The Ministry of Economy of the Republic of Azerbaijan has announced that the country is entering a new phase in the development of Public–Private Partnerships (PPPs). By decree of the Cabinet of Ministers dated 11 July 2025, the list of PPP projects for 2026 has been officially approved.
According to the decree, the preparation and implementation of new PPP projects in the following sectors are planned for 2026:
1. Establishment and Management of a Science and Technology Park in Baku
The project aims to develop an innovation ecosystem, commercialize scientific research, expand academia–industry cooperation, and accelerate the transition to a knowledge-based economy. The project’s duration includes construction and 30 years of operation by the private partner, after which management will be transferred to the Ministry of Science and Education of the Republic of Azerbaijan. Currently, the first phase is underway, while the second and third phases will be implemented under a PPP framework.
2. Municipal Solid Waste Management System in Lankaran
The project focuses on centralizing the collection, sorting, and processing of waste in Lankaran and surrounding regions, creating a recycling market, introducing modern technologies, and increasing employment. It involves the development of transfer stations and sanitary landfills on a 55-hectare site. The management period is 20 years under the private partner, after which the facility will be transferred to the Ministry of Ecology and Natural Resources of Azerbaijan. Implementation has not yet begun.
3. Animal Carcass and Biological Waste Utilization Centers
This project supports national priorities, including enhancing food safety, safely disposing of biological waste, and complying with sanitary and hygiene standards. The project will be managed by the private partner for 22 years, after which it will be transferred to the Food Safety Agency of Azerbaijan. Implementation has not yet begun.
4. Reconstruction of the Hovsan Wastewater Treatment Plant and Installation of Reuse Systems
The main objective is to ensure the treatment and reuse of wastewater, establish necessary infrastructure, and safeguard public health and the environment. The management period is 25 years, after which the facility will be transferred to the State Agency for Water Resources of Azerbaijan.
5. Development of a Tourism and Recreation Zone in Kalbajar
The project aims to establish a systematic tourism center, encourage the return of the local community, and expand opportunities for medical and active tourism. Several zones are planned, including medical tourism, mountain-ski tourism, leisure, and active tourism. The management period is 30 years under the private partner, after which the facility will be transferred to the State Tourism Agency of Azerbaijan. Implementation has not yet begun.
These projects are aligned with the long-term development strategy of Azerbaijan and are expected to contribute significantly to:
- modernization of public services,
- promotion of regional development,
- enhancement of environmental safety,
- promotion of innovation and technology adoption,
- engagement of the private sector in key economic areas.
Amid the expansion of PPP projects approved for 2026, high-quality project preparation and assessment according to international methodologies is of particular importance.
In this context, PMO.AZ, as one of the first local platforms specialized in PPPs, provides professional support to government institutions, municipalities, and private investors.