Without new financial mechanisms, the full potential of the Middle Corridor cannot be realized, Hussein Mogaibel, Manager of the Economic Infrastructure Department (ESID) at the Islamic Development Bank (IsDB) Group, said during panel discussions at the Bank's Annual Meetings in Baku.
According to Report, Mogaibel noted that regional transport corridor projects require massive investment, making the development of new financing models inevitable: "Meeting all needs solely through multilateral development banks is impossible. That's why private sector involvement is critical. New financial instruments must be created, and most importantly, an effective mechanism of regional cooperation among all stakeholders must be established."
He stressed that multilateral development banks can play a special role by connecting governments with private investors.
"Engaging institutions with different mandates – such as the Asian Infrastructure Investment Bank (AIIB), IsDB, Asian Development Bank (ADB), Multilateral Cooperation Center for Development Finance (MCDF), and trade finance structures – will help move the dialogue toward concrete programs," the official concluded.