World Bank to increase financing for Baku environmental project to $500 mln

BAKU. Oct 19 (Interfax) - The World Bank now plans to allocate $500 million for the Livable Baku project to improve quality of life and strengthen resilience to climate threats in Greater Baku and surrounding areas, the World Bank said on its website.

The World Bank said in June that it planned to provide $410 million for the project.

The project is expected to be appraised by October 26, 2026, while its approval by the Board of Directors is scheduled for February 18, 2027. The financing will be provided through the International Bank for Reconstruction and Development, which is part of the World Bank Group.

The total cost of the project is $591.25 million, with the Azerbaijani government's contribution of $91.25 million.

Financing will be provided for agreed capital investments and institutional development measures aimed at addressing the most pressing environmental problems in Baku's urban environment. The project includes three mutually reinforcing investment components and one project management component.

The first component, Integrated Solid Waste Management, provides for the financing of works, goods and services to upgrade solid waste management infrastructure in Baku and the Absheron district. Key investments include the construction and commissioning of sanitary landfills that meet international environmental standards, the establishment of waste transfer stations, and the creation of material sorting and recovery facilities to improve resource recovery and reduce the volume of waste sent to landfill.

The second component, Remediation of Polluted Lakes and Areas, is the largest component and focuses on the environmental rehabilitation of natural water bodies and oil-contaminated land.

The third component, Institutional Strengthening, aims to develop the capacity of state institutions to plan, manage and preserve an environmentally friendly and resilient urban environment. Key measures include strengthening capacity in integrated urban planning and management, creating and applying land resource management systems, and supporting reforms in the solid waste management sector.