FOR 11 YEARS THE TURKISH COMPANIES INVESTED $915 MM TO AZERBAIJAN
BAKU.12.09.2003.MEDIA-PRESS: Since 1992 the companies operating in Azerbaijan with the Turkish capital sharing invested $915 MM in the economic of the country. The Director of the State Business Support Department of the Ministry of the Economic Development of Azerbaijan Mr. Azer Bashirov has informed about this.
BAKU.12.09.2003. MEDIA-PRESS: On the negotiations with the International Monetary Fund Azerbaijan insists on keeping rate of profit taxes differenced by region in the country.
BAKU.12.09.2003.MEDIA-PRESS: The German bank Kreditanstaft fur Wiederaufbau (KfW) plans to increase crediting little and middle business in Azerbaijan through the German-Azerbaijan Fund by 3.6 MM Euro, the Manager of the Fund Mr. Joerg Teumer has informed.
BAKU.12.09.2003.MEDIA-PRESS: Azerbaijan and Moscow intend to realize a number of joint food programs, the first Vice-Premier of the Government of Azerbaijan, co-chairman of the Azerbaijan-Moscow intergovernmental commission on the economic cooperation Mr. Abbas Abbasov has informed journalists.
BAKU.12.09.2003.MEDIA-PRESS: The Department of Privatization of the Ministry of the Economic Development has announce an open tender on attraction of a consultant on privatization of the United Universal Joint-stock Bank of Azerbaijan(BUS Bank, former Savings Bank).
BAKU.12.09.2003.MEDIA-PRESS: In Baku the experts from the World Bak will discuss problems of foundation of the complex insurance information system, administrative reforms conduction, rationalization of Social Payments State Program. The WB mission will arrive to Baku on September 13 and conduct a number of meetings and consultations in the Ministry of Labour and Social Protection of the population and the State Social Protection Fund.
BAKU.12.09.2003.MEDIA-PRESS: Familiarization with reforming the health protection system of Azerbaijan will become a main goal of visit to Baku in the mid of September of the observation mission of the World Bank. As Media-Press has been informed in the WB's Baku Office, the experts of the bank will visit to five regions of Republic, where pilot objects are located with a purpose of receiving information about improvement of medical aid to people.
"Since 1992 over 1300 Turkish businessmen have been officially registered in Azerbaijan. At the present time about 800 companies with the Turkish capital sharing operate in the country, and 378 of them are with 100% Turish capital sharing", - Mr. A. Bashirov has said.
"Over 17 large Turkish companies in Azerbaijan realize projects of a cost above $1MM. Besides of this, nine Turkish companies purchased stocks of 18 JC", - Mr. A. Bashirov has noted.
ON THE NEGOTIATIONS WITH THE IMF AZERBAIJAN INSISTS ON KEEPING DIFFERENCED RATE OF PROFIT TAXES
"On negotiations on this problem with the IMF we stand on principal positions. In the USA similar differencing is applied and used as the instrument for affecting the economic development", - the Chairman of the Parliament on the Economic Policy Mr. Sattar Safarov has noted after his meeting with the Deputy Director of the second European Department of the IMF Johne Workman-Lynn.
"I consider purposeful the keeping of this system an by my opinion, this is very true policy", - Mr. S. Safarov declared, telling about applying differenced by regions rate of the profit tax.
As the Chief of the State Business Promotion Department of the Ministry of the Economic Development of Azerbaijan Mr. Azer Bashirov, this foundation also supports keeping such system.
"Providing the economic development of regions was a goal of such rate applying. Already in this year there is a real interest of businessmen to development of business in regions and this shows that our choice was true, - Mr. A. Bashirov has said. - By preliminary information, the IMF accepts the keeping this system", - he has emphasized.
The differenced by regions rate of profit tax was introduced since January 2003 in Azerbaijan. In accordance with new order, businessmen pay out the profit tax by maximum rate, enterprises located on the Absheron Peninsula pay out 25%. The enterprises operating in towns Gyanja, Sumgayit, Mingechavir and Ali-Bayramli and littoral regions pay out the profit tax in a total of 20%, ones located in mountainous regions of Azerbaijan and the Nakhchivan Autonomous Republic - 10%, in the other regions of the country - 15% rate.
THE GERMAN BANK KFW WILL INCREASE CREDITING OF SMALL AND MIDDLE BUSINESS IN AZERBAIJAN
"KfW" already accepted credit allocation and acceptance of the Government of Azerbaijan is required", - Mr.J. Teumer has said. By his words, at the present time 5.1 MM Euro has been accumulated in the Fund.
Mr. J. Teumer has noted that increasing of banks-agents of the German-Azerbaijan Fund is supposed. At the present time. "Unibank", "Bank of Baku", "Republic" and "Parabank" are banks-agents. By September 1, the Fund allocated 3 MM Euro for realization of 470 projects.
The German-Azerbaijan Fund founded established by the Ministry of Finance and the Bank KfW started its operation in 2001; It allocates credits of a total up to 50 thou Euro to businessmen and companies of small and middle business.
AZERBAIJAN AND MOSCOW AGREED ON JOINT FOOD PROGRAMS
Mr. A. Abbasov and Moscow Mayor Mr. Yuri Luzkov discussed questions of cooperation in the food field between Moscow and Azerbaijan.
Commenting results of negotiations, the first Vice-Premier has noted that "they were resultative and the sides agreed on participation of the Azerbaijan businessmen in the concrete Russian projects and of the Russian businessmen in programs realized in Azerbaijan".
A TENDER ON THE ATTRACTION OF A CONSULTANT ON PRIVATIZATION OF THE AZERBAIJAN BUS BANK HAS BEEN ANNOUNCED
In accordance with the :President's Edict, the Bank privatization should be completed up to the end of 2004. At the same time negotiations with high rating banks and leading investors should be conducted.
By results of 2002, incomes of BUSBank made 34.9 bn manats, expenditures - 27.6 bn manats, and profits - 7.3 bn manats. Free assets of the bank have been transferred for purchasing of securities. Moreover, BUS Bank is a operator of the project of the state bonds and sold them by 10 bn manats; this allowed to get 195 MM manats of profits.
In total BUS Bank controls about 5% of the bank sector of the country. However, it would be possible to increase this share up to 10% for a short time if making available new kinds of services. BUS Bank signed agreement with the Turkish company "Barmek Holding" managing the Baku electrical network, and with the JC "Azerigaz" on receiving payments of people for consumed electric power and gas. Moreover, 650 thou persons receive their pensions in the Bank and it makes 45% of all pensioners of Azerbaijan.
IN BAKU THE WB'S EXPERTS WILL DISCUSS PROBLEMS OF REALIZATION OF THE PROJECT: "PENSIONS AND SOCIAL PROTECTION OF PEOPLE"
As Media-Press has been informed in the WB's Baku Office, the introduction of private registration cards for each working person and organizing the computer data base, which should include information about labour activities of each person, his length of service, monthly payments to the Social Protection Fund is one of the components of the Project "Pensions and Social Protection of the Population". Such base will significantly simplifies a procedure official registration of pensions for people. A pensioner should only appeal to the Pension Fund without spending time and forces for receiving of a lot of requires. A total of pension will be counted in dependence of a total transferred to the Social Protection Fund for a all length of service of a person.
$5.281 MM will be required for realization of the program. The Social Protection Fund will allocate $1.5 MM from the own funds for this. The UN Development Program will allocate $300 thou and it is planned to loan the rest sum from the international finance structures.
Within the frameworks of the Program "The The Country Assistance Strategy for 2003 - 2005", the WB plans to allocate to Azerbaijan a credit of $235 MM. The International Development Association will allocate $160 of this total, and the International Reconstruction and Development Bank will allocate the rest $75MM. It is planned to transfer $10 MM to the for the projects related to the social protection of people.
THE WORLD BANK'S MISSION ON HEALTH PROTECTION REFORMS
The health protection system reforming project is realized in the Salyan, Goychay, Shamkir, Khachmaz and Sharur Regions. The project provides modernization of buildings of the medical institutions, modern equipment supplying, development of uninterrupted medicine supplying, as well as learning the experience of the primary aid to victims.
The WB from one side and the Government of the Country from the other signed the Agreement "About the Reforms in the Health Protection Field" on July 2001. The realization term of the Agreement is three years. A cost of the project is $5.5 MM; the Government of Azerbaijan allocates $500 thou from them.
THE EXPERTS OF THE OSCE STARTED MONITORING OF THE ELECTIONS IN AZERBAIJAN
Besides of this, Mr. Ayker has noted, the experts will conduct monitoring of the correspondence of elections to the Azerbaijan laws and its obligations on conduction of elections.
Else 500 observers from the OSCE will arrive in Azerbaijan for few days before the elections and will conduct monitoring of voting and counting of ballot-papers, Mr. Ayker has reported.
He has called the forthcoming elections "the critical test" for Azerbaijan, and noted that the international organizations expect free and democratic elections from the government of the country. Already in the next day after the elections the monitoring mission of the OSCE will estimate them.
BEFORE THE END OF THE YEAR CONSTRUCTION WORKS WITHIN FRAMEWORKS OF THE REALIZATION OF THE PROJECT "SHAKH-DENIZ" WILL START IN THE SANGACHAL TERMINAL
This year the expenses for realization of only first stage of the project "Shakh-Deniz" will make $750 - 800MM. As a whole the "Stage - 1" includes installation of the platform TPG 500 for drilling of 15 wells at a depth up to 105 m, underwater preparation of the field with 5 wells, which will be drilled later at a depth up to 300 m, construction of two underwater pipelines with a length of 100 km of each (26 inches pipeline and 12 inches - for condensate) from the platform TPG 500 to the Sangachal terminal, as well as construction of the Southern Caucasus pipeline - from Azerbaijan through Georgia to the Turkish frontier. The total cost of the project makes $3.2 bn.
The estimating supplies of the field "Shakh-Deniz" make 1trln cubic meters of gas. The joint-stock holders are following companies: BP (25.5%), Norwegian Statoil (25.5%), SOCAR (10%), French-Belgium TotalFinalElf - 10%, Russian "LUKoil" - 10%, Iranian OIEC - 10% and Turkish TPAO - 9%.
As a whole the "Stage - 1" includes installation of the platform TPG 500 for drilling of 15 wells at a depth up to 105 m, underwater preparation of the field with 5 wells, which will be drilled later at a depth up to 300 m, construction of two underwater pipelines with a length of 100 km of each (26 inches pipeline and 12 inches - for condensate) from the platform TPG 500 to the Sangachal terminal, as well as construction of the Southern Caucasus pipeline - from Azerbaijan through Georgia to the Turkish frontier. The total cost of the project makes $3.2 bn.
The estimating supplies of the field "Shakh-Deniz" make 1trln cubic meters of gas. The joint-stock holders are following companies: BP (25.5%), Norwegian Statoil (25.5%), SOCAR (10%), French-Belgium TotalFinalElf - 10%, Russian "LUKoil" - 10%, Iranian OIEC - 10% and Turkish TPAO - 9%.
THE AZERBAIJAN COMPANIES WILL CONTINUE OIL EXPLORATION IN THE KAZAKHSTAN SECTOR OF THE CASPIAN SEA
As the Agency "Interfax-Azerbaijan" has been informed in the Caspian Geophysical, this company is the subcontractor of "Shlumberger" in carrying out these works. Furthermore, the information about consumer and works goals has not been received; it was told that "Shlumberger" should do this in details.
"Gilavar" is one of the most modern ships in the Caspian Sea, which were designed for conduction of geological exploration works.
SINCE THE BEGINNING OF THE YEAR THE SOCAR TRASMITTED 1,444 BN CUBIC METERS OF GAS TO THE "AZERIGAZ" SYSTEM
On August "Azerigaz" has received 174.2 MM cubic meters, or by 11% more than it was planned. The AGPP - 183.3 cubic meters, what is less by 10.1% than it was planned.
For satisfaction of the requirements of the republic in the natural gas, up to 10 bn cubic meters are required. 5 bn of them are required for providing demands of population and industrial enterprises and 5 bn cubic meters - for electric power stations of the country. In the past year Azerbaijan purchased 4bn cubic meters of the "blue fuel" from the international group of companies "Itera". This year in accordance with the agreement between the JC "Azeriga" and "Itera", the import will be increased else by 1.5 bn cubic meters. Today Azerbaijan produces totally about 5 bn cubic meters.
The import increase is necessary for supplying regions of the country by the natural gas. By today more 60 regions of the country have been gasified. In the first turn, gas is delivered to the regions where the relevant infrastructure is available, i.e. distribution networks. In average about 70 MM cubic meters of gas is delivered monthly to all regions of the country.
THE GOVERNMENT OF KAZAKHSTAN HAS ACCEPTED A PLAN OF MEASURES ON DEVELOPMENT OF THE CASPIAN SHELF
As the Minister of Energy and Mineral Resources of the Republic Mr. Vladimir Shkolnik, speaking at the first International Caspian Conference on Ecology - "Caspian Ecology - 2003", the ecological requirements will become more strict for the companies operating in the Caspian Region.
Stage by stage carrying out of preserving and removal of sunken wells drilled in 30 - 80-s of the past century within the Caspian coastal area as immediate measures directed to improvement of ecological situation of the Caspian basin are suggested. "Wells drilled in the sunken zone of the Caspian Sea are of the greatest danger", - the Minister has emphasized.
Moreover, as Mr. V. Shkolnik has noted, within the frameworks of the realization of the state program the preserve zone in the northern Caspian area will be divide in the functional zones, where carrying out of ecological and phone researches, studying flora and fauna in this region are supposed.
The state program of the hydrocarbon resources development in the KSKS was signed by the President of Kazakhstan on May of the current year and designed for the period up to 2015. It consists of three stages. In the firs stage in 2003 - 2005 it is planned to create conditions for the complex development of development of the Caspian hydrocarbon resources: in the second stage (2006 - 2010) - to ensure accelerated development: the third (2011 - 2015) - stabilization of the oil production.
Within frameworks of the first stage, in particular, it has been planned to conduct the complex estimate of the KSCS potential, lay in principles of the united bank of oil and gas data and infrastructure for assistance to offshore oil operations, to form optimal bags of petroliferous units for the next tenders and to determine key parameters of agreements.
In this stage it is supposed also to held competitions and negotiations on conditions of the contracts on exploration and development of hydrocarbons, determine a route of the export oil pipeline for transportation of the hydrocarbons produced in the KSCS.
The Program designers believe that it will allow providing oil production volume in the KSCS at a level of as minimum 100 MM tons per a yea, gas - 63 bn cubic meters by 2015. Furthermore, in accordance with the optimistic version of the State Program, forecasting the investments to development of the KSCS is waited about $6 bn in 2003 - 2005, 2006 - 2010 - about $10.3 and in 2011 - 2015 about $15.6 bn.
THE FIRST INTERNATIONAL CASPIAN CONFERENCE ON THE ECOLOGY "CASPIAN ECOLOGY- 2003" IS HELD IN KAZAKHSTAN
As Media-Press has been informed in the Emabassy of Kazakhstan in Azerbaijan, the ecological safety at the development of oil and gas fields of the Caspian Sea is a central theme of the Conference. And the chief goal of the conference participants is a plan of the joint measures on improvement of the ecology of all the Caspian region, promotion to establishing long-term cooperation between scientific, state organizations working in the field of the environmental protection and management and offshore companies.
The officials of the Governments of five Caspian states, leading companies and international organizations take part into the work of the conference. The Minister of Ecology and Natural Resources Mr. Guseyn Bagirov has represented Azerbaijan at the conference.
It is planned that the International Caspian Conference on Ecology "Caspian Ecology" will be held annually, providing a possibility of getting the objective information on biological resources and natural protection measures in this unique reservoir.
The organizers of the conference "Caspian Ecology" plan to held the next forum in Istanbul, autumn 2004 and wide range of problems on environmental protection in the Caspian and Black Sea basins.
THE COMPANY "TAVANIR" HAS ANNOUNCED A TENDER FOR THE CONSTRUCTION OF THE IRANIAN PIECE OF THE INTERGOVERNMENTAL EPTL IMISHLI-PARSABAD
As Media-Press has been informed in the JC "Azerenerji", the Azerbaijan side was informed about this during negotiations with the Iranian energetic experts, completed in Baku. It has been noted that by summer 2004 the laying of the piece Parsabad - Sinar of the mentioned EPTL will be completed and before April 2005 the transformer and the EPTL of the high voltage will be laid at the substation "Teti Dizya" up to the substation "Parsabad".
The works on the Azerbaijan piece (from the substation "Imishli" up to the frontier with Iran) go in accordance with the schedule. For instant the project estimates are prepared. By affirmations of the specialists, by the summer of the next year the EPTL will be put into operation.
Since the completion of the first project stage by July 2004, a volume of energy transmissions will increase from 200 up to 350 MVt. Then the second stage will be realized - from the substations "Imishli" and "Parsabad". It has been decided to lay the EPTL into the territory of both the countries, what will allow increase the energetic exchange up to 1000 MVt by this line.
THE EXPERTS DEVELOP OPERATION REGIME OF THE TRANSAZERBAIJAN EPTL
As the press-service of the JC "Azerenerji" informs, the sides have discussed versions of the Astara EPTL operation. It has been suggested to operate in the shut regime in direction to Azerbaijan, which will return the analogous electric power volumes to the Iranian side by the EPTL Imishli - Parsabad. The agreement on consideration of opportunities and working out of the similar operation regime of the EPTL by technical experts during 15 days has been achieved.
It was registered in the the total protocol that the JC "Azerenerji" has already transferred 41.8 MM kVt/hour to the energetic company of Iran "Sanir" in redemption of the credit allocated for construction of the Azerbaijan piece of the Trans-Azerbaijan EPTL.
ON OCTOBER NEW SUBSTATION AND EPTL JULFA (AZERBAIJAN) - JULFA (IRAN) WILL BE PUT INTO OPERATION
The energetic companies "Tavanir", "Gilani" and the Azerbaijan Energetic Company represented the Iranian side.
As it has been noted in the JC, the realization of the project will allow increasing electric power deliveries from Iran to the Nakhchivan Autonomous Republic (NAR) by 30 MVt already by October and to increase them up to 50 MVt in 2004. Totally electric power deliveries from Iran to the NAR will make 140 MVt.
The present electric power consumption in the Nakhchivan Autonomous Republic makes 130 - 150 MVt. 70 - 80 MVt are delivered from Iran, 40 - 50 MVt from Turkey and over 20 MVt are produced at the local HEPS "Araz". However, demands of the autonomous Republic make 180 - 190 MVt.
We shall remind that laying the new 132 kVt EPTL Julfa (Azerbaijan) - Julfa (Iran) and construction of the substation in the town Julfa were provided by the intergovernmental memorandum signed on October 2002 by bilateral commission on the economic cooperation.
THE NAVIGATION EQUIPMENT IS RENEWED IN THE BAKU PORT
The ports Aktau (Kazakhstan) and Turkmenbashi (Turkmenistan) will be equipped by the analogous equipment within foundation of the transport corridor Europe - Caucasus - Asia. A total cost of the project on equipping of three ports by new navigation equipment will make about 2 MM euro.
The Modernization of the navigation equipment in the ports will allow determination of ships location in the Caspian Sea, timely assistance to them in emergencies and accidents.
Special trainings for specialists of the Baku port for learning the navigation equipment operation regulations and managing dispatching systems are supposed. They will pass in the mid of September in S. Petersburg and on October and November in Gamburg.
