ADB plans $350 million loan for Bilajari-Yalama railway upgrade

The Asian Development Bank (ADB) plans to provide Azerbaijan with a $350 million loan to modernize the 192-km double-track Bilajari-Yalama railway line, ADB Country Director Sunniya Durrani-Jamal said.

The financing is expected to support the installation of modern electrification, signaling and telecommunications systems along the railway, a key section of the Central Asia Regional Economic Cooperation (CAREC) transport network.

The project includes converting the line’s power supply from direct current to alternating current. The upgrade is expected to increase train speeds and safety, reduce energy consumption and maintenance costs, and cut greenhouse gas emissions.

The project will also seek to strengthen the project management capacity of Azerbaijan Railways (ADY).

ADB has previously supported the modernization and reconstruction of the 166-km Sumgayit-Yalama railway section under its railway sector development program.