Due to the lack of maintenance, many of the existing dormitories are in such a poor condition that renovation is no longer an option either. The lack of student accommodation facilities is particularly critical in Azerbaijan’s capital, Baku. Almost all universities of the country are located in Baku with the total number of students amounting to about 100,000, of which about 40% are from the country’s regions and some 8,000 are international students.

The Ministry of Education is keen to pilot delivery of student accommodation facilities and services through the PPP arrangement in two universities: the BSU and ASOIU. Selection of these two universities was based on the positive assessment of the following factors: strong demand as seen in the growing number of students (including foreign), the universities’ share in the total number of students in the country, availability of adequately sized and well-located land, lack of environmental and social concerns related to the project site, and interest of the private sector.