Azerbaijan is an oil-producing country located in the South Caucasus region, and bounded by the Caspian Sea to the east, with a population of about 10 million. After its independence from the Soviet Union, the country has made great economic growth by exporting oil, and that has led to the modernization of city infrastructure mainly in its capital city, Baku. However, regional cities are delayed in the economic growth and the average rate of water supply system coverage was 33% (2004), with deteriorating water supply service due to aged facilities and natural disasters. In addition, in these cities, sewerage system coverage was also quite low, thus adding to the concern of increase of untreated sewage worsening living environment. Therefore, improvement of water supply and sewerage systems in the regional cities is priotarized as one of the Azerbaijan's national policy.
In May 2009, Japanese ODA Loan agreement was signed with amount of 32.8 billion yen. The project aims to improve water supply and sewage facilities in five regional cities such as Gusar, Khachmaz, Khizi, Gobustan, and Naftalan. The project allows to provide with safe water supply of 29,642m3/day, which cover water demand for estimated population of 126,485 (total of 5 cities, estimated for 2030). Also, the new sewerage pipes and sewage treatment plant xxxxx will improve the living environment. Additionally, the treated water meets EU water quality standards that will enhance an aquatic environment. Moreover, installation of new water meters for all, will encourage customers to make a payment that will effectively enhance the sustainability of water supply business operation through improving the financial performance.
In the targeted 5 cities, the project have achieved the construction of water supply and sewerage facilities; intake facilities of infilltrated water, spring water and ground water, water treatment plant with reverse osmosis membrane (capacity treatment: 3,800m3/day）, water pipe lines (479.8㎞), installation of 21,588 water meters, sewer pipe lines (360.8㎞), 5 sewage treatment plants with extended aeration process (capacity treatment:26,850m3/day in total),5 control buildings.