10:54 - 18.06.2025

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June 18, Fineko/abc.az. The International Finance Corporation (IFC) is considering the possibility of providing comprehensive support to Azerbaijan in the development of the transport sector, from consulting support to attracting private investments, ABC.AZ informs quoting Ivana Fernandez Duarte, IFC's regional manager for the South Caucasus.

She pinted out that additional measures, such as improving fuel efficiency standards, offering incentives to replace old vehicles, and optimizing freight transport operations, are also important. The government is currently developing the necessary regulatory, policy, and institutional frameworks, and IFC could potentially provide advisory and investment support along the value chain where private sector solutions can be implemented.

Duarte stressed that the transport sector currently accounts for 22.6 percent of total energy consumption, which could be reduced through investments that expand charging infrastructure for privately financed electric vehicles and enhance urban transport options, such as renewing the country's bus fleet—a process that is already underway.

«We also welcome the government's tax incentives for electric vehicles,» she said.

IFC is committed to supporting Azerbaijan's efforts to develop its renewable energy sector, which holds significant potential, including an estimated technical capacity of 23 gigawatts of solar energy and 157 gigawatts of offshore wind capacity.

«Investing in extensive regional digital and transmission infrastructure, like the Black Sea Submarine Cable or the Green Energy Corridor, could allow the country to capitalize on its abundant energy resources and establish itself as a major global green energy exporter,» Duarte underlined.

IFC pays special attention to the development of international transport routes. In particular, the corporation is considering the possibility of participating in projects of the Middle Corridor, which runs through the South Caucasus and connects China with Europe through Central Asia, the Caspian Sea and the Caucasus.

“Azerbaijan also plays a key role in the Middle Corridor, which runs through the South Caucasus. With traffic on the Middle Corridor increasing annually and the government’s extensive plans to modernize key railway sections to meet increasing demand, IFC could explore investments in renewing the rolling stock of railcar transport operators, to further enhance the corridor’s efficiency and sustainability,» she emphasized.