Grant agreements were signed with AIIB for green energy projects in Azerbaijan

An online meeting was held between Minister of Energy Parviz Shahbazov and a delegation from the Asian Infrastructure Investment Bank (AIIB) and the Finance Facility of the Multilateral Cooperation Center for Development Finance (MCDF).

During the meeting, the Bank’s support for the feasibility study of the Central Asia-Azerbaijan Green Energy Corridor project, as well as the expansion of cooperation in harnessing offshore wind energy potential, was highly appreciated.

Grant agreements between the Government of the Republic of Azerbaijan (on behalf of the Republic of Azerbaijan) and the Asian Infrastructure Investment Bank acting as the Implementing Partner of the Finance Facility of the Multilateral Cooperation Center for Development Finance (MCDF) for the Project Concept Development for Coastal Infrastructure to Support Large-Scale Offshore Wind Power Plant in Azerbaijan and Development of the Caspian Green Energy Corridor Project were signed. The agreements were signed by Minister of Energy Parviz Shahbazov on behalf of the Government of the Republic of Azerbaijan and Konstantin Limitovskiy, AIIB’s Chief Investment Officer for Public Sector (Region 2) & Project and Corporate Finance (Global) Clients, on behalf of the Bank.

Minister of Energy Parviz Shahbazov stated: “These agreements represent another demonstration of international support for Azerbaijan’s strategic objectives of developing large-scale offshore wind energy in the Caspian Sea and facilitating the regional and intercontinental transmission of green energy. This cooperation will support, on the one hand, the development of the coastal infrastructure necessary to harness offshore wind energy and, on the other, the establishment of a green energy corridor connecting Azerbaijan, Kazakhstan and Uzbekistan. Both projects are of great importance in terms of translating Azerbaijan’s abundant renewable energy potential into economic value, enabling the export of green energy resources from the Caspian region and Central Asia, and further strengthening our country’s strategic role in regional energy integration. We highly appreciate the Asian Infrastructure Investment Bank’s support for Azerbaijan’s green energy initiatives.”

Konstantin Limitovskiy, AIIB’s Chief Investment Officer noted that these were the first two grant agreements signed between the Asian Infrastructure Investment Bank (AIIB) and Azerbaijan for the MCDF-supported Caspian Green Energy Corridor and Coastal Infrastructure to Support Large-Scale Offshore Wind Power Plant Development in Azerbaijan projects. This important milestone opens up new opportunities for cooperation in project preparation, laying the groundwork for attracting future investment in sustainable energy infrastructure and strengthening regional connectivity.

The grant agreements provide for financial support of USD 1 million for the Caspian Green Energy Corridor Project Development and USD 100,000 for a Concept Development for Coastal Infrastructure to Support large-scale offshore wind power plants.