BAKU, Azerbaijan, June 17. To successfully implement cross-border infrastructure projects, it is necessary to more actively utilize public-private partnership (PPP) mechanisms, as well as the instruments of multilateral development banks to reduce investment risks, Ahmed Rostom, Egypt's Minister of Planning and Economic Development and Governor for Egypt at the Islamic Development Bank, said, Trend's correspondent reports from the event.
He made the remark during a panel session on "Cross-Border Infrastructure PPPs for Regional Connectivity" within the framework of the annual meetings of the Islamic Development Bank (IsDB) Group in Baku.
According to the minister, one of the main obstacles to attracting private capital today remains high investment risks.
"Private capital will remain on the sidelines until we directly mitigate the long-term risks associated with regulatory alignment, revenue stability, and political risks in projects involving multiple states," Rostom said.
The minister emphasized that multilateral development banks must play a more active role in reducing these risks.
According to him, the necessary conditions have been created today for a larger-scale development of cross-border projects.
"We now possess all the capabilities to smartly de-risk cross-border public-private partnership projects, and platforms such as this current meeting help us move in this direction," Rostom stated.
The minister noted that combining financial resources, technical expertise, and increasing operational efficiency will allow for the formation of a high-quality portfolio of investment projects.
"Combining private capital, exchanging technical knowledge, and increasing project implementation efficiency will help form a viable pipeline of initiatives attractive to investors," he said.
Rostom urged IsDB member countries to more actively utilize the bank's comprehensive set of financial instruments.
"I would like to call for a highly coordinated approach using the full suite of instruments of the Islamic Development Bank Group—sovereign and non-sovereign financing, guarantees, trade facilitation mechanisms, and advisory support—to scale up public-private partnership projects in member countries," the minister emphasized.
He also advocated for a broader application of Islamic finance and blended finance mechanisms.
"Now is the right moment to promote Islamic finance, blended finance models, and robust guarantee mechanisms that will mitigate risks and significantly boost the investment attractiveness of infrastructure projects," Rostom noted.
As successful examples of regional cooperation, the minister named the Trans-Saharan Highway, as well as the transport and energy corridors of Azerbaijan.
"These projects demonstrate how landlocked developing countries can be connected to deep-water ports and world markets, opening up new opportunities for their economic growth," he said.
Rostom called on ministries of finance, transport and energy authorities, as well as public-private partnership units to work together on harmonizing legislation and regulatory frameworks.
"It is necessary to move from theoretical discussions to practical actions—to prepare a concrete list of risks, identify opportunities for the implementation of cross-border projects, and ensure their alignment with the strategy of the Islamic Development Bank for 2025–2026," the minister emphasized.
Concluding his speech, he reaffirmed Egypt's commitment to developing regional infrastructure interconnectivity.
"We reaffirm our unwavering commitment to developing regional economic corridors, strengthening cooperation between institutions, and transforming cross-border interconnectivity from a political goal into real investment projects capable of ensuring the prosperity of our countries," the minister concluded.
