Baku, June 12, AZERTAC
On June 12, the Government of Azerbaijan and the Asian Infrastructure Investment Bank (AIIB) signed a loan agreement for the “Baku Metro Expansion Project – Phase I,” while Baku Metro CJSC and the AIIB also inked a project agreement for the same project.
The loan agreement worth $180 million was signed by Finance Minister Sahil Babayev, and the project agreement was signed by Vusal Aslanov, Chairman of the Board of Baku Metro CJSC, on behalf of the Government of Azerbaijan.
Addressing the signing ceremony, Minister Sahil Babayev noted that extensive preparations have been carried out in accordance with the requirements of international financial institutions to attract loan funds.
According to the Minister, this is not only the most important financial project launched in recent years to modernize the country's transport infrastructure, but also the largest international loan attracted for the public transport sector in the history of Azerbaijan.
In his turn, Mohamed Sameh, Senior Investment Officer at AIIB, pointed out that comprehensive environmental and social assessments were conducted, a feasibility study was developed, and as a result, the project was approved by the AIIB Board of Directors.
Mohamed Sameh emphasized that the project fully complies with international standards, principles of transparency and sustainability.
The agreements, signed for a total period of 20 years, with a 4-year grace period, will enable the implementation of the first stage of a long-term program for the modernization and expansion of the Baku Metro.
The project includes the ongoing construction of the "Darnagul" and "Khojasan" electric depots, as well as the modernization of 10 stations located on the Green Line. The implementation of the project will serve to provide city residents with safe, comfortable, and accessible public transportation. At the same time, by stimulating the transition of passengers from private cars to metro transport, it will make an important contribution to the reduction of carbon emissions and Azerbaijan's international obligations to combat climate change.