BAKU, Azerbaijan, September 27. The Asian Development Bank (ADB) considers investing in a solar energy project in Azerbaijan’s Fuzuli district, Senior Investment Specialist of ADB Ali Malik told Trend.
Within the framework of COP29, held in Baku in November 2024, the Ministry of Energy of Azerbaijan, China Energy Overseas Investment Co. Ltd., and SOCAR Green signed an Implementation Agreement on the construction of a solar power plant with a capacity of 160 megawatts in Fuzuli.
“While the project is still under preliminary assessment, we are interested in it,” Malik noted.
He explained that ADB’s infrastructure financing team has discussed the bank’s involvement in Azerbaijan’s energy, water, and financial sectors, including implemented projects, plans, and positive market prospects amid the country’s recent credit rating upgrade.
Malik also stressed that ADB has been particularly active in Azerbaijan through private sector operations.
“In the past year, we signed agreements on two large-scale solar energy projects here: one called ‘Banka,’ and another, the ‘Bilasuvar’ solar power plant. The combined capacity of these projects is about 760 megawatts, jointly developed by Masdar and SOCAR Green. Their total value is around $600 million, for which we provided long-term loans with key guarantees. The electricity is purchased by Azerenerji, while the developers are SOCAR Green and Masdar,” Malik said.
He added that ADB is also collaborating with Masdar on the “Gobustan” wind energy project with a capacity of 220 megawatts,
“Financing will be provided by Masdar, and the project is expected to be completed in the near future, likely by the end of next year,” he stated.
In addition, Malik highlighted opportunities for ADB to participate in wastewater treatment projects in Azerbaijan.
“We focus on desalination and wastewater treatment initiatives. For instance, ADB has been appointed as a transaction advisor for the Govsan wastewater treatment plant and is providing advisory services within a public-private partnership framework,” he explained.
He further emphasized the bank’s cooperation with Azerbaijan’s financial sector and its interest in expanding activities in this area.
“We are also working with financial institutions and taking part in the agricultural sector. For example, in 2024, we finalized a transaction with one local company and are exploring future opportunities.
Overall, we consider the Azerbaijani market attractive, particularly in financing private sector projects in renewable energy and wastewater treatment. We are optimistic about Azerbaijan’s economy and market. With the country’s credit rating improving, ADB has greater opportunities to provide loans and invest. Currently, the bank’s non-sovereign (private) operations in Azerbaijan amount to about $200 million, mainly directed to renewable energy. We are ready to increase this figure, as Azerbaijan’s investment-grade rating opens new avenues for financing and investment,” Malik added.
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