ADB approves loan facility to lift power reliability in Azerbaijan
The Asian Development Bank (ADB) has approved a $750 million multitranche program loan facility to upgrade power distribution networks in Azerbaijan that will benefit over 1.4 million consumers and give the wider economy a lift by providing more reliable electricity supplies.
Azerbaijan currently generates enough electricity to meet domestic needs. But electricity supply outside Baku remains unreliable with distribution network equipment at the end of its life, resulting in frequent power outages in many secondary cities and rural areas. The distribution network also suffers from sizeable system losses outside the capital.
“This ADB program will help address the bottleneck in electricity supply and provide round-the-clock and reliable electricity to households and entities in secondary cities and rural areas in Azerbaijan. It will also help promote inclusive economic growth, foster new business opportunities for small- and medium-sized enterprises, and reduce urban-rural income disparities,” the Director General of ADB’s Central and West Asia Department, Sean O'Sullivan, said.
The loan facility, which is earmarked to be rolled out in 3 tranches of $250 million each, will rehabilitate distribution network substations and lines, replace current low quality customer service lines and install modern, tamper-proof smart meters across the country, Trend reports.