ADB announces timeline for completion of Sumgayit–Yalama railway reconstruction

Construction work under the project to modernize the Sumgayit–Yalama railway, a key segment of the North-South international transport corridor, is expected to be completed by the end of 2025.

According to Report, citing the Asian Development Bank (ADB), construction of the first lot (Sumgayit–Gilgichay) will enter its final phase in the third quarter of 2025, while the completion of all major works on the second lot (Gilgilchay–Yalama), which includes the section up to the Russian border, is expected by the end of this year.

"The completion of the project will significantly improve transport quality, strengthen Azerbaijan's position as a key link in international transport flows, and create additional opportunities to develop the country's transit potential," the ADB noted.

The project is financed by the bank and the French Development Agency and aims to enhance the efficiency, safety, and capacity of the national railway system.

The main objectives of the works are to increase the line's capacity, reduce operational costs, and improve the quality of passenger and freight transport. The project includes a full upgrade of track infrastructure, replacement of bridges and culverts, construction of pedestrian crossings, and implementation of modern safety systems.

It is worth noting that to implement the project, JSC Azerbaijan Railways (ADY) and the ADB signed a loan agreement worth $131.5 million. The total cost of the project is $160.5 million, of which $29 million is funded by the Azerbaijani government. The loan will be provided for a term of 22 years, including a 2-year grace period, with an interest rate determined under the ADB"s flexible loan product. Interest and other payments under the loan are due twice a year: on May 15 and November 15.

The funds are intended to complete the rehabilitation of 166 kilometers of double-track railway, including civil structures and railway crossings on the Sumgayit–Yalama section. This loan represents additional financing for the Railway Sector Development Program approved in 2017, which aims to modernize railway operations in the country. Initially, the bank allocated $150 million to ADY.