AIIB proposes multi-year project portfolio with Azerbaijan - EXCLUSIVE

The Asian Infrastructure Investment Bank (AIIB) is considering expanding upstream financing for new projects in Azerbaijan, Kazuhiro Nomoto, Partnership Officer at AIIB, told Report in Almaty.

"We are working on a number of projects under the Joint Declaration signed between AIIB and the Government of Azerbaijan in 2025 to develop a multi-year rolling investment pipeline, with focus areas including climate-resilient infrastructure, transport, energy, digital infrastructure, logistics connectivity, PPPs and private-sector investment," Nomoto said.

He noted that AIIB places particular importance on the development of the renewable energy sector and offers efficient financing instruments such as Climate Policy-Based Financing.

"We are supporting the preparation of the Caspian Green Energy Corridor project in partnership with the Asian Development Bank. Together with ADB and the Governments of Azerbaijan, Kazakhstan and Uzbekistan, we signed a Memorandum of Understanding to support the feasibility study for the project, which aims to strengthen regional electricity connectivity and facilitate renewable energy integration," 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 technical assistance to projects to modernize Azerbaijan"s ports, expand logistics hubs, and upgrade the country"s railway infrastructure.

"We are working closely with the Government of Azerbaijan and other multilateral development banks, including the Asian Development Bank, the Islamic Development Bank and the World Bank, to strengthen cooperation on infrastructure development and explore opportunities for coordinated financing where appropriate," he said.

According to the AIIB representative, cooperation between multilateral development banks helps improve project preparation, mobilize financing and promote regional connectivity.

"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 transport is also a key area of cooperation between Azerbaijan and AIIB, such as metro and port capacity expansions.