AIIB CEO says Middle Corridor needs $28 billion investment

Around $28 billion will be required over the next three years to ensure full functionality of the Middle Corridor transport route, according to Xiaohong Yang, CEO of the Asian Infrastructure Investment Bank (AIIB).

Speaking at a session titled “Financing the Middle Corridor for Sustainable Transport and Trade” during the Islamic Development Bank’s Annual Meetings in Baku, Yang said infrastructure development remains the top priority for the corridor’s long-term viability, Caliber.Az reports via local media. 

“The Middle Corridor will require around $28 billion over the next 15 years. Therefore, infrastructure remains the number one priority. The second priority is operational efficiency. This is because reliability and predictability are the most important factors in making the Middle Corridor attractive to investors and freight carriers. Whereas transport used to take around a month, this time has now been reduced to approximately 18 days. However, this is still quite a long time,” she noted.

Yang emphasised that financing should focus on “bankable projects” capable of attracting sustainable long-term investment.

During the same panel discussion, Jong Woo Kang, Director of the Regional Cooperation and Integration Department at the Asian Development Bank (ADB), said the institution is ready to support infrastructure development along the corridor, including through its experience in issuing green and sustainable bonds.

He stressed the importance of clearly defined performance indicators for projects.

“Key performance indicators must be defined in advance, and every step must be measured against established criteria. This will enable us to assess progress, understand what still needs to be done, and determine what external financing to attract,” Kang said.

He added that combining transport infrastructure with improved regulatory and digital connectivity between participating countries will be essential for improving efficiency and investor confidence.

By Sabina Mammadli