BAKU, Azerbaijan, February 20. President of the
Republic of Azerbaijan, Ilham Aliyev, has signed a decree on the
reorganization of the “Regional Water Melioration Service” and the
“United Water Supply Service of Large Cities,” Trend reports.


Under the decree, the “Regional Water Melioration Service”
public legal entity operating under the Azerbaijan State Water
Resources Agency (hereinafter – the Agency) will be reorganized
into the “Regional Water Melioration” Closed Joint-Stock Company
(CJSC), while the “United Water Supply Service of Large Cities”
public legal entity will be transformed into the “Water Supply of
Large Cities” CJSC.


According to the document, the “Regional Water Melioration” CJSC
will operate as a state-owned commercial legal entity providing
melioration and irrigation services, ensuring the operation and
protection of state-owned melioration and irrigation systems,
managing water facilities on its balance sheet, and delivering
domestic, industrial, and other water supply services, as well as
wastewater and stormwater treatment, across Azerbaijan’s districts
and cities, except for Baku, Sumgayit, Ganja, Mingachevir,
Nakhchivan and Shirvan.


The “Water Supply of Large Cities” CJSC will provide water
supply and wastewater services in Baku, Sumgayit, Ganja,
Mingachevir, Nakhchivan, and Shirvan.


The newly established companies will act as legal successors to
the respective public legal entities, assuming their rights,
obligations, and property. A Supervisory Board consisting of five
members, including a chairman, will oversee each company’s
activities, while day-to-day management will be carried out by an
executive director appointed and dismissed by the Supervisory
Board.


The decree also stipulates that the charter capital of the
companies will be formed from the assets of the reorganized public
legal entities specified in paragraphs 1.1 and 1.2, which will
continue operating until the new entities are officially registered
in accordance with the Law of the Republic of Azerbaijan on State
Registration and State Register of Legal Entities.


The exercise of the powers of the general meeting of the
Companies will be assigned as follows:


President of the Republic of Azerbaijan:


- Authority over the reorganization and liquidation of the
Companies;


- Establishment of the executive body of the Companies.


Cabinet of Ministers:


-Approval of the Companies’ charters and determination of their
authorized capital, as well as making amendments thereto.


Agency:


- Decision-making on transactions classified as specially
significant, exceeding 25% of the net asset value, as well as
transactions with related parties, the value of which, according to
the opinion of an independent auditor, constitutes 5% or more of
the Company’s assets;


- Appointment and dismissal of the Chairman of the Supervisory
Board, in coordination with the President of the Republic of
Azerbaijan;


- Appointment and dismissal of other members of the Supervisory
Board.


Supervisory Board:


- Resolution of all matters assigned to the general meeting of
shareholders under the Civil Code of the Republic of Azerbaijan,
except for those explicitly reserved in this Decree.


Cabinet of Ministers of the Republic of Azerbaijan:


- Taking into account the provisions of this Decree, prepare
proposals to improve regulatory legal acts within three months and
submit them to the President of the Republic of Azerbaijan.


- Approve the Companies’ charters within two months and notify
the President of the Republic of Azerbaijan;


- Address other issues arising from this Decree.


Agency:


- Ensure that, within one month from the state registration of
the Companies in accordance with the Law of the Republic of
Azerbaijan “On State Registration and State Register of Legal
Entities,” the assets listed on the balance sheets of the relevant
public legal entities under paragraphs 1.1 and 1.2 of this Decree
are transferred to the Companies’ balance sheets;


- Take all necessary measures to resolve other issues arising
from this Decree.


Ministry of Finance of the Republic of Azerbaijan:


- In accordance with paragraph 3.7 of the Presidential Decree
No. 489 dated August 25, 2025, “On Additional Measures for the
Organization of Effective Management of State Finances,” conduct a
financial review of the Companies’ organizational structure,
staffing, and payroll systems, and implement measures to optimize
them.