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.
