Azerbaijan has signed a loan agreement with the Asian Infrastructure Investment Bank (AIIB) for the 'Baku Metro Expansion Project - Phase I,' alongside a project agreement between 'Baku Metro' CJSC and the AIIB.
The Operative Information Center-OMM reported this development, citing the Ministry of Finance.
The $180 million loan agreement was signed by Finance Minister Samir Sharifov on behalf of the Government of Azerbaijan, while the project agreement was signed by Vusal Aslanov, Chairman of the Board of 'Baku Metro' CJSC.
During the signing ceremony, the Finance Minister noted that comprehensive preparatory work was conducted in accordance with the requirements of international financial institutions to secure these funds. He emphasized that this is one of the most significant financial projects implemented in recent years to modernize the country's transport infrastructure and represents the largest international loan ever attracted for the public transport sector in Azerbaijan's history.
Mohamed Sameh, Senior Investment Specialist for Transport at the AIIB, stated that thorough environmental and social assessments were carried out, and a feasibility study was prepared, leading to the project's approval by the AIIB Board of Directors. Furthermore, Sameh emphasized that the project fully complies with international standards, transparency, and sustainability principles.
The agreements, concluded for a total term of 20 years with a 4-year grace period, will facilitate the implementation of the first phase of a long-term program to modernize and expand the Baku Metro. The project includes the continued construction of the 'Darnagul' and 'Khojasan' electric depots, as well as the reconstruction of 10 stations along the Green Line. The implementation of this project aims to provide city residents with safe, comfortable, and accessible public transport. Additionally, by encouraging passengers to shift from private vehicles to metro transport, it will contribute to reducing carbon emissions and supporting Azerbaijan's international commitments in the fight against climate change.
The Baku Metro, which began operations in 1967, serves as the backbone of the capital's public transportation network. This investment aligns with Azerbaijan's broader strategy to enhance urban mobility and promote sustainable development within the capital city.
