BAKU.13.08.2003.MEDIA-PRESS: The US President Mr. J. Bush has congratulated Mr. Ilham Aliyev with the start of operation at the post of the Premier of Azerbaijan. In his telegram he emphasizes that the appointment had occurred "in the period of growing of solid bilateral relations between the USA and Azerbaijan".
THE PRESIDENT OF THE USA HAS CONGRATULATED MR ILHAM ALIYEV WITH THE APPOINTMENT TO THE POST OF THE PREMIER OF AZERBAIJAN
"Meanwhile you are make preparations for the forthcoming elections, we expect impatiently the cooperation with you, your Cabinet and Parliament for strengthening democratic institutions in your country", it is told in the telegram.
Mr. J. Bush regards that interaction of two countries in the field of the struggle against the terrorism, regional safety, energy and stable political and economical reforms will make the USA and Azerbaijan closer.
Mr. J. Bush asked Mr. Ilham Aliyev to transmit his deference and prayers to his Father - the President Mr. Geydar Aliyev, who, as it is noticed in the telegram "had played the chief role in development of the relations between the USA and Azerbaijan".
THE SOCAR HAS RECEIVED MEANS FOR CONTINUATION OF FINANCING ITS SHARE IN THE PROJECT OF CONSTRUCTION OF THE PIPELINE BTC
BAKU.13.08.2003.MEDIA-PRESS: The State Oil Company of Azerbaijan and companies-members of the Consortium BTC Co (Baku - Tbilisi - Ceyhan) have achieved the agreement on crediting the SOCAR for continuation of financing its share in the project of the construction of the pipeline Baku - Tbilisi - Ceyhan (BTC). Media-Press has been informed about it in the company BP-Azerbaijan. And it has been noted there that means in a total of $190 MM have been allocated already. The SOCAR will pay out $4 MM to its creditors as percent rates. The allocated means will be given back just once after receiving credits from the internanional financial organizations.
BAKU.13.08.2003.MEDIA-PRESS: The oil demands in the current year will increase by 1.11 MM barrels per a day. The experts of the International Energetic Agency (IAE), which represents interests of the countries - large hydrocarbon raw product consumers and in the first turn the states-members of the Organization of the Economic Cooperation and Development (OECD) have expressed such opinion.
BAKU.13.08.2003.MEDIA-PRESS: Negotiations between the Azerbaijani and Iranian energetic workers held in Tehran has completed fruitably. The delegation of the JC "Azerenerji" conducted meetings with the managements of the energetic companies Tavanir, Sanir Co and the large consulting company Moshanir.
BAKU.13.08.2003.MEDIA-PRESS: On August 12 some Azerbaijan mass-media including a number of private TV channels published the information with a reference to the JC "Azerenerji" that in the next future Turkey will stop the electric power transmission to the Nakhchivan Autonomous Republic (NAR) for accumulated dept by a total of $120 MM for the energy transmitted earlier.
BAKU.13.08.2003.MEDIA-PRESS: The production of the electric power in Azerbaijan remains unprofitable for the present. The press-service of the JC "Azerenerji" with a reference to the Chief of the Finance Management of the JC Mr. Eldar Mamedov.
BAKU.13.08.2003.MEDIA-PRESS: The Ministry of the Economic Development of Azerbaijan has improved the forecast of the GDP for 2003 up to 13%. Earlier the growth of the GDP was predicted on a level 9.7%.
BAKU.13.08.2003.MEDIA-PRESS: In the first half of the year the GDP growth in the CIS countries made 7%, the Statistic Department of the CIS has informed. Thus, in comparison with the analogous of the past year the GDP growth in the countries of the Commonwealth has accelerated almost in two times. We shall remind than on January - June 2002 the average economic growth in the CIS made 4%.
BAKU.13.08.2003.MEDIA-PRESS: Since the beginning of the conduction of the investment competitions in Azerbaijan 30 middle and large ventures.
BAKU.13.08.2003. MEDIA-PRESS: On Tuesday, near at 13.00 by Moscow the helicopter of the "Iroquois" type of the British oil company BP made an emergent landing in Tsalka (the East Georgia).
BAKU.13.08.2003.MEDIA-PRESS: The General Constructor of the helicopter company OJC "Kamov" mr. Sergey Mikheyev expressed a hope that the contract on delivery of the Russian made 145 fight helicopters Ka-50-2 would be concluded with Turkey in the end. He declared about this at the press-conference "The Helicopter Company OJC "Kamov" in XXI century" in the RIA "Novosty".
BAKU.13.08.2003.MEDIA-PRESS: The World Food Program of the UN (WFP) assists to refugees and forced migrants in Azerbaijan.
As Media-Press has been informed in the SOCAR, three companies sharing the project had refused of crediting the SOCAR. These companies are following: the Italian ENI, French-Belgian TotalFinalElf and American ConocoPhillips.
As Media-Press informed earlier, before October - November, when a problem of financing the project by the international organizations will be solved $700 - 800 will be required for the Consortium BTC Co. A share of the State Oil Company of Azerbaijan will make about $200 MM.
A cost of the construction of the pipeline BTC makes $2.95 bn. Correspondingly, a cost of 25% share of the SOCAR - $750 MM. $250 MM are own funds of the State Oil Company, the rest $500 MM will be borrowed by it. Besides, the SOCAR itself allocated $70 MM from its funds, the State Oil Fund of Azerbaijan allocated else $16 MM. Thus, the Azerbaijan side already has allocated $234 MM for financing its share in the BTC pipeline construction.
We shall remind that for a purposes crediting the BTC pipeline construction, the European Reconstruction and Development Bank and International Finance Corporation consider at the present time the main documents on this project, particularly the environmental impact assessment and the pipeline construction social aspects. On June 12 these documents became available for public discussion and on expiry of 120 days (on October 12) a decision on financing the project will be accepted. The IFC and ERDB suppose to allocate $150 MM by each of them for the pipeline construction and approximately else by $100 MM for financing the Phase-1 of the development of the oil fields "Azeri - Chiraq - Guneshli".
A length of the pipeline makes 1767 km: Azerbaijan - 443 km, Georgia - 248 km and Turkey - 1076 km. The capacity of the BTC pipeline is 50 MM tons of oil per a year. The construction works began on April 2003 and will complete in the fourth quarter of 2004. The export of the Azerbaijan oil from the port Ceyhan is planned to the second quarter of 2005.
The shareholders of the project are: BP - 30.1%, the SOCAR - 25%, Unocal - 8.90%, Statoil - 8.51%, TPAO - 6.53%, Eni - 5%, Itochu - 3.4%, ConocoPhillips - 2.5%, INPEX - 2.5%, TotalFinalElf - 5% and Amerada Hess 2.36%.
THEY BELIEVE IN THE IEA THAT OIL DEMANDS WILL INCREASE BY 1.11 MM BBL PER A DAY IN THE CURRENT YEAR
The main reason of correcting the previous prediction (it had been changed by the IEA experts to increase by 10 thou bbl per a day) is in acceleration of the growth of the economy of the CPR - one of the main consumers of the "black gold".
By forecasts of the specialists of the IEA, in the future year the increase of the global oil demand will make 1.05 MM bbl daily.
"AZERNERJI" HAS PRESENTED FEASIBILITY REPORTS OF SIX PROJECTS TO THE IRANIAN ENERGETIC COMPANIES
As Media-Press has been informed in "Azerenerji" feasibility reports of six project were offered for consideration of the Iranian collegues. One of them provides laying the new electric transmission lines in Azerbaijan for increasing the energetic change between two countries from the present 200 MVt up to 800 MVt. All presented projects were approved by the Iranian side, which promised to study the available documentation and FR in details. The negotiations are to be continued.
The discussion of the Program on the technical operation the Transazerbaijan PTL Astara - Astara, the construction of which was completed in the past month was held in the company Tavanir. For ten days, within August 20 - 30 it is planned to transmit 41.8 bn kVt/hours of the electric energy in account of the payments for the credit, allocated by Iran for the construction of the Azerbaijan piece of the high-voltage line.
During negotiations exchange of opinions on a situation with the project of construction of the second turn of the PTL Imishli (Azerbaijan) - Parsabad (Iran). The management of the company Moshanir has informe about completion of designing the Iranian piece of the PTL. On August Moshanir plans to announce a tender on the construction of its line piece.
We shall note that similar work was conducted by the JC "Azerenerji" still on March 2003. After solving problems of the financing a start of the PTL construction already in the end of the current year is expected.
By the results of these negotiations two protocols were signed: "About technical capacities development on increasing the power exchange between Azerbaijan and Iran" and "About completion the construction of the PTL Astara (Azerbaijan) - Astara (Iran) and its operation regime".
"AZENERJI" DISPROVES THE INFORMATION THAT TURKEY WILL STOP ELECTRIC POWER TRANSMISSION TO THE NAKHCHIVAN AUTONOMOUS REPUBLIC
As the Press-service of the JC "Azerenerji" has declared, this information does not correspond to reality. As before 50 MVt of the electric power are transmitted from Turkey to the NAR daily and sides have no information about probable stop of the energy transmition.
The energy consumers of the autonomous republic do not doubt in any way that electrical supplying will be stable in as well as in future. The development and strengthening of business contacts between the Azerbaijan energetic employees with their colleagues from Turkey and Iran promote to solving of this significant problem", - is noted in the Press-Service's information.
For solving the energetic problems of the NAR, which is in the Armenian blockade some necessary first turn measures have been provided, such as, for example, the realization of the project on laying the new 132 kV EPTL Julfa (Azerbaijan) - Julfa (Iran) and construction of the substation in the town Julfa. According to this project, by October the electric power supplying of the Autonomous Republic will increase by 20 - 30 MVt, and by March 2004 - by 50 MVt..
As the EPTL Julfa - Julfa will be put into operation a electric power volume delivered to the NAR from Iran would make 140 MVt and 190 MVt with account of deliveries from Turkey.
THE PRODUCTION OF THE ELECTRIC POWER IN AZERBAIJAN IS NOT PROFITABLE
By his words, there is a cause of this that a self-cost of production is significantly higher than its wholesale price. So production of 1KVt/hour of the electric energy is 100 manats, while a price of its wholesale makes 71 manats.
Increasing prices for fuel caused increasing the production expenses. So, if earlier 1000 cubic meters purchased "Azerenerji" cost earlier approximately in $33.6 (165 thou manats, however, now for the gas import from Russia, a price has grown up to $52 - $53 per thousand cubic meters. Moreover, since February prices for mazut used periodically at the SREPS grew. Now a ton of mazut costs 330 thou manats without account of the VAT, meanwhile it cost earlier 196 thou manats.
Payments made by the the JC "Azerenerji" for the foreign credits in account of inner funds should be related to its expenses. As Mr. E. Mamedov has mentioned, the order of the Cabinet of Ministers of Azerbaijan on long-term grace of creditor debts, which were accumulated in the previous years mainly to the SOCAR and JC "Azerigaz" has become a great assistance.
THE FORECAST FOR 2003 OF THE GDP IN AZERBAIJAN HAS BEEN IMPROVED
Thus, in the current year the GDP of the country nominally may make 33.7 trln manats against 32.6 trln manats suggested earlier.
The forecast was improved with account of data of the first half of the year - so it has been explained in the Ministry of the Economic Development. In comparison with the analogous period of the past year the GDP of Azerbaijan grew by 10.1% on January - July and made 15.4 trln manats.
THE GROWTH OF THE GDP IN THE CIS COUNTRIES IN THE FIRST HALF OF THE YEAR ACCELERATED ALMOST IN TWO TIMES - FROM 4% UP TO 7% IN COMPARISON WITH THE ANALOGOUS PERIOD OF THE PAST YEAR
The industrial production volume grew up with more rapid rates: in the first half of 2003 it made 8% in comparison with 4% in the first half of the past year.
In the first six month the GDP of Armenia, Kazakhstan and Azerbaijan grew up the most dynamically - by 14.8%, 10.4% and 10.1% correspondingly.
Russia with its rate of 7.2% (the preliminary estimate of the Ministry of the Economic Development) stands on the 7th place among the countries of the Commonwealth. The GDP of Kirgizstan the single country of the Commonwealth where a recession had been registered grew up by 2.3% in the first half of the year.
As the Statistic Department of the CIS notes, the economic conditions in all countries of the Commonwealth was mainly favourable, relative stability of the national currencies was kept at the monetary markets of the CIS monetary markets. The execution of the state budgets was carried out with a proficiency or insignificant deficiency. A situation at the labor market improved slightly and high world prices for oil promoted to a growth of the external trade operations.
With this, as it is said in the information of the Statistic Department, "as before nonpayment problems between enterprises remained actual, crediting the real economic sector stayed mainly short-term". In spite of growth in investments to the main capital, the investment activeness "for the present is insufficient for providing long-term stable economic growth, the further increase of inner demand is delayed by small level of real monetary earnings of the population", - they suppose in the State Department.
THE WINNERS OF THE INVESTMENT COMPETITIONS ON 30 LARGE AND MIDDLE VENTURES OF AZERBAIJAN WILL ALLOCATE $370 MM IN THEIR DEVELOPMENT
As it has been informed in the Ministry of the Economic Development of Azerbaijan, the investments in this ventures from the new owners will make about $370 MM. For the present this value has been made $137 MM.
In its turn the state budget should earn 91.6 bn. Manats from privatization of these enterprises ($18.542 MM). A portion of these funds in a total of 44 bn manats has been transferred already to the state budget.
A HELICOPTER OF THE BRITISH OIL COMPANY BP HAS MADE AN EMERGENT LANDING IN THE EAST GEORGIA
By information received by the RIA "Novosty" in the Military Prosecutor Office of Georgia, the helicopter transported the Georgian militaries including one American instructor from the airdrome Vaziany.
The BP Representation in Georgia has agreed with this information and reported that the emergent landing occurred near the area of laying the oil pipeline Baku - Tbilisi - Ceyhan for bad weather conditions. Two passengers of the helicopter were injured slightly. After rendering the primary medical help they were delivered to the Center of Medical Emergency of the project Baku - Tbilisi - Ceyhan.
A investigation group has been organized in BP, which should clear up causes of the accident.
THE COMPANY "KAMOV" INTENDS TO DELIVER 145 FIGHT HELICOPTERS TO TURKEY
Mr. Mikheyev has reminded that 6 years ago the Turkish authorities, which announced a tender on purchase of modern fight helicopters for the Ministers of Defense, preferred army helicopters of the USA, made by the company "Bell". The Russian company "Kamov" appeared then on the second place.
However, by the words of the General Constructor of "Kamov" afterwards Turkey reverted to the Russian offer. In 1997 at holding a tender, the Russian side offered to Turkey not only a delivery of the modern helicopters but organizing their joint production in Turkey. The USA offered only a delivery of the helicopters then.
Since a middle of 2002 Turkey renewed and conducted negotiations with "Kamov" on conclusion of the contract on delivery of the Russian helicopters, Mr. S. Mikheyev has told. "These talks are near the completion and we hope that up to the end of the current year all problems will be solved", - he has emphasized.
By the words of the General Constructor, the Contract will be concluded for 6 years. One of Israel companies engaged in a production of electronic equipment for fight helicopters will help to its realization. Furthermore, the same company will organize joint production of the equipment in Turkey, - Mr. S. Mikheyev has emphasized.
THE WFP ASSISTS TO GEFUGEES AND FORCED MIGRANTS IN AZERBAIJAN
As it has been informed in the WFP Representation in Baku, it is planned to provide food assistance for 140 thou refugees and forced migrants within frameworks of three-year project.
At the present time the WFP of the UN distributes 43 thou tons of food products in 23 regions of the country by a total of $20Mm. These measures are carried out at a promotion of the State Department of Azerbaijan on Refugees.
