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ADB to back Azerbaijan's urban rail transit expansion

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Azərbaycanda relsli şəhər nəqliyyatının inkişafı üçün ADB texniki yardım ayırıb

The Asian Development Bank (ADB) is exploring the possibility of allocating technical assistance to support the development of urban rail public transport in Azerbaijan.

According to the Operative Information Center-OMM, citing the ADB, the technical assistance envisages the allocation of $500,000 through the Technical Assistance Special Fund.

The technical assistance is primarily aimed at preparing the Baku Metro Expansion Investment Program. The program is expected to be partially financed by the ADB with resources totaling approximately $1 billion.

The program includes the extension of the metro line, which involves the construction of 8.3 km of tunnels and five new stations. The technical assistance will ensure the timely execution of the necessary expertise for comprehensive design, verification of compliance with environmental and social requirements, as well as procurement procedures. Furthermore, the technical assistance will support "Azerbaijan Railways" CJSC in developing the Absheron circular line project, which includes six railway infrastructure facilities with an initial cost of $1 billion (excluding VAT), and assist Baku Metro in preparing the next phase of network expansion for the period after 2030.

"In recent years, passenger traffic of the Baku Metro has increased significantly, making the expansion of the network and increasing the frequency of trains a priority task to meet current and future demand. Baku Metro CJSC is preparing a project that envisages the construction of approximately 20 km of tunnels, 9 new stations (four on the Green Line and five on the Purple Line), two depots, as well as the purchase of additional rolling stock (300 carriages) to extend the Green and Purple lines," the ADB materials noted.

The total preliminary cost of the project is $2.6 billion. The implementation of the investment program is essential to expand the metro's coverage area in the capital, which is increasingly congested due to road traffic. Combined with the modernization of digital operating systems, this project will increase capacity by 25 million passengers annually by reducing train intervals from 2 minutes to 1 minute and 45 seconds.

"The government has requested the ADB and the Asian Infrastructure Investment Bank (AIIB) to separately allocate financial resources of approximately $1 billion each. The ADB intends to finance the digitalization component and the extension of the Purple Line (including five stations). The AIIB will undertake the financing of the depot construction (indicated as the first phase) and the extension of the Green Line (including four stations). The project implementation period will be 7 years," the bank's report said.

The loan project is an integral part of the State Program for the Improvement of Transport Infrastructure of Baku City and surrounding areas for 2025-2030. The program is aimed at improving the transport infrastructure of the capital and neighboring areas within the framework of the Baku Master Plan until 2040, stimulating economic growth, and raising the living standards of the population. The project is being developed and will be implemented within the framework of close interaction of key participants at the national, regional, and municipal levels; it is based on an integrated approach to creating an environmentally cleaner, inclusive, and economically developing urban space. The comprehensive design of the expansion, funded by the state budget, began in early 2025 with topographic surveys, route lines, and conceptual architectural solutions, and the work is expected to be completed in 2026.

"The proposed technical assistance will provide the necessary support for the ADB's comprehensive review, primarily the expertise of detailed design, compliance with social and environmental standards (both areas classified under Category A), as well as procurement procedures. Given that the Baku Metro strategy for 2030-2040 envisages the future extension of the Purple Line, the technical assistance will also contribute to the preparation of relevant works under the ADB's potential loan project," the bank stated.

Azerbaijan has been a member of the ADB since 1999, and during this period, the bank has invested more than $5 billion in the country, financing 145 projects. Approximately $4 billion of this was directed to the public sector, and $1 billion to the private sector. At the same time, the bank has allocated $1.5 billion in loans for projects implemented in Azerbaijan's transport sector and $1.7 billion for energy projects.

The ADB was established in 1966. Headquartered in Manila, Philippines, the bank represents 69 countries, including 50 from the Asia-Pacific region.

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