ADB approves $47m loan for Azerbaijan’s railways

The Asian Development Bank (ADB) approved a $47 million loan to support Azerbaijan in digitalising its railway system, according to its statement published on Tuesday.

This project aims to improve the safety, reliability, and efficiency of the country’s railway networks, specifically focusing on key processes within the Azerbaijan Railways Closed Joint Stock Company (ADY).

The digital transformation will include enhancing cargo operations, asset maintenance, investment planning, and providing clients with access to information such as shipment pricing and tax calculations. Additionally, the project will fund digital upgrades to ADY’s corporate functions like budgeting and contract management.

This initiative is expected to strengthen Azerbaijan’s role as a trade and connectivity hub between East and Central Asia, the Caucasus, and Europe.

Despite the country’s strategic location and infrastructure development focus, the railway sector has faced challenges in maintaining market share due to aging infrastructure and limited digitalization efforts.

Attribution: Asian Development Bank report

Subediting: M. S. Salama