AIIB proposes multi-year project portfolio with Azerbaijan - EXCLUSIVE

The Asian Infrastructure Investment Bank (AIIB) is considering financing new projects in Azerbaijan, including the development of railway and port infrastructure, as well as renewable energy initiatives, Kazuhiko Nomoto, AIIB Director General for Partnerships, told Report in Almaty.

According to him, Azerbaijan is one of the bank's key partners due to its strategic location at the crossroads of transport routes linking Asia and Europe.

"We are working on a number of projects under both sovereign and non-sovereign financing. In addition, we are considering holding annual roundtable discussions with the Government of Azerbaijan to jointly develop a multi-year pipeline of prospective projects," Nomoto said.

He noted that AIIB places particular emphasis on the development of the renewable energy sector.

"We have already provided technical assistance for the Trans-Caspian Green Energy Corridor project (Central Asia–Azerbaijan). We are now working closely with the Asian Development Bank to prepare the project and aim to implement it on a commercially viable basis as quickly as possible," the bank official said.

According to Nomoto, AIIB's energy strategy is built around three priorities: supporting project preparation at the early stages, strengthening local financial institutions through a combination of financing and technical assistance, and assisting governments in developing climate policies and mechanisms for implementing their commitments under the Paris Agreement.

Speaking about the development of the Trans-Caspian International Transport Route (Middle Corridor), Nomoto said the bank is evaluating projects to modernize Azerbaijan's ports, expand logistics hubs, and upgrade the country's railway infrastructure.

"We are holding discussions not only with the Government of Azerbaijan, but also with other multilateral development banks, including the Islamic Development Bank, the Asian Development Bank, and the World Bank. Our goal is to establish a coordinated co-financing mechanism for these projects," he said.

According to the AIIB partnerships chief, an important step in this direction was the meeting of representatives of international financial institutions held during the recent annual meeting of the Islamic Development Bank in Baku.

"The idea is for multilateral development banks to join forces and finance these projects in a coordinated and harmonized manner. This is the approach we are pursuing today," Nomoto noted.

He added that promising areas of cooperation between Azerbaijan and AIIB include railway development projects and the expansion of port capacity.

"However, most of these initiatives are still at an early stage of preparation, so it would be premature to discuss their details at this point," Nomoto concluded.