PPP Fund for Infrastructure Projects may appear in Azerbaijan

Baku, Fineko/abc.az. Baku hosts the 48th annual meeting of the governors of the Asian Development Bank (ADB).

At seminar “Private Infrastructure of Asia” being held within its framework Finance Minister Samir Sharifov has stated that public-private partnership (PPP) is a very attractive model for infrastructure development, and Azerbaijan is no exception in this matter.

“In 2006-15 Azerbaijan has invested $30 bn in the development of physical infrastructure. Social infrastructure projects were also implemented during this period. In developed countries, it is considered that every 1 dollar invested in realization of a social project ensures the development of country’s GDP by 5-20%. But it should be noted that the financing of an infrastructure project is long-term and very risky. This calls into question the interest and desire of private organizations to implement such projects, even if there are sufficient funds in the capital market,” the minister said.

He points out that in such a situation the PPP model is attractive enough, but the state must create conditions for private companies to ensure their involvement in realization of infrastructure projects.

“A unique model has been created in Azerbaijan, and financing of infrastructure projects is carried out due to funds collected in the State Oil Fund, which finances projects and outside the country as well. We know that some developed countries even establish special funds for PPP in the implementation of infrastructure projects, and we want to examine the international experience in this field and its application in our country,” the minister said.