Asian Development Bank To Lend Azerbaijan US$325 Million To Electrify Railway To Russia

The Asian Development Bank (ADB) is to lend Azerbaijan US$325 million to electrify and modernize the signalling and telecommunications system of the railway from Bilajary to Yalama on the border with Russia, the bank has stated.

ADB said “This railway is part of the International North-South Transport Corridor, which is used for export and import shipments. The project is aimed at fully equipping the railway with electrification infrastructure, signalling systems, and telecommunications systems—rail network communications systems, on-board electronic devices, and fiber-optic and wireless communications systems. Funding for the project will be confirmed in 2026.”

Azerbaijan has been a member of the ADB since 1999. Since then, the bank has provided Azerbaijan with US$5.5 billion for implementing projects. In November, the bank said that it was prepared to loan Azerbaijan up to US$2.5 billion before 2029 to support projects in renewable energy, transport, water supply, and the private sector.

Azerbaijan’s freight rail is strategically important, leveraging the Baku-Tbilisi-Kars (BTK) Railway as a key East-West link, boosting transit capacity significantly. Managed by Azerbaijan Railways (ADY), the system is modernizing with new locomotives (from China), digital platforms (ADY Smart), and expanding services, including new routes to Armenia and increased connectivity via the INSTC to Europe and China. The nation is focused on digitalization, real-time tracking, and improving infrastructure to enhance efficiency for international freight. Azerbaijan exports to Russia are up by 3% over the course of the year and are expected to reach US$4.92 billion for 2025.