Baku: Financing for urban development in Azerbaijan is primarily conducted through centralized channels, as highlighted by Lin O’Grady, Head of the EBRD Green Cities Programme and Deputy Director of the EBRD Sustainable Infrastructure Group, during a discussion on urban development and climate finance at the Baku Climate Action Week.
According to Azeri-Press News Agency, O’Grady emphasized the necessity of enhanced coordination between project preparation and financing. She noted that due to the varying sizes, creditworthiness, and levels of fiscal decentralization among cities, a universal financing model is not feasible. In Azerbaijan, the financing system remains centralized, with funds lent to the state, which then distributes them to cities.
O’Grady contrasted this with the situation in Trkiye, where fiscal decentralization allows the EBRD to lend directly to cities. She underscored the importance of identifying appropriate financing instruments for each city and exploring the potential involvement of the private sector in the process.