ADB: We look forward to welcoming more private-sector renewable energy projects in Azerbaijan

Report's interview with David Urbaneja-Furelos, Senior Investment Specialist at the Private Sector Operations Department of the Asian Development Bank (ADB).

David covers private sector infrastructure finance in the South Caucasus, working in projects on renewable energy, transport, affordable housing, water utilities, and green bonds.

-How do you evaluate the cooperation between ADB and Azerbaijan?

- Azerbaijan is a very important country for ADB. We have been here since 1999, primarily in public sector operations. Each year, we are rapidly growing in private sector operations. Because we believe that is the direction of the country, especially in green finance. Last year we financed a project in agrobusiness and this year we financed the first private sector solar power project, the Garadagh Solar Project. We are keen to to continue to be a key partner in the financing of public sector projects and also to increase our contributions to the further development of the private sector in Azerbaijan.

- Which points will the country partnership strategy cover?

- Leveraging both public and private sector resources we will identify the priorities of the country to support the goals of the country in building a resilient economy in accordance with its National Socio-Economic Priorities. As mentioned, the private sector is among those priorities that are needed to achieve sustainable development.

- What energy projects is the Asian Development Bank interested in financing in Azerbaijan?

We are extremely happy to see more green initiatives get realized in Azerbaijan. This is a wonderful opportunity for the country and for development banks.. As you already know, we signed a financing agreement for the Garadagh solar power plant a jointly run project by Masdar and Azerbaijan. This is a landmark project in the green energy sector of the country. We look forward to welcoming more private-sector renewable energy projects. Supporting projects that would contribute to expanding the use of clean energy is among our top priorities.

- Is ADB planning to apply any financial instruments in Azerbaijan in the future?

Private sector financing, debts, and loans are the traditional type of financial instruments. Like in other parts of the region, we are very active in looking at bonds as an alternative to risk capital. Equity, guarantees are available for the private sector companies and state-owned enterprises of Azerbaijan.

- Is there any proposal or any interest of the private sector in these financial products?

- Initially, we analyze the financial needs of a company and evaluate possible supporting mechanisms. Currently, we are in talks with private businesses from diverse fields, to provide them with crucial financial tools. Tools that could help them to realize multiple projects.