Baku: The Government of Azerbaijan and the Asian Infrastructure Investment Bank (AIIB) have finalized a loan agreement valued at $180 million to facilitate the 'Baku Metro Expansion Project - Phase I'. Concurrently, Baku Metro CJSC and AIIB formalized a project agreement for the same initiative.

According to Azerbaijan State News Agency, the signing ceremony saw Finance Minister Sahil Babayev representing the Azerbaijani government, while Vusal Aslanov, Chairman of the Board of Baku Metro CJSC, signed on behalf of the metro corporation. Minister Babayev highlighted the extensive preparations aligned with international financial institutions' standards to secure the loan.

Minister Babayev emphasized the significance of this project as a major step towards modernizing Azerbaijan's transport infrastructure. He noted that it represents the largest international loan secured for the public transport sector in the country's history.

Mohamed Sameh, Senior Investment Officer at AIIB, confirmed that thorough environmental and social assessments were conducted, along with a feasibility study, leading to the project's approval by the AIIB Board of Directors. Sameh assured that the project aligns with international standards and adheres to principles of transparency and sustainability.

The agreements span a total period of 20 years, including a 4-year grace period, to support the initial phase of the long-term modernization and expansion plan for the Baku Metro. The project encompasses the construction of the "Darnagul" and "Khojasan" electric depots and the modernization of 10 stations on the Green Line.

The project aims to provide city residents with safe, accessible public transportation, while also encouraging the shift from private car use to metro transit. This transition is anticipated to contribute significantly to reducing carbon emissions, aligning with Azerbaijan's international commitments to combat climate change.