The EBRD is improving public transport in the capital of Azerbaijan by supporting the acquisition of 35 new buses with a loan of the €6 million in Azeri manat equivalent for Baku, the country’s major political, administrative, financial and cultural centre with a population of around 3 million.
The loan will be extended to the largest privately-owned passenger bus operator in Baku, Khaliq Faiqoglu LLC, which is currently providing over 20 per cent of bus services in the capital and in 2017 alone transported over 100 million passengers.
The investment will support the process of transforming Khaliq Faiqoglu into a modern urban transport operator. Congestion and overcrowding are severely impacting the population of Baku and both investments and new approaches are needed to improve the situation.
The loan will finance the procurement of 35 new low-floor diesel buses which will be fully compliant with the EU Euro 6 emission standard for light passenger and commercial vehicles. They will replace old buses and reduce the company’s annual CO2 emissions by 2,853 tonnes.
The EBRD is a leading institutional investor in Azerbaijan. Since the start of its operations in the country in 1992, the Bank has invested over US$ 2.8 billion in 163 projects in the financial, corporate, infrastructure and energy sectors, with 58 per cent of those investments in private enterprises.