The Asian Development Bank (ADB) has launched the ADB Azerbaijan Country Partnership strategy for 2025–2029. This marks a new chapter in its support for sustainable, inclusive, and climate-resilient development. Built on value creation, integration, and resilience, the strategy focuses on economic diversification, climate action, and social equity. Azerbaijan’s non-oil sector currently contributes just over 50% of GDP. To improve this, ADB will support green growth through reforms and targeted investments. The strategy emphasizes two areas: building a green, diversified economy and fostering low-carbon connectivity and inclusive growth. These align with Azerbaijan 2030. ADB aims to deliver tangible outcomes, such as more clean industry jobs, better trade integration, and increased rural-urban service access.
The first pillar of the strategy focuses on creating a green economy in Azerbaijan by reducing dependence on hydrocarbons. Presently, oil and gas dominate more than 90% of Azerbaijan’s export revenues. ADB has committed to allocating up to 35% of its annual regional portfolio to climate-related investments by 2024, rising to 50% by 2030. These will include clean energy, better water use, and disaster risk reduction. It will also support sustainable farming and eco-tourism to raise rural incomes. Public-Private Partnerships (PPPs) are essential in this transformation. Azerbaijan has already initiated PPPs in solar power, water services, and urban development. ADB will offer technical assistance to design projects that are fast to implement and financially sustainable.
ADB’s second pillar emphasizes infrastructure and digital access to boost trade and inclusion. Azerbaijan lies on the Middle Corridor, linking Asia and Europe. ADB will invest in smart transport and logistics systems that lower emissions and boost efficiency. This includes rail electrification and green urban mobility. The Bank will also help extend rural broadband to close the digital gap. Through the ADB Azerbaijan Country Partnership, support for viable Azerbaijan PPP projects will expand. Sectors like healthcare, education, and logistics are key targets. With ADB’s earlier help, Azerbaijan updated its PPP law. These changes improve procurement, share risks better, and boost investor confidence.
The strategy emphasizes inclusion and social development. ADB aims to help address economic gaps across regions and communities. The ADB Azerbaijan Country Partnership also highlights gender equality as a cross-cutting priority. ADB will promote inclusive financing and digital services to enhance access and opportunity. While project-specific initiatives are yet to be confirmed, the strategy supports Azerbaijan’s long-term ambition to become a knowledge-based, innovation-driven economy. It’s not just about infrastructure; it’s about enabling lasting human capital development.
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