Growth prospects in Azerbaijan continue to be influenced by the dynamics of the oil sector. Infrastructure investment is viewed as a key measure to improve economic resilience in Azerbaijan, which has recently approved the Law on the Implementation of Special Financing for Investment Projects in Connection with Construction and Infrastructure Facilities, dated March 15, 2016. This law stipulates the legal and economic grounds for construction and infrastructure investment on the basis of special financing. The law outlines the provisions of the newly adopted BOT (Build-Operate-Transfer) model.
Azerbaijan does not have a separate concessions law, which makes it one of the few EBRD countries without a designated piece of legislation regulating concessions. The term “concession” is defined differently in the Civil Code and in the Law on Protection of Foreign Investments: the Civil Code appears to refer to a concession as a “commission”, whereas the Law on Protection of Foreign Investments seems to limit concessions to natural resources, and concessionaires to foreign investors.
The Azerbaijan Export and Investment Promotion Foundation (AZPROMO) is a joint public-private-initiative, established by the Ministry of Economy and Industry of Azerbaijan in 2003, with the aim of contributing to economic development through working to attract foreign investment.
In 2010, Azerbaijan’s President approved the “Republic State Investment Program Formation, Implementation, Monitoring and Evaluation”, which incorporates a regulatory framework for infrastructure development.
The government is working on the Second Road Network Development Investment Program and launched the Railway Sector Development Program.
In the ICT sector, Azerbaijan has created the first PPP Specialist Centre for ICT, affiliated with the UNECE International PPP Centre of Excellence, an initiative intended to develop and disseminate PPP best practice.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.
The Law determines economic, legal and organizational basis of public procurements in the Republic of Azerbaijan, sets principles and rules of effective and economical use of state funds during procurements, creation of equal competitive environment for all consignors (contractors) on the basis of competition and publicity.