Azerbaijan and the Asian Infrastructure Investment Bank (AIIB) have signed two grant agreements to support green energy projects, with a combined funding package of $1.1 million.

The agreements provide $1 million to prepare the Caspian Green Energy Corridor project and $100,000 for a conceptual study of coastal infrastructure for a major offshore wind farm in Azerbaijan, according to Azerbaijan’s Ministry of Energy.

The documents were signed by Azerbaijan’s Energy Minister Parviz Shahbazov and AIIB Chief Investment Officer Konstantin Limitovskiy.

Shahbazov said the projects aim to develop coastal infrastructure to harness the Caspian Sea’s wind energy potential and establish a green energy corridor linking Azerbaijan, Kazakhstan and Uzbekistan.

Limitovskiy noted that these are AIIB’s first two grant agreements with Azerbaijan for projects supported by the Multilateral Cooperation Center for Development Finance (MCDF).

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank established in 2016 and headquartered in Beijing, China. It finances sustainable infrastructure and other development projects across Asia and beyond, focusing on areas such as energy, transport, digital connectivity, water and urban development. The bank has more than 100 approved members worldwide and works with governments and other partners to mobilize investment for economic growth and regional connectivity.