ADB reveals investment volume in digitalization of Azerbaijan’s railways

The Asian Development Bank (ADB) and the government of Azerbaijan will invest a total of $60.52 million in the digital transformation project of Azerbaijan Railways CJSC (ADY), Report informs, citing ADB.

Of this amount, $47 million will come from an ADB loan, while $13.52 million will be Azerbaijan's national contribution.

The project is scheduled for completion by the end of 2028, with ADB leaving open the possibility of additional funding if further improvements are required.

The project aims to digitalize ADY's core processes with a focus on increasing the safety, reliability, and efficiency of the country's railway system. This includes the application of digital solutions to transportation management, assets, investment planning, customer data processing, and corporate functions.

ADB believes that digitalization plays a crucial role in increasing operational efficiency, competitiveness, and unlocking Azerbaijan's transit potential. According to forecasts, the project will optimize data and asset management. This, in turn, is expected to have a positive impact on ADY's operational and financial performance.

Azerbaijan’s railway lines serve as critical links in two of the six major economic and trade corridors in the region—Central Asia Regional Economic Cooperation (CAREC) Corridors 2 and 6. The project aligns with the CAREC Transport Strategy 2030 and the CAREC Railway Strategy 2017-2030, which aim to improve railway infrastructure, multimodal transport, commercialization, and sector reforms.

Since Azerbaijan joined ADB in 1999, the bank has allocated over $5 billion to support sovereign and private projects across transport, energy, healthcare, and agriculture.