Presidential Decree On Construction And Infrastructure Projects In Azerbaijan

The President of the Republic of Azerbaijan has approved a Law On the Implementation of Special Financing for Investment Projects in Connection with Construction and Infrastructure Facilities, dated 15 March 2016.

In essence, the new Law introduces options for the potential financing of Build-Operate-Transfer (BOT) projects.

The BOT model is defined in the Law as the payment, in accordance with agreements with the Ministry of Industry, by consumers of goods and services produced by investors (defined as resident and non-resident legal entities, their branches or permanent establishments), or the payment by the Ministry of Industry of investment expenses (including income earned) to investors in respect of certain investment projects listed in the Law.