The Railway Sector Development Program (RSDP) will provide project financing for the rehabilitation of the track and structure of the Sumgayit -Yalama rail line a key link in the North South Railway Corridor within the CAREC network to improve rail network serviceability (the project loan); and support to railway sector development reforms in management autonomy and governance, financial restructuring, reporting and control, operational efficiency, and corporate restructuring (policy-based loan).
|Project Name||Railway Sector Development Program|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Transport - Rail transport (non-urban)
|Gender Equity and Mainstreaming||No gender elements|
|Description||The Railway Sector Development Program (RSDP) will provide project financing for the rehabilitation of the track and structure of the Sumgayit -Yalama rail line a key link in the North South Railway Corridor within the CAREC network to improve rail network serviceability (the project loan); and support to railway sector development reforms in management autonomy and governance, financial restructuring, reporting and control, operational efficiency, and corporate restructuring (policy-based loan).|
|Project Rationale and Linkage to Country/Regional Strategy||
A sustained policy implementation effort to engineer a transition towards a less oil-dependent economy is urgent, and railway development can be a crucial enabler of this alternative economic development path. With the modern railway infrastructure in strategic locations of Azerbaijan (border cross points, the ports, the oil production and the agricultural regions), railways competitiveness can be essential to the country''s production, trade, and distribution of bulk materials such as oil-related and agricultural products. But challenges in the sector are stark and urgent.
These challenges require a comprehensive policy and financial response from the government that (i) promotes institutional, corporate, financial management and control, labor and debt restructuring reforms, and (ii) makes the necessary financing available to upgrade ADY's service capacity and/or competitiveness. The properly sequenced institutional and corporate reform actions are key, so that a financially sustainable outlook for investment financing can help tackle the overall prospects of the freight and passenger businesses at ADY. ADB's Sector Development Program modality enables multi-year assistance to such a sector-focused reform and investment financing agenda.
The RSDP will be ADB's first intervention in Azerbaijan''s railway sector. The RSDP''s concept paper was approved in July 2016 and technical assistance has supported the preparation of reforms and project design across all outputs. Key aspects of the RSDP have also benefited from past advisory support from various railway sector stakeholders and recent project implementation by the World Bank. This has ensured that the proposed RSDP reforms complement related technical assistance initiatives by concerned development partners in the sector (and in some cases providing critical leverage), and that synergies between East-West Rail Line project and North-South Rail Line project are achieved wherever feasible. In addition, given ADY's significantly stretched capacity by the wide range of immediate challenges, ADB will allocate TA to facilitate policy dialogue and support implementing further change.
|Impact||Railway development for Azerbaijan economically sustained|
|Outcome||Efficiency and financial viability of railway operations improved|
Governance, and management and financial autonomy of ADY enhanced
Financial restructuring of ADY's debt liabilities implemented
Financial and management control, efficiency and reporting at ADY enhanced
Operational efficiency enhanced and corporate restructuring implemented
Infrastructure of the Sumgayit Yalama rail line improved
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Stakeholders including ADY, government agencies, development partners and local residents were consulted throughout project preparation to minimize adverse impacts and ensure social acceptance. The views and concerns of all stakeholders will be taken into consideration during project implementation.|
|During Project Implementation||Consultation with stakeholders as needed will be conducted during implementation.|
|Consulting Services||Consulting services to be financed under the ADB loan will be recruited in accordance with ADB's Guidelines on the use of Consultants (2013, as amended from time to time) and ADB''s prior review.|
|Procurement||All procurement financed under the ADB loan including ADB-administered loan will follow international competitive bidding procedures pursuant to ADB's Procurement Guidelines (2015, as amended from time to time) and ADB''s prior review.|
|Responsible ADB Officer||Wu, Zheng|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Transport and Communications Division, CWRD|
Azerbaijan Railways Closed Joint Stock Company
Dilara Aliyeva Str. 230, Baku, AZ1010 Ministry of Finance
83, Same Vurgun Street AZ1022 Baku, Azerbaijan
|Concept Clearance||04 Jul 2016|
|Fact Finding||28 Aug 2017 to 08 Sep 2017|
|MRM||02 Oct 2017|
|Last Review Mission||-|
|Last PDS Update||24 Sep 2017|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Dəmiryolu Sektorunun İnkişaf Proqramı: Layihə Data Sənədi||Translated PDS||Aug 2016|
|Railway Sector Development Program: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Aug 2016|
|Railway Sector Development Program: Project Preparatory Technical Assistance Report||Project Preparatory Technical Assistance Reports||Aug 2016|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.