 | Local business to receive boost |
Azerbaijan enters a period of unprecedented oil industry investments to exceed $20 bn in few years By Anar Jabrayilli Azernews Staff Writer
The Enterprise Development Committee (EDC) will be launched in Baku on June 4, spearheading a major drive to encourage sustainable economic development in Azerbaijan, especially through encouraging greater interaction between local and international businesses working in the country.
EDC unites senior representatives from international oil companies, local and Western businesses, embassies, banks, non-governmental organizations and the Government of Azerbaijan. The initial aim is to support local enterprises in competing successfully for a share of the many contracts that will be awarded in the coming years as Azerbaijan enters a period of unprecedented oil industry investment. However, the committee hopes quickly to expand its influence from the oil industry into construction, agriculture and other businesses in the non-oil sector.
The EDC was formed last year following a series of discussions between oil companies, local businesses and other governmental and non-governmental organizations to investigate opportunities to stimulate diverse and sustainable development in Azerbaijan and to identify barriers that reduce private sector growth, particularly growth of Small and Medium Enterprises (SMEs) in the country. EDC meetings provide a forum for information sharing, coordination of new or existing SME development programs, and creating new initiatives that oil companies, Government and other EDC members promote to increase private sector growth. EDC sub-committees have now been established to examine the training needs of SMEs, the procurement requirements of oil companies, the capacity of local SMEs, and the need for Government policy changes that will create the dynamic environment necessary to enable private enterprise to flourish throughout the Republic. Actions being taken by EDC include improving the flow of information between local and international companies through the development of a web-based Azerbaijani suppliers database. Training gaps that must be filled to strengthen the capacity of local businesses, and their ability to compete effectively in both the oil and non-oil sectors will also be discussed at the EDC launch. In the future, the EDC will also propose policy suggestions to the Azerbaijan government with the aim of stimulating private sector growth.
The EDC will be launched on June 4 at a Baku ceremony hosted by Norwegian Ambassador Olav Berstad. The Ambassador, who will be joined by other leading EDC representatives, said the creation of a diverse and thriving business economy would make a significant contribution to Azerbaijan's long-term economic and social stability.
"Over the next few years, investment in the oil industry alone is likely to exceed $20 billion. This provides a massive opportunity to local oil service companies and has the potential to stimulate the creation and expansion of businesses in other sectors of the economy," said Ambassador Berstad.
Notes to Editors:
The Press are invited to the launch of EDC which will take place at 10:00 - 12:00 at the Guba Ballroom of the Hyatt Regency Hotel on Monday June 4.
Founding Members the EDC include the Embassy of Norway, International Alert, BP, The Eurasia Foundation (EF), Citizens Democracy Corps (CDC), the American Chamber of Commerce in Azerbaijan, and the Azerbaijan Entrepreneurs Confederation. (Both EF and CDC are funded by the U.S. Agency for International Development). Other participants include the Embassies of UK, USA, Israel and Germany; Kosia Smeda; FAR Center, Statoil, DevonPennzoil and Agip; the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD); the United Nations Development Programme (UNDP), and representatives from the Government of Azerbaijan and from other businesses and NGOs.
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Issue No.22(204), 2001
83rd anniversary of ADR markedLocal business to receive boostCaucasus G4 summit agenda agreed uponNews digestNationBusinessOil & gas news
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