Azerbaijan inks loan agreement with World Bank to expand renewable energy projects
Jul 01, 2025
The government of Azerbaijan and the World Bank have signed a loan agreement on “the project to expand the use of renewable energy sources in Azerbaijan”.
According to information that between the Open Joint Stock Company “Azərenerji” and the International Bank for Reconstruction and Development, a member of the World Bank Group, was signed“ loan agreement on the project to expand the use of renewable energy sources in Azerbaijan” and “guarantee agreement between the Republic of Azerbaijan and the International Bank for Reconstruction and Development on the project to expand the use of renewable energy sources in Azerbaijan”.
The loan agreement for the amount of $173.5 million was signed by Baba Rzayev, Chairman of the Board of Azerenerji Open Joint Stock Company, and Stefanie Stallmeister, World Bank Manager for Azerbaijan, and the guarantee agreement on the loan agreement was signed by Finance Minister Sahil Babayev and Stallmeister.
The raised loan will ensure the strengthening of the energy transmission infrastructure for the safe transfer of RES plants under construction in Azerbaijan to the energy system. The loan funds are attracted for a 15-year term with a 5-year grace period, and the loan will expire at the end of 2039. The Government of Azerbaijan's share in the project ($31.2 million) consists of VAT and customs duties.
The main objective of the project, the implementation period of which is 4 years, is to contribute to the improvement of the efficiency of the energy system of Azerenerji JSC and the safe integration of the renewable energy sources under construction into the power transmission network over the next 5 years. Under the project, the World Bank will finance the construction of 4,500 and 330 kV transmission lines with a total length of 341 km, as well as the purchase of transformers and related equipment for the 500/330/10 kV Navahi substation.
LATEST
Aug 11, 2025
EBRD supports Azerbaijani furniture maker
News
The European Bank for Reconstruction and Development (EBRD) is lending the equivalent of US$7 million to Saloğlu, Azerbaijan’s leading furniture producer and retailer, in local currency to help boost its competitiveness.
Aug 08, 2025
Azerbaijan: Gateway and driver of the Middle Corridor
News
As geopolitical balances shift in the South Caucasus, Azerbaijan is establishing itself as a key player on the international stage. As its global profile rises, Azerbaijan is intensifying collaborations with regions across the world.
Aug 01, 2025
Five offshore wind project sites identified in Azerbaijan
News
Five offshore wind project sites identified in Azerbaijan, Director of the Azerbaijan Renewable Energy Agency Javid Abdullayev told Trend in an interview.
Jul 28, 2025
EBRD’s loan portfolio in Azerbaijan drops to €948M by end of June
News
As of June 30, the European Bank for Reconstruction and Development (EBRD)’s active loan portfolio in Azerbaijan stood at €948 million, citing the bank.
Jul 25, 2025
Azerbaijan’s trade turnover with EU countries rises nearly 23%
News
In the first half of 2025, trade turnover between Azerbaijan and European Union (EU) countries exceeded $10.461 billion, marking a 22.6% increase year-on-year,
Jul 07, 2025
EU sets out vision for International Digital Strategy
News
The European Commission and the EU High Representative set out a joint vision for the EU’s new International Digital Strategy in early June 2025.
Jul 01, 2025
Azerbaijan inks loan agreement with World Bank to expand renewable energy projects
News
The government of Azerbaijan and the World Bank have signed a loan agreement on “the project to expand the use of renewable energy sources in Azerbaijan”.
Jun 30, 2025
Azerbaijani ‘Cybersecurity’ course now available from EU4Digital Academy
News
Citizens and small and medium-sized enterprises (SMEs) in Azerbaijan are invited to learn how to secure their personal or professional digital life with the EU4Digital Academy ‘Cybersecurity‘ course.
Jun 27, 2025
EBRD launches program to improve efficiency of water sector in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has announced the launch of the Financial and Operational Performance Improvement Program (FOPIP) for the State Agency for Water Resources of Azerbaijan and its subordinate entities.
Jun 19, 2025
EuroVillage 2025 in Baku
News
EuroVillage 2025, a vibrant open-air festival hosted by the European Union is taking place on 22 June at Baku boulevard.
Jun 13, 2025
The third meeting of Azerbaijan-EU Energy Dialogue was held in Brussels
News
The third meeting of High-Level Energy Dialogue established to develop a strategic energy partnership between Azerbaijan and the European Union (EU) was held in Brussels, the Kingdom of Belgium, informs via Ministry of Energy.
May 30, 2025
EBRD and Unibank to support trade finance in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has approved a trade finance line of up to €4.4 million for Azerbaijani lender Unibank under its Trade Facilitation Programme (TFP).
