EIB eyes financing of North-South railway in Azerbaijan

BAKU, Azerbaijan, October 21. The European Investment Bank (EIB) is considering the possibility of financing projects in the field of transport connectivity in Azerbaijan, including the North-South railway, Head of EIB Group Regional Representation for the South Caucasus (Tbilisi), Stella Renita, said at the EU-Azerbaijan Business Forum in Baku on Wednesday, Trend’s correspondent reports from the event.

According to her, currently, the bank is exploring investment opportunities in the field of transport connectivity in Azerbaijan, including specific projects, such as the North-South railway.

"We also consider other directions of connectivity. It is not only about transport infrastructure, but also about energy, as well as the digital sphere," she noted.

Renita cited the project of digital connectivity of the Black Sea and the project "Caspian-Black Sea Green Energy Corridor" as examples of the considered projects.

According to her, the next day after the forum, the presentation of the technical and economic justification of the last project, in which EIB participates, should take place.

Speaking about the bank's activity in the region, she said that the volume of its credit portfolio in the countries of the South Caucasus is about 4 billion euro. A significant part of the financing is directed to infrastructure projects, in particular to road construction.

As an example, Renita mentioned the East-West highway in Georgia, which is part of the Middle Corridor. According to her, EIB invested about 1 billion euro in this project.

"The bank supports the private sector mainly through lending through local banks that direct funds to small and medium-sized enterprises. About 120 enterprises have already benefited from EIB financing.

The bank also provides technical assistance in the preparation and implementation of projects. In Azerbaijan, such assistance, in particular, was provided to assess the safety of the Boyuk-Kasik corridor, which should become the basis for the further implementation of the project.

EIB cooperates with other international financial institutions and participates in joint financing of projects. In particular, the bank has a mutual trust agreement with the European Bank for Reconstruction and Development, which simplifies the preparation and implementation of projects, including procurement documentation," she added.

The EU-Azerbaijan Business Forum, marking the 30th anniversary of the partnership between the European Union and Azerbaijan and the 10th anniversary of the forum, is being held in Baku today. This year’s forum is held under the theme “Connecting Corridors: Connectivity and Infrastructure.” The main focus is on developing transport connectivity and infrastructure, strengthening economic cooperation between the EU and Azerbaijan, and expanding regional trade and investment.

The program includes high-level discussions, thematic sessions, and business meetings involving representatives of the public and private sectors.