The Asian Development Bank (ADB) has approved a loan of $47 million for the digital transformation project of Azerbaijan Railways (ADY).

Axar.az reports that ADB announced this information.

The loan funds will assist in the digitization of Azerbaijan's railway system, enhancing the safety, reliability, and efficiency of the country's railway networks.

The project is also aimed at supporting the digitalization of ADY's core processes, including railway transport management, asset management, investment planning, customer data processing systems, and corporate functions.

"A modernized and digital railway system will support Azerbaijan's key role in connecting the economies of East and Central Asia with the Caucasus and Europe. We are pleased to support this initiative, which will maximize Azerbaijan's strong potential as a trade and connectivity hub," stated Yevgeny Zhukov, Director General of ADB's Central and West Asia Regional Department.

The ADB believes that digitization is crucial for enhancing operational efficiency, competitiveness, and fully leveraging Azerbaijan's role in regional transit corridors. This will also improve ADY's operational and financial performance through optimized data management, asset management, and overall railway operations.

Since joining the ADB in 1999, Azerbaijan has received over $5 billion in funding from the bank to support sovereign and private projects in sectors such as transport, energy, health, and agriculture. The bank, established in 1966, has 68 member countries, including 49 from the region.