BAKU, Azerbaijan, October 16. The Draft Environmental and Social Management Framework for the Liveable Baku Project has been published.
The document, published on the World Bank's website says that the Livable Baku Project area covers the Absheron Peninsula and surrounding districts of Absheron, Gobustan, Shamakhi, and Khizi, located in eastern Azerbaijan along the western coast of the Caspian Sea.
"The region occupies a strategically important position between the Greater Caucasus Mountains and the Caspian lowlands and represents one of the country's most densely populated and economically significant territories. The project area encompasses a wide range of natural and urban environments, including coastal ecosystems, lakes, semi-deserts, agricultural lands, forests, mountains, and rapidly expanding urban settlements. This geographic diversity creates both environmental challenges and opportunities, making the area a priority for integrated waste management improvements, remediation of polluted lands and lakes, biodiversity enhancement, and sustainable urban development under the Livable Baku Project," reads the document.
The document reveals that the project area is characterized predominantly by semi-desert and dry steppe landscapes, sparse natural vegetation, saline soils, coastal habitats, wetlands, and numerous natural and artificial lakes.
"Decades of oil extraction, industrial development, rapid urbanization, and waste disposal activities have significantly altered natural ecosystems in many parts of the area. Several environmentally sensitive sites are located within the Project area, including Boyukshor Lake, Khojasan Lake, and Zigh Lake, as well as oil-contaminated lands at Mashtaga-Buzovna, Garachukhur, and Girmaki. These areas have experienced varying degrees of ecological degradation resulting from historical oil production, industrial pollution, wastewater discharge, and urban expansion.
The Project area is also located in proximity to several nationally important protected areas, including Absheron National Park and Altiagach National Park. These protected areas support valuable terrestrial and coastal ecosystems, provide habitat for numerous plant and animal species, including several rare and endangered species, and contribute significantly to biodiversity conservation, ecosystem services, environmental education, and climate resilience in Azerbaijan," says the document.
The Government of Azerbaijan, through its Ministry of Economy (MoE) as an Implementing Agency, with involvement of the Ministry of Ecology & Natural Resources (MENR), Azerbaijan State Water Resources Agency (ASWRA) and others, worked with the World Bank to prepare the Livable Baku Project (hereafter ‘the Project’) designed to improve the quality, disaster- and climate- resilience of public spaces, buildings and local infrastructure in Greater Baku. The Project aims to improve municipal solid waste management systems, enhance waste collection, transfer, sorting, treatment, and disposal services, and support the rehabilitation of environmentally degraded areas within Greater Baku. The Project also seeks to strengthen urban biodiversity and increase the quantity and quality of green and blue infrastructure through remediation and rehabilitation of polluted lakes, including Zigh Lake, Boyukshor Lake, and Khojasan Lake, as well as selected oil-contaminated sites.
The World Bank is considering financing the Livable Baku project in Azerbaijan. The board of directors is tentatively scheduled to review the project on February 18, 2027. The project will be financed by an IBRD loan of US$500 million will be implemented over the period 2027–2033.