00:00Public-private partnership is a long-term relationship between private sector enterprises and a government.
00:06In Azerbaijan, it's described as an institutional tool to accelerate economic development,
00:12more efficient infrastructure management and achieving sustainable growth.
00:17I'm Nadira Tudor and welcome to Business Horizons.
00:21On today's programme, we're looking at public-private partnerships, building Azerbaijan's future.
00:35Welcome to Business Horizons.
00:37Thank you so much, Nadira. Thank you for having me.
00:40Now, why are public-private partnerships becoming increasingly important for Azerbaijan's long-term development strategy?
00:48First, PPP helps mobilise private capital, advanced technology and international expertise.
00:55Second, Azerbaijan continues to diversify its economy.
01:01Smart infrastructure is becoming just as important as physical infrastructure.
01:06Technologies such as digital platforms, smart energy systems and data-driven services will play a central role.
01:14And what role do PPPs play in diversifying Azerbaijan's economy beyond oil and gas?
01:21By creating necessary conditions for PPPs, the government attracts investors to develop strategic infrastructure and public services,
01:32strengthening the country's investment climate.
01:35And which sectors do you think could become major PPP opportunities?
01:42Logistic corridors, renewable energy, digital infrastructure, water and waste management, as well as tourism, education, social infrastructure.
01:54How important is political and economic stability in securing that investor confidence?
02:01In today's world, political and economic stability is one of the most important factors for investors.
02:09Azerbaijan's political continuity, prudent economic policies and long-term vision provide predictability that international investors need when making strategic decisions.
02:26Now it's time for our Business Horizons Insight.
02:29Financing of public-private partnership projects can be carried out using various financial sources.
02:35You may ask, how is risk allocation carried out in public-private partnership projects?
02:41The allocation of risk is determined by the contract concluded between the parties within a framework which includes a description
02:48of risk factors.
02:49It's worth noting that a state partner may participate in the project company, but the participation should not exceed 49
02:56% of the authorized capital.
02:59The potential areas for the implementation of projects within the framework of the public-private partnership model for 2026 have
03:06been outlined and include environment and ecology, education and health.
03:11Public-private partnerships are playing an increasingly important role in Azerbaijan's economic development.
03:16We went on location to see how one of those partnerships is taking shape.
03:33Environmental protection is one of our core values as Aqua.
03:37We're bringing an extensive experience as being one of the largest private desalination companies in the world.
03:50So we actively identify all the environmental risks and take mitigation measures, starting from the design and engineering phase to
04:00responsible construction.
04:02It is obviously all about trust.
04:04The international investors look for long-term continuity and trust and cooperation, as well as support from the government.
04:17Azerbaijan has a long-term vision for energy storage, hydrogen, renewable energy and water desalination.
04:26We have a perfect past experience, which is now extending into the desalination project, and we would like to take
04:33this partnership into future for more and exciting projects.
04:41As Azerbaijan expands its PPP program, these partnerships are expected to support investment, create jobs and help shape the country's
04:51next phase of economic development.
04:53That's all for this edition of Business Horizons.
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