Asian Infrastructure Investment Bank Reviews New Projects in Azerbaijan, Including the Middle Corridor / The Trans-Caspian transport corridor, also known as the Middle Corridor, links two major markets, Asia and Europe / The corridor will need around $28 billion in investment over the next 15 years

Given Azerbaijan's position on the Middle Corridor, the transport and logistics sector has significant potential for development.

Ambassador Arjan wrote: The Asian Infrastructure Investment Bank (AIIB) will continue to develop a diverse and high-quality portfolio of investments that is in line with the development priorities of the Republic of Azerbaijan, will help strengthen regional connections and achieve climate goals, and will leave lasting effects on the development of this country.

According to "Select" report; This article continues: Xiaohong Yang, General Manager of Public Sector Clients Department (Region II) in the Asian Infrastructure Investment Bank, stated this in an interview with Ambassador Arjan.

The Asian Infrastructure Investment Bank is investigating new projects in different parts of the Republic of Azerbaijan

Yang noted that the scope of AIB's cooperation with the Republic of Azerbaijan is expanding, and current cooperation includes areas such as urban transportation, renewable energy, water, and regional communications.

"We see significant opportunities in all these areas," he said. In addition to the approved project of the first phase of the Baku metro, the bank is considering the proposed development of the green line worth 820 million dollars. In the field of renewable energy, we are also evaluating the proposed plan to build a 200 MW Absheron-Qaradagh wind power plant.

According to him, the board of directors of the Asian Infrastructure Investment Bank has approved the financing of 45 million dollars from non-governmental sources for the construction of the first large-scale desalination facility of the Caspian Sea in the Republic of Azerbaijan.

"This project is also expected to be the country's first public-private partnership (PPP) project in the water sector," Yang explained.

He added that due to the position of the Republic of Azerbaijan in the middle corridor, the transport and logistics sector has a significant capacity for development.

The director general of the Asian Infrastructure Investment Bank said: "Renewable energies, energy storage and electricity infrastructure can support this country's energy transition and its goals in the field of regional connection of energy networks. Water infrastructure can help ensure long-term security of water resources and increase resilience against climate change. Sustainable urban transport can also support the continuous development of Baku and other urban centers. "Green and sustainable financing can also help expand the available capital sources for infrastructure investment."

The role of the Republic of Azerbaijan in strengthening regional connections is increasing

Yang noted that the Republic of Azerbaijan is one of the founding members of the Asian Infrastructure Investment Bank, and the bank values its strong partnership with this country.

He stated: "The strategic location of the Republic of Azerbaijan, which connects Central Asia and the South Caucasus to Turkey and European markets, gives this country an important role in promoting regional communication, trade and energy integration.

The joint statement signed by the Asian Infrastructure Investment Bank and the Republic of Azerbaijan in 2025 provides an important framework for advancing this cooperation. This statement foresees the development of a multi-year and dynamic investment plan and identifies opportunities in the fields of infrastructure resistant to climate change and decarbonization, new generation transportation, energy and digital infrastructure to strengthen the position of the Republic of Azerbaijan as an international trade and logistics corridor, as well as increase the participation of the private sector through innovative methods of financing and public and private partnerships.

He added: "In the future, our approach will be to work closely with the government to identify and develop a series of multi-year and continuous investment projects; Projects that align with the national priorities of the Republic of Azerbaijan and at the same time contribute to the wider regional public interest, especially in the areas of communications, energy security and climate resilience.

Our role as a Multilateral Development Bank (MDB) is not just to provide finance; We have international experience, project preparation capacity, risk management and the ability to mobilize other financial resources. We believe that there is a significant capacity to deepen this partnership by developing a diverse investment plan and preparing the projects properly."

The need of 28 billion dollars for the development of the middle corridor

The director general of the Asian Infrastructure Investment Bank stated that the Trans-Caspian international transport route has significant long-term potential as part of a network of trade routes increasingly connecting Asia and Europe.

"Estimates presented at the annual meeting of the Islamic Development Bank in Baku show that this corridor needs about 28 billion dollars of investment over the next 15 years," Yang said. This figure shows both the dimensions of the available opportunity and the importance of creating a strong set of projects ready for financing.

Rail and road remain essential infrastructure, but the performance of the corridor depends on the entire logistics chain. Ports, shipping capacity, logistics hubs, border crossing infrastructure, operational systems and digital platforms all play an important role.

From the perspective of a multilateral development bank, the priority is not simply to finance individual infrastructure assets, but to address constraints that affect the functioning of the corridor from origin to destination. This requires coordination among participating countries, harmonizing systems and standards in appropriate cases, and making investment decisions that complement each other, rather than leading to duplication of investments.

The Asian Infrastructure Investment Bank is already supporting major investments in regional connectivity related to the Trans-Caspian route, including road and rail projects. We also see opportunities to work with bank members and other development partners to strengthen this corridor as an integrated, reliable and commercially important transportation network."

Yang noted that the port of Baku and the Alt region have an important place in the development of the middle corridor.

He said: "The port of Baku and the wider region of Alt are in a strategic position; Where maritime transport across the Caspian Sea connects to rail and road networks leading to Georgia, Turkey and European markets.

Continuous investment in port and logistics infrastructure can strengthen this position. "Increased loading and unloading capacity, efficient transfer of cargo between different modes of transport, modern logistics services, digital cargo management and effective connectivity with the wider transport network can all contribute to more predictable and efficient movement of goods along this corridor."

This senior official of the Asian Infrastructure Investment Bank emphasized that the preparation of the Baku port project has started with the formulation of its master plan.

He added: "In general, the strengthening of the port of Baku and the logistics ecosystem of the Alt region will help to realize the development goals of the Republic of Azerbaijan, and at the same time, it will bring wider benefits to regional communications."

The development of the Baku Metro will help improve urban transportation

Yang recalled that in February 2026, the Asian Infrastructure Investment Bank approved the financing of $180 million for the first phase of the Baku Metro Development Project.

He said: "The first phase of this project, whose financing of 180 million dollars was approved by the bank in February 2026, focuses on the construction and equipping of Darnagol and Khajasan maintenance terminals and targeted improvements in the existing stations of the Green Line.

These investments will increase service reliability, maintenance efficiency and operational safety. They will also enable the separation of the red and green lines at the May 28 station and will create more capacity in the network to allow for the future expansion foreseen in the government's plan to expand the Baku Metro.

The proposed second phase will be based on these infrastructures and will include the development of 7.4 kilometers of the green line, the construction of four underground stations and the installation of modern signaling and communication systems.

Together, these investments can strengthen the capacity, reliability and efficiency of Baku Metro services and expand access to high-capacity public transport. In the long term, a more attractive and efficient public transportation system can help change the travel pattern of citizens towards urban commuting with lower emissions and advance climate and environmental goals.

From the perspective of a multilateral development bank, the importance of this program goes beyond individual investments. The goal is to support a sustainable urban transportation system that can respond to Baku's growth, improve residents' access to transportation services, and strengthen the efficiency and long-term resilience of the city's infrastructure.

The program's phased approach also allows infrastructure, operational capacity, and network expansion to be developed gradually and in line with the evolving needs of urban transportation."

Top priorities in global infrastructure investments

This senior official of the Asian Infrastructure Investment Bank said that global economic developments have increased the importance of investing in sustainable infrastructure.

He stated: "Reliable energy systems, efficient transportation networks, digital communications, security of water resources and climate-resistant infrastructure are the fundamental foundations of sustainable growth, productivity and economic competitiveness."

The approach of the Asian Infrastructure Investment Bank is guided by the bank's corporate strategy until 2030 and its mission titled "Financing Tomorrow's Infrastructure" (i4t). By 2030, the bank plans to increase its annual financing volume to 17 billion dollars, while deepening the climate impact of its activities and supporting cross-border communication among its members and within member countries.

In the future, we see significant investment needs in areas such as renewable energy and power grid modernization, climate change adaptation, water resource security, sustainable transport and logistics, and digital infrastructure.

We will continue to work with our members to identify projects that respond to their development priorities, strengthen resilience, improve economic efficiency and attract additional funding.