BAKU, Azerbaijan, September 28. The Caspian Sea Water Desalination Project in Azerbaijan is expected to commence in the third quarter of 2026, reads the project’s Environmental and Social Impact Assessment.
“The Project is expected to commence in the third quarter of 2026, following financial close and the issuance of the Notice to Proceed, marking the start of full-scale construction activities. Initial operations are anticipated to begin in the third quarter of 2028, when the plant will start producing water on a limited basis. Full commercial operations are expected to be achieved by the first quarter of 2029. Once operational, the facility will continue to provide water supply for an anticipated period of approximately 25 years,” the document reads.
The proposed desalination plant will be located within the Sumgayit industrial area, near the Caspian Sea, on a site of approximately 30 hectares. The Project will have a production capacity of around 300,000 m³ of potable water per day. It will be developed and operated by a dedicated project company established in Azerbaijan, under a long-term agreement with the Azerbaijan State Water Resources Agency.
The Project aims to address increasing water demand in Baku and surrounding areas by providing a reliable and sustainable source of potable water. By introducing seawater desalination, the Project will diversify Azerbaijan’s water supply and reduce reliance on traditional surface water sources. It is also designed to improve the efficiency and resilience of the existing water supply system through the use of modern, energy-efficient technologies. The development will bring economic and technical benefits, including the introduction of modern technologies and international expertise, supporting local capacity building within the water sector.
At this stage, it is understood that the project developer ACWA is seeking an amount of project finance from financial Institutions that are Development Finance Institutions (DFIs), which will include the International Finance Corporation (IFC), Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). This ESIA Non Technical Summary (NTS) and broader Environmental and Social (E&S) package has been prepared for the potential financing of the Project by the above-mentioned targeted international lenders. The respective lenders will undertake a process of E&S Due Diligence/Review to ensure that the Project can be accepted for financing under their respective E&S Policies.
The Project will produce potable water from seawater using SWRO technology. Seawater will be abstracted from the Caspian Sea through offshore intake pipelines and conveyed to the plant, where it will undergo a series of treatment processes to remove salts and impurities. The process includes pre-treatment to remove suspended solids and protect the system, followed by reverse osmosis where freshwater is separated from saline water. The treated water is then stabilised and disinfected to meet drinking water standards before being supplied to the distribution network. Supporting infrastructure includes power supply systems, chemical storage and dosing facilities, product water storage, and brine outfall infrastructure for the safe discharge of residual saline water back to the sea.
The Project will be delivered by an experienced international Engineering, Procurement and Construction (EPC) contractor consortium led by PowerChina Huadong Engineering Corporation Limited (HDEC), in partnership with Innovative Water Application Company (IWAC) and Water & Environment Technologies Company (WETICO). The consortium will be responsible for the detailed design, construction, and commissioning of the desalination plant in accordance with national requirements and international good practice.
Construction will involve a combination of onshore and offshore works. Onshore activities will include site preparation, earthworks, excavation, and backfilling to establish foundations and plant infrastructure. Materials from the existing site, including concrete and soils, will be reused where suitable to reduce waste and minimise the need for imported materials. Civil works will include the construction of buildings, tanks, and supporting infrastructure, with ground improvement measures implemented to ensure long-term stability.
