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MORE GAS FROM CHIRAG
AIOC and SOCAR announced last week the completion of a project that will deliver more gas to Azerbaijan consumers and significantly reduce flaring from the Chirag-1 platform.
The project has included a detailed study by AIOC of the existing gas facilities on the Chirag platform and a survey of 48 km of the 400 mm sub-sea export gas pipeline to test their suitability for the export of increased volumes of associated gas from Chirag. As a result of the study, a project to purchase and install three additional centrifugal gas turbine driven compressors has now been completed.
In addition, following an AIOC-conducted study of the existing "Neft Dashlari-Jiloy-Zira" pipeline, SOCAR has replaced some sections in it to fully rehabilitate this gas transportation facility.
The completion of the project has enabled the companies to export 2.7 million cubic meters of gas per day from Chirag to Oil Rocks and then to shore to meet Azerbaijan's growing demands for gas. Until recently only about 1.6 million cubic meters of gas per day could be exported from Chirag, with the remaining high-pressure associated gas flared at the platform.
GERMAN GOV’T KEEN ON ECONOMIC PARTNERSHIP
Economic consultations scheduled
Azeri-German inter-governmental economic consultations have been scheduled for October. This has been agreed upon during the talks in Baku between German Federal Minister on Economic Development and Cooperation Mrs. Heidemaria Vechorok Zoil and the Azerbaijan government.
The delegation paid a 2-day visit to Baku to become acquainted with the progress of the German-Azeri economic cooperation program. The Federal Minister studied the progress of projects being implemented with German credits.
These include renovation of a secondary school and kindergarten, establishment of farms in Khyzy and Yeni Yashma. The Minister said she was pleased with the work done to this end and that such cooperation would be continued in the future.
Pending the forth-coming consultations, the parties will consider cooperation opportunities in legal reform projects in Azerbaijan, energy development, small and medium enterprise, construction of hydro-power plants, processing of agricultural produce, etc.
German aid
In the past 5 years German government has provided GM160 million worth of humanitarian and technical assistance to Azerbaijan.
Besides, 30% of the Euro330 million, allocated to Azerbaijan by the European Commission, is being repaid by German government. According to Mr. Sharifov, German government has invested GM170 million in the reconstruction of thermal power stations in Baku.
PRIVATIZATION POWERING AHEAD
Recent presidential resolutions have announced 471 enterprises open to privatization. All of these are medium and large enterprises, while 21 are joint ventures, Minister for State Property Farhad Aliyev told a news conference last week.
According to him, denationalization of so many enterprises will take some time, therefore, it is difficult to predict when it could finish.
Saying that the process of privatization will not be confined to these enterprises alone, the minister indicated that privatization of enterprises engaged in marketing of natural gas is envisioned for subsequent stages.
Speaking of the enterprises, Mr. Aliyev said AZM10 billion would be allocated to "AzerBoru" joint stock company and AZM500 million to the Shaki silk-worm breeding enterprise this year. Besides, the EBRD has allocated $220,000 to the Ganja confectionery factory.
Mr. Aliyev said the ministry is expected to transfer AZM200 billion to the state budget this year, of which 25% will be returned to the ministry for it to prepare the most vulnerable enterprises for privatization.
With regard to the arrears of the privatized enterprises, Mr. Aliyev said following a presidential decree all of them would be written off since October 1.
23,539 enterprises, facilities and units of equipment have been privatized to date. 40.9% of them are servicing enterprises, 8.3% commercial, 3% industrial, 2.2% public catering, 2.5% bakeries, 2% service stations, 28% transport vehicles, and 8% other enterprises.
10 investment tenders have been held since 1996 and according to the concluded agreements over $100 million invested. 15.2% of privatization vouchers distributed to the population have been withdrawn from the circulation and AZM520.7 billion entered the state budget from privatization and lease payments.
TAM to restore enterprises
According to an agreement between the European Bank for Reconstruction and Development and the Ministry of State Property, the Turn Around Management (TAM) program will undertake the project of reconstruction of enterprises in Azerbaijan.
According to the Minister for State Property Farhad Aliyev, the project includes such enterprises as AzerTrans, NAR Holding, SAF, Baku Plant of Air Conditioners, Shoe Factory, and Broiler Factory.
The Ministry has suggested to include the "AzerYun" (Azerbaijan wool) and "Trikotazh" (knitted garments) enterprises into the list as well. Under the agreement, the project will cover a total of 10 enterprises.
Since 1993, TAM has implemented projects in most East European and CIS countries.
Electricity grid tender
A tender for concession of electricity networks is expected shortly, minister for state property Farhad Aliyev told journalists Friday.
According to a presidential decree dated March 31, 2001, electricity distribution networks of Azerbaijan, excluding Baku, have been grouped in 3 networks: the "Ali-Bayramli Electricity Network" JSC (on the basis of distribution grids of 22 provinces), the "Ganja Electricity Network" JSC (25) and the "Sumgayit Electricity Network" JSC (9). The three networks will be provided on long-term concession this year, similar to the "Baku Electricity Network" JSC, he said.
Mr. Aliyev added that EBRD would like to take part both in the concession and crediting of the grids. Negotiations with the Bank have already been held.
Fondel Metal to invest
$1bn in "AzerAluminum"
The Azerbaijan government has envisioned energy discounts for "Fondel Metal", a Dutch company running "AzerAluminum" joint stock company. According to the minister for state property Farhad Aliyev, the discounts will be effective for 5 years. Besides, all the arrears of the JSC apart from the salary debt will be frozen for the period of concession.
"Fondel Metal" will reimburse the salary arrears of $1.8 million and transfer $2 million to the state budget. In the first three years, the company will invest $202 in the enterprise and open 5,000 jobs in 5.5 years.
The Dutch company is implementing the biggest non-oil project in the Azerbaijan economy and intends to invest a total of $1 billion in "AzerAluminum" over 25 years.
Siemens to invest millions in electricity grid
Winner of the tender for concession of the "Baku Electricity Network" JSC, German Siemens intends to invest $139 million in the company over the next 3 years, minister for state property Farhad Aliyev told journalists Saturday. A total of $770 million will be invested in 25 years.
Touching upon the disadvantaged categories of the population, F. Aliyev said the problem still exists. According to him, 113,000 families in the capital use benefits in paying for electricity. Following the concession, the government will undertake payment for electrical energy consumed by such categories: either by paying the full amount to Siemens or giving some funds to the disadvantaged to pay themselves.
Mr. Aliyev added that energy tariffs would remain unchanged after the Siemens takeover.
IBA to be privatized soon
Minister for state property Farhad Aliyev has specified an exact date for privatization of the International Bank of Azerbaijan (IBA), which has been a source of speculation for 3 years.
According to him, IBA will be denationalized this year. He added, however, that he himself does not believe that privatization of Azerbaijan's most profitable bank is expedient.
The delay in privatization is explained by the fact that EBRD claimed 51% of the bank's shares, something the Azeri party was opposed to. As a result of negotiations, EBRD agreed to a stake of 20%.
WB TO FUND 3rd STAGE OF MIL-MUGHAN CONSTRUCTION
The second stage in construction of the Mil-Mughan collector has completed, chairman of the state committee for melioration and water economy Ahmad Ahmadzadeh told a news conference at the Yeni Azerbaijan Party Friday.
The $9.4 million credit provided by the Islamic Development Bank (IDB) has been spent on construction of a 52.7km section of the collector. The third stage is to be funded by the WB, which has already provided a $18 million credit.
Both credits were provided with yearly interest rate of 0.75% for 30 years and repayment to commence in 7 years.
AZERSUN HOLDING TO BUILD SUGAR PLANT
"Azersun Holding" JV has offered to the government to build a sugar plant in Azerbaijan. The first stage of the proposal envisions investment of $50 million in construction of the plant and farms engaged in sugar beet production.
DISPUTE OVER SAMUR CANAL STILL UNRESOLVED
The dispute between Azerbaijan and Russia over the use of the Samur canal seems to be going from bad to worse, chairman of the state committee for melioration and water economy Ahmad Ahmadzadeh told journalists Friday.
According to him, Azerbaijan currently uses 75% of the canal's water, while the rest is used by Russia, which seeks to achieve a fifty-fifty proportion.
A. Ahmadzadeh said an agreement on joint utilization of borderline waters is being prepared.
REFINERY VOIDS TENDER RESULTS
The "AzerNeftYagh" refinery has turned down the services of German "Casus" company, winner of the tender for the overhaul of ELOU-AVT-6 facility.
"Casus" has failed to thoroughly study the equipment to be repaired, which prompted "AzerNeftYagh" to reject the proposed work plan and annul the tender results.
Under the tender terms, "Casus" was to invest DM15.55 million in the overhaul. A source from the refinery told Azernews Friday that a new tender would be held for the repair of the facility and the furnace.
LUKOIL BOARD OF DIRECTORS APPROVES SHAREHOLDER MEETING AGENDA
The Lukoil Board of Directors met in Moscow early this week to approve the agenda of the annual meeting of shareholders scheduled for June 28, 2001 in Volgograd, the Lukoil Baku office told AssA-Irada Tuesday.
The meeting also focused on key directions of the company's technical progress. According to the development forecast till 2010, total growth in oil production following geological and technical measures on the basis of new techniques and technologies is expected to make up 100 million tons.
Besides, as a result of effective reconstruction and modernization projects at Lukoil's refineries, refining depth is expected to make up 80%.
AZERI-DUTCH CUSTOMS DEAL BEING PREPARED
The State Customs Committee specialists have prepared a draft agreement with the customs service of Netherlands on cooperation in the areas of information exchange and combat against smuggling. The agreement will be signed during the forth-coming visit by Azeri customs officials to Holland.
Similar agreements have been already signed with a number of CIS member-states.
TRAMWAY RAILS BEING DEMOLISHED
The demolition of streetcar rails in Baku launched lately has drawn fire from 185 employees of the streetcar depot. According to an instruction from the Mayor's office, only 10 of 40 streetcars will be working in the capital, which is explained by the fact their movement shakes buildings and scares the population in the wake of the earthquake.
Streetcar drivers attempted to hamper the demolition effort, but police made sure the work was carried through.
65 drivers were received by the Mayor's office executive office Ali Hajiyev Saturday, who said the railway was not being demolished but restored. Streetcars have run in Baku for 120 years.
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© 1998-2003 Azernews. All Rights Reserved.
Issue No.15 (197), 2001
Bush urges Aliyev and Kocharian to boost peace effortsNews digestNationOpposition newsHealthBusinessOil & gas newsComment & analysisAnnouncement
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