By Trend

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $50 million to Azerbaijan's Aztelekom LLC to finance the rollout of state-of-the-art broadband infrastructure to more than 280,000 households in the regions of Azerbaijan, the Bank told Trend.

According to the EBRD, the company’s planned expansion of the network will increase speed, capacity and capacity, reducing the digital divide between the capital and rural areas.

"Baku Telephone Communications LLC will act as a co-borrower together with Aztelekom LLC. The financing will be the first EBRD transaction in the sector and be supported by a guarantee through the European Fund for Sustainable Development Plus (EFSD+)," the EBRD said.

The loan is being provided as part of the EU's ambitious Economic and Investment Plan for the Eastern Partnership, which is aimed at delivering jobs and economic investment across the region.

Moreover, the EU is set to grant a further 1 million euros as part of the EFSD+ guarantee to the Ministry of Digital Development and Transport of Azerbaijan to enable the implementation of institutional measures to improve competition and regulation in the telecommunications sectors, as well as to strengthen the borrowers’ corporate governance.

"While fibre-to-the-home (FTTH) broadband networks offer greater bandwidth, reliability and cost efficiency than outdated copper-based technologies, rollouts to date have been focused on major urban centres. The country-wide rollout of FTTH to rural areas stands to contribute significantly to inclusive and sustainable economic growth in Azerbaijan," the Bank noted