📋 Tender Overview
Project Name
Preparing the Azerbaijan Railway Company Decarbonization Project
Project Number
58545-001
Country / Economy
Azerbaijan
Project Status
Approved
Project Type / Modality of Assistance
Technical Assistance
Source of Funding / Amount
TA 10506-AZE: Preparing Azerbaijan Railway Company Decarbonization Project
Technical Assistance Special Fund US$ 250,000.00
Smart Energy Innovation Fund US$ 1.00 million
Sector / Subsector
Energy / Energy efficiency and conservation
Gender
Some gender elements
Description
Azerbaijan aims to establish itself as an international logistics hub by 2025, enhancing connectivity via the East-West and North-West Corridors and diversifying trade routes through the Middle Corridor to boost economic resilience and regional integration. With the growing volume of freight transport, the state-owned Azerbaijan Railway Company (ADY) is aligning with international best practices, focusing on decarbonization to support the country's climate targets. ADY is advancing its decarbonization agenda by shifting from diesel to electric traction and increasing the use of renewable electricity, enhancing operational efficiency and reducing costs. This transition will also generate co-benefits like improved air quality, reduced public health costs, and job creation in clean energy.
Project Rationale and Linkage to Country/Regional Strategy
The country has enhanced the transit of goods through the East- West Corridor and North- West Corridor. The Middle Corridor may provide diversified trade routes and develop economic resilience, reduce dependence on corridors through Russia and improve economic integration and regional connectivity.
Azerbaijan aims to reduce green house gas emissions by 35% by 2030 and 45% by 2045 demonstrating a commitment to mitigate climate change's economic environmental and social impacts. Transport sector is one of the main contributors to GHG emissions. The government identified usage of electric vehicles for public transportation as a measure to lower GHG emissions. They have also undertaken decarbonization measures.
Impact
The TA is Aligned with the Azerbaijan Railway Strategic Directions 2030 a and Azerbaijan Updated Nationally Determined Contributions. b
