One of the key conditions for the success of cross-border infrastructure projects is the creation of real and sustainable demand capable of attracting investment, Zaki Sumar, Chief Vice President for Asset Management and Value Realization at Vision Invest, said during the panel discussion titled “Public-Private Partnerships (PPP) for Cross-Border Infrastructure for Regional Connectivity,” organized within the framework of the annual meetings of the Islamic Development Bank Group (IsDB) in Baku, APA reports.
According to him, for private investors, the economic feasibility of a project and the existence of market demand are of primary importance:
“The most important issue is the existence of demand that can be financed by banks and investors. This demand should be formed among consumers, utility companies, clients and other market participants, while its sustainability and scale across different countries should also be assessed.”
Sumar noted that global events in recent years have further increased the importance of resilience:
“The developments of recent months have shown that resilience now has real economic value. This indicator can be measured and assessed. Whereas previously this concept was largely theoretical in nature, it has now become a concrete economic criterion.”
He stated that if cross-border infrastructure projects contribute to addressing strategic issues such as energy and water security, their investment attractiveness increases significantly:
“If projects ensure compatibility between the systems of different countries, create reserve capacities, and strengthen energy and water security, they become both economically profitable and more attractive to investors.”
Sumar emphasized that these factors are among the main drivers increasing international investors’ interest in cross-border infrastructure projects.
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