The Order of the President of the Republic of Azerbaijan No. 3843 dated April 12, 2023, “On measures for the implementation of a pilot project for the production of drinking water through seawater desalination,” and the Order of the Cabinet of Ministers of the Republic of Azerbaijan No. 346s dated April 19, 2023, “On ensuring the implementation of the aforementioned Order,” were signed.
For the purpose of implementing these Orders, it was envisaged that a seawater desalination plant for the production of drinking water, with a daily production capacity of 300,000 m³, would be constructed in Sumgait under a public-private partnership (PPP) framework and operated by a private company for a period of 25 years.
According to the results of the tender announced for the implementation of the seawater desalination drinking water production plant project, the Consortium led by Saudi Arabia’s ACWA Power ranked first.
On September 22, 2025, the following agreements were signed in connection with the implementation of the Project: the “Public-Private Partnership Agreement for the Design, Construction, Financing, Operation and Maintenance of the Caspian Sea Water Desalination Plant,” “Treated Water Offtake Agreement,” “Lease Agreement,” and “State Guarantee Agreement.” Subsequently, on December 26, 2025, the “Amendment No. 1 to the Public-Private Partnership Agreement for the Design, Construction, Financing, Operation and Maintenance of the Caspian Sea Water Desalination Plant” was signed.
