WB: There is need for institutional reforms in water, sanitation sector in Azerbaijan

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The Azerbaijan State Water Resources Agency (ASRA), European Union (EU) and World Bank (WB) have presented the report "Transitioning to Efficient Water Sector Institutions and Programs for Addressing Water Security Challenges," Report informs.

The driving force for report was important institutional reforms that are currently being implemented in Azerbaijan to improve services in the water and sanitation sector. One of the goals of these reforms is to eliminate fragmentation and overlapping functions in the country's water sector institutions.

The report emphasizes that institutional reforms are also pressing because Azerbaijan is highly dependent on transboundary water resources due to its geographical and climatic conditions. 78 percent of Azerbaijan’s ground water comes through transboundary Kura and Araz rivers from the three neighboring countries. Due to increasing demand and the effects of climate change, water availability will be decreasing.

All this makes sustainable water management relevant.

The report is organized into two thematic blocks: increasing institutional efficiency for the provision of services in the water sector and digital tools for water resources management. These thematic blocks include advice on strengthening water sector institutions for efficient services with a focus on water supply and sanitation services, models for sustainable drinking water supply and wastewater management in rural areas, and information on digital tools for accounting, evaluation and management of water resources.

The report provides recommendations on reducing water losses in Baku and surrounding areas, increasing the efficiency of the operation of wastewater treatment plants, forming priority strategic programs for the introduction of licensed (professional) services in rural areas and small towns, and implementing financing mechanisms based on performance and targets for larger cities. These programs will help strengthen resilience to climate risks, reduce subsidies, and improve the viability of water supply and sanitation sector institutions. The adjustment of water tariffs, including its levels and structure, is an important feature of the proposed reforms.

The report "Transitioning to Efficient Water Sector Institutions and Programs for Addressing Water Security Challenges" has been prepared under the Azerbaijan Rapid Technical Assistance Facility (AZTAF). AZTAF is a three-year program funded by the European Union and managed by the World Bank with a total budget of 5.25 million euros.

The purpose of the program is to provide advice and analytical support to the government of Azerbaijan in accordance with the National Priorities of Azerbaijan until 2030 and the Social and Economic Development Strategy for 2022-2026.

Economy