The Asian Development Bank (ADB) says it has approved two loans totaling $400 million to help strengthen the Azerbaijani railway sector and modernize a rail line connecting Azerbaijan with Russia and Iran.
The Manila-based lender said on December 6 that it will provide $250 million to “improve rail service in the country through a series of reforms that will improve governance and financial management of Azerbaijan Railways.”
Another $150 million will be provided to rehabilitate 166 kilometers of track on the Sumgayit-Yalama rail line.
“Modernizing Azerbaijan’s rail transport system is a critical component in the government’s efforts to diversify the economy and strengthen regional cooperation and trade,” Sean O’Sullivan, Director General of ADB’s Central and West Asia Department, said in a statement.
