According to the country's Finance Ministry, the World Bank will provide Azerbaijan with a $65 million loan to fund a regional connectivity and development project aimed at providing safe, efficient, and climate-resilient transportation connectivity and improving market accessibility in the country's southern region.
The funding will be used to rehabilitate the Yenikend-Bilasuvar road, which serves as an alternative to the Alat-Astara state border with Iran, as well as to develop a roadside logistics and market infrastructure management model in Azerbaijan.
The World Bank's lending arm, the International Bank for Reconstruction and Development, will provide an 11-year loan with a four-year grace period.
Around 250,000 people living along the Yenikend-Bilasuvar route will benefit from enhanced road infrastructure, as well as better economic prospects and quicker access to key service facilities, according to the bank.
Roadways and associated agricultural and logistical infrastructure investments will help to improve connectivity and market access, with the goal of maximising the socioeconomic development benefit of upgraded roads.
Through technical help for building road network management systems and studying alternatives for introducing user charges and preventing vehicle overloading, the project will also enhance financial sustainability and efficiency in the road sector.
In addition, the project will assist the design and implementation of roadside logistics and market facilities, as well as the provision of skills training to local entrepreneurs, in order to boost local communities' income-generating potential. To address climate vulnerabilities, the project will assist factors such as higher road embankments and the use of suitable road materials.
Agriculture is the primary economic sector in Azerbaijan’s southern region where the project is being implemented. Improving the capacity of local markets is crucial for the economic development and livelihoods of local farmers. By improving road connectivity, with climate-resilient measures, the project is expected to reduce transportation costs and time, as well as road disruption risks, for agriculture supply chains and logistics.
Azerbaijan joined the World Bank in 1992. Since then, the World Bank has financed over 50 projects with a total commitment of $4.4 billion.
