27 Feb 2024 16:15

EBRD plans to provide Azerbaijan with $30-mln loan to upgrade substations

BAKU. Feb 27 (Interfax) - The European Bank for Reconstruction and Development (EBRD) plans to provide Azerbaijan with a loan totaling $30 million in order to purchase autotransformer equipment for four existing substations in the country, the EBRD said in a statement.

The EBRD said that the bank's board of directors intends to approve the financing on May 1, 2024. Azerbaijan's Finance Ministry will be the borrower of the loan, and OJSC Azerenerji will implement the project.

The project will be the first EBRD project aimed at modernizing the energy system, which is necessary to increase the system's flexibility and to integrate renewable energy capacity in Azerbaijan, the EBRD said.

Azerbaijan has been a member of the EBRD since 1992, during which time the EBRD has allocated nearly 3.7 billion euros to finance 189 projects in the country. The bank's current portfolio in the country totaled 897 million euros for 31 projects at the beginning of 2024, with 90% in infrastructure, 7% in industry and agriculture, and 3% in the financial sector.