The Asian Development Bank’s Board of Directors has approved two loans totaling USD 400 million for the development of Azerbaijan’s railway network, including the modernisation of Sumgayit-Yalama rail line, part of North-South railway corridor.
The bank will provide USD 250 million as a policy-based loan to improve rail service in the country through a series of reforms that will improve governance and financial management of Azerbaijan Railways. Another USD 150 million will be provided to rehabilitate 166 km of double-track on the North-South railway corridor, which connects Azerbaijan with Russia in the north and Iran in the south.
“Modernising Azerbaijan’s rail transport system is a critical component in the government’s efforts to diversify the economy and strengthen regional cooperation and trade. Reforms to Azerbaijan Railways and the support to the North-South Railway Corridor will help put Azerbaijan Railways on a sustainable growth path, improve services, and attract greater traffic with the improvement of an important regional transport link,” Sean O’Sullivan, Director General of ADB’s Central and West Asia Department said.
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