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Public Private Partnership: Alternative Way of Attracting Private Sector to Infrastructure Projects in Azerbaijan

Public Private Partnership

In this article, we will discuss notion of PPP in general, cover some history of PPP development, explain main models of PPPs and their benefits. In addition, this article will provide information on current legal framework on PPPs in Azerbaijan, covering main gaps and advantages that current legislation offers.

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Manager, Tax & Legal

KPMG Azerbaijan Ltd

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Where governments face constrained budgets and lack of infrastructure, they tend to turn to public private partnerships (PPP), which can help with bringing necessary financing and improved quality. Generally, PPPs are alternatives to public procurement, where the former uses private sector’s financing and the latter public funds.
As a result of financial crises, fall of oil prices or other events and processes that result in decreasing budgets, some economies had sought other means to finance infrastructure or other projects, in order to ease the burden on their budgets. In Azerbaijan, this became more relevant after the fall in oil prices in 2014, which resulted in decreased foreign currency return in Azerbaijan.
In this article, we will discuss notion of PPP in general, cover some history of PPP development, explain main models of PPPs and their benefits. In addition, this article will provide information on current legal framework on PPPs in Azerbaijan, covering main gaps and advantages that current legislation offers.

© 2019 KPMG Azerbaijan Limited, a company incorporated under the Laws of the Guernsey, acting through its Representative Office in the Republic of Azerbaijan, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Azerbaijan.

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