Dozens of State Programs and projects covering various sectors are being implemented in Azerbaijan. Among them are multiple programs in the transport sector that include infrastructure construction, expansion of transit capabilities, improvement of transit services, and more. In general, monitoring and evaluation of most State Programs are carried out by the Center for Analysis of Economic Reforms and Communication (CAERC) under the instructions of the head of state. Agil Asadov, Head of Department at the Center and Doctor of Economic Sciences, shared detailed information with AZERTAC about the implementation status of programs in the transport sector. We present the interview below.

Mr. Agil, Azerbaijan is located at the intersection of international transport corridors and is one of the leading transport and transit hubs of Eurasia. Overall, transport remains a key focus area for the national economy and the non-oil sector. Currently, two major documents related to transport are being implemented, programs on promoting transit transportation and developing transport infrastructure. Could you first talk about the essence of these programs, when they were adopted, what periods they cover, their main objectives, and the targets set?

First, I would like to note that Azerbaijan’s advantage is not only its favorable geographical location at the crossroads of international transport corridors, but also the consistent political decisions, State Programs, and measures that have successfully leveraged this position. Since 2003, program-based public administration has been established in our country and continues successfully today. As a fact, CAERC is currently monitoring more than 20 State Programs and projects, which is a real example of program-based governance.

Several State Programs related to the transport sector are being implemented. Some are sector-specific, focusing on particular modes of transport, while others cover the transport system as a whole. One of them is the “Action Plan for 2024–2026 on Increasing the Transit Potential of International Transport Corridors Passing Through the Territory of the Republic of Azerbaijan and Promoting Transit Cargo Transportation.” The other is the “State Program for 2025–2030 on Improving Transport Infrastructure in the City of Baku and Surrounding Areas.”

The Action Plan is quite comprehensive and includes 24 measures across 3 priorities aimed at fully utilizing Azerbaijan’s transit potential. Most parts of the plan are being successfully implemented, although some delays have been observed due to financial shortages, clarification of land ownership, and similar issues. The main goal of the Action Plan is to increase the volume of transit cargo transported with Azerbaijan’s participation. The selected target of 13.6 million tons of annual transit cargo has been exceeded. According to 2025 results, transit cargo volume reached 14.5 million tons.

Meanwhile, the State Program on improving urban transport infrastructure for 2025–2030 envisions the implementation of more than 60 projects across 7 directions. Its main goal is to shift from a car-oriented city to a citizen-oriented city by providing diverse mobility options. Reducing environmental impact, improving accessibility to public transport, eliminating traffic congestion, encouraging a shift from private vehicles to public transport, and constructing new infrastructure are among the program’s objectives.

For both programs, activities are monitored in coordination with the main implementing agencies, evaluations are conducted, and recommendations are prepared to address emerging challenges. Monitoring is carried out not only through analysis of reports submitted by implementing bodies, but also through on-site inspections as instructed by the Cabinet of Ministers. Last year, Center staff made several visits to regions together with representatives of implementing agencies. These missions are also separately documented and reported.

Both programs set quite serious targets, and CAERC conducts monitoring and evaluation. How do you assess the likelihood of achieving the goals set during implementation?

Monitoring and evaluation results, as well as the approach of most implementing agencies, give grounds to say that the targets will largely be achieved. For example, according to the 2024 year-end report, 17 percent of the measures were not implemented due to financial, land, and similar issues. However, our evaluation methodology considers measures implemented at less than 50 percent as not implemented. This means that within that 17 percent, some work was still carried out even if not fully completed. Nevertheless, most implementing agencies, especially the main implementing body, approach the issue quite seriously, which is crucial for results.

It should also be noted that the issues addressed in both programs are ongoing in nature and require continuous improvement and updates. Both infrastructure development and transit transportation have broad opportunities, but also face global challenges and rapidly changing societal and industry demands, which necessitate constant modernization.

Does CAERC only monitor and evaluate programs and prepare reports, or are there broader activities in this direction?

As mentioned, the Center monitors more than 20 State Programs. Considering that each program involves on average 10 to 12 implementing agencies and working groups, sometimes even more, the scale of work becomes clear.

At the same time, Center staff actively participate in the Commission on Business Environment and International Rankings, which has 33 working or sub-working groups, all of which include Center representation. In addition, as a think tank, CAERC continuously conducts scientific research aligned with the priorities of state policy and global challenges, contributing to the enrichment of the theoretical and methodological base.

In 2025 alone, CAERC published 5 textbooks and 2 monographs, as well as nearly 40 analytical reviews in various languages, including a transit review. Most of these books were produced in cooperation with local and foreign institutions. For example, the monograph “The Middle Corridor, Current Realities and Future Prospects,” presented in Brussels, was initiated by CAERC and prepared with the participation of 21 scholars from nearly 10 countries, including Azerbaijan, Türkiye, Kazakhstan, and China, in cooperation with the OECD and the CAREC Institute. It was published by a reputable European publishing house.

Another book, “The Economic Potential of Islamic Countries,” a two-volume research work, had its first volume published by the respected UK publisher Emerald. It is indexed by Scopus and provides a broad scientific analysis of the economic and social development potential of Islamic countries. The book was written by 47 authors representing leading think tanks from more than 20 Islamic countries. Other books were also prepared with researchers from various institutions and countries. All this shows that CAERC’s activities go beyond monitoring and evaluation and include continuous research in various areas.

Mr. Agil, what recommendations would you give for further strengthening Azerbaijan’s transit potential in terms of transport infrastructure and promotion of transportation?

Both the Action Plan on transit potential and the State Program on transport infrastructure development in Baku and surrounding areas are quite well designed for their respective periods. Therefore, I believe that achieving the goals set in these documents does not necessarily require additional recommendations.

However, from a monitoring perspective, I would emphasize the possibility of implementing tasks more quickly and with higher quality. Sometimes inter-agency coordination for certain projects takes considerable time, which delays actual implementation. Strengthening inter-agency coordination could therefore help achieve overall goals faster.

In the era of artificial intelligence and the internet, the pace of change is accelerating, requiring greater flexibility in project implementation. This is one of the key challenges of modern times. We must keep up, otherwise targets risk becoming outdated and losing relevance. Both infrastructure and transit services require continuous improvement. Current programs will end, and new, more comprehensive programs with more ambitious goals will be adopted. All this demands stronger coordination and greater flexibility.