Competitive bidding key to drawing international investment to Azerbaijan ADB expert says

Competitive bidding could serve as a model for Azerbaijan in developing its renewable energy sector, the Asian Development Bank (ADB) said during Green Energy Week 2025: Azerbaijan and Central Asia, held in Baku.

Ali Malik, Senior Investment Specialist at the ADB, emphasised that competitive bidding allows governments to determine the true cost of projects while ensuring the lowest implementation prices, Caliber.Az reports via local media.

“We have seen this not only in Uzbekistan, but also in other markets – in Vietnam, Thailand, and Central Asian countries. Uzbekistan is a prime example here. Therefore, we recommend that the Azerbaijani government use a similar approach,” Malik said.

He noted that the ADB recently signed a mandate to advise the Azerbaijani government on a wastewater treatment plant at the Hovsan aeration station. “We will structure the deal and advise the government on tendering and attracting bids from the private sector. This is a new and complex sector for Azerbaijan, but this is how investors can be attracted. In addition, if the deal is accompanied or verified by the International Finance Corporation (IFC), it adds credibility,” he added.

Malik stressed that in sectors new to Azerbaijan, particularly as the country moves toward decarbonization, the IFC plays a crucial role in drawing external investors through competitive mechanisms.

“Intergovernmental agreements (G2G contracts) are useful in the initial stages, but as development progresses, the transition to competition becomes critical. We saw this in Kazakhstan, earlier in Uzbekistan, and the same is observed in Southeast Asian countries. I think this approach should determine the structure of projects in Azerbaijan. Experience shows that properly structured projects can attract international investment and lead global developers to the Azerbaijani market,” Malik concluded.

By Tamilla Hasanova