BAKU, Azerbaijan, July 16. The International Finance Corporation (IFC) is ready to work with the Azerbaijani government to help building Public-private partnerships (PPPs) capacity within the broader government, Ines Rocha, IFC’s Regional Director for Europe said in an exclusive interview with Trend.
“PPPs are key to harness the private sector’s capital and know-how to bolster critical sectors such as infrastructure and healthcare. This is an area in which we are ready to work more with the government. Digital infrastructure, and e-mobility especially, is an emerging focus area, especially with COP29 on the horizon. The transport sector currently contributes 22.6 percent to total energy consumption. This could be reduced through investments that boost the roll-out of charging infrastructure for privately financed electric vehicles and increase urban transport options—for example, by renewing the country’s bus fleet, a process that has already started,” she added.
Rocha noted that IFC welcomes the government’s tax breaks for electric vehicles.
“Other measures such as increasing fuel efficiency standards, providing incentives to replace old vehicles, and making freight transport operations more efficient are also important. The government is currently developing the necessary regulatory, policy, and institutional frameworks and IFC aims to provide both advisory and investment support along the value chain where private sector solutions can be deployed. We are also committed to supporting Azerbaijan’s ongoing efforts to attract more private investment in pharmaceuticals, transport and logistics, and other productive industries.
Last but not least are digital financial services and the innovative solutions they offer. With IFC’s advisory support, the Central Bank of the Republic of Azerbaijan is launching a regulatory sandbox, which will help promote this by enabling companies to test new products and models in a restricted environment, under a regulator’s oversight. That will help minimize any risk, while boosting innovation, and consumer and investor confidence,” added IFC’s regional director.
Rocha noted that leveraging the private sector’s capital and expertise through PPPs is vital to help free up financing from the public purse.
“The country has already taken positive steps in this direction. The adoption of a new law on PPPs in December 2022 was a key move towards restructuring the legal and organizational framework to encourage PPPs, with the Ministry of Economy playing a pivotal role in establishing a national PPP policy.
The establishment of a PPP Unit within the Ministry of Economy early in 2023 was another welcome strategic move to identify potential PPP projects and develop the necessary methodologies. That underscores the growing interest in utilizing PPPs for infrastructure development. IFC has been engaged in discussing potential projects in Azerbaijan, and we are ready to work with the government to help address some of the issues, including building PPP capacity within the broader government, to boost private investment in public infrastructure and social services,” she said.
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