The Government of Azerbaijan and the Asian Infrastructure Investment Bank (AIIB) have formalized a significant financial commitment, signing a loan agreement for the Baku Metro Expansion Project Phase 1. Concurrently, Baku Metro CJSC and the AIIB finalized a project agreement for the same initiative.
The loan for Baku Metro Expansion Project Phase 1, valued at $180 million, was officially signed by Finance Minister Sahil Babayev. Representing the Government of Azerbaijan, Vusal Aslanov, Chairman of the Board of Baku Metro CJSC, also affixed his signature to the project agreement.
During the signing ceremony, Minister Sahil Babayev highlighted the extensive preparatory work undertaken to meet the stringent requirements of international financial institutions for loan acquisition. He emphasized that this initiative is not only a crucial financial undertaking for modernizing the nation’s transport infrastructure in recent years but also stands as the most substantial international loan secured for the public transport sector in Azerbaijan’s history.
Mohamed Sameh, a Senior Investment Officer at the AIIB, elaborated on the rigorous evaluation process, noting the completion of comprehensive environmental and social assessments and the development of a feasibility study that led to the project’s approval by the AIIB Board of Directors. Mr. Sameh underscored that the Baku Metro Expansion project aligns perfectly with international standards for transparency and sustainability.
These agreements, structured for a 20-year term with a 4-year grace period, are designed to facilitate the initial phase of a long-term strategy for the modernization and growth of the Baku Metro. The scope of the Baku Metro Expansion project includes the ongoing construction of the “Darnagul” and “Khojasan” electric depots. Additionally, it encompasses the modernization of ten stations situated on the Green Line.
The successful implementation of this Baku Metro Expansion Project Phase 1 is expected to enhance the provision of safe, comfortable, and accessible public transportation for city residents. Furthermore, by encouraging a shift from private vehicles to metro services, the initiative will contribute to reducing carbon emissions, thereby supporting Azerbaijan’s international commitments to combat climate change.
