OREANDA-NEWS. April 26, 2010. Implementation of preliminary technical conditions by Azerbaijan accorded with the World Bank Group has opened an opportunity for holding official negotiations about the project of construction of deepwater sewage runoff from Hovsan aeration station into the Caspian Sea.

The Baku-based WB representative office reports that the whole package of documentation on the project is being prepared for the country’s government.

“It can be transferred to the government within a week. Then terms of official talks will be suggested and coordinated,” the WB office said.

Earlier national watersupply operator Azersu finished a pre-qualification tender of potential contractors on project realization.

In parallel the sides managed to get rid of mutual doubts in the necessity and efficiency of the future project.

Earlier WB country manager for Azerbaijan Gregory T.Jedrzeiczak said that one of the project conditions was pre-qualification of potential suppliers.

As a result consideration of the project by the WB Board of Directors was postponed for early July on the condition that before that the Bank and the government should conduct official negotiations.

Initially the WB was ready to endorse the loan for the project before the end of June 2010. The Bank reserved up to USD 150 million for the project.

The WB has already conducted consultations with the government about terms of a construction tender procedure as it is planning to commission to the construction contractor to make detailed design of the project.

At the same time the Bank received the prepared feasibility study and environmental assessment impact report.

WB is also conducting a tender procedure for documentation and surveillance over construction works.

Earlier WB and Azersu OJSC conducted public discussion of feasibility study and environment impact assessment of the project.

Creation of system of monitoring of runoff construction and operation worth USD 4.2 million was offered within the project.

It was chosen an option of construction of 5-km deepwater sewage runoff with diameter of 2.2 m off Hovsan settlement with use of available infrastructure.

A run-out for outflow diffusion will be installed on the runoff notch.

The construction will be carried out by two stages – onshore and offshore segments and their connection. Cost of the construction on this option is estimated at USD 73 million.

Choice was made on three options. The first one included laying of a 8 km sewage runoff through Hovsan settlement. Its cost was USD 144 million.  The third one included use of treated sewage water for irrigation. But this option was not evaluated as domestic legislation bans to use such water for irrigation ends.

The feasibility study was made by Turkey Seyas and EIA by French-Azerbaijani consortium Seurega/ASPI.