Currently, the PPP environment in Azerbaijan is regulated by the Law of the Republic of Azerbaijan No. 177 – VG dated March 15, 2016  “On the Implementation of Special Financing for Investment Projects in Connection with Construction and Infrastructure Facilities”.

At the same time, the following documents were approved in connection with the application of this law:

  1. Terms of implementation of investment projects related to construction and infrastructure facilities by investors within the framework of “Build-Operate-Transfer” (BOT) model by the Decree of the President of the Republic of Azerbaijan “No.1149” dated 7 December 2016, investors in accordance with the types of construction and infrastructure facilities requirements, features and conditions of concluded contracts, Rules for determining the value of goods and services to be obtained as a result of investment”;
  2. "Regulations on the methodology for calculating the amount of cooperation assistance and guarantee liability under contracts concluded under the" Build-Operate-Tansfer " (BOT) model by the Decision No. Q-06 of the Board of the Ministry of Finance of the Republic of Azerbaijan dated 22 May 2017".

This legal framework envisages the implementation of PPP projects in the country based on the "Build-Operate-Transfer" (BOT) model. In accordance with Article 3.1 of the Law "On the implementation of investment projects related to construction and infrastructure facilities on the basis of special funding", in the following areas in Azerbaijan, PPP projects can be implemented on the basis of the "BOT" model:

  • bridges and tunnels;
  • reservoirs, water treatment facilities, irrigation, drinking and household water, as well as sewerage systems, including main gas pipelines, underground gas reservoirs, city gas networks;
  • press and conference centers, as well as educational, health, cultural and tourism facilities;
  • commercial buildings, wholesale markets, factories and plants;
  • sports centers, dormitories, recreation and amusement parks;
  • industrial parks, high-tech parks, agro-parks, high-tech automated control systems and other systems in the field of information technology;
  • warehouses for supply of agricultural products and other similar facilities;
  • objects and heating systems operating on the basis of geothermal and heat generating capacity of waste, enterprises engaged in the production, transmission, distribution and sale of electricity;
  • highways, roads, rail and rail systems, bus station complexes, stations, funiculars and lifting systems, logistics centers, underground and surface parking lots, metro lines and stations;
  • special economic zones, seaports and airports used for civilian purposes, complexes consisting of cargo, passenger and yacht ports.