EBRD extends deadlines for €22.5 million infrastructure loans in Azerbaijan’s Ganja

The European Bank for Reconstruction and Development (EBRD) and the government of Azerbaijan have agreed to extend the disbursement deadlines for two infrastructure projects in the city of Ganja, citing procurement and tender delays.

Under the revised agreement, the loan utilisation period for the “Street Lighting in the City of Ganja” project has been extended from September 2025 to August 2027. The €12.5 million loan was not fully disbursed within the original timeframe due to delays in procuring consulting services and conducting tender procedures for the supply and installation of lighting systems, Caliber.Az reports per local media. 

The extension follows setbacks faced by the project implementation group in completing procurement processes in line with EBRD standards.

A similar decision was taken regarding the “Municipal Solid Waste Management in the City of Ganja” project, which is financed with a €10 million loan. The deadline for using these funds has been extended until December 2026.

According to project documentation, the waste management initiative initially envisaged the establishment of a management group responsible for procuring consulting services. However, the cost of services proposed by the selected consultant exceeded initial estimates, prompting the need for additional technical assistance to bridge the funding gap.

Subsequent proposals submitted under the tender process failed to meet EBRD requirements, leading to the annulment of the results. As a consequence, loan funds could not be disbursed within three years of the agreement’s signing, making the extension of the utilisation period necessary.

The two projects form part of broader efforts to modernise urban infrastructure and improve municipal services in Azerbaijan’s second-largest city.

By Sabina Mammadli