16:03 - 15.07.2025

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July 15, Fineko/abc.az. The World Bank has approved a loan in the amount of $173.5 million for a "Project to expand the use of renewable energy sources in Azerbaijan", ABC.AZ reports, referring to the World Bank Group.

Some time ago, a loan agreement was signed between Azerenergy OJSC and the International Bank for Reconstruction and Development, a member of the World Bank Group, on the "Project to expand the use of renewable energy sources in Azerbaijan" and a guarantee agreement between Azerbaijan and the IBRD on the "Project to expand the use of renewable energy sources in Azerbaijan".

The loan agreement worth $173.5 million was signed by Baba Rzayev, chairman of board at Azerenergy, and Stephanie Stallmeister, WB Manager for Azerbaijan, and the guarantee agreement under the loan agreement was signed on behalf of the Government of Azerbaijan by Finance Minister Sahil Babayev and Ms. Stallmeister.

The attracted loan will ensure the strengthening of the energy infrastructure of renewable energy stations under construction in Azerbaijan. The loan funds are attracted for the 15-year period with 5-year grace term, and the loan repayment period expires at the end of 2039. The Azerbaijani government's share in the project ($31.2 million) consists of VAT and customs duties.

The main objective of the project, which has 4-year implementation period, is to improve the functioning of the Azerenergi energy system and support the safe integration of renewable energy sources under construction into the energy transmission network over the next 5 years. As part of the project, the WB will finance the construction of 4,500 and 330 kV power transmission lines with total length of 341 km, as well as the purchase of transformer and related equipment for the 500/330/10 kv Navahi substation.