Decarbonizing Baku Metro for a Smart and Sustainable Urban Transit Future (ADB-59165-001)

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 Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
Oct 24, 2025
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 - Ministry of Digital Development and Transportation
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Technical Cooperation
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.70 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)
$ 0.70 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.
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 12, 2026

Disclosed by Bank Oct 24, 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.

According to the Bank’s website, the proposed TA will support the modernization of Baku Metro by promoting energy efficiency and the use of clean energy technologies. It will assess opportunities for infrastructure upgrades to reduce energy consumption and operational costs, while integrating renewable energy solutions such as solar power and battery energy storage system (BESS). The TA will also explore the deployment of smart energy management systems and applications to optimize performance, including predictive maintenance and, advanced data analytics. This TA will complement Asian Development Bank's (ADB) broader engagement with Baku Metro.

Baku Metro plays a central role in shaping a low-carbon, inclusive and efficient urban transport network. As the backbone of Baku's public transport system, it offers a climate-friendly alternative to private and road-based transport. Operating since 1967, Baku Metro runs three lines covering approximately 41 kilometers and 27 stations, with daily ridership reaching around 630,000 passengers in 2024. As Azerbaijan's electricity mix remains heavily reliant on fossil fuels, the metro's growing energy demand, projected to support over 1 million daily riders by 2035, poses increasing energy sustainability challenges. The Government of Azerbaijan has committed an estimated $2.5 billion to support the network's expansion to five lines totaling 120 kilometers and 76 stations, alongside major power infrastructure upgrades. To ensure the sustainability of this investment, Baku Metro requires targeted TA to design and implement decarbonization strategies, prioritizing energy efficiency, and renewable energy integration. While metros, in general, generate relatively low emissions compared to road-based transport systems, operational emissions such as electricity consumption for train propulsion, lighting, and ventilation, contribute about 35% to its life cycle emissions. Decarbonizing Baku Metro operations will demonstrate the company's commitment to help Azerbaijan achieve its nationally determined contributions (NDC) and will provide regulatory and financial incentives. It will help Baku Metro meet the international standards and best practices. Decarbonizing the metro operation also means increased business efficiency and reducing operational costs.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to the Technical Assistance Report, the Risk Categories are:

Environment: Not Applicable
Involuntary Resettlement: Not Applicable
Indigenous Peoples: Not Applicable

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

The TA financing amount is $700,000, which will be financed on a grant basis by the Clean Energy Fund under Clean Energy Financing Partnership Facility administered by ADB. The government will provide counterpart support in the form of counterpart staff and other in-kind contributions.


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.

Project Officer: Rafayil Abbasov
Designation: Principal Energy Specialist - Asian Development Bank
Email: rabbasov@adb.org

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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