ADB Allocates Over $652 Million in Loans to Modernise Railway and Metro Infrastructure in Azerbaijan

Efforts to modernise Azerbaijan’s transport infrastructure, strengthen regional connectivity and improve urban mobility continue through the implementation of new projects involving Azerbaijan Railways CJSC (ADY) and Baku Metro CJSC, both subsidiaries of AZCON Holding. Aimed at enhancing international railway connections and the capital’s passenger transport system, these projects will contribute to expanding the country’s logistics capacity and developing a sustainable transport system.

As part of these efforts, the Asian Development Bank (ADB) has allocated a loan of US$350 million to install modern electrification, signalling and telecommunications systems along the 192-kilometre double-track railway line between Bilajari and Yalama. The Bilajari–Yalama railway line is a key link in the North–South and North-West international transport corridors, supporting Azerbaijan’s broader strategy to strengthen its transport and logistics capacity and regional trade connectivity.

Upon completion, the upgraded systems will enable the transition from direct current to alternating current on this railway line, providing a more efficient power supply and supporting modern railway operations. The investment is expected to reduce energy consumption and maintenance costs, increase train speeds and lower greenhouse gas emissions. The project will also create new opportunities for women in technical, supervisory and management roles at ADY.

ADB has also approved a US$302.38 million loan to modernise the signalling system and digitalise operations at Baku Metro, another subsidiary of AZCON Holding. This financing will help make metro services in the Azerbaijani capital safer, more reliable and more efficient, while supporting the effective operation of the expanding metro network.

The project forms part of the Baku Metro expansion programme implemented by the Government of Azerbaijan. It aims to expand the coverage and passenger-carrying capacity of metro services while reducing traffic congestion in Baku and surrounding areas.

The implementation of these projects will contribute to expanding Azerbaijan’s regional logistics capacity, improving energy efficiency and enhancing public access to safer, more reliable and more convenient transport services.