Proceedings of the 14th Meeting of the
Transport and Communications Working Group
25
At the outset of the presentation, Mr. MAMMADOV stated that the use of a Public-Private
Partnership has been recently started in the Republic of Azerbaijan. There can be shown various
fields of the economy where a PPP model has been applied, for instance, energy, healthcare,
tourism, and others. However, there is no PPP project in the Republic of Azerbaijan which has
been applied in the field of transport. Nevertheless, there are exist big opportunities in this
sphere.
Mr. MAMMADOV continued his presentation by expressing that at the present, there are several
legal acts and regulations in Azerbaijan that regulate separate types of public-private
partnerships. “Build Operate and Transfer” (BOT) model was first introduced in Azerbaijan
through the Law “On implementation of special Financing for the investment projects on
construction and infrastructure”, adopted in 2016. The Lawon “BOT" model establishes the legal
basis for investment and construction facilities in the following areas below:
 Bridges and tunnels;
 Highways, railway systems, bus station complexes;
 Logistics centers;
 Special economic zones, seaports, and airports;
 Industrial parks, high-tech parks, agro parks;
 Education, health, culture and tourism objects.
In addition to the BOT Law, the Decree of the President of the Republic of Azerbaijan “On
particularities with regard to conditions of investment, requirements to private investors, the
procedure of investor’s selection process” was adopted in 2016. A competent authority that is
responsible for the implementation of the BOT model in the Republic of Azerbaijan is the
Ministry of Economy. The Authorized body has the following competences with regard to the
implementation of the BOT model:
 To establish a commission for the selection of an investor
 To take measures on the development of the BOT model
 To monitor and evaluate the performance of contracts
 To calculate the state's financial obligations with respect to investors, evaluate their
risks
 To sign agreements with the winning company, as well as the feasibility study
Then, Mr. MAMMADOV expressed that within a “BOT” model the Competent Authority
implements a monitoring mechanism to evaluate an investor's compliance with the terms of the
agreement.  Besides that, the Competent Authority calculates the state's financial obligations
with respect to investors, evaluates their risks and distribution. “Strategic Roadmap for the
development of logistics and trade in the Republic of Azerbaijan” was approved by the Decree