World Bank to invest over $1 billion into Azerbaijan in five years

The World Bank (WB) plans to provide Azerbaijan with between $1 billion and $1.5 billion worth in assistance over the next five years through the International Bank for Reconstruction and Development (IBRD).

The WB has stated that funding will depend on the pace of lending, Caliber.Az reports citing local media.

IBRD’s preliminary plan for the 2025–2026 fiscal years includes 4–5 new projects requested by the Azerbaijani government, with annual financing ranging from $250 million to $400 million.

Key projects set to receive funding include:

Additional financing for the employment support project – $150 million

Expansion of renewable energy use (as part of a regional program) – $225 million

Development of competitive and sustainable agriculture, including irrigation – $400 million

Baku development project – $100–300 million

Approximately half of these funds are expected to be disbursed by June 2025, with the remainder allocated in the following fiscal year.

"In the future, the World Bank Group plans to work together with the government of Azerbaijan to determine additional cooperation measures within the framework of a long-term strategy. In the initial period, the focus will be on analytical support aimed at transitioning to a low-carbon economy, developing transport connectivity, managing water resources, reforming the financial sector, and digital transformation. This may serve as the foundation for new investment projects in the second half of the program’s implementation period," the bank announced.

As of December 2024, Azerbaijan had two active IBRD loan programs in employment and transport, with a total of $176.1 million in unutilized funds.

Azerbaijan has been cooperating with the World Bank since 1992, receiving over $4 billion in funding for 52 projects. The country holds a 0.13 per cent stake in the IBRD, amounting to 2,371 shares, for which the government has paid $286 million. Plans are underway to purchase an additional 505 shares worth $60.9 million in the near future.

By Nazrin Sadigova