ADB approves $131.5m loan to upgrade Azerbaijan railway

The Asian Development Bank (ADB) approved a $131.5 million loan to support the rehabilitation of a key railway line in Azerbaijan, aiming to improve regional connectivity.

The financing will complete the upgrade of approximately 166 kilometres of the Sumgait–Yalama rail line, including double-tracking, civil structures, and level crossings.

This project is an extension of the Railway Sector Development Programme, approved in 2017, which has been instrumental in enhancing railway operations in Azerbaijan, as per the statement.

ADB Director General for Central and West Asia, Yevgeniy Zhukov, emphasised the importance of modernising rail services in enabling Azerbaijan to provide safer, cheaper, and more energy-efficient transportation.

The project aligns with the transport strategy of the Central Asia Regional Economic Cooperation (CAREC) Programme, which seeks to promote regional economic development through improved rail and multimodal infrastructure.

Under the ADB’s Railway Sector Development Programme, Azerbaijan Railways (ADY) implemented significant reforms between 2018 and 2019, strengthening its financial capacity and railway management.

These reforms have contributed to a 34 per cent increase in freight transport between 2018 and 2022, with over 80 per cent of the traffic being international or transit.

Attribution: Asian Development Bank’s statement

Subediting: M. S. Salama