Azerbaijan is set to modernise a 192km railway corridor with a $350 million loan from the Asian Development Bank (ADB), funding the installation of new electrification, signalling and telecommunications systems along the double-track Bilajari–Yalama line.
The investment will support Azerbaijan’s efforts to improve rail transport efficiency, strengthen regional trade connectivity and modernise infrastructure forming part of the Central Asia Regional Economic Cooperation (CAREC) transport network.
The project will also include measures to strengthen the project management capacity of Azerbaijan Railways (ADY), the state-owned enterprise responsible for the country’s railway infrastructure.
Electrification and signalling upgrades planned
The project will replace the railway’s existing direct current electrification system with alternating current technology, supporting more efficient railway operations.
Modern signalling and telecommunications systems will also be installed along the corridor, improving operational performance and supporting safer train movements.
ADB expects the upgrades to reduce energy consumption, lower maintenance costs, improve commercial train speeds and reduce greenhouse gas emissions.
Sunniya Durrani-Jamal, ADB Country Director for Azerbaijan, said: “Modernizing Azerbaijan’s railway infrastructure will make the country’s rail transport network more competitive, energy-efficient, and environmentally sustainable.”
She added that the project would make rail operations safer and more cost-effective while strengthening regional connectivity.
Project management capability to be strengthened
Alongside the physical infrastructure upgrades, the programme will support institutional capacity building within Azerbaijan Railways.
Strengthening project management capability forms part of the investment, reflecting the need to coordinate engineering, procurement, installation and operational changes across the 192km railway corridor.
The project will also create opportunities for women to enter technical, supervisory and management positions within ADY.
The Bilajari–Yalama line is an important component of Azerbaijan’s regional transport network, supporting connections between domestic railway infrastructure and international trade corridors.
Its modernisation forms part of the country’s wider strategy to strengthen multimodal transport and logistics capabilities.
Investment builds on previous railway programme
The new financing follows earlier ADB support for Azerbaijan Railways through the Railway Sector Development Program.
That programme financed the upgrading and rehabilitation of the 166km Sumgait–Yalama railway line while also supporting institutional reforms.
Previous activities included improvements to corporate governance, financial management and operational performance within ADY.
The latest investment extends the focus from track rehabilitation towards modernising the systems required to operate the railway, including power supply, signalling and telecommunications.
By combining infrastructure investment with project management and institutional development, the programme is intended to support both the delivery of the Bilajari–Yalama upgrades and the longer-term operational capability of Azerbaijan’s railway network.
