Azerbaijan: Baku Metro Expansion Project - Phase I (AIIB-000969)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Azerbaijan
Geographic location where the impacts of the investment may be experienced.
Specific Location
Baku
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Azerbaijan
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 180.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 180.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 380.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Sep 10, 2025

Disclosed by Bank Sep 2, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AIIB, the project development objective is to support the MPP's objective by improving the reliability, efficiency, and safety of Baku Metro system operations through the construction and expansion of the depots to enable the Green Line and Purple Line expansion.

The Republic of Azerbaijan, through its Ministry of Finance, has requested financing support from the Asian Infrastructure Investment Bank (AIIB) for the Baku Metro Expansion Project (MPP). The MPP is expected to benefit from parallel financing from other Multilateral Development Banks (MDBs), including the Asian Development Bank (ADB), alongside national funding. The MPP will comprise three phases:

  • Phase I focuses on infrastructure development and technical services, including:

    • Construction and equipment supply for the Darnagul depot.
    • Expansion and equipment supply for the Khojasan depot.
    • Consulting services for preparation, supervision, and implementation support.
  • Additionally, the Government will finance the following components from its national budget:

    • Separation of the Red and Green lines at "28 May" station.
    • Construction of a reversible dead end behind "Icherisheher" station.
    • Energy audit and reliability improvements for the metro's energy system.
    • Procurement of 34 additional metro wagons.
  • Phase II includes:

    • Extension of the Green Line from "Khatai" to "Hazi Aslanov" (4 stations, approx. 10 km of Tunnel Boring Machine (TBM) tunneling).
    • Extension of the Purple Line from "8 November" to Babek Avenue (6 stations, approx. 10 km of TBM tunneling).

  • Phase III will focus on the procurement of additional rolling stock.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the information provided by the AIIB:

Estimated MPP Cost: USD2,455.00 million
• Indicative AIIB contribution up to USD1,000.00 million.
• Indicative ADB contribution up to USD1,000.00 million.2
• Indicative Public Funds: USD455.00 million.
Estimated Phase I Cost: USD380.00 million
• Indicative Phase I AIIB contribution up to USD180.00 million (47%).
• Indicative Phase I Public Funds up to USD200.00 million (53%).

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The implementing agency will be the Baku Metropolitan CJSC.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Baku Metropolitan CJSC Contractor Transport

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leader:

Mohamed Sameh - Senior Investment Officer
Email: mohamed.sameh@aiib.org

ADB Team Leader:

Jurgen Sluijter - Principal Transport Specialist
Email: jsluijter@adb.org

Client - Ministry of Finance of Republic of Azerbaijan:

Farid Ibadov - Senior Specialist
Email: farid.ibadov@maliyye.gov.az

Implementing Agency - Baku Metropolitan CJSC:

Emil Veliyev - Head of Project Implementation Unit
Email: emil.veliyev@metro.gov.az

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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