages (Okhud, Kish and Qokhmuq).

The Project is expected to have a significant positive environmental impact by reducing pollution and emissions from untreated wastewater, improving surface water quality, and enhancing resilience to climate change risks.

The Project will help to promote the Green transition quality by improving water supply services, reducing water losses and ensuring adequate wastewater treatment in Shaki.

The Project will also support the Inclusive transition quality through the development of a tailored skills development training program for water sector.

The total project cost is estimated at €93 million, of which up to €4 million is planned to be raised as an investment grant. The EBRD Board of Directors is scheduled to consider the loan approval on February 11, 2026.

As of September 30, 2025, the EBRD's current lending portfolio in Azerbaijan was estimated at €948 million. Of this, 89% (€842 million) is allocated to sustainable infrastructure development, 6% (€56 million) to financial institutions, and 5% (€49 million) to the corporate sector.