ADB ready to invest in the transport network in the South Caucasus

By Sabina Alizade

The Asian Development Bank (ADB) is ready to invest in the rehabilitation of the transport network in the South Caucasus, which will open new perspectives for regional development and cooperation. The initiative aims to improve transportation and expand cooperation with key regional partners, especially Azerbaijani Railways.

Yevgeny Zhukov, Director of ADB for Central and West Asia, stated in an interview at the Bank’s annual meeting in Tbilisi that they aim to further expand their cooperation with Azerbaijani Railways and work more on transportation, as there are many are unfinished tasks for the rehabilitation of the railways. entire network. He also expressed hope that successful negotiations and a peace treaty between Azerbaijan and Armenia will make it possible to open additional transport corridors, better connecting Azerbaijan and the region with the world.

Zhukov said that there is an old railway line from the southern part of Azerbaijan to Nakhchivan, through Armenian territory. He noted that if a peace treaty and other agreements are reached, the ADB will be very keen to invest in the rehabilitation of this network, of course in accordance with the priority decisions of the Azerbaijani government.

The rehabilitation of the transport network in the South Caucasus is strategically important for ensuring sustainable economic growth and maintaining peace in the region. ADB representatives emphasize the importance of successful negotiations between Azerbaijan and Armenia, as a peace treaty would open new opportunities for the development of transport corridors and strengthen relations between the two countries.

Vugar Bayramli, MP and economic expert, noted that the ADB previously supported transportation projects in the South Caucasus, including the formation of a transportation network and the financing of road rehabilitation projects. Logistics is a priority area for the ADB and the bank has always supported projects in this area in the South Caucasus.

Bayramli emphasized that Azerbaijan is one of the countries that works closely with the ADB in this area, and that these projects are specifically selected by the bank and approved by the member states of the ADB board.

He stated that applications from countries of the South Caucasus are also being considered, and the bank has supported transportation projects not only in the South Caucasus but also in other regions. However, the South Caucasus is a priority for the ADB, especially as lasting peace in the region could lead to the formation of a new order. The acceleration of the demarcation and demarcation processes and the peace negotiations between Azerbaijan and Armenia are practically increasing the interest of leading international organizations in the region.

Bayramli sees the current problems in the fact that there is no peace treaty between Azerbaijan and Armenia, because both countries have different logistics infrastructure. He noted that Azerbaijan has a more developed logistics structure and makes greater use of electronic services, while the transport infrastructure in Armenia is less developed, which poses integration problems for the projects.

The opening of communication channels, including the Zangazur corridor, is being delayed due to the absence of a peace treaty. However, recent negotiations and the start of demarcation processes have raised hopes that these issues will be resolved quickly.

The lawmaker said the value of transportation projects will be known after the project is approved. “The ADB always carries out major projects related to financing. It is expected that not small but large projects will be financed. Azerbaijan is a regional country that invests the most in transport infrastructure. It is also possible to involve other leading organizations such as the Asian Infrastructure Investment Bank (AIIB) in the projects.”

For international organizations, including the ADB, the sustainability of projects is crucial. Projects are financed when sustainability is an important indicator. However, the main goal here is to achieve a broader implementation of the Middle Corridor, and Azerbaijan is interested in expanding the Middle Corridor, making these projects more sustainable. Geopolitically, the sustainability of these projects depends on the signing of a peace treaty between Azerbaijan and Armenia. The sooner the treaty is signed, the more sustainable and sustainable the projects will be.

The expert noted that the construction of new roads, the rehabilitation of old roads and the establishment of logistics centers take into account the requests of countries, and financing decisions are made accordingly. The ADB’s priority directions are also taken into account. Practice shows that in addition to financing logistics projects, diversified areas will also be taken into consideration.

According to the ADB statement, the investments will focus on the rehabilitation and modernization of existing transport infrastructure, including roads, railways and ports. This will increase the accessibility and efficiency of transport routes, reduce transport costs and stimulate trade and economic growth in the region.

The restoration of the transport network involves completing unfinished tasks, paying special attention to cooperation with the Azerbaijani Railways JSC. This partnership will accelerate the implementation of projects to modernize and improve railway infrastructure, which will in turn boost international trade and economic growth in the region.

Dr. Elshad Mammadov, an expert in economic sciences, told News.Az in an interview that the deepening global crisis significantly increases the importance of communication perspectives in the South Caucasus. As a result of these conditions, the region’s transportation infrastructure is seeing an increase in activity from leading credit organizations. Moreover, geopolitical realities play an important role in this area. Mammadov believes that the implementation of the Zangazur corridor will significantly improve transportation, and work is expected to be carried out on railway infrastructure and roads. Credit unions are also demonstrating their commitment to financing these efforts. The volume of investment must be economically justified, and specific figures cannot be stated today without appropriate technical justification. We are likely to observe substantial work to improve transport and logistics infrastructure in the South Caucasus.

The ADB’s strategy of continuous development and creating a favorable investment environment is a key element in the cooperation between Azerbaijan, the other countries in the region and the bank. These efforts are aimed at strengthening transportation infrastructure, increasing the region’s competitiveness and promoting integration into the global economy.

Despite the current challenges and difficulties, the Asian Development Bank reiterates its commitment to continue supporting efforts to restore the transport network in the South Caucasus and contribute to the establishment of a peace treaty between Azerbaijan and Armenia. These steps will help create a more stable and prosperous future for the entire region.

News.Az