Business

ARRA REBUILDING LIBERATED TERRITORIES

By Anar Jabrayilli

Azernews Staff Wrter

Director of the Agency for Reconstruction and Rehabilitation of Azerbaijan (ARRA) Ali Mammadov told a traditional news conference at the Yeni Azerbaijan Party head-quarters Friday that the agency was set up in 1996 and acts as an executive body of the state commission on restoration and rehabilitation of the liberated territories.

He indicated that the agency works in two directions: restoration and emergency assistance.

Rehab operations cover an area of 5,600 square meters, which encompasses the already liberated territories of Azerbaijan and 15 adjacent regions.

Besides A. Mammadov, participating in the briefing was the head of the EU Reconstruction and Emergency Assistance project Jalal Alpman and head of the EU Assistance Program Albert Krause.

According to A. Mammadov, foreign donors have allocated $117 million to Azerbaijan under the Reconstruction and Emergency Assistance program, of which $29.5 million has been provided by the World Bank and the Islamic Development Bank in credits and the rest by the EU, UNDP and other international organizations.

$51 million worth of operations have been undertaken: $30 million worth by the Agency and $21 million by donor organizations.

The WB and ADB credit has been provided for 35 years with 0.75% yearly interest stake. The repayment is due to start in 10 years.

$24mln for restoration

According to the head of the EU Assistance Program Albert Krause, the EU has allotted $24 million for restoration of Azerbaijan's liberated territories.

As part of the restoration program, reconstruction of the water-supply system in Agdam province, 10 secondary schools in Fuzuli and power stations in Fuzuli, Agdam and Terter provinces is currently underway.

According to him, the work is to last till early 2002. Mr. Krause said the program would be implemented within 5 years, with two stages already covered between 1997 and 2001. Currently, the third stage is underway with $3.9 million already invested. He underscored that EU monitors the course of the program and renders assistance to local specialists.

Economizing credit means

According to the ARRA director Ali Mammadov, the agency is trying to economize on the credit means provided by the World Bank and the Islamic Development Bank. Thus, only $10 million has been spent of the WB's credit of $20 million.

Similarly, half of the IDB funds has been saved, which has been possible due to lesser expenses and control over expenditure, he said. The economized funds will enable the agency to expand the geography of rehab operations.

Aiding subway construction

As part of the emergency assistance program, the Agency has implemented such projects as fencing the Jeyranbatan water reservoir, mounting a 220KV power substation in Sumgayit, construction of a water pipeline to winter pastures in Jeyranchol, and construction of a bridge over the Kur river on Yevlakh-Ganja highway, head of the EU Restoration and Emergency Assistance projects Jalal Alpman told journalists Saturday.

Under the project the AIDS Prevention and Prophylactics Center will be supplied with up-to-date equipment, assistance provided in construction of the Hazi Aslanov underground station and a modern tuberculosis dispensary.

Implementation of the projects is monitored by EU specialists.

Rehab brings 90,000 home

According to Ali Mammadov, around 90,000 people have returned to their native homes in Fizuli and Agdam provinces after the completion of rehabilitation operations.

Mr. Mammadov added that since ARRA was established it has built 3,300 residential buildings, 70 schools, 42 medical institutions, around 180 power substations, etc.

Besides, 180km-long 110KV, 100km-long 35KV and 350km-long 0.4KV electricity transmission lines have been laid, irrigation work undertaken to water 65 hectares of land, etc.

Credits allotted to returnees

The Agency is also engaged in programs aimed at raising the living standards of those who return to the territories liberated from Armenian occupation.

Director of the Agency Ali Mammadov says 2,000 returnees have received micro-credits totaling $700,000. On the first stage the credits do not exceed $500, while those who prove successful can count on up to $3,000. The credits are a part of the means allotted by the United Nations Development Program. US organization "World Vision" is implementing the project.

Mr. Mammadov added that two years ago those who returned to their native homes in Fizuli were provided with 1,858 heads of cattle, whereas now their number has reached 3,200, he said.

CIS PARLIAMENTARY ASSEMBLY PREPARING TAX CODE MODEL

The CIS Parliamentary Assembly's working group met in St. Petersburg Monday to continue deliberations on a CIS tax code model.

According to the Tax Ministry, representing Azerbaijan were the ministry's advisors Vugar Aliyev and Hikmat Fatullayev, as well as specialists from the Ministry of Finance and the State Customs Committee.

Work on the code started in 1998 on the initiative of the Assembly's permanent commission on economics and finance.