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ADB Commits $2.5 Billion to Support Azerbaijan’s Transformation into Regional Trade and Energy Hub

· 3 min read
Baku​

The Asian Development Bank (ADB) will invest up to $2.5 billion in Azerbaijan over the next five years to help the country strengthen its role as a regional hub connecting Central Asia with Europe. The commitment was announced during a meeting in Baku between ADB President Masato Kanda and Azerbaijan’s President Ilham Aliyev, where both sides discussed new priorities under the ADB Country Partnership Strategy (2025–2029).

Speaking after the meeting, President Kanda reaffirmed ADB’s long-term partnership with Baku, emphasizing the Bank’s support for “Azerbaijan’s transformation into a regional center of connectivity, trade, and clean energy.” He highlighted ADB’s plans to expand cooperation in smart mobility infrastructure, renewable energy, digital transformation, and workforce skills development, aligning with Azerbaijan’s post-oil diversification agenda.

The new strategy focuses on strengthening green and efficient transport corridors to diversify Azerbaijan’s export markets and boost regional trade flows. Flagship initiatives such as the Central Asia Regional Economic Cooperation (CAREC) Corridor 2 (Middle Corridor) and the Trans-Caspian Green Corridor are expected to enhance multimodal connectivity across the Caspian region and facilitate the transfer of renewable energy from Central Asia to European markets. Expanding digital trade and data connectivity are also central to the plan.

During his visit, Mr. Kanda held discussions with Prime Minister Ali Asadov on new avenues for attracting private sector investment, fostering innovation, and creating jobs. He also met with Minister of Finance Sahil Babayev, Minister of Economy Mikayil Jabbarov, and Minister of Digital Development and Transport Rashad Nabiyev to review ADB’s ongoing projects and future pipeline.

As part of his Baku program, the ADB president inspected progress on the upcoming Baku Metro Expansion Project and visited an ADB-financed logistics hub that has improved food accessibility and safety nationwide. He also met smallholder farmers benefiting from ADB-supported programs in climate resilience and sustainable agriculture.

Since joining ADB in 1999, Azerbaijan has received over $5.5 billion in public and private financing and technical assistance. ADB’s portfolio in the country spans transport, energy, agriculture, health care, trade, and disaster risk management, playing a crucial role in advancing economic diversification and inclusive growth.

Founded in 1966, the Asian Development Bank is one of the leading multilateral financial institutions in Asia and the Pacific, with 69 member countries, including 50 from the region. ADB supports its members through innovative financial instruments, policy dialogue, and partnerships that promote inclusive, resilient, and sustainable development.