BAKU, Azerbaijan, March 7. The Asian Development Bank (ADB) is currently financing a railway project in Azerbaijan named Railway Sector Development Program, Candice McDeigan, ADB Country Director in Azerbaijan, told Trend.
According to the country director, the total cost of the project is $400 million, which comprises a policy-based loan of $250 million, and a project loan of $150 million.
"This program is improving rail service delivery and the financial viability of railway operations in Azerbaijan. The policy-based loan component supported Azerbaijan railway sector development reforms," she explained.
Within the project, approximately 166-kilometers long Sumgait-Yalama double track rail line will be rehabilitated.
As McDeigan noted, the project is scheduled to be completed by the end of 2024.
"In line with the Government’s priorities, we are ready to provide further assistance to increase the transit capacity of major transport corridors, which could boost regional cooperation and sustainable trade beyond Caucasus," she added.
To date, ADB has committed 65 public sector loans, grants, and technical assistance totaling $3.7 billion to Azerbaijan. Cumulative loan disbursements to Azerbaijan amount to $3.93 billion. These were financed by regular and concessional ordinary capital resources. ADB’s ongoing sovereign portfolio in Azerbaijan includes 2 loans and 1 sovereign guarantee worth $856.8 million.