ADB names success factors for public-private partnerships

The Asian Development Bank (ADB) has outlined six key aspects necessary for the launch and successful implementation of public-private partnership (PPP) projects, Sunniya Durrani-Jamal, head of the Asian Development Bank's Country Office in Azerbaijan, said at the first Azerbaijan International Investment Forum (AIIF 2025), Report informs.

She emphasized that large-scale infrastructure projects cannot be implemented solely through public funds: "Governments cannot cope alone. The region's infrastructure needs are enormous – we're talking trillions of dollars by 2040. According to ADB estimates, the annual gap through 2030 alone is approximately $1.7 trillion. Traditional public financing is clearly insufficient. Addressing this problem requires rethinking approaches to infrastructure development and maintenance, as well as understanding its public value."

She identified six aspects that form the basis for launching and successfully implementing public-private partnership projects.

First, recognizing the limited state resources and the need to engage the private sector.

Second, creating a sustainable legal and regulatory environment that opens the way for investment.

Third, high-quality project development – ​​from preparing bank-resistant solutions to building the capacity within government agencies to structure them.

Fourth, effective project promotion through roadshows and presentations, which attract a wide range of investors and avoid tender failures.

Fifth, the availability of competent local contractors capable of implementing even complex projects.

Finally, mobilizing private capital, where international financial institutions play a special role by offering guarantees, credit enhancements, and blended finance schemes.

"Each of these factors directly depends on the country's level of economic development, its ambitions and resources, as well as on how promptly work on projects begins," noted the ADB country director.