ADB Supports Azerbaijan as a Regional Energy and Trade Hub
ADB and Azerbaijan Forge Partnership to Enhance Energy and Transport Trade
The Asian Development Bank (ADB) has announced a collaborative effort with Azerbaijan aimed at establishing the country as a strategic regional hub for energy and transport trade between Central Asia and Europe. This initiative forms part of ADB’s forthcoming country partnership strategy, which will guide the engagement in Azerbaijan from 2025 to 2029.
The plan underscores ADB’s commitment to supporting the private sector by creating new job opportunities, attracting investments, and proposing innovative solutions. This includes the introduction of new non-sovereign financing products, support for micro, small, and medium-sized enterprises, and non-traditional entrepreneurs. In an effort to promote inclusive growth, ADB will also focus on developing underserved regions and ensuring that benefits reach women and vulnerable groups.
In its current financial agenda, ADB committed loans to Azerbaijan totaling $223.06 million in 2024, split into $131.5 million in sovereign loans and $91.56 million in non-sovereign loans. The bank also provided technical assistance worth $3.63 million last year, bringing total commitments to $226.9 million.
As of December 31, 2024, ADB’s outstanding balances and undisbursed commitments to the private sector in Azerbaijan stood at $143.29 million, constituting 1.11% of the bank’s entire private sector portfolio.
ADB plays a pivotal role in Azerbaijan’s private sector, contributing to the development of solar energy infrastructure, agriculture value chains, and the expansion of financial services. Recently, ADB extended its Trade Finance Program to include two additional commercial banks while maintaining its support for small and medium-sized enterprises.
By the end of 2024, Azerbaijan’s total outstanding sovereign and non-sovereign debt from ADB amounted to $4.07 billion, sourced from both ordinary and concessional capital resources. Furthermore, ADB has approved a total of 71 public sector operations, including loans, grants, guarantees, and technical assistance, totaling $4.357 billion to Azerbaijan. Currently, the public portfolio comprises two loans and one sovereign guarantee, amounting to $613.68 million.
This partnership marks a significant step towards positioning Azerbaijan as a crucial hub for energy and transport trade, promising substantial benefits for the country and its populace.
