BAKU, Azerbaijan, June 19. The successful implementation of Middle Corridor projects requires a clear regulatory and tariff framework, proper risk allocation, and transparent tender procedures, Director for Regional Cooperation and Integration at the Asian Development Bank (ADB), Jong Woo Kang, said at the 14th Islamic Development Bank Group Private Sector Forum, Trend's correspondent reports from the event.
According to him, Middle Corridor projects should be viewed not only as infrastructure initiatives, but also as a tool for stimulating economic activity and private sector development. Kang noted that the first important condition is the existence of a clear regulatory and tariff system.
"Investors prefer predictability, so a clear legal framework, transparent tariff-setting mechanisms, and concession agreements are crucial for attracting private capital. The second key factor is the appropriate distribution of risks among project participants. In particular, political risks should be assumed by the state or mitigated by guarantees from multilateral development banks. Demand-side risks can be shared among stakeholders through instruments such as minimum income guarantees. Furthermore, mitigating foreign exchange risks through appropriate hedging mechanisms remains an important element," he said.
The ADB representative cited competitive and transparent tenders as the third condition for the success of the projects.
"Open procurement procedures help attract qualified participants and ensure the efficient use of funds. ADB provides support in developing procurement procedures, including pre-qualification of participants, bid evaluation, and contract management.
ADB has significant experience supporting the issuance of green bonds, sustainability bonds, and performance-linked bonds. This experience, successfully applied particularly in South Asia, can be applied in Central Asia when developing Middle Corridor projects," he noted.
He also expressed ADB's readiness to further collaborate with all regional stakeholders to support the implementation of Middle Corridor initiatives.
