The Asian Development Bank (ADB) views Azerbaijan as a key partner in the region and is preparing to expand its support for the country’s transition toward sustainable and diversified economic growth.
Ahead of the launch of a new Country Partnership Strategy for 2025–2029, the Bank is shaping a long-term agenda focused on green energy, infrastructure, digital transformation, financial market development, and mobilizing private sector investment.
In an exclusive interview with Report during his visit to Baku on September 29–30, ADB Vice President Bhargav Dasgupta outlined the Bank’s priorities, highlighting the central role of public-private partnerships (PPPs), private sector finance, and capital market development.
Public-Private Partnerships at the Core
Dasgupta pointed to a milestone project with Azerbaijan’s State Water Resources Agency (ADSEA) – a consultation mandate for wastewater treatment and reuse in Govsan, aimed at improving sanitation, supporting agriculture in the Absheron region, and introducing a reliable PPP model.
He stressed that PPPs can help modernize infrastructure and diversify the economy, with strong potential in sustainable transport, renewable energy, and digital connectivity.
Private Sector as Growth Driver
According to Dasgupta, the new strategy places the private sector at the center of ADB’s support. The Bank plans to expand tools such as direct lending, guarantees, equity participation, and trade finance programs. Priority areas include renewable energy, agribusiness, manufacturing, financial institutions, and SME support.
ADB is also working with the government to align education and professional skills with labor market needs, create opportunities for women in higher-paying sectors, and develop “green skills” to power Azerbaijan’s transition to a low-carbon economy.
Capital Markets and Green Finance
Dasgupta emphasized the importance of strengthening Azerbaijan’s capital markets to mobilize long-term financing. ADB is discussing the possibility of issuing local-currency bonds, partnering with private issuers, and supporting pilot “green bond” projects tied to infrastructure and sustainability targets.
The Bank is ready to assist Azerbaijan in developing a green taxonomy, ESG standards, and fintech solutions for sustainable finance, drawing on successful experiences in Georgia and across the region.
“ADB wants to help Azerbaijan unlock its economic potential, build a resilient private sector, and support the country’s vision for inclusive and sustainable growth,” Dasgupta said.
