New Delhi: The Asian Development Bank (ADB) approved a $131.5 million loan to improve key railway line in Azerbaijan. The project is expected to strengthen regional connectivity and improve the country’s railway network, an ADB press release stated.
The financing will be used to rehabilitate about 166 kilometres of double-track main line, civil structures, and level crossings of the Sumgait–Yalama rail line. It is part of the Railway Sector Development Program approved by the ADB in 2017, which aims to enhance railway operations and improve the efficiency of transport.
“Upgrading and modernizing rail service will enable Azerbaijan to provide safer, cheaper, and more energy-efficient transport,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.
The loan approved for the Sumgait–Yalama rail line is part of the ADB’s broader commitment to provide $5 billion in assistance to Azerbaijan for investment in various sectors, including transport, energy, health care, and agriculture.
The ADB’s Railway Sector Development Program, implemented in 2018-2019, aimed to strengthen the financial capacity and railway management of Azerbaijan Railways (ADY). Since then, ADY has continued to improve its operational and financial performance.