Azerbaijan Railways (ADY) and the Asian Development Bank (ADB) have signed a loan agreement worth $131.5 mln to rehabilitate a crucial section of the International North-South Transport Corridor (INSTC) in Azerbaijan, aiming to strengthen regional connectivity.
The agreement was signed by Rovshan Rustamov, Chairman of ADY, and Sunniya Durrani-Jamal, ADB’s Country Director for Azerbaijan.
The total project cost is estimated at $160.5 mln, with the Azerbaijani government contributing $29 mln.
The loan, provided under ADB's flexible lending product, will have a term of 22 years, including a 2-year grace period, at a determined interest rate.
The funds will be allocated towards completing the rehabilitation of a 166-km mainline between Sumgayit and Yalama, including civil structures and railway crossings.
