The Asian Development Bank (ADB) has approved a $350 million loan to install modern electrification, signaling, and telecommunication systems along the 192-kilometer double-track railway line between Bilajari and Yalama, the ADB told -APA-Economics.
The Bilajari–Yalama line is a key link in the Central Asia Regional Economic Cooperation (CAREC) network and supports Azerbaijan’s broader strategy to strengthen multimodal transport, logistics, and regional trade connectivity.
The project will also strengthen the project management capacity of Azerbaijan Railways (ADY), one of Azerbaijan’s key state-owned enterprises.
“Modernizing Azerbaijan’s railway infrastructure will make the country’s rail transport network more competitive, energy-efficient, and environmentally sustainable,” said ADB Country Director for Azerbaijan Sunniya Durrani-Jamal.
“The project will make rail operations safer, more cost-effective, and create stronger regional connectivity.”
Once completed, the upgraded systems will allow the line to shift from direct current electrification to alternate current electrification which is designed for more efficient modern operations. The investment is expected to reduce energy consumption, lower maintenance costs, improve commercial speeds, and reduce greenhouse gas emissions. The project will also create opportunities for women in technical, supervisory, and management roles within ADY.
ADB has previously supported ADY through the Railway Sector Development Program (RSDP), which financed the upgrading and rehabilitation of the 166 km Sumgait–Yalama railway line. RSDP also helped advance sector reforms, strengthen corporate governance and financial management, and improve operational performance.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
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