Proceedings of the 14th Meeting of the
Transport and Communications Working Group
26
of the President of the Republic of Azerbaijan dated 06 December 2016.  In the priority 3.1 of
Strategic Road Map “Increasing the level of participation of private sector in the logistics and
trade sphere” are determined major directions of the utilization of public-private partnership
models in the various fields of transport. With the aim of the establishment of logistics and trade
centers in Azerbaijan, the mechanism of public-private partnerships will be considered.
In accordance with the Strategic Road Map, the public-private partnership model is designed to
be used to complete the second and third stages of the New Baku Port complex. The use of the
PPP model is also possible in certain areas of railways, also in the expansion of the locomotive
fleet, which is one of the most investment-related areas in the railway sector. An upgrading of
civil aviation infrastructure in Azerbaijan plays a crucial role. With the aim of expanding
Azerbaijan's transit capacity and increasing the tourist flow to the country, analyzes and
feasibility studies can be implemented to establish a “low-cost” airline in the country. A PPP
model can also be implemented in this field.
Mr. MAMMADOV touched upon the risks regarding the PPP model in the field of transport in
Azerbaijan as followings:
 PPP considered as a newmodel for our country and there is a lack of legislative base;
 Transport field consists mainly of infrastructure projects and it requires a high
amount of investments;
 Since the financial markets and oil prices are unstable in the region, it is difficult to
attract investments into this field.
Lastly, Mr. MAMMADOV emphasized that implementation of PPP in the field of transport is one
of the priorities in the Strategic Road Map.
b. Indonesia
Ms. Intan NOVIANINGSIH, Researcher, Ministry of Transportation of the Republic of Indonesia,
delivered a presentation titled “Risk Management in Transport PPP Project in Indonesia”. At the
beginning of her presentation, she gave some information about the financial infrastructure
development of Indonesia in the period between 2020-2024. She emphasized that the total
value of investment required for infrastructure in the 2020-2024 period is 444.564.054,55 USD
Dolar and private participation is expected to be 42%percent of this amount of investment.
Ms. NOVIANINGSIH touched upon the PPP projects in the transportation sector highlighting that
Indonesia has a totally 40 PPP projects in the field of transportation; 4 projects in the airport
sector, 14 projects in the port sector, 8 projects in the road sector and 13 projects in the railway
sector.