The Asian Development Bank announced, on February 3, that it may issue a credit worth around USD 200 million to Azerbaijan within its Railway Sector Development Program. Azerbaijan Railways (ADY) is the executing agency for obtaining the loan.
The proposed program is deemed to be a government priority and a part of the Azerbaijan State Program for the Development of Railways 2016-2020. The program fits with ADB’s Midterm Review of Strategy 2020 and 2010 Sustainable Transport Initiative.
The government of Azerbaijan is seeking to transform ADY into a profitable company and to improve railway service delivery. In this regard, it has requested the ADB to finance railway sector, corporate reforms, and ADY financial restructuring.
Besides, the funds will be directed at the improvement of railway infrastructure, particularly along the North-South Railway Corridor. The funds are planned to be drawn for the development of Baku-Yalama (border with Russia) rail line (part of the North-South).
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