Azerbaijan has officially approved amendments to several legislative acts to align them with the Law on Public-Private Partnership (PPP). This move is designed to create a more robust and coherent legal framework for the implementation of PPP projects across the country.
According to the Operative Information Center-OMM, President Ilham Aliyev has signed a law harmonizing the Land Code, as well as the laws on "Land Leasing," "Land Market," "Privatization of State Property," "Management of Municipal Lands," and "Regulated Prices" with the overarching Law on Public-Private Partnership.
The updated legislation clarifies the mechanisms for land usage in PPP projects. Under the new provisions, municipal land rights for ownership and leasing—excluding cases where land is transferred to state ownership or leased for specific PPP purposes—must be acquired exclusively through open land auctions or tenders. Furthermore, state-owned land designated for PPP projects will be leased to private partners based on agreements concluded between the authorized state body and the private entity, in strict accordance with the Law on Public-Private Partnership.
The amendments also introduce flexibility regarding state property privatization, allowing for the limitation of the scope of the Law on "Privatization of State Property" when fulfilling obligations arising from a valid PPP agreement. Additionally, the new regulations provide for guarantees regarding the level of regulated prices for private partners, provided these conditions are stipulated in the competition documentation.
Public-private partnerships are a strategic tool for Azerbaijan's economic development, enabling the government to leverage private sector expertise and capital to improve infrastructure and public services. By streamlining the legal framework, the government aims to increase investor confidence and accelerate the execution of large-scale development projects.
