ADB ready to strengthen support to Azerbaijan in green, digital transport

The Asian Development Bank (ADB) is considering providing technical assistance (TA) for the regional project "Catalyzing Sustainable Transport Initiatives in Asia and the Pacific," which covers 49 countries, including Azerbaijan, Report informs.

The scope of the TA will depend on the requests of participating countries.

The TA will support developing member countries (DMCs) in systematically shaping future sustainable transport investments through upstream diagnostic assessments, strengthened infrastructure governance, and exploration of advanced technical solutions and financing strategies, including private sector participation. The TA will enhance technical and institutional capacity through targeted training programs, including the ADB Advancing Transport Leadership Program. The TA will promote climate-resilient transport systems, digital transformation, low-carbon and circular economy solutions, road safety, and inclusive growth.

It will foster innovation and regional cooperation through knowledge platforms and harmonized approaches. The TA will also expand the application of the ADB Green Roads Toolkit to additional DMCs, building on ongoing support in other DMCs.

Quality transport infrastructure plays a critical role in supporting economic growth, regional integration, and inclusive development across ADB's developing member countries (DMCs). However, DMCs face a persistent and widening infrastructure gap, driven by rapid urbanization, expanding economic activity, aging transport infrastructure, and increasing climate and disaster resilience needs. From 2020 to 2035, annual transport investment requirements are estimated at $2.9 trillion, including $2 trillion for new construction, $0.7 trillion for maintenance, and $0.2 trillion for climate-proofing. Despite ADB's sovereign transport lending of $14.6 billion during 20202024, transport infrastructure financing levels remain well below what is needed to meet demand and support Sustainable Development Goals (SDGs).

Addressing this gap requires sustained, long-term investment, yet many DMCs operate under constrained fiscal environments, particularly in the post-COVID context. Public budgets are insufficient, and private sector participation remains limited due to perceived risks, regulatory uncertainty, and weak project pipelines. Strengthening the enabling environment, including fiscal governance, procurement systems, and risk mitigation mechanisms is essential to mobilize diverse financing sources and ensure the financial sustainability of transport infrastructure investments.

Beyond these issues, DMCs face institutional and technical capacity challenges throughout the transport infrastructure lifecycle. At the planning stage, limited coordination among agencies and weak integration of transport and land-use planning often result in poorly prioritized and misaligned projects. During preparation and implementation, inadequate procurement and project management capacity in some DMCs delay delivery and reduce efficiency. Post-construction asset management is frequently under-resourced and lacks systematic approaches, leading to premature deterioration and declining service quality.

Transport externalities continue to undermine the sustainability and resilience of transport systems in Asia and the Pacific. The region accounts for approximately 65% of global annual damage to transport infrastructure from climate-related and natural hazards, and 70% of global trade disruption-related losses. It also accounts for 60% of global road traffic fatalities and 74% of premature deaths linked to PM2.5 pollution, while transport-related emissions are projected to rise by 20% between 2020 and 2030. Women's greater reliance on nonmotorized, public and shared modes of transport, combined with limited access to information and finance, makes them more vulnerable to the impacts of climate and disaster related hazardschange.

The growing demand for transport infrastructure investment is placing increasing pressure on the sustainability of construction materials. Road construction alone consumes 30%-40% of global demand for construction materials, with Asia's demand rising by 64% over the past decade, significantly outpacing the global average increase of 17%.

To reduce environmental impacts and improve long-term sustainability, DMCs should adopt climate-smart and circular economy approaches, including the use of low-carbon and recycled materials, reuse of construction and other waste, longer asset lifespans, and innovative construction methods.

However, many DMCs face challenges in adopting these solutions, such as limited digital infrastructure, fragmented data systems, and weak institutional and regulatory capacity. Addressing these gaps requires targeted support to strengthen policy frameworks, build technical capabilities, and promote regional collaboration. As much of the innovation and deployment of digital solutions is driven by the private sector, enabling environments with clear and supportive regulations are essential to ensure scalability and sustainability.