Since joining the World Bank in 1992, Azerbaijan has benefited from various forms of support from the institution, including economic stabilization and the implementation of structural reforms. In recent years, the focus of their cooperation has been on economic diversification and providing high-quality public services. Regarding future cooperation, Stefanie Stallmeister, World Bank Country Manager for Azerbaijan, outlined the priority areas of collaboration for the period from 2024 to 2028.
Stallmeister pointed out that the World Bank is working with Azerbaijan to develop a new country partnership framework, which will cover the cooperation plans for the next five years. This plan is based on Azerbaijan’s national development strategy and takes into account current global challenges. The new strategy aims to strengthen resilience and sustainability, while improving productivity and creating more high-quality job opportunities. The plan covers multiple areas, including renewable energy, climate change mitigation and adaptation, strengthening employment services, and improving transportation and digital connectivity. The new strategy is expected to be finalized this fall, with more detailed plans to be provided at that time.
Supporting Transport and Energy Security Transformation
Since the 2000s, the World Bank has supported Azerbaijan’s transportation infrastructure development, investing in key highways and railways to improve the country’s regional connectivity. Recent studies indicate that the “Middle Corridor,” as a multimodal transport corridor linking the East and West, is expected to triple trade flows by 2030. To achieve this goal, further strengthening of infrastructure in Azerbaijan, Georgia, and Kazakhstan is necessary, particularly in railways, ports, and logistics digitalization.
In terms of energy security, the World Bank is currently collaborating with Azerbaijan on the “Scaling Up Renewable Energy Project (AZURE),” which aims to enhance the country’s grid capacity and support the transmission of renewable energy. This initiative not only helps Azerbaijan achieve a low-carbon transformation but also provides new opportunities to reduce methane emissions and strengthen environmental protection.
Regarding COP29, to be held in Baku, the World Bank views it as a critical platform for advancing climate action and commends Azerbaijan’s leadership and commitment to climate change issues. The World Bank annually commits $25 billion to reduce greenhouse gas emissions and enhance climate resilience, with plans to further increase the proportion of climate finance in its total financing. During COP29, the World Bank will reaffirm its commitment to climate action and support Azerbaijan’s goal of reducing greenhouse gas emissions.
Additionally, the World Bank is exploring other collaboration possibilities with Azerbaijan, such as promoting sustainable water resource use in irrigation and climate-smart agriculture.
Strengthening Green Cooperation with the EU
In the context of the Eurasian “Green Corridor” initiative, the World Bank is currently financing a feasibility study for the Georgian and Black Sea segments of this regional project. The Bank is also ready to support Azerbaijan and other regional countries in advancing this international collaborative effort.
Stallmeister emphasised that Azerbaijan needs to pursue a new growth model driven by a dynamic, non-energy private sector. In the future, Azerbaijan should focus more on human capital investment and adopt policies that support a thriving private economy. This approach aligns with the World Bank’s commitment to assisting Azerbaijan in successfully navigating this transition.
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