WB: Reconstruction of free alternative to future Alat-Astara toll road to be completed in 2026

As of July 1, 2025, $63.1 million—equivalent to 97.08% of the total loan—had been disbursed under the “Regional Connectivity Development in Azerbaijan” project, financed by the International Bank for Reconstruction and Development (IBRD, part of the World Bank Group).

Report informs, citing the World Bank, that the total project budget, effective since December 2021, stands at $96 million, with $65 million provided as an IBRD loan.

The project aims to develop a safe, efficient, and climate-resilient transport network, particularly enhancing connectivity and market access along the Salyan-Bilasuvar section of the M3 highway (Alat-Astara corridor). The project is scheduled for completion by March 31, 2026.

“Thanks to effective implementation, savings were redirected to additional infrastructure improvements along the corridor. Under the ‘Road Connectivity’ component, all construction work—including an expanded scope—has been completed. A total of 67.35 km of roads were reconstructed, 2.53 km were repaired and asphalted, 1.3 km of new wearing surface was laid, and 10 bridges were built,” the report states.

In June 2025, the Azerbaijani government requested to reallocate the remaining $2.3 million in the loan for the reconstruction of two deteriorated bridges in the Lankaran and Masalli districts. The work is expected to be completed within 6–7 months, before the project’s official end.

The request emphasized that the project has led to increased traffic and spurred private investment in roadside logistics and service infrastructure, reducing the need for further public funding in commercial areas. However, two outdated bridges at km 193 and km 197 on the M3 are structurally obsolete and not cost-effective to repair.

The estimated cost for designing and rebuilding the bridges, including demolition and related work, is approximately $2.3 million. The current road contractor will carry out the work under the existing agreement, with procurement clearance already obtained.

The World Bank supports redirecting funds from small roadside market infrastructure to rebuilding these critical bridges, increasing the number of upgraded, high-capacity bridges on the route to 12.

This work is a key step toward the initial goal of converting the M3 highway into a toll road. The upgraded bridges will ensure the continued function of the old M3 as a free alternative, once tolling is introduced—part of the National Road User Charging Strategy developed under the “Road Sector Sustainability” component.

The project also includes technical assistance to enhance road management efficiency and network operations through Intelligent Transportation Systems (ITS), focusing on tolling and axle load control.

Swedish National Road Consulting AB is advising on road network strategy, ITS, tolling, and axle load monitoring.

“Implementation is at an advanced stage. Key reports have been prepared and are under review by the Bank. Final results are expected to be agreed with Azerbaijani authorities by December 2025,” the report concludes.