BAKU, Azerbaijan, June 17. Regional integration
and PPP mechanisms are key conditions for bankable projects, CEO of
Azerbaijan's PASHA Financial Holding, Farid Mammadov, said at the
panel titled "CEO's session on making regional integration
attractive for investment: promoting trade, mobilizing investment
and systematically de-risking growth" held within the framework of
the 51st Annual Meeting of the Islamic Development Bank (IsDB)
Group in Baku, Trend's correspondent reports from the event.
Informing about PASHA Financial Holding's participation in
leading banking and insurance institutions of Azerbaijan, as well
as banks operating in Georgia and Türkiye, he noted that the "trade
triangle" concept, which has been formed in the region since 2013,
has become one of the company's main areas of activity.
In his speech, Mammadov pointed out that the company's goal is
to form integrated trade and financial solutions.
"Since entering Türkiye and Georgia in 2013 and opening a bank
in Türkiye in 2014, we have formed an approach in the region that
we call the 'trade triangle'. Regional integration and the creation
of integrated trade solutions are a key part of our daily
activities," he explained.
According to the CEO, there are several key conditions for
projects to be truly bankable and implemented. In his opinion,
first of all, real feasibility must be ensured.
"Our main role as regional players and local banks is to give
projects not only strategic, but also commercial and financial
feasibility. This approach must be consistent with the legislation
and economic realities of the countries," he said.
Mammadov also emphasized the importance of harmonization for the
effectiveness of regional projects.
"If a truck stops at every border in the region, this is no
longer an integrated project, but simply a combination of several
separate projects," he clarified.
In this context, he also touched upon the project implemented by
PASHA Finance Holding in conjunction with the Turkish e-commerce
platform "Trendyol". He noted that work is being carried out in
conjunction with the Ministry of Economy of Azerbaijan and the Alat
Free Economic Zone to establish more integrated and harmonious
routes for intercountry trade.
The speech also highlighted importance of proper risk
allocation.
"The role of development finance institutions (DFIs) and
multilateral development banks (MDBs) is very important here. They
should support regional and local players in managing risks. Some
risks arise from real constraints related to the size of the
market, while others are simply perceptions," he mentioned.
Mammadov also touched upon the importance of the public-private
partnership (PPP) framework, saying that the private sector should
be involved in projects from the design stage.
"The PPP framework should ensure that the private sector is
involved in projects from the initial design stage, not just at the
implementation stage," the CEO noted.
He added that the advance announcement of projects by the
Azerbaijani Ministry of Economy allows the private sector to join
the process early, while the Central Bank of Azerbaijan's project
financing framework creates additional opportunities for local
banks to manage risks more effectively.
