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Akbar Novruz

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The full development of the Middle Corridor requires a developed financial infrastructure capable of attracting not only physical capital but also private investment, according to PMCG President Alex Alexandrishvili.

PMCG Consulting Company reported that Alexandrishvili made the remarks at the 10th Development Forum of CAREC International Analytical Centers in Tashkent.

According to World Bank estimates cited by Alexandrishvili, with appropriate investment and improvements in efficiency, trade volumes along the Middle Corridor could triple by 2030, while transportation times could be reduced by half.

Trade between Azerbaijan, Georgia and Kazakhstan is expected to increase by 37%, while their trade with the European Union could grow by 28%.

Alexandrishvili said the expansion of trade flows would generate demand not only for major transport infrastructure but also for supporting facilities and services.

“Railway infrastructure will need terminals, rolling stock and storage capacities, ports will need logistics and processing facilities, and energy networks will need new capacities to support generation and industry. The development of digital connectivity, in turn, will stimulate the demand for technological and data infrastructure,” he said.

However, Alexandrishvili stressed that many of these projects could not be financed solely through traditional bank lending.

He noted that financial systems across Central Asia and the South Caucasus remain largely oriented toward bank-based financing, meaning that the challenge is not simply a shortage of capital but also limited access to appropriate forms of financing.

According to him, instruments including private equity, mezzanine financing, private debt and hybrid financial instruments could help address this gap.

“These instruments are able to provide longer-term and flexible financing to companies planning expansion, investments in fixed assets, or the implementation of projects with a higher level of risk,” the PMCG president said.