ADB to help Azerbaijan become regional hub for energy, trade between Central Asia, Europe

The Asian Development Bank (ADB) and Azerbaijan will work together to transform the country into a strategic regional hub for energy and transport trade between Central Asia and Europe, Report informs via the ADB update.

"The forthcoming country partnership strategy covering 2025–2029 will guide ADB’s engagement in Azerbaijan. The bank will continue to support the private sector in creating new work opportunities, attracting investments, and proposing innovative solutions. This will include offering new non-sovereign financing products and supporting micro, small, and medium-sized enterprises as well as non-traditional entrepreneurs. To enable inclusive growth, ADB will explore work in developing regions and focus on delivering benefits to women and vulnerable groups. ADB and the government will also partner to establish the country as a strategic regional energy and transport trade hub between Central Asia and Europe. Together, ADB and Azerbaijan will ensure high-quality results for the country and its people," the bank noted.

In 2024, ADB committed loans to Azerbaijan totaling $223.06 million, of which $131.5 million was sovereign and $91.56 million was non-sovereign. Technical assistance last year totaled $3.63 million. Total commitments reached $226.9 million.

ADB’s total outstanding balances and undisbursed commitments to the private sector in Azerbaijan as of December 31, 2024, amounted to $143.29 million, equivalent to 1.11% of the bank’s total private sector portfolio.

"ADB has been a key private sector partner in the country, leading the development of solar energy infrastructure, developing agriculture value chains, and expanding financial services through the banking sector. ADB recently extended the Trade Finance Program to two additional commercial banks, in addition to continuing its financing for small and medium-sized enterprises," the ADB added.

As of end-2024, Azerbaijan’s total outstanding sovereign and non-sovereign debt from ADB amounted to $4.07 billion. These funds were provided from ordinary and concessional capital resources.

As of the same date, ADB had approved 71 public sector operations (loans, grants, guarantees, and technical assistance) to Azerbaijan totaling $4.357 billion. The current public portfolio includes two loans and one sovereign guarantee totaling $613.68 million.