Azerbaijan is moving to harmonize several key legislative acts with the Law on Public-Private Partnership (PPP). The proposed amendments affect the Land Code, as well as laws concerning land leasing, land markets, the privatization of state property, the management of municipal lands, and regulated prices.
According to the Operative Information Center-OMM, these updates were outlined in a draft law discussed today during a session of the Milli Majlis (National Assembly) Committee on Economic Policy, Industry, and Entrepreneurship.
The draft legislation clarifies the procedures for utilizing land within the framework of PPP projects. Under the new provisions, rights to municipal land for private partners—excluding cases where land is transferred to state ownership or leased—must be acquired exclusively through public auctions or tenders. Furthermore, state-owned land required 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 mechanisms to streamline the implementation of PPP agreements, including potential limitations on the scope of the Law on Privatization of State Property when fulfilling obligations arising from PPP contracts. Additionally, the draft provides for guarantees regarding regulated price levels, provided these are stipulated in the tender documentation.
Public-private partnerships are a cornerstone of Azerbaijan's strategy to diversify its economy and attract foreign and domestic investment into infrastructure and public services. By refining the legal framework, the government aims to reduce bureaucratic hurdles and provide greater legal certainty for investors participating in long-term development projects across the country.
