The total cost of the electrification, signaling, and telecommunications project on the Bilajari-Yalama railway section in Azerbaijan is estimated at $447.88 million.
The Asian Development Bank (ADB) will provide $350 million in financial support for the project, Report informs, citing the bank.
Azerbaijan Railways (ADY) CJSC will act as the executing and implementing agency for the project. The completion of the project is scheduled for December 31, 2030, and the procurement plan is designed for 18 months.
Under the project, the bulk of the funds - $302 million - is earmarked for construction, installation, and design works related to electrification, signaling, and telecommunications. The cost structure also includes $10 million for construction supervision consultant services, $3.4 million to engage individual experts for the project implementation unit (PIU), $2.5 million for project management consulting (PMC) services, $750,000 for independent safety validation services, $100,000 for project audits, and $207,000 to acquire equipment, furniture, vehicles, and financial accounting software (1C) for the PIU.
The project will be jointly financed by the ADB, the Asian Infrastructure Investment Bank (AIIB), and the Azerbaijani government.
Azerbaijan has been a member of the ADB since 1999. Over this period, the bank has invested about $5.6 billion in the country, with $4.4 billion directed to the public sector and $1.2 billion to the private sector. The key areas of financing are the energy sector ($1.7 billion) and the transport industry ($1.5 billion).
Under its new partnership strategy, the ADB intends to provide Azerbaijan with up to $2.5 billion in financial resources.
The Asian Development Bank was established in 1966. Headquartered in Manila, the ADB comprises 69 shareholder countries, including 50 from the Asia-Pacific region.