YEREVAN, May 26. /ARKA/. "A key to the success of major infrastructure projects is cooperation between public and private capital with efficient risk distribution among investors. International financial institutions (IFIs) that have necessary practical experience and long money are important players in arranging syndicates in the market of public-private partnerships (PPP)," said Dmitry Pankin, Chairman of the Management Board at Eurasian Development Bank (EDB) at the fourth Global Infrastructure Initiative (GII) Summit in Singapore.

He also pointed out that the EDB countries, except for Armenia, have already devised legal frameworks for this type of projects. Armenia has examples of successful concession agreements within its general regulatory framework. Dmitry Pankin also said that Kazakhstan does not have many PPP projects despite its rather sophisticated legislation. This suggests that an elaborate regulatory framework is not the only and sufficient condition for raising private capital's share in joint investment projects with the state.

"What is of significantly greater importance to PPP advancement is the evolution of the risk allocation mechanism that should be concordant to market developments," Dmitry Pankin added. "We believe that EDB, as an international financial institution that forecasts medium- and long-term needs of its growing economies, can help to bring together projects and investors by assisting multilateral development mechanisms. At the same time, we'll be able to ensure an acceptable distribution of project risks among participants, especially, in big projects that require considerable investments."

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Tags: Armenia, Dmitry Pankin, EDB, GII, IFIS, PPP

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