Azerbaijan continues to develop its infrastructure with ongoing opportunities in the roads, rail, water treatment and ports equipment sectors.
Infrastructure sector in Azerbaijan
Azerbaijan continues to develop its infrastructure with ongoing opportunities in the roads,
rail, water treatment and ports equipment sectors.
Azerbaijan has experienced rapid economic growth and significant poverty reduction since the
onset of the ongoing oil boom.
It has a relatively developed infrastructure which includes about 22.000km of railroads, and 6
international airports. It also has the largest Caspian port. The transport sector in Azerbaijan,
comprising railway, aviation, roads and maritime shipping, amounts to about 7% of domestic
In 2011, Azerbaijan’s mobile subscriber base had passed the 9m milestone (99% penetration).
There are 4 mobile operators in the market. There are also significant signs suggesting a strong
growth in Azerbaijan’s internet usage; with user penetration expanding from 12% at the start of
2007, to 36% by the beginning of 2011.
Water treatment and sewage systems in Azerbaijan dates back to Soviet times; however the
government is working on reconstructing the system with financial support from ADB, KfW and
other financial institutions. Moreover the Azerbaijani government plans to spend roughly AZN
2bn (about £1.63bn) over the next year to improve the water supply and sewage treatment
The Government of Azerbaijan has earmarked funding, and plans further improvement of road
conditions, public transport and road infrastructure generally. There is a four-year State
programme to upgrade the railways. Financing includes AZN 2.5bn from EBRD & Asia
Development Bank (ADB), plus a World Bank loan of $450m to overhaul rail infrastructure,
which includes electrification, signals & rolling stock.
Tenders will be announced on the internet.
ADB had provided a loan of US$55.4m to rehabilitate 39 km of a road bypassing Ganja. The
road is part of the country’s main east-west highway linking Baku to the Georgian border.
EBRD launched a series of investments to support the modernisation of Azerbaijan’s road
infrastructure to promote regional trade links, and drive forward the diversification of the
economy. This latest EBRD loan for the roads system provides US$250m for the reconstruction
of key regional roads feeding into the main corridor highways.
The Azerbaijani government is looking for foreign companies which could assist them in the
ξ Consultancy and technical companies dealing with the development of the water
ξ Companies involved in the technical aspects of the purification and secondary treatment of
ξ Organisations or companies specialising in the laboratory inspection of potable or other
sorts of water.
ξ Institutions or organisations experienced in staff training in this sector etc.
Baku International Trade Port
Construction has already begun, but the Baku International Sea Trade Port authorities now need
loading equipment and service vessels.
Latest export opportunities - Azerbaijan
Latest export opportunities - Mass Transport
Latest export opportunities - Construction
Latest export opportunities – Environment & Water
Getting into the market
All companies operating in Azerbaijan are required to be registered.
Without formal registration, a company may not do business in Azerbaijan (e.g. maintain a bank
account, clear goods through customs, etc.). As a part of the ongoing business law reforms, a
“One Window” principle was introduced from 1 January 2008. Registration procedures
involving several governmental bodies (e.g. Ministry of Justice, tax authorities, Social Insurance
Fund and Statistics Committee) have been eliminated, with the result that businesses need only
register with the Tax Ministry.
UKTI Baku recommends that any UK companies seeking to do business in Azerbaijan seek
advice from a range of sources, including obtaining legal advice. UKTI Baku can provide a list
of international law firms operating in Baku. In addition, it is important to be conduct proper due
diligence before entering into any sort of partnership or joint venture with Azerbaijani
More about doing business in Azerbaijan.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
Ann Herd , British Embassy Azerbaijan. Tel: +994124377870 or email: Ann.Herd@fco.gov.uk
Rena Zeynalova , British Embassy Azerbaijan. Tel: +994124377872 or email:
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events - Environment & Water
Latest events - Construction
Latest events – Mass Transport
Road, Infrastructure and Public Transport Exhibition
13-15 June 2012
More about OMIS and other UKTI services for exporters
UK in Azerbaijan