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ADB Loan to Boost Azerbaijan's Railway Connectivity

|In Evidence
17 September 2024

Bakum photo by Dario Daniel Silva on UnsplashThe Asian Development Bank (ADB) has approved a $131.5 million loan to further improve a key railway line in Azerbaijan, enhancing the country's regional connectivity. This additional financing will complete the rehabilitation of about 166 kilometers of the double-track Sumgait–Yalama rail line, including its civil structures and level crossings.

The project is part of ADB's ongoing Railway Sector Development Program, which aims to strengthen Azerbaijan's railway operations and management. Under this program, Azerbaijan Railways (ADY) implemented comprehensive reforms in 2018-2019 that boosted its financial capacity and railway management. As a result, ADY's freight transport grew by 34% between 2018 and 2022, from 14 million tons to 18.7 million tons, with over 80% being international or transit traffic.

Improving Efficiency and Sustainability

Upgrading and modernizing Azerbaijan's rail service will enable the country to provide safer, cheaper, and more energy-efficient transport. The project aligns with the transport strategy of the Central Asia Regional Eco

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