ADB project to improve rail service in Azerbaijan

The Asian Development Bank (ADB) has approved a $131.5 million loan that will help upgrade a key railway line in Azerbaijan for better regional connectivity.

The funding will complete the rehabilitation of some 166 kilometers of double-track main line, civil structures and level crossings on the Sumgait-Yalama railway line. It serves as additional funding for the Railway Sector Development Program approved in 2017, which is helping to improve railway operations in the country.

“Improving and modernizing the railway service will enable Azerbaijan to offer safer, cheaper and more energy-efficient transport,” said ADB Director General for Central and Western Asia Yevgeniy Zhukov. “At the same time, it will help Azerbaijan optimize its strategic position at the crossroads of Europe and Asia.”

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The project is in line with the transport strategy of the Central Asian Regional Economic Cooperation (CAREC) Programme, which aims to contribute to regional economic development by improving railway and multimodal infrastructure and commercializing and reforming railway activities.

Within the framework of the ADB Railway Sector Development Program, Azerbaijan Railways (ADY) implemented comprehensive reforms in 2018-2019 that strengthened its financial capacity and railway management. Since then, ADY continued to strive to improve its operational and financial performance. Between 2018 and 2022, ADY’s freight transportation grew by 34%, from 14 million tons to 18.7 million tons. More than 80% is international or transit traffic.

The funding will complete the rehabilitation of about 166 kilometers of double-track main line, civil structures and level crossings of the Sumgait-Yalama railway line.

As Asia-Pacific’s climate bank, ADB is also supporting Azerbaijan’s COP29 Presidency, including through capacity building ahead of the landmark UN climate summit in Baku in November.

Since Azerbaijan joined the bank in 1999, ADB has committed more than $5 billion in sovereign and private sector assistance in areas such as transport, energy, health and agriculture. ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific region, while continuing its efforts to eradicate extreme poverty. Established in 1966, it has 68 members – 49 in the region.