Baku: A multi-tier financing structure should be created for affordable housing projects, according to the Asian Development Bank (ADB).

According to Azerbaijan State News Agency, Srinivas Sampath, the Director for ADB's Water and Urban Development Sector Office, highlighted the importance of a collaborative approach during his remarks at a panel titled 'A New Deal for Housing Finance,' which was part of the 13th Session of the UN World Urban Forum (WUF13). He stated that governments, cities, development banks, the private sector, and communities each have a distinct role to play in this initiative.

Sampath emphasized that development banks aim to maximize their limited capital by mobilizing larger private investments. This goal necessitates a multi-layered financing structure where governments, international financial institutions, and development capital work together to mitigate risks for the private sector. He also pointed out that philanthropic funding can serve as a catalyst by absorbing initial risks and subsequently attracting private investment.

Despite the availability of sufficient global capital, many projects fail to secure funding due to weak structuring, Sampath noted. This underlines the need for a robust and multi-tiered financing approach to unlock the potential of private investments in the affordable housing sector.