The Asian Development Bank (ADB) has approved a $131.5 million loan that will help improve a key railway line in Azerbaijan for better regional connectivity, Caspian Energy Media reports with reference to ADB.

The financing will complete the rehabilitation of about 166 kilometers of double-track main line, civil structures, and level crossings of the Sumgait–Yalama rail line. It serves as additional financing for the Railway Sector Development Program approved in 2017, which is helping enhance railway operations in the country.

“Upgrading and modernizing rail service will enable Azerbaijan to provide safer, cheaper, and more energy-efficient transport,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “At the same time, it will help Azerbaijan optimize its strategic location at the crossroads of Europe and Asia.”

Under ADB’s Railway Sector Development Program, Azerbaijan Railways (ADY) implemented comprehensive reforms in 2018–2019 that strengthened its financial capacity and railway management. Since then, ADY continued efforts to improve its operational and financial performance. Between 2018 and 2022, ADY’s freight transport grew by 34%, from 14 million tons to 18.7 million tons. More than 80% of this is international or transit traffic.