European Development Bank sees Azerbaijan as key transit hub in expanding Middle Corridor South Caucasus rep says

The European Investment Bank (EIB), through its EIB Global arm, is prepared to consider financing infrastructure and logistics projects in Azerbaijan, provided such initiatives align with European Union priorities and Azerbaijan’s connectivity objectives under the EU’s Global Gateway strategy and the bloc’s new Strategic Approach to the Black Sea region.

Stella Renita, Head of the Regional Representation for the South Caucasus (Tbilisi) of the European Investment Bank, made the remarks in comments to Trend.

According to Renita, Azerbaijan occupies a strategically important position along the Middle Corridor, as it is part of the expanded Trans-European Transport Network (TEN-T) and also forms a key link in the Trans-Caspian Transport Corridor.

“There is significant potential for closer integration of rail, port and road infrastructure, which would improve connectivity between Central Asia and Europe, shorten transit times and support more diversified trade routes,” she said.

Renita noted that the EIB is already engaged in the region by providing advisory support aimed at enhancing safety along the Baku–Böyük Kəsik railway corridor, a critical segment of the Middle Corridor. This work was carried out under the Facility for Eastern Partnership Investment in Connectivity, which is financed by the European Union and managed by the EIB. According to her, the assignment contributed to project preparation by improving operational safety, reducing travel times and emissions, and ensuring compliance with EU environmental and technical standards.

She emphasised that attracting private investment is one of the core objectives of the EU’s Global Gateway approach.

In this context, Renita said the EIB can deploy a wide range of financial instruments to mobilise private capital for strategically important connectivity projects, provided appropriate conditions are in place.

“These instruments include long-term loans, project finance structures, as well as blended finance and risk-sharing solutions backed by EU budgetary guarantees under the NDICI–Global Europe programme, which is the European Union’s main external financing instrument for the 2021–2027 period,” she said. “These tools are designed to reduce risks, enhance the investment attractiveness of projects and improve their bankability, making infrastructure investments more appealing to private investors.”

Renita also stressed that Azerbaijan has the potential to emerge as a key transit hub along east–west routes and to help develop stronger multimodal connections between Europe, the South Caucasus and Central Asia, in line with EU connectivity priorities.

“From the EIB’s perspective, the main focus is on investments that improve interoperability between different modes of transport—such as railways, ports and roads—while simultaneously increasing their efficiency, safety and sustainability,” she said. “Particular importance is attached to projects that support low-carbon transport, regional integration and compliance with European technical, environmental and operational standards, which contribute to ensuring sustainable trade flows to and from Europe.”

Renita underlined that digitalisation is one of the central priorities of the EU’s Global Gateway strategy and a key complement to physical infrastructure development.

“The EIB supports the introduction of digital solutions in transport and logistics, including intelligent transport systems, digital freight solutions, port information systems, and tools that enhance data transparency, traceability and the efficiency of border procedures,” she said.

She added that along corridors such as the Middle Corridor, digital solutions can play a significant role in eliminating bottlenecks, strengthening governance and improving overall corridor efficiency. Any EIB involvement in this area, she stressed, would fully comply with EU digital and governance standards and would be implemented in close cooperation with national authorities, the European Commission and other relevant stakeholders.

The Middle Corridor is a transregional transport and trade route linking Asia and Europe and serving as an alternative to the traditional Northern and Southern corridors. The route begins in China, passes through Central Asian countries including Kazakhstan, Uzbekistan and Turkmenistan, crosses the Caspian Sea, Azerbaijan, Georgia and Türkiye, and then continues into Europe. As a land-based route, the Middle Corridor bypasses longer maritime pathways and connects eastern parts of Asia, including China, with European markets.