Baku: "Risks must be reduced in order to attract private capital to housing projects," Srinivas Sampath, Director for Water and Urban Development at the Asian Development Bank (ADB), stated during the session titled 'A New Deal for Housing Finance' held within the framework of the World Urban Forum 13 (WUF13), APA-Economics reports.

According to Azeri-Press News Agency, Sampath emphasized the distinct roles that national governments, city administrations, development banks, the private sector, and communities play in affordable housing projects. He highlighted the importance of city administrations in integrating transportation, land provision, and planning permits to facilitate these projects.

Sampath further explained that development banks aim to attract larger private investments by leveraging limited capital. For this to happen, a multilayered financing structure should be established. The state, international financial institutions, and development capital need to work collaboratively to minimize risks for the private sector.

The ADB official also pointed out that charitable foundations could contribute by assuming initial risks, thereby making housing projects more appealing to private investors. He concluded by stating that while there is ample capital available globally, funds often do not reach many projects due to inadequate structuring.