ADB to invest $300M in Baku-Boyuk Kesik railway modernization in Azerbaijan

The Asian Development Bank (ADB) plans to allocate $300 million for the reconstruction of the Baku-Boyuk Kesik railway as part of Azerbaijan's railway electrification, signaling, and telecommunications project, Report informs, citing ADB.

A study of the project details is scheduled for March 1–5, 2027, with the project concept approval planned for September 17, 2027.

"The project comprises the procurement and installation of electrification, signaling, and telecommunication systems (EST) along the railway section of Baku-Boyuk Kesik. This section is part of the country's east-west rail corridor, serving international freight operations (export/import/transit) of Azerbaijan Railways Joint Stock Company (ADY). Most exports go through either the Baku-Boyuk Kesik or Bilajari-Yalama route. The proposed project aims to have the line fully equipped with modern electrification infrastructure (poles, catenary, substations, cabling), signaling systems (signals along track, equipment in stations, cabling) and telecommunication systems (railway network communication systems, on-board electronic devices, fiber-optic and wireless communication systems) to complete the AC power supply and signaling along the two rail corridors," ADB said.

The bank expects "the outcome will be energy-efficient and safe railway operations along the eastwest and northsouth railway corridors.".

Azerbaijan has been a member of ADB since 1999. During this period, the bank has invested around $5.6 billion in the country, including $4.4 billion in the public sector and $1.2 billion in the private sector, with major investments in transport ($1.5 billion) and energy ($1.7 billion).

Under its new partnership strategy, ADB is ready to invest up to $2.5 billion in Azerbaijan.

Founded in 1966, ADB is headquartered in Manila and brings together 69 member countries, including 50 from the Asia-Pacific region.