BAKU, Azerbaijan, June 17. Regional integration and PPP mechanisms are key conditions for bankable projects, CEO of Azerbaijan's PASHA Financial Holding, Farid Mammadov, said at the panel titled "CEO's session on making regional integration attractive for investment: promoting trade, mobilizing investment and systematically de-risking growth" held within the framework of the 51st Annual Meeting of the Islamic Development Bank (IsDB) Group in Baku, Trend's correspondent reports from the event.
Informing about PASHA Financial Holding's participation in leading banking and insurance institutions of Azerbaijan, as well as banks operating in Georgia and Türkiye, he noted that the "trade triangle" concept, which has been formed in the region since 2013, has become one of the company's main areas of activity.
In his speech, Mammadov pointed out that the company's goal is to form integrated trade and financial solutions.
"Since entering Türkiye and Georgia in 2013 and opening a bank in Türkiye in 2014, we have formed an approach in the region that we call the 'trade triangle'. Regional integration and the creation of integrated trade solutions are a key part of our daily activities," he explained.
According to the CEO, there are several key conditions for projects to be truly bankable and implemented. In his opinion, first of all, real feasibility must be ensured.
"Our main role as regional players and local banks is to give projects not only strategic, but also commercial and financial feasibility. This approach must be consistent with the legislation and economic realities of the countries," he said.
Mammadov also emphasized the importance of harmonization for the effectiveness of regional projects.
"If a truck stops at every border in the region, this is no longer an integrated project, but simply a combination of several separate projects," he clarified.
In this context, he also touched upon the project implemented by PASHA Finance Holding in conjunction with the Turkish e-commerce platform "Trendyol". He noted that work is being carried out in conjunction with the Ministry of Economy of Azerbaijan and the Alat Free Economic Zone to establish more integrated and harmonious routes for intercountry trade.
The speech also highlighted importance of proper risk allocation.
"The role of development finance institutions (DFIs) and multilateral development banks (MDBs) is very important here. They should support regional and local players in managing risks. Some risks arise from real constraints related to the size of the market, while others are simply perceptions," he mentioned.
Mammadov also touched upon the importance of the public-private partnership (PPP) framework, saying that the private sector should be involved in projects from the design stage.
"The PPP framework should ensure that the private sector is involved in projects from the initial design stage, not just at the implementation stage," the CEO noted.
He added that the advance announcement of projects by the Azerbaijani Ministry of Economy allows the private sector to join the process early, while the Central Bank of Azerbaijan's project financing framework creates additional opportunities for local banks to manage risks more effectively.
