(MENAFN- AzerNews)
Akbar Novruz
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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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