President Ilham Aliyev has signed a decree on the reorganization of several entities under the Azerbaijan State Water Resources Agency to improve management and efficiency in the country's water supply and melioration sectors.
According to the decree, the "Regional Water Melioration Service" and the "United Water Supply Service of Large Cities," both formerly public legal entities, will be reorganized into closed joint-stock companies (CJSCs). Operative Information Center-OMM reports that the new entities will be named "Regional Water Melioration" CJSC and "Water Supply of Large Cities" CJSC, respectively.
The "Regional Water Melioration" CJSC will be responsible for melioration and irrigation services, the operation and protection of state-owned irrigation systems, and water supply and wastewater services in all regions of Azerbaijan, excluding the major cities of Baku, Sumgait, Ganja, Mingachevir, Nakhchivan, and Shirvan. Meanwhile, the "Water Supply of Large Cities" CJSC will specifically handle drinking water supply, industrial water provision, and wastewater management within those six major cities.
The decree stipulates that each CJSC will be governed by a Supervisory Board consisting of five members, including a chairman. An executive director, appointed by the Supervisory Board, will manage daily operations. The Cabinet of Ministers has been tasked with approving the charters and determining the authorized capital of the new companies within two months. Additionally, the Ministry of Finance will conduct a financial expertise of the structures and salary systems to ensure optimization.
This structural reform is part of Azerbaijan's broader strategy to modernize its utility infrastructure and ensure sustainable water management. By transitioning these entities into commercial joint-stock companies, the government aims to increase transparency, attract potential investment, and improve the quality of services provided to both residential and industrial consumers across the Republic of Azerbaijan. The reorganization aligns with the country's long-term economic goals of enhancing state-owned enterprise performance and ensuring water security amid global climate challenges.
