Azerbaijan to digitise public administration with €43 million loan from EIB Global

December 30, 2024 by European Investment Bank Leave a Comment

This article is published in association with European Investment Bank.

EIB Global lends €43 million for Azerbaijan to develop digital infrastructure for government services.
Loan to state-owned AzlnTelecom is for project that includes two new data centres.
Investment to make national public administration more efficient and transparent.

The European Investment Bank’s global arm (EIB Global) has signed a €43 million loan agreement to develop a digital infrastructure for governmental services. The loan is to state-owned enterprise AzInTelecom LLC, which will use the financing to build two new state-of-the-art data centers.

The transaction is EIB Global’s first loan to Azerbaijan’s public sector. The project aims to make public information and services more secure, speedy and accessible. The planned data centres will provide cloud services. The project, due to be completed in 2027 will also create economic opportunities through innovation and skilled jobs.

EIB Vice-President Teresa Czerwińska, who oversees the EIB’s operations in Azerbaijan, stated: “We are pleased to formalise our first loan with Azerbaijan’s public sector. Improving access to information and fostering resilient digital transformation are among the key priorities of the European Investment Bank. This particular investment focusing on the innovation and transparency, will not only modernize public administration but will also contribute to sustainable economic growth and social progress.”

This initiative is aligned with the European Union’s Economic and Investment Plan (EIP) for the Eastern Partnership, as well as the Global Gateway strategy, underscoring the EU’s commitment to fostering sustainable development and digital transformation in the region.

Elkhan Azizov, Acting Chairman of the Board of AzInTelecom LLC, stated that this project would give a significant boost to Azerbaijan’s ongoing digital transformation: “With the implementation of this project, cloud services will become more accessible for both small and large organizations. Naturally, this will have a direct positive impact on the development of the digital ecosystem in Azerbaijan. I would also like to note that both Data Centers planned for construction in the Absheron and Hajigabul regions will be built based on green technologies.”

Background information

About the EIB and EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through our offices across the world.

About AzInTelecom LLC

AzInTelecom LLC is the largest cloud service provider in Azerbaijan and the first organization in the South Caucasus to receive the internationally renowned “TIER 3” certification for Data Centers. The company currently provides cloud services to over 200 public and private sector organizations through its Data Centers located in Baku and Yevlakh.

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