EBRD finances logistical infrastructure in Azerbaijan
By Ayya Lmahamad
The European Bank for Reconstruction and Development (EBRD) is financing logistical infrastructure in Azerbaijan, Azernews reports.
“The European Bank for Reconstruction and Development is boosting transit, import, and export cargo capacities in Azerbaijan. The bank is providing a senior secured loan of up to US$4 million to West & East Forward LLC (WE Forward) and Alat Bay Industrial Development AFEZCO (Alat Bay) for the construction of a cold and dry warehouse with a 5,000-tonne storage capacity,” the bank’s press service reports.
The investment addresses the storage of commercial cold storage warehouses in Azerbaijan and is set to enhance the flow of goods to, and via, the country by reducing the cost and time of delivery between the Black Sea ports of Georgia and Baku.
“This means fewer truck trips to transport temperature-controlled goods, and therefore fewer transport-related carbon emissions,” the statement reads. Moreover, the EBRD will support the use of sustainable refrigeration technology and green elements in the construction design with grant facilities.
“As a result, the storage facility is set to become the first EDGE-certified (Excellence in Design for Greater Efficiency) building in Azerbaijan. Supporting sustainable infrastructure is one of the ways that the EBRD is boosting regional connectivity, along with Azerbaijan’s transition to a green economy,” the statement reads.
The bank will also promote equal opportunities by enabling access to skills and employment for young women and men in the logistics sector of Azerbaijan.
“The project is set to support the development of an internationally certified logistics management program and training of 100 students, including 40 women. This will be complemented by EU Neighbourhood Investment Platform grant funding provided under the EBRD’s FINTECC program,” the statement reads.
Established in 1991, EBRD invests in projects that contribute to the transition to an open market economy, as well as the development of private and business activities.
The bank is a leading investor in Azerbaijan. To date, the EBRD has invested over €3 billion ($3.5bn) in 177 projects in Azerbaijan’s economy.
The country has been cooperating with EBRD since 1992 to achieve further economic development. One of the main priorities of EBRD in Azerbaijan is to support the local corporate sector with direct financing. EBRD continues to pursue investments in energy projects, especially where there is a gap to improve efficiency and energy security.
Azerbaijan is the largest recipient of the EBRD funds in the Caucasus, as well as one of the largest recipients of this organization’s funds in the CIS and Eastern Europe.
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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad
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