BAKU, Azerbaijan, June 17. Azerbaijan aims to
expand public-private partnerships (PPPs) in cross-border
infrastructure projects, Deputy Minister of Economy of Azerbaijan
Samad Bashirli said, Trend's correspondent reports from the event.
He made the remark at the panel titled "Cross-Border
Infrastructure PPPs for Regional Connectivity" organized within the
framework of the 51st Annual Meeting of the Islamic Development
Bank (IsDB) Group in Baku.
"The role of PPPs in cross-border infrastructure projects to
ensure regional integration and sustainable prosperity is
increasingly growing," he explained.
According to him, the holding of the event under the high
patronage of President of Azerbaijan Ilham Aliyev is an indicator
of the strategic importance the country attaches to regional
cooperation and investment partnerships in the field of
connectivity.
"The theme of this year's meeting, 'Regional Integration for
Sustainable Prosperity', is extremely relevant. The global economy
is currently facing complex challenges such as infrastructure
financing gaps, supply chain fragmentation, climate risks, digital
transformation, and the growing demand for sustainable
connectivity. In such a context, regional infrastructure is no
longer just a matter of transport, energy, or logistics.
Infrastructure is a key pillar of trade, investment, industrial
cooperation, food and energy security, as well as inclusive
economic growth," he noted.
The deputy minister pointed out that, given the growing
investment demand and fiscal constraints, governments cannot
achieve these goals alone.
"That's why in the modern global economy, public-private
partnerships have become one of the main mechanisms for
implementing complex infrastructure projects. According to the
World Bank, in 2024, private sector participation in infrastructure
investments reached $100 billion. This indicator increased by 16%
compared to the previous year, exceeding the $100 billion mark for
the first time since the pandemic," Bashirli emphasized.
He also said that the regional impact of PPP projects on
cross-border infrastructure could be even greater.
"Such projects connect markets, reduce transport and operational
costs, facilitate trade, strengthen value chains and create new
opportunities for business. Azerbaijan has seen the transformative
impact of regional connectivity in its direct experience. The
development of the Middle Corridor, expansion of transit and
logistics capabilities, modernization of transport infrastructure
and promotion of industrial zones demonstrate our country's
commitment to regional integration and sustainable economic
development," he added.
According to Bashirli, Azerbaijan is also strengthening the
digital foundations for public-private partnerships in
parallel.
"The PPP mechanism is considered an important tool in terms of
attracting private investment in the infrastructure sector,
increasing the efficiency of projects and promoting innovative
financing models. In this direction, a portfolio of PPP projects
planned for implementation in the country in the fields of water
management, environment, transport, tourism, education and social
infrastructure has been formed," he noted.
The deputy minister also touched upon the Caspian Sea
desalination plant being built in Sumgayit, Azerbaijan's flagship
PPP project.
"This facility, which will have the capacity to produce 300,000
cubic meters of drinking water per day, is the first pilot project
implemented within the framework of Azerbaijan's new PPP. The
project is an example of how governments, international financial
institutions and private investors can cooperate to solve strategic
infrastructure problems and ensure long-term water security," he
said.
Bashirli emphasized that there are great opportunities for
expanding PPP projects in the future in the areas of transport
corridors, renewable energy, water security, logistics hubs,
climate-resilient infrastructure and digital connectivity.
"The message is clear: no country can achieve sustainable
prosperity in isolation. Connectivity is not just about roads,
railways, ports, power lines or digital networks. It is about
building trust, shaping shared economic interests and sharing the
benefits of development across borders. The IsDB Group of
Azerbaijan stands ready to develop practical, investment-oriented
and mutually beneficial infrastructure cooperation with member
countries and private sector partners.
The cross-border PPP projects can play an important role in
bridging the gap between government priorities and private sector
opportunities, national development plans and regional integration,
as well as today's infrastructure needs and tomorrow's shared
prosperity," he added.
