BAKU, Azerbaijan, April 16. Japan International Cooperation Agency (JICA) is considering support for strengthening the logistics functions of the Caspian Sea route in Central Asia and the Caucasus (Middle Corridor), a source in the company told Trend.
"Azerbaijan's advantageous geographic location, attractive government incentives, and commitment to enhancing the business environment make it a desirable destination for investors looking for opportunities in both established and emerging sectors. Azerbaijan’s advantageous position as a country bridging Europe and Asia has prompted investments in its transport infrastructure, encompassing the development of roads, railways, and ports. Currently, JICA is considering support for strengthening the logistics functions of the Caspian Sea route in Central Asia and the Caucasus (Middle Corridor)," the company said.
The source recalled that in 2022 JICA signed a project finance loan agreement with "Masdar Azerbaijan Energy" Limited Liability Company, which has been implementing the Solar PV Plant Project in the Republic of Azerbaijan.
"This is the first large-scale solar power project (230MW) in Azerbaijan in which both construction and operation are to be carried out by a private company. The Azerbaijani government is aiming to adhere to the Paris Agreement and seeks to increase the share of renewable energy to 30% by 2030. This project will support the accomplishment of these goals and ensure a stable supply of electricity. JICA is ready to continue to support such Public-Private Partnership projects in the renewable energy, transportation, and logistics sectors in Azerbaijan," the source added.
The source noted that priorities for JICA’s Operations in Azerbaijan are the following: Economic Infrastructure, Social Sector and Human Resource Development. Infrastructure development to support the growth mainly led by oil production as well as non-oil sector development is important. As the country is classified as an "upper-middle income country", JICA’s ODA loan operations are limited in the following 4 areas: i) Environment; ii) Human Resource Development; iii) Disaster Protection and Recovery Measures; and iv) Social infrastructure development in urban areas to improve the living standards of the urban poor.
JICA is the biggest bilateral development aid organization in the world, with an annual operating budget of over $15 billion. Not only for Azerbaijan, JICA has also contributed a lot to world development. JICA plays a significant role as Official Development Assistance for Japan.
JICA serves as Japan's ODA's "one-stop shop," offering a variety of services such as grants, financing and investment, volunteers, technical cooperation, and private sector partnerships. As one of the world's largest bilateral aid agencies, JICA operates in more than 150 countries and regions and has approximately 90 overseas offices.
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