BAKU, Azerbaijan, August 30. The European Bank for Reconstruction and Development (EBRD) stands ready to encourage the development of infrastructure public-private partnerships (PPPs) in Azerbaijan, the Bank told Trend.
“PPPs play a crucial role in the search for the expanded and better quality delivery of infrastructure. The EBRD accelerates its promotion of private sector involvement and is particularly keen to expand the level of PPP activity in the regions of its operations and is playing an active role, alongside its International Financial Institution (IFI) partners, to mobilize additional fresh private capital,” said the EBRD.
As of July 31, 2023, the EBRD's loan portfolio for projects in Azerbaijan has reached a total of 787 million euros. This portfolio encompasses 31 distinct projects that the EBRD is actively involved in. Notably, the majority of the portfolio, amounting to 88 percent or 692 million euros, is attributed to investments in sustainable infrastructure. Additionally, investments have been allocated to the industry, trade, and agricultural sectors, accounting for 9 percent (67 million euros), and to financial institutions, accounting for 3 percent (28 million euros).
Over the course of its engagement, the Bank has contributed a cumulative sum of more than 3.4 billion euros, spread across a spectrum of 188 projects within Azerbaijan. Having established its presence in Azerbaijan since 1992, the EBRD stands as the largest investor in the nation. Looking ahead, there is an anticipated investment project portfolio of $750 million slated for the next three years. The Bank is poised to invest $300 million throughout 2023 across diverse industries. These include but are not limited to energy, transportation, the private sector, small and medium-sized enterprises (SMEs), as well as the banking industry.
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