ADB eyes TA to develop urban public rail transport in Azerbaijan

The Asian Development Bank (ADB) is exploring the possibility of providing technical assistance (TA) for a project to support the development of urban public rail transport in Azerbaijan, Report informs referring to the ADB.

The TA is expected to be financed through the Technical Assistance Special Fund for $500,000.

The TA will primarily support the preparation of the Baku Metro Expansion Investment Program, to be (partly) financed by the Asian Development Bank (ADB) with a total loan amount of approximately $1 billion. It includes the construction of a metro line extension with 8.3km of tunnels and five new stations.

The TA ensures adequate and timely due diligence on detailed design, safeguards, and procurement. Further, TA will support Baku Metro in the preparation of the envisaged next phase of network expansion after 2030, and Azerbaijan Railways in the preparation of the Absheron Circle Line Project, a program of six railway infrastructure projects with an estimated cost of $1 billion (excluding VAT).

Metro ridership in Baku has grown rapidly over the past years to an extent that network extension and increased service frequency are urgently needed to serve (potential) demand. Baku Metro is preparing for a project, comprising the construction of approximately 20km of tunnels to extend two lines, the Green Line and the Purple Line, the construction of nine new stations (four along the Green Line, five along the Purple Line), two depots, and the purchase of additional rolling stock (300 cars) with a total estimated cost of $2.6 billion.

The investment program is needed to increase coverage of metro services in the greater Baku area, which is confronted with increasing traffic congestion. In combination with the modernization of (digital) operational systems, the project is expected to increase the system's capacity by 25 million passengers a year, mainly by reducing the train interval from 2:00 minutes to 1:45.

The government requested ADB and the Asian Infrastructure Investment Bank (AIIB) to finance approximately $1 billion each as parallel financing. ADB is requested to finance the digitalization component and the extension of the Purple Line (including five stations). AIIB will finance the depots (referred to as Phase 1) and the extension of the Green Line (including four stations). The implementation time would be 7 years.

The loan project is an integral part of the State Program on the Improvement of Transport Infrastructure in Baku City and Surrounding Areas for 2025-2030. The Program aims to improve the transport infrastructure of Baku and the surrounding areas, accelerate economic development, and improve the quality of life of people in accordance with the Baku Master Plan 2040.

The Project is prepared and will be implemented in close coordination between the national, regional, and local key stakeholders and is developed with a comprehensive approach to create a greener, more inclusive, and economically prosperous urban landscape in Baku.

Detailed design of the expansion project, funded by the state budget, has started in early 2025 with topographical studies, route designs, and concept architectural designs, and is expected to be completed early 2026. The proposed TA will provide essential support to ADB due diligence requirements, particularly in relation to detailed design review, social and environmental safeguards (both classified as A), and procurement.

Since a further extension of the Purple Line is foreseen in Baku Metro's strategy 2030-2040, the TA will also support the preparation of related works, a possible ADB loan project.

Azerbaijan has been a member of the ADB since 1999. During this period, the bank has invested over $5 billion in the country's economy, financing 145 projects. Of these, approximately $4 billion went to the public sector, and $1 billion to the private sector. The largest financing areas are transport ($1.5 billion) and energy ($1.7 billion).

ADB was founded in 1966 and is headquartered in Manila. It comprises 69 member countries, 50 of which are from the Asia-Pacific region.