ADB allocated $350 million for the modernization of the Baladjary — Yalama line

The Asian Development Bank (ADB) has allocated a loan of 350 million dollars for the modernization of the 192 km Balajary - Yalama railway line.

As reported by BAKU.WS with reference 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 Balajary - Yalama railway line is one of the key links in the Central Asia Regional Economic Cooperation (CAREC) network. The project supports Azerbaijan's broader strategy of strengthening multimodal transportation, logistics, and regional trade links.

In addition, the project will strengthen the project management capacity of Azerbaijan Railways CJSC (ADY), one of the country's significant 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, reduced transportation costs, and strengthened regional connectivity," said ADB Country Director for Azerbaijan Sunnia Durrani-Jamal.

Upon completion of the works, the upgraded systems will enable the conversion of the line's power supply from direct current to alternating current, ensuring more efficient operations using modern systems.

The investments are 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.

Previously, the ADB supported ADY under the railway sector development program. The bank provided financing for the modernization and rehabilitation of the 166-kilometer Sumgayit - Yalama section of the line.