Baku: Today, a loan agreement on the Azerbaijan Scaling-Up Renewable Energy Project (AZURE) was signed between ‘AzerEnergy’ OJSC and the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group. A guarantee agreement related to the AZURE project was also executed between Azerbaijan and the IBRD, APA reports.
According to Azeri-Press News Agency, the $173.5 million loan agreement was signed by Baba Rzayev, President of ‘AzerEnergy’ OJSC, and Stefanie Stallmeister, World Bank Country Manager for Azerbaijan, while the guarantee agreement was signed on behalf of the Azerbaijani government by Sahil Babayev, Azerbaijan’s Minister of Finance, and Stefanie Stallmeister.
The loan is intended to bolster the energy transmission infrastructure for renewable energy plants currently under construction in Azerbaijan. It is structured for a period of 15 years, with a grace period of 5 years, to be fully repaid by the end of 2039.
The Azerbaijani government will contribute $31.2 million to the project, covering VAT and customs duties. The project, spanning 4 years, aims to improve the efficiency of ‘AzerEnergy’ OJSC’s energy system and ensure the integration of renewable energy plants into the power grid over the next 5 years.
As part of the initiative, the World Bank will finance the construction of four 500/330 kV high-voltage transmission lines totaling 341 km, along with the procurement of transformers and related equipment for the 500/330/10 kV Nawahi substation.
During the signing ceremony, Minister Sahil Babayev acknowledged the World Bank Group’s consistent support for programs in the country. He highlighted Azerbaijan’s abundant renewable energy resources and the government’s objective to evolve into a producer and exporter of green energy.
Stefanie Stallmeister, emphasizing the ongoing successful cooperation with Azerbaijan, expressed confidence that the World Bank Group will persist in contributing to the country’s sustainable development by backing projects aligned with Azerbaijan’s socio-economic development goals.