Today, the Azerbaijan State Water Resources Agency (ASRA), in collaboration with the European Union (EU) and the World Bank (WB), unveiled a significant report titled "Transitioning to Efficient Water Sector Institutions and Programs for Addressing Water Security Challenges," Azernews reports via World Bank office.

The reforms are designed to address fragmentation and overlap among the country's water sector institutions. The report stresses the urgency of these changes due to Azerbaijan's heavy reliance on transboundary water resources, with 78 percent of the country’s groundwater sourced from the Kura and Araz rivers flowing from neighboring countries. Increasing demand and climate change are exacerbating challenges related to water availability, underscoring the need for sustainable water management.

The report is structured into two main thematic areas: enhancing institutional efficiency in water sector services and leveraging digital tools for water resource management. It offers recommendations on improving water supply and sanitation services, sustainable drinking water and wastewater management in rural areas, and employing digital tools for better water resource accounting and evaluation.

Key recommendations include reducing water losses in Baku and surrounding regions, optimizing the operation of wastewater treatment plants, and establishing priority strategic programs for professional services in rural areas. The report also suggests adjusting water tariffs and implementing performance-based financing mechanisms to strengthen resilience to climate risks, reduce subsidies, and enhance the viability of water sector institutions.

Prepared under the Azerbaijan Rapid Technical Assistance Facility (AZTAF), the report is part of a three-year program funded by the EU and managed by the World Bank, with a budget of €5.25 million. The AZTAF program aims to support Azerbaijan's National Priorities and Social and Economic Development Strategy for 2022-2026 through expert advice and analytical support.