Baku:The Asian Development Bank (ADB) has approved a substantial $350 million loan to enhance the railway infrastructure between Bilajari and Yalama. This project involves the installation of modern electrification, signaling, and telecommunication systems across the 192-kilometer double-track railway line.

According to Azeri-Press news agency, the Bilajari-Yalama line is a vital component of the Central Asia Regional Economic Cooperation (CAREC) network, aligning with Azerbaijan's strategic goals to bolster multimodal transport, logistics, and regional trade connectivity.

The project aims to strengthen the project management capacity of Azerbaijan Railways (ADY), a key state-owned enterprise in the country. ADB Country Director for Azerbaijan, Sunniya Durrani-Jamal, emphasized that modernizing Azerbaijan's railway infrastructure is crucial for enhancing the competitiveness, energy efficiency, and environmental sustainability of the nation's rail transport network. The project is expected to improve safety, cost-effectiveness, and regional connectivity of rail operations.

Once completed, the new systems will transition the line from direct current to alternate current electrification, optimizing modern operations. This investment is projected to reduce energy consumption, lower maintenance costs, improve commercial speeds, and decrease greenhouse gas emissions. Additionally, the project will create opportunities for women in technical, supervisory, and management roles within ADY.

ADB has previously supported Azerbaijan Railways through the Railway Sector Development Program (RSDP), which funded the upgrading of the Sumgait-Yalama railway line and promoted sector reforms, improved corporate governance, financial management, and operational performance.

ADB, as a leading multilateral development bank, supports sustainable growth across Asia and the Pacific, focusing on innovative financial tools and strategic partnerships to tackle complex challenges and build quality infrastructure. Founded in 1966, ADB is owned by 69 members, including 50 from the region.