European bank funds Azerbaijan modernisation
19 December 2011
The European Bank for Reconstruction and Development (EBRD) is to invest US$ 250 million into developing Azerbaijan's road infrastructure.
The funding is part of a series of investments to support the modernisation of Azerbaijan, with a total of US$ 750 million earmarked for the country. The aim is to promote regional trade links and drive forward the diversification of the country's economy.
The US$ 250 million loan will be used specifically to finance the reconstruction of the Mingachevir - Bahramtapa road. Repairing the 156 km road will improve transport links for some half a million people living in this rural area and provide access to the main international highway that runs between the Azerbaijani capital of Baku and the Georgian border.
Further initiatives include the development of an effective tolling strategy and general enhancements in transportation safety and efficiency.
Successful implementation of these initiatives will be key to the roll-out of similar road investments in the future, which will be subject to separate approval by the EBRD board of directors.