The Asian Development Bank (ADB) has allocated a $350 million loan to modernize the 192-kilometer Balajari–Yalama railway line.
According to the ADB, the funds are intended for the installation of modern electrification, signaling, and telecommunications systems on this double-track section.
According to the bank, the Balajari–Yalama line is a key link in the Central Asia Regional Economic Cooperation (CAREC) network. The project supports Azerbaijan's broader strategy to strengthen multimodal transport, logistics, and regional trade ties.
In addition, the project will enhance the project management capacity of Azerbaijan Railways (ADY), one of the country's major state-owned enterprises.
"Modernizing Azerbaijan's railway infrastructure will help make the country's transport network more competitive, energy-efficient, and environmentally sustainable. The project will create conditions for safer railway operations, lower transport costs, and stronger regional connections," said Sunniya Durrani-Jamal, ADB Country Director for Azerbaijan.
After completion, the updated systems will allow the line's power supply to be converted from direct current to alternating current, ensuring more efficient operation with modern systems.
The investment is expected to reduce energy consumption and maintenance costs, increase train speeds, and lower greenhouse gas emissions. The project will also create new opportunities for women at ADY in technical fields, as well as in control and management.
The ADB has previously supported ADY under its railway sector development program. The bank provided financing for the modernization and rehabilitation of the 166-kilometer Sumgayit–Yalama line.
