BAKU, Azerbaijan, October 30. The European Bank for Reconstruction and Development (EBRD) is interested in sustainable transport linked to the Middle Corridor, Tea Melikadze, the new Regional Head of Infrastructure for the Caucasus, said in an exclusive interview with Trend.
"We see the Middle Corridor as an increasingly important route connecting Central Asia with European markets through the South Caucasus. Azerbaijan plays a central role in this corridor, given its strategic location on the Caspian Sea and its onward links," she said.
Melikadze pointed out that for the Bank, the next phase is about identifying investments that can remove bottlenecks, improve the efficiency and resilience of transport connections and strengthen the overall competitiveness of the corridor.
"We are interested in sustainable transport and other infrastructure projects linked to the corridor. Discussions on individual projects will depend on their preparation and readiness, so it would be premature to name specific financing commitments at this stage," she explained.
EBRD's possible role in TRIPP project
Melikadze noted that the EBRD sees the Trump Route for International Peace and Prosperity (TRIPP) as a new development in South Caucasus connectivity.
"We welcome initiatives that have the potential to improve regional connectivity and economic integration in the South Caucasus. TRIPP is an important new development in this context," she said.
Melikadze said that the Bank has extensive experience in financing transport infrastructure and supporting regional connectivity across the countries of its operations.
"Depending on how individual projects develop, the EBRD could contribute at several stages: helping prepare well-structured projects, providing financing where projects meet our requirements, supporting policy dialogue and mobilising private investment. Private-sector participation could be particularly valuable in areas such as logistics and other commercially viable infrastructure and services. The precise role of the EBRD will depend on how individual projects are developed and structured," she added.
Plans for deeper infrastructure engagement in Azerbaijan
Melikadze said that the EBRD sees considerable potential to deepen its infrastructure engagement in Azerbaijan.
"As of 31 August 2026, the EBRD's portfolio in the country stood at approximately EUR 879 million across 35 active portfolio operations, although this extends beyond infrastructure alone. From an infrastructure perspective, there is scope to increase financing, but this would depend on the development of well-prepared, sustainable and bankable projects rather than a predetermined volume target. We are looking at where EBRD financing and expertise can deliver the greatest impact and support Azerbaijan's long-term development priorities," she said.
The regional head for infrastructure noted that there are several areas where the Bank sees opportunities, including sustainable transport and logistics, water and wastewater infrastructure and broader urban infrastructure, alongside the country's green transition and regional connectivity agenda.
"We are also interested in opportunities to bring greater private-sector capital into infrastructure where the conditions are appropriate.The EBRD’s range of financing instruments gives us considerable flexibility in this respect. We can provide sovereign and sub-sovereign financing, as well as financing directly to private-sector companies, using instruments such as debt, equity and guarantees, as appropriate to the project and client. This can be complemented by blended finance, technical assistance, and policy dialogue. The objective is to bring together the right investment and expertise to deliver lasting improvements," she explained.
Avenues for new projects and investment in infrastructure
Melikadze named three areas for new projects in infrastructure in Azerbaijan.
"First is regional connectivity and sustainable transport. Azerbaijan’s position between Central Asia and Europe gives it an important role in strengthening transport and logistics links, benefiting both the country and the wider region," she said.
She believes that the second is water and municipal infrastructure.
"Water security, efficient water use, wastewater treatment and the resilience of urban infrastructure are becoming increasingly important," Melikadze added.
She named mobilisation of private capital into infrastructure as the third area.
"The EBRD can help governments prepare bankable projects, consider appropriate PPP structures, strengthen institutional capacity and use risk-mitigation and financing instruments to help crowd in commercial capital. However, PPPs are not suitable for every project and should be pursued where they offer value for money compared with conventional public procurement," the regional head for infrastructure added.
Priorities for strengthening regional connectivity in Caucasus
Melikadze pointed out that her priority is to build on the EBRD’s strong work across the Caucasus and further increase the impact of the Bank's investments.
"Infrastructure has an important role to play in supporting economic development, strengthening regional connectivity and improving the quality and resilience of essential services. Our work is guided by the Infrastructure Sector Strategy 2025-2029 with three clear priorities: improving connectivity, enhancing climate and nature action, and strengthening resilience. In the Caucasus, this means supporting high-quality, inclusive infrastructure that meets the needs of businesses and communities, while helping our clients improve governance and service delivery. My approach is therefore one of continuity combined with ambition, rather than a fundamental change of direction. I want to deepen our engagement with clients and help turn investment priorities into well-prepared, bankable projects, combining financing with technical assistance and policy dialogue where these can make a practical difference," she said.
Melikadze went on to add that the EBRD already has a strong and relatively new strategic framework for its cooperation with Azerbaijan.
"The EBRD's Azerbaijan Country Strategy 2025-2030 was approved by our Board in January 2025 and guides our investments and policy engagement. The strategy has two main priorities: fostering greater economic diversification through a stronger, more competitive and inclusive private sector and improved governance; and accelerating Azerbaijan's transition to a green economy while improving regional connectivity. For infrastructure, this provides scope to support municipal infrastructure, sustainable transport networks, and digital connectivity, with particular attention to projects linked to the Middle Corridor. Our focus now is on turning these priorities into concrete investments and reforms," she said.
Feasibility study for Baku Integrated Drinking Water Supply Project
Melikadze noted that the Feasibility study for Baku Integrated Drinking Water Supply Project is underway.
"It will provide the technical, economic, environmental and social analysis needed to identify priority investments. The water infrastructure initiative for the Greater Baku region is an important part of our cooperation with Azerbaijan. It takes a comprehensive approach to the challenges facing water infrastructure in Baku and the Absheron Peninsula, with the aim of identifying sustainable, climate-resilient and financially sound investment solutions that improve service quality. The findings of the feasibility study will help determine the scope and sequencing of the priority investments and inform the next steps for the project," she concluded.
