Azerbaijan: Baku Metro Expansion Project - Phase II (Green Line) (AIIB-001107)

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."
Voting Date
Sep 1, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
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)
$ 700.00 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)
$ 700.00 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)
$ 826.60 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
Other Related Projects
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 28, 2026

Disclosed by Bank Apr 2, 2026

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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 expand sustainable, safe and inclusive urban mobility in Baku by extending the Green Line, supporting climate goals and catalyzing regeneration in post-industrial districts.

The Baku Metro Expansion Project - Phase II (Green Line) includes the construction of approximately 8 kilometers (km) of twin bore, dual direction tunnels using Tunnel Boring Machines (TBMs), together with the completion of four underground stations. The Project includes three main components:

  • Component 1 - Civil Infrastructure and Systems: Civil works for the construction of tunnels and underground stations, including systems (Mechanical, Electrical and Plumbing).
  • Component 2 - Signaling and Communication: Installation and integration of modern signaling/communications-based train control (CBTC) interfaces, Supervisory Control and Data Acquisition (SCADA) control and communication systems, designed to be compatible with the wider Baku Metro network.
  • Component 3 - Technical Assistance: Advisory services for implementation support, environmental and social (ES) management, and institutional capacity building.

The Project builds on the institutional capacity, governance organization and physical investments under Baku Metro Expansion Project - Phase I, which was prepared in 2025 and approved in February 2026. It constitutes a key phase of the Government of Azerbaijan's broader USD2.455 billion Baku Metro Expansion Project, a high-priority multi-phase initiative of the Republic of Azerbaijan aimed at enhancing sustainable urban mobility in Baku.

The full scope of the government's Program includes the completion of the Darnagul and Khojasan Depots (Baku Metro Expansion Project - Phase I), Green Line extension (the Project), the digitalization component (Baku Metro Signaling Modernization and Operations Digitalization Project) financed by the Asian Development Bank (ADB), the parallel ADB-financed expansion of the Purple Line and the rolling stock renewal (Phase III).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The AIIB reported the following cost breakdown -

Total project cost: USD826.6 million
Proposed AIIB financing: USD700 million
Republic of Azerbaijan: USD126.6 million

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.

Baku Metropolitan CJSC is the state-owned operator of Baku's metro system.

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

Borrower - Government of Azerbaijan:

Khadija Alizadeh - Head of External Debt Analysis Division
Agency for Managing Public Debt and Financial Obligations
Email: xadica.alizade@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

How it works

How it works