ADB to Invest $2.5b to Support Azerbaijan’s Growth as Regional Trade Hub

President Kanda’s visit underscores ADB’s strengthened commitment to Azerbaijan as the country continues to reposition its economy, diversify beyond hydrocarbons, and build high-value connectivity across Eurasia.

Asian Development Bank (ADB) President Masato Kanda met with Azerbaijan’s President Ilham Aliyev to outline a major new partnership strategy designed to accelerate the country’s transformation into a key regional hub connecting Central Asia and Europe. Under the upcoming Country Partnership Strategy (2025–2029), ADB plans to invest up to $2.5 billion to advance infrastructure modernization, clean energy, digitalization, and private-sector development—pillars that will shape Azerbaijan’s long-term regional competitiveness.

President Kanda’s visit underscores ADB’s strengthened commitment to Azerbaijan as the country continues to reposition its economy, diversify beyond hydrocarbons, and build high-value connectivity across Eurasia.

Building a Strategic Hub Between Regions

“Azerbaijan has the potential to become a major bridge between Central Asia and Europe,” Kanda said. “ADB remains committed to supporting this transformation, working closely with government and private-sector partners to deliver investments in smart mobility, renewable energy, digital systems, and workforce development.”

Azerbaijan’s geographic location at the crossroads of major transport and energy corridors makes it central to regional supply chains. The new partnership strategy reflects both the country’s ambitions and the evolving needs of global trade networks, especially as demand rises for secure and sustainable energy transmission routes.

Major Investments in Green and Efficient Infrastructure

ADB’s upcoming support will center on large-scale, regionally significant infrastructure that enhances connectivity while aligning with global climate goals.

Key projects include:

• CAREC Corridor 2 (Middle Corridor) – A vital east–west trade route connecting China, Central Asia, the South Caucasus, and Europe.

• Trans-Caspian Green Corridor – A new pathway designed to move renewable energy resources from Central Asia to Europe, supporting both energy security and low-carbon transition.

• Modern multimodal logistics and transport systems that reduce bottlenecks and boost trade efficiency.

• Digital trade and digital connectivity upgrades, enabling smoother border procedures and stronger cybersecurity frameworks.

These investments aim to diversify Azerbaijan’s export mix, open new markets, and strengthen the country’s role in regional energy and transport architecture.

Expanding Partnership Across Government Sectors

During his visit, President Kanda met with several senior government officials to discuss the next phase of ADB’s engagement in Azerbaijan:

• Prime Minister Ali Asadov – Discussions focused on unlocking private-sector investment, innovation, and job creation.

• Finance Minister Sahil Babayev – Dialogue centered on sustainable financing, fiscal stability, and public investment efficiency.

• Economy Minister Mikayil Jabbarov – Talks explored competitiveness, SME development, and pathways for diversifying the economy.

• Minister of Digital Development and Transport Rashad Nabiyev – Conversations addressed digitalization, smart mobility, and strategic transport operations.

These high-level meetings reaffirmed the shared commitment of ADB and Azerbaijan to long-term, innovation-driven growth.

Site Visits: Metro Expansion, Logistics Upgrades, and Resilient Farming

President Kanda also visited several ongoing ADB-supported projects, highlighting the real-world impact of the partnership:

• Baku Metro Expansion Project – A key initiative to enhance urban mobility, reduce congestion, and provide greener public transport options.

• ADB-financed modern warehouse complex – A facility that has improved food accessibility and affordability nationwide while strengthening cold-chain logistics.

• Smallholder agricultural communities – Farmers receiving training in climate-resilient techniques and modern production methods.

These projects reflect ADB’s multidimensional role in supporting infrastructure, food security, urban development, and climate resilience.

Over Two Decades of Development Partnership

Since joining ADB in 1999, Azerbaijan has received $5.5 billion in public and private-sector financing, alongside technical assistance in diverse areas including:

• Transport and logistics

• Renewable and conventional energy

• Agriculture and food systems

• Healthcare

• Trade facilitation

• Disaster risk management

This support has played a critical role in Azerbaijan’s modernization and its efforts to transition toward a more resilient and diversified economy.

The Road Ahead

The new Country Partnership Strategy (2025–2029) marks a major step forward in aligning ADB’s support with Azerbaijan’s evolving development priorities. By focusing on connectivity, climate-smart infrastructure, digital transformation, and private-sector growth, ADB aims to help Azerbaijan strengthen its regional leadership and create sustainable, inclusive opportunities for its people.

“Azerbaijan’s future as a regional connector is bright,” Kanda said. “Our partnership will help unlock that potential and deliver shared prosperity across the region.”