ADB Approves $131.5 Million Loan For Key Railway Line In Azerbaijan


(MENAFN- AzerNews) Akbar Novruz Read more

The Asian Development bank (ADB) has approved a $131.5 million loan to enhance a crucial railway line in Azerbaijan, aiming to boost regional connectivity, Azernews reports, citing information from the ADB website.

The funding will support the rehabilitation of approximately 166 kilometers of the double-track Sumgait–Yalama rail line, including its civil structures and level crossings. This loan serves as additional financing for the Railway Sector Development Program, which was initially approved in 2017 to improve railway operations in Azerbaijan.

ADB Director General for Central and West Asia, Yevgeniy Zhukov, emphasized,“Upgrading and modernizing rail service will enable Azerbaijan to provide safer, cheaper, and more energy-efficient transport. At the same time, it will help Azerbaijan optimize its strategic location at the crossroads of Europe and Asia.”

The project aligns with the Central Asia Regional Economic Cooperation (CAREC) Program's transport strategy, which aims to foster regional economic development through improved rail and multimodal infrastructure and the commercialization and reform of railway activities.

Under the Railway Sector Development Program, Azerbaijan Railways (ADY) implemented significant reforms between 2018 and 2019, enhancing its financial stability and management. Since then, ADY has continued to improve its operational and financial performance, with freight transport increasing by 34% from 14 million tons to 18.7 million tons between 2018 and 2022. Notably, more than 80% of this freight is international or transit traffic.

In addition to its support for railway development, ADB is assisting Azerbaijan's Presidency of COP29 through capacity building ahead of the landmark United Nations climate summit set to be held in Baku in November.

Since Azerbaijan's membership began in 1999, ADB has committed over $5 billion in sovereign and private sector assistance across various sectors, including transport, energy, healthcare, and agriculture. As Asia and the Pacific's climate bank, ADB remains dedicated to fostering a prosperous, inclusive, resilient, and sustainable region while working to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, with 49 from the region.

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AzerNews

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