Baku: Azerbaijan plans to implement new projects in the fields of transport, energy, water security, and digital connectivity using public-private partnership (PPP) mechanisms, Deputy Economy Minister Samad Bashirli said during his speech at the session titled 'Cross-Border Infrastructure Public-Private Partnership (PPP) Projects for Regional Connectivity,' organized within the framework of the annual meetings of the Islamic Development Bank Group in Baku, APA reports.
According to Azeri-Press News Agency, Bashirli highlighted the complex challenges the global economy is facing, such as infrastructure and financing gaps, fragmentation of supply chains, financial instability, digital transformation, and the increasing demand for sustainable connectivity. He emphasized that infrastructure is not merely a transport or geopolitical issue in the modern era; instead, it forms the foundation of trade, investment, industrial cooperation, food and energy security, as well as inclusive economic growth. However, due to growing investment needs and fiscal constraints, governments cannot achieve these goals alone.
Bashirli pointed out that public-private partnership has become a crucial tool in addressing these challenges. He cited the World Bank, noting that private sector investment in infrastructure increased by 16 percent in 2024, exceeding USD 100 billion and surpassing this threshold for the first time since the pandemic.
He also highlighted Azerbaijan's efforts in demonstrating the economic impact of regional connectivity, mentioning the development of the Middle Corridor, expansion of transit and logistics capabilities, modernization of transport infrastructure, and promotion of industrial zones as evidence of Azerbaijan's commitment to regional integration.
The deputy minister announced that Azerbaijan is preparing significant projects in the field of public-private partnership, with an extensive portfolio of PPP projects being formed in areas such as water supply, transport, tourism, education, and social infrastructure. The flagship project in this direction is the Caspian Sea water desalination plant to be implemented in Sumgayit, which will have the capacity to produce 300,000 cubic meters of drinking water per day. This pilot project is part of Azerbaijan's new PPP framework and exemplifies successful cooperation between the government, international financial institutions, and private investors.
Bashirli concluded by stating that there is significant potential to expand PPP projects in the future in fields like transport corridors, renewable energy, water security, logistics centers, climate-resilient infrastructure, and digital connectivity. He stressed that sustainable prosperity cannot be achieved in isolation, and connectivity is about building trust, shared economic interests, and cross-border development.