Report about activities of Public-Private Partnership Development Centre for 2020
By decision No.4 of the Board of the Ministry of Economy of the Republic of Azerbaijan dated July 16, 2019, the model regulation on the Public-Private Partnership Development Centre was approved. Taking into account the advanced international practice, for the initial stage, the structure of the PPP Development Center which consists of 10 people was prepared and approved by order No. F-39 dated September 09, 2019, of the Chairman of the Board of the Small and Medium Business Development Agency of the Republic of Azerbaijan. The main activities of the Public-Private Partnership Development Center are as below:
- submission of proposals on the development of the legislative framework and institutional infrastructure for Public-Private Partnership;
- preparation, implementation, and coordination of programs and projects on Public-Private Partnership;
- providing the expansion of SMBs’ participation in Public-Private Partnership programs and projects;
- educating and strengthening the capacity of all stakeholders in the Public-Private Partnership;
- analyzing, and researching projects by the criteria of Public-Private Partnership and working for the implementation of these projects.
Legal and strategic framework
A detailed diagnostic analysis of the legal environment of the PPP in the country was conducted within the framework of the project "Development of legislation and regulatory framework for the public-private partnership" implemented with the support of the European Bank for Reconstruction and Development.
Taking into account the results of the diagnostic analysis and advanced international experience, a draft Law on Public-Private Sector Partnership was developed with the participation of project experts, which includes the application of all PPP models.
A draft Public-Private Partnership Framework Document was developed with the involvement of international experts in partnership with the PPP Development Center as part of the Public-Private Sector Partnership Legislation and Regulatory Framework project implemented with the support of the European Bank for Reconstruction and Development. The presentation of this document was held on 24.01.2020 with the participation of representatives of the organization of SMB and relevant government agencies, the Baku office of the European Bank for Reconstruction and Development (EBRD), and stakeholders in Public-Private Partnership projects.
Capacity building in the field of PPP
An online seminar on public-private partnership was organized by the Public-Private Partnership Development Center of the Small and Medium Business Development Agency of the Republic of Azerbaijan and supported by the Istanbul Public-Private Partnership Development Center. The purpose of the seminar with the participation of representatives of various government agencies is to raise awareness about the development of Public-Private Partnership in our country and the expansion of the application of this model, as well as the study of foreign experience in this field.
Eyup Vural Aydin, Head of the Istanbul Public-Private Partnership Development Center, made a presentation on Turkey's experience in the field of PPP and projects implemented in this field. In general, the event provided detailed information on the essence and advantages of the PPP model and answered questions from participants.
Employees of the PPP Development Center organized "Capacity Building in the field of PPP" on 22-23.07.2020 in the framework of the project "Support to the Ministry of Education in creating sustainable and diverse sources of funding in education through Public-Private Partnership (PPP) initiatives" participated in the seminar.
On 27.05.2020, the Organization for Economic Cooperation and Development (OECD) organized a Eurasian webinar on "Supporting Restoration and Enhancing Sustainability" with the participation of representatives of the Eastern Partnership countries. An employee of the PPP Development Center took part in the webinar, which also covered issues related to public-private sector mechanisms.
On 07-16.10.2020, online trainings in the field of PPP were organized by the Black Sea Trade and Development Bank and the National PPP Center of the Russian Federation. Presentations were made by leading experts in various fields on PPP as part of 5 workshop sessions. PPP Development Center was actively represented in the trainings and actively participated in the discussions. The director of the PPP Development Center was awarded a certificate.
International cooperation and technical assistance
Appropriate measures are being taken to use international support mechanisms to develop the PPP environment. For this purpose, the Asian Development Bank's Asia Pacific Project Preparation Facility (AP3F) has been officially requested, and “Capacity Building Assistance: An agreement was reached on a technical assistance project through grant funding for the Center for Public-Private Partnership Development in Azerbaijan and Support to the Project Development Mechanism.
Relevant government procedures are currently underway to implement the project. Within the framework of the project, it is planned to provide technical support in the following areas such as identification of a series of potential PPP projects, strengthening the capacity of relevant stakeholders in the field of PPP, supporting participation in relevant certification programs, promotion of PPP projects and the creation of an electronic resource for information and database creation, etc.
Relevant work has been done to develop cooperation with the Sustainable Infrastructure Fund and take advantage of existing support mechanisms and tools and a visit of the Fund's Program Manager to our country has been organized. During the visit, the sides exchanged views on the development prospects of implemented and potential PPP projects and discussed the possibility of implementing the widely used SOURCE platform in Azerbaijan. The platform has been successfully implemented in more than 50 countries around the world and offers a unique mechanism for effective planning of PPP projects, coordination with relevant agencies, monitoring, and control of the status of processes, especially the attraction of potential international investors. A preliminary agreement has been reached in cooperation with the Sustainable Infrastructure Fund to integrate the SOURCE platform into the process of developing PPP projects in Azerbaijan and relevant IT resources.
During the visit of SMB management to the United Kingdom of Great Britain and Northern Ireland on 5-11.03.2020, the European Bank for Reconstruction and Development's Sustainable Infrastructure Policy Unit, Infrastructure Project Development Bureau, and Infrastructure Funds met with the heads and officials. During the meetings, discussions were held on the current status of the EBRD-supported project implemented by the EBRD and the next steps. They also exchanged views on expanding cooperation in the field of PPP, the use of new opportunities, and support mechanisms.
The Center for Public-Entrepreneurial Partnership Development of the Small and Medium Business Development Agency has become a member of the World Association of Public Institutions and Professionals (WAPPP), one of the organizations specializing in Public-Private Partnership.
WAPPP is an international non-governmental organization that brings together organizations and individual professionals from or around the world who work or are affiliated with the PPP.
The main purpose of the association is to carry out awareness-raising activities to provide quality PPP services, to create an institutional network among the institutions operating in this field, and to support them. Provides members of the international association with access to various trainings, consulting services, communication, experience and information exchange, access to other resources, technical assistance, and access to funding.
On November 19, 2020, a Memorandum of Understanding on cooperation in the development of Public-Private Partnership was signed between the SMB Public-Private Partnership Development Center and the Istanbul Public-Private Sector Partnership (PPP) Center for Excellence. The document was signed by the Chairman of the Board of SMB, Orkhan Mammadov, and the Chairman of the Istanbul Public-Private Partnership (PPP) Center of Excellence Center, Eyup Vural.
The Protocol of Intent envisages cooperation and organizing events in the fields of the exchange of information and experience in the field of PPP, conducting trainings and seminars, promoting the attraction of foreign investment from Turkey through the PPP model, and supporting the development of relevant projects, etc.
Preliminary contacts have been established with the Korean Foreign Infrastructure and Urban Development Corporation, which offers comprehensive solutions for the implementation of PPP projects and has an international cooperation platform. During the discussions, the sides exchanged views on the activities of the agencies and exchanged views on potential areas of cooperation, including the exchange of experience, the application of the experience of the Korean Foreign Infrastructure and Urban Development Corporation in our country, the provision of various support mechanisms in Azerbaijan in the field of PPP and other issues. Work is underway to bring cooperation with the Korean Foreign Infrastructure and Urban Development Corporation to a practical level and to involve the organization's resources and support mechanisms in the implementation of PPP projects in Azerbaijan.
Representatives of the Small and Medium Business Development Agency, organized by the Istanbul PPP Center of Excellence and with the support of the Foreign Economic Relations Board of Turkey (DEIK), Istanbul Public-Private Partnership Week - 2020 ”international event. Representatives of government agencies and international organizations working on infrastructure development and PPP in more than 40 countries, as well as professionals and academics in the relevant sector, took part in the event, which was organized online in the format of "Public-Private Partnership".
Within the framework of the event, the country presentation was held by SMB's PPP Development Center. Speaking at the presentation session across the country, he provided detailed information on the strong economic potential created in Azerbaijan as part of the reforms, favorable business and investment environment, implemented infrastructure projects, and the work done to develop the PPP environment. The event also highlighted the possibility of using the PPP model to rebuild public infrastructure in the liberated areas as a result of successful counter-offensives of our army in response to the military provocation of the Armenian armed forces against Azerbaijan. The event also featured presentations by leading PPP experts on various topics and presented and discussed international experiences in the field of PPP.
Identification and implementation of potential PPP projects
Meetings and discussions were held with relevant government agencies to identify potential projects in areas envisaged for the development of public-private partnerships with the Road Maps, National Strategies, and State Programs aimed at the socio-economic development of the Republic of Azerbaijan.
The first pilot projects are being implemented under the Law of the Republic of Azerbaijan "On the implementation of investment projects related to construction and infrastructure facilities based on special funding." So that, for the implementation of the construction of dormitories of the Azerbaijan State University of Oil and Industry and Baku State University based on the Public-Private Partnership model, preliminary feasibility studies were prepared within the technical assistance project of the Asian Development Bank. The document on the Azerbaijan State University of Oil and Industry was submitted to the Ministry of Economy for approval by the Ministry of Education and approved by the Ministry of Economy. To implement this project, relevant work is being done to organize the competition.
In the past, within the missions of the European Bank for Reconstruction and Development and the Islamic Development Bank to our country, the Ministries of Economy, Finance, Energy, Environment and Natural Resources, Transport, Communications, and High Techno,logies, Azerbaijan State Agency of Motor Roads, Tamiz Shahar CJSC and Baku International Meetings were held with “Sea Commercial Port” CJSC and mutually beneficial discussions were held.
A meeting was held with the leadership of the Energy Regulatory Agency on 31.01.2020 to identify opportunities for the implementation of potential PPP projects in the energy sector. During the meeting, opportunities for cooperation were discussed and the Agency expressed interest in PPP projects in the energy sector, especially in the field of renewable energy production. During the next meeting with the participation of the authorized representatives of the Energy Regulatory Agency, information was provided on the current situation in the energy sector, strategic development, and investment plans. Work is underway to promote the PPP model and identify potential projects in the relevant field, as well as implement joint measures to inform business entities.
Development of business-oriented training hotel and information and communication technology training in the tourism sector with the involvement of international experts in the framework of the EU-supported project "Support to the Ministry of Education in creating sustainable and diverse sources of funding in education through public-private partnership (PPP) initiatives" Preliminary conceptual technical documents were prepared for the implementation of commercial ICT-Training Center projects babasedsedd and an online presentation was organized on 11-12.08.2020. Within the framework of the presentation, relevant proposals and recommendations were presented to more effectively structure and design these potential PPP projects.