EDB identifies five key barriers to PPP projects in Central Asia

The Eurasian Development Bank (EDB) has identified five major obstacles hindering the implementation of public-private partnership (PPP) projects in Central Asia, including a shortage of long-term liquidity, inadequate project preparation, poor risk allocation, and limited government guarantees, Svetlana Maslova, Director for PPP Projects at the EDB, said during the session "Public-Private Partnership: Unlocking the Investment Potential of Eurasia's Future" held as part of the EDB Annual Meeting and Business Forum.

Report's correspondent in Almaty quotes Maslova as saying PPP development in the region is constrained by a wide range of factors, including limited government guarantees, rising capital costs, shortcomings in project selection, an imbalance between public and private investment, high benchmark interest rates, underdeveloped project finance, ineffective risk allocation, weak project preparation, a shortage of qualified specialists, low competition in tenders, high project preparation costs, poor contract management after financial close, insufficient long-term liquidity, and limited participation by institutional investors.

"The most critical of these are the shortage of long-term liquidity, weak contract management after financial close, inadequate project preparation, high risks and poor risk allocation, as well as limited government guarantees," Maslova emphasized.