“MIDA” attracts more than 11 million manat in private investment in the first public-private partnership projects04/07/2017

Of particular importance is the minimization of state funding and cooperation of private construction and investment companies among several strategic targets identified by the "Strategic Road Map on Housing Development at Affordable Housing in the Republic of Azerbaijan" approved by Decree No. 1138 of the President dated 06.12.2016.

The State Agency for Housing Construction under the President of the Republic of Azerbaijan has started implementing measures in this direction with the Strategic Roadmap. Thus, within the framework of construction of the first project of the Agency - Yasamal Residential Complex - private investors have been attracted to public-private partnership through competition.

“MIDA”, which is subordinated to the Agency, is responsible for the construction of 3 residential buildings (two 12-story buildings with 1 block, and one 9-storey with 2 blocks), as well as communication, television and internet lines in the area to improve the living conditions of citizens. The process of evaluating the proposals of investment contestants announced in June of the current year for the provision of services to residents has been completed.

The winner of the first investment competition on construction of 3 multi-story residential buildings in the Yasamal residential complex was announced as "KAT Holding" LLC (www.katholding.az), after evaluation of the submitted investment offers. The winner will be able to use the engineering-communication system and the relevant infrastructure in Yasamal Residential Complex to perform construction in accordance with the project-estimate documentation and state-of-the-art expertise prepared by the order of "MİDA" LLC in return for investments. According to the terms of the competition, a 60-bedroom 12-story building will be commissioned by the investor, given to the State Agency for Housing Construction, and offered to those entitled to housing on a discounted basis through the "Affordable Housing" electronic system. Apartments of the other two buildings will be sold by the investor to those interested in buying them at market prices. It is envisaged that the construction of these three buildings will be completed within 18 months and the total value of investment will be more than 10 million manat.

After evaluating proposals submitted by the participants of the second investment contest held, "ENGINET" LLC (www.enginet.az) was selected as the winner of the competition, on the basis of telephone, television, and internet lines in the Yasamal Residential Complex. It is expected that the company will invest 1 million manat in the construction of communication lines to Yasamal Residential Complex and creation of appropriate communication infrastructure in the territory of the residential area.

According to the Strategic Roadmap, public-private partnership is one of the most important mechanisms that will create favorable conditions for the housing market at a reasonable price. Thanks to this step taken to form partnerships with private sector participants, “MIDA” will contribute to building a sustainable financial stability model, and at the same time, will contribute to the implementation of public policy aimed at the development of entrepreneurship.  

State Housing Development Agency of the Republic of Azerbaijan

© 2019