The European Bank for Reconstruction and Development (EBRD) invested €196 million in 8 projects in Azerbaijan in 2024, Report informs, citing the bank.
Most of these investments were in the private sector, with 82 percent in the country's green economy, and in sectors ranging from energy and transport to financial institutions and small and medium-sized enterprises (SMEs).
Throughout 2024, the EBRD was Azerbaijan's one of the key partners supporting the country's decarbonisation ambitions. At United Nations Climate Change Conference (COP29) in Baku, the Bank co-financed the construction of the largest utility-scale solar power plants in the Caucasus, now surpassing 1.2 gigawatts of financed renewable energy in Azerbaijan.
The EBRD supported Azerbaijan in conducting its first ever renewable energy auction the outcome of which was also announced at COP29. As a result, a new player on the Azerbaijani energy market will now start working towards commissioning a 100 megawatt (MW) solar power plant in Azerbaijan's Garadagh region.
The Bank also actively invested in the country's transport potential by providing a $42 million (€38.71 million) loan to Azerbaijan Caspian Shipping Company (ASCO), a state-owned shipping company, for the expansion of the Azerbaijan's merchant fleet operations.
In 2024, the EBRD partnered with the International Bank of Azerbaijan, the largest local financial institution, approving a trade finance limit of up to $50 million (€46.7 million). The facility aims to support export and import operations of Azerbaijani companies through the EBRD's Trade Facilitation Programme (TFP), helping their integration into the global markets.
Azerbaijani SMEs were also significant beneficiaries of the EBRD's strong activity. Throughout the year and with donor support from the European Union, the Bank provided multimillion loans to AccessBank and Bank Respublika for on-lending to local businesses. The EBRD also relaunched its Risk-Sharing Facility in Azerbaijan with the new €15 million facility signed with AccessBank.
In parallel to these facilities, local businesses also continued to benefit from the Bank's trademark Advice for Small Business Programme.
Nataly Mouravidze, the EBRD's Head of Azerbaijan noted: "This was a great year for us in Azerbaijan. We delivered in all the priority investment areas. We surpassed 1.2 gigawatts of financed renewables capacity, financed the country's transport potential and supported local businesses through new and existing local partner banks. This year's results fill me with confidence that our impactful cooperation will continue for the years to come!"
The EBRD is a leading institutional investor in Azerbaijan, where it has invested over €4 billion in 195 projects. The Bank's strategy in the country focuses on helping Azerbaijan to diversify its economy and develop the non-oil private sector.