Investors are invited to the project within the framework of public-private partnership

Ministry of Economy of the Republic of Azerbaijan announces a COMPETITION to engage prospective partners for design, building, financing, operation and maintenance of a PPP-based sea water desalination plant

 

The Ministry of Economy of the Republic of Azerbaijan hereby invites potential partners to a competition for a PPP-based design, building, financing, operation and maintenance contract for a seawater desalination plant with an annual capacity of 100 mcm in Sumgayit, as per the Public-Private Partnership Law of the Republic of Azerbaijan dated December 8, 2022.

 

Project scope and brief summary of the RFP of the competition:

  • Objective of the project: Cover the growing drinking water demand of Baku and the Absheron peninsula, diversify the fresh water sources, reduce the government’s financial and technical burden from the drinking water supply, and promote best drinking water supply practices and technology transfer to Azerbaijan;
  • Project description: Design, build, operation and management of a seawater desalination plant with an annual capacity of 100 mcm in Sumgayit based on the BOT model;
  • Project duration: According to the contract, the duration of the plant construction (including commissioning) is 2.5 years, and after 25 years of operation by the private partner, the plant will be fully transferred to Azerbaijan State Water Resources Agency;
  • Conducting competition: A competition conducted in line with the Public-Private Partnership Law of the Republic of Azerbaijan dated December 8, 2022;
  • Private partner selection: Project proposals that meet the minimum technical requirements will be evaluated based on financial (60%) and technical (40%) criteria.

Key dates for the tender process

 

Stage or part of the competition

Date

Announcement of competition published

08.02.2024

Deadline for submission of applications

08.02.2024 - 29.02.2024

Presenting volume 3 of the RFP to the pre-qualified bidders

07.03.2024

Submission of project proposals by bidders

01.07.2024

Selection of the winner of the competition, as well as bidders holding second and third places

16.09.2024

PPP Agreement signed

Within 6 months from announcing the successful bidder

 

Government support and incentives for the project:

As government support / incentives, the private partner will be exempt from corporate income tax, property and land tax, as well as VAT and customs duties for imported hardware, technology, equipment and desalination raw materials for the entire duration of the project.

Public partner:

Azerbaijan State Water Resources Agency

Application date and bidder requirements:

For the purpose of participating in the project, potential investors can obtain information about the documents provided by Article 11 of the Law "On Public-Private Partnership" for qualification evaluation through the specially established portal from February 8, 2024, 10:00 a.m.

Thus, the applicants who are interested in participating in the competition, after applying to the Ministry of Economy through the e-mail address azdesalppp@economy.gov.az the username and password will be shared for the purpose of electronic submission of the necessary documents via information exchange system created.

 

For any questions regarding the competition and the project, please contact us via the email address or the persons listed below:

Email: azdesalppp@economy.gov.az

Zaur Mammadov – Head of Industrial Policy Division, Industry Department, Ministry of Economy

Tel.: (+994 12) 310 28 00 (ext.: 24 73)

Mob.: (+994 50) 406 74 77

Amrah Garayev – Lead Advisor, Project Management Department, Ministry of Economy

Tel.: (+994 12) 310 28 00 (ext.: 21 32)

Mob.: (+994 70) 597 99 97

Application deadline

February 29, 2024, 18:00 (Baku time).

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