BAKU, Azerbaijan, October 6. The Asian
Development Bank (ADB) is placing special emphasis on the
development of the private sector in Azerbaijan with a view to
diversifying the economy, decarbonizing various sectors, and
attracting private capital, the Country Director for the Asian
Development Bank (ADB) in Azerbaijan, Sunniya Durrani-Jamal, said,
Trend's correspondent
reports.


She made the statement at the Azerbaijan-Germany Conference on
Strategic Partnership and Connectivity in Baku today.


Durrani-Jamal noted that further economic diversification
requires making broader use of the private sector’s capital and
creative potential, while simultaneously supporting the
decarbonization of various industries.


“One of the bank’s main strategies is private sector
development. The Asian Development Bank (ADB) has traditionally
served as a source of financing for governments for a long time.
This raises questions about why we are focusing on private sector
development. The reason is that we believe the private sector plays
a very important role in mobilizing capital, and our research
confirms this,” noted S. Durrani-Jamal.


According to her, a significant portion of capital is
concentrated in the private sector. Furthermore, a significant
portion of technological development also takes place in the
private sector.


“More importantly, the private sector has enormous potential to
improve efficiency and deliver results. That is why the bank has
set a goal of increasing annual financing to the private sector to
approximately $13 billion by 2030. This includes both our own
financing and the funds we mobilize,” the ADB representative
said.







Durrani-Jamal emphasized that the bank attaches great importance
to collaborating with various private-sector partners to achieve
this goal.


She noted that various financial instruments are used to attract
private capital for infrastructure and transportation projects.


“Of course, the basic instruments we use include loans and
equity financing. In addition, we also use mechanisms such as A/B
loans, parallel financing, guarantees, and risk transfer,”
Durrani-Jamal added.


The ADB’s Country Director stated that the aforementioned
financial instruments make it possible to attract private capital,
especially in areas requiring long-term investment, such as
infrastructure, transportation infrastructure, and renewable
energy.