EBRD to provide Azerbaijan with first loan for green transition

Economy 11:43 27.02.2024

The Board of Directors of the European Bank for Reconstruction and Development (EBRD) on May 1 plans to consider the provision of a sovereign loan of up to $30 million to finance the purchase of autotransformer equipment for reinforcing works at four operational substations in Azerbaijan, Ednews informs referring to the EBRD.

The Republic of Azerbaijan represented by the Ministry of Finance will act as the borrower. Azerenerji OJSC – the state-owned enterprise responsible for the production and transmission of electricity in the country - will act as the implementing entity for the project.

“The project will support the purchase of autotransformer equipment for reinforcing works at four operational substations in Azerbaijan. The Project will help to improve the flexibility of the power system in Azerbaijan required to integrate renewable energy capacities. The successful implementation of the Project would set an example for further grid strengthening projects that are important for the integration of renewable energy projects in the country,” reads the message.

The project will promote the "resilient" transition quality by allowing the connection of planned renewable energy installations which currently are not possible due to inadequacy of the grid or lead to a decrease in the curtailment of existing renewable energy installations.

The project will also promote the "green" transition quality by entailing a policy engagement, which aims to deliver institutional reform and lead to structural changes across sectors/markets.

“The Bank is actively involved in the development of policy dialogue in Azerbaijan. The Project will be the first engagement of the Bank focused on the modernization of the power system required to improve the flexibility of the power system and integrate renewable energy capacities in Azerbaijan. Therefore, the successful implementation of the Project would set an example and a replicable standard for further grid strengthening projects that are important for the integration of future renewable energy projects,” the EBRD noted.

The environmental and social risks associated with the purchase and replacement of transformers at four substations are expected to be site-specific, readily identifiable and can be mitigated through good industry practice. The Environmental and Social Due Diligence (ESDD) will be carried out by an independent consultant and include assessment of the Client's Environmental and Social management systems, a site visit and a review of the Client's current operations and the proposed Project.

The Project is expected to have indirect environmental benefits by upgrading substation capacity to support the transition to renewable energy integration. Key environmental and social impacts related to the proposed investment include labor and working conditions, occupational health and safety including electrical and road safety, contractor management during replacement and maintenance, pollution prevention issues such as hazardous waste management and grievances from the project stakeholders. Impacts on biodiversity, cultural heritage or economic displacement are not expected as installation works will take place at the existing substation sites. At this stage, no associated facilities have been identified. Due diligence will also review E&S risks in the project supply chain and arrangements for the old transformers being replaced.

Based on the ESDD, an Environmental and Social Action Plan (ESAP) will be developed to structure the Client's existing operations and the Project to align with the Bank's Performance Requirements (PR's) and good industry practice.

The Bank will monitor compliance with the PR's by reviewing annual reports prepared by the Client on environmental and social matters. The Bank will also undertake monitoring site visits, as needed.

The project does not exclude the possibility of providing grant funding, the source of which is being clarified.

IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

Azerbaijani oil price falls below $64
12:36 02.05.2025
Changes are coming: the UN is preparing a large-scale reform of the global architecture
12:31 02.05.2025
UNDP ceases operations in Azerbaijan
12:23 02.05.2025
Azerbaijan drafting a new state program to ensure food security
12:18 02.05.2025
Preparations for the signing of a Memorandum of Understanding between Azerbaijan and Nepal
12:11 02.05.2025
Apple faces $900 million in losses due to Trump's trade war
12:03 02.05.2025
The Strangest Place on Earth Discovered
11:58 02.05.2025
Scientists have discovered what makes you itch
11:54 02.05.2025
Agricultural innovations yield results in Azerbaijan
11:43 02.05.2025
Mysterious disappearance in the Amazon sky: a plane with passengers disappeared in Bolivia
11:38 02.05.2025
Washington's role in Armenia-Azerbaijan peace talks: progress and prospects
11:26 02.05.2025
Iran, Azerbaijan can jointly promote initiatives
11:21 02.05.2025
Azerbaijan aims to expand participation in carbon markets
11:19 02.05.2025
Secretary General of Communist Party of Vietnam to visit Azerbaijan
11:11 02.05.2025
Leyla Aliyeva attends “Only Culture” musical and artistic program
11:09 02.05.2025
Leyla Aliyeva and Arzu Aliyeva visit Polad Hashimov's home
10:56 02.05.2025
Uzbekistan, Japan,,Azerbaijan strengthen friendly relations and cooperation
10:43 02.05.2025
Heydar Aliyev's abolition of censorship in Azerbaijan created conditions for the expansion of pluralism
10:38 02.05.2025
Film titled 'Khojaly. The Last Wedding...' to be aired
10:36 02.05.2025
President's Cup-2025 regatta to conclude in Azerbaijan's Mingachevir
10:31 02.05.2025
Artificial intelligence has managed to crack passwords with the help of powerful processors
10:26 02.05.2025
Skype platform is being discontinued
10:19 02.05.2025
Leyla and Arzu Aliyeva participated in a tree-planting campaign in Sumgayit
10:11 02.05.2025
'The Social Processes in the Context of Media' forum held in Baku
10:04 02.05.2025
Trump announced the May 11 date on November 8th
10:04 02.05.2025
Mass grave discovered in Khojaly
12:15 01.05.2025
Pentagon threatens Iran over its support for Houthis
12:10 01.05.2025
Trainings on "New Trends in Strategic and Crisis Communication" conclude
12:05 01.05.2025
Azerbaijani Parliament approves accelerated digital transmission of guardianship
12:02 01.05.2025
Trial of Armenians accused of war crimes underway
11:54 01.05.2025
A memorandum was signed between the Multiculturalism Center and ICESCO
11:50 01.05.2025
"Crocodile Eye" and "The Twist" - Amazing Photos of Rare Spiral Galaxies Captured
11:42 01.05.2025
Baku branch of the National Bank of Iran resumes operations
11:38 01.05.2025
Azerbaijan and Iran discuss launch of direct Tabriz-Baku-Tabriz flight
11:32 01.05.2025
In the first quarter, Azerbaijan exported $450 million worth of non-oil products to Russia, Turkey, and Georgia
11:26 01.05.2025
The Milli Majlis has approved the appointment of Kamran Aliyev as Prosecutor General
11:22 01.05.2025
Preparation of design for the construction of liberated villages of Gazakh has begun
11:15 01.05.2025
Azerbaijan-Africa cooperation is expanding: new partnerships and international forums
11:11 01.05.2025
The 7th meeting of the Azerbaijan-Great Britain Intergovernmental Commission was held
11:05 01.05.2025
Azerbaijan’s Combined Arms Army holds command-staff exercise
11:02 01.05.2025
Hamısı