Jabbarov calls for 10-year financing options for major industrial projects

The State Oil Company of Azerbaijan (SOCAR) must provide the necessary gas infrastructure for the Dashkasan iron ore project and the related cluster, Economy Minister Mikayil Jabbarov said.

According to Report, Jabbarov made the remarks at a meeting chaired by President Ilham Aliyev and dedicated to the State Program for the Development of the Mining (Metal Ores) and Metallurgical Industries for 2027-2030.

He said AzerGold CJSC would develop the Dashkasan iron ore, gold, copper and other projects.

"Azerbaijan Investment Holding will be involved in aluminum and other metallurgical projects through its portfolio companies. The private sector's main role will be to invest in new production and processing capacities," the minister said.

Turning to the investment environment and financing opportunities, Jabbarov said further improving the investment climate was one of the key objectives for achieving the State Program's targets.

"State support, investment incentives and other stimulus measures are being expanded. The legal and institutional framework must also be adapted to modern requirements. Expanding financing opportunities is, in our view, one of the most pressing issues," he said.

Jabbarov noted that access to long-term loans was one of the main challenges facing not only mining and metallurgy but the industrial sector as a whole.

He said mining and metallurgical projects often take five years or more from the investment decision and start of implementation to actual production, making access to long-term financing particularly important.

"This helps reduce the burden on the state budget and also creates additional income in the financial ecosystem and banking system," he added.

The minister said it was important to expand lending for 10 years or longer and increase the participation of local banks in financing large, long-term projects.

He noted, however, that Azerbaijani banks may objectively lack funding sources with such long maturities and that long-term and concessional lending opportunities in this area remain limited.

Jabbarov proposed that policy measures on long-term financing and relevant financing mechanisms be developed with the participation of the Cabinet of Ministers, Finance Ministry, Economy Ministry, Central Bank, State Oil Fund and other relevant institutions and submitted to the President for consideration.