Business

GARADAGH CEMENT THROUGH WITH 5-YEAR PROGRAM IN TWO YEARS

By Anar Jabrayilli Azernews Staff Wrter

«Garadagh Cement» intends to produce 1 million tons of cement this year and is likely to fulfill the projections judging by the outcomes of the first 6 months, its general director David Stone told journalists Friday.

According to him, the company was scheduled to achieve this figure in 5 years, but has actually attained the goal in two years. Garadagh Cement is the first in 147 cement-producing plants that «Holcim» operates in 70 countries worldwide.

Under the six-month investment program, $23 million worth of investment is to be made in the company, with half of the amount already invested, Mr. Stone said. $9 has been paid to repay the debts of the enterprise and much of the equipment replaced.

Utilizing oil wastes

Garadag-Cement is going to utilize oil refining wastes instead of the natural gas used at present. The measure is expected to halve production costs, David Stone said.

According to him, the plant is having to pay AZM200 per square meter of used gas, which makes the product much more expensive.

Mr. Stone added that the plant is currently in talks with a number of oil refineries. The equipment enabling the use of both gas and oil refining wastes has been installed at the plant. Most of the plants owned by "Holcim" company, including Garadag-Cement, are powered with oil wastes.

Mr. Stone regretted illegal imports of cement, especially from Iran. According to him, some 480,000 tons of Iranian cement is marketed in Azerbaijan every year, of which almost a half is smuggled.

Pensioners that earlier worked at the Garadagh cement works, now the Garadagh Cement JSC, gathered at the Khazri wedding palace Friday to mark the 50th anniversary of the JSC, as general director David Stone congratulated and thanked all who have contributed to the enterprise.

Each of the 300 pensioners in attendance was given AZM100,000.

ASHGABAT TALKS WITHOUT MUCH SUCCESS

First vice-premier of the Azerbaijan government Abbas Abbasov has returned from Turkme-nistan. He was leading an Azeri delegation, which held talks with Ashgabat over a stage-by-stage clearance of Azerbaijan's outstanding debt for natural gas supplies. The visit has not resulted in any breakthrough and the Turkmen party is demanding the repayment of the debt. The parties have also failed to agree on the amount of the arrears, as Turkmenistan insists on $59.6 million, while Azerbaijan accepts only $18.7 million.

Ashgabat believes that under the inter-governmental agreement of February 22, 1995 Turkmenistan was to be paid $81 million, of which Baku paid only $22 million. Azerbaijan maintains that the debt of some organizations has nothing to do with the government's arrears. The Turkmen party has also demanded that repayment start immediately.

According to the vice-premier, the figures Turkmenistan insists on are unreasonable and "we won't accept them". The Turkmen government's position is conspicuously prejudiced and is intended to create tensions in bilateral relations. As compared to the arrears of, for example, Ukraine ($2 billion) or Georgia (over $400 million), Azerbaijan's debt of $18.7 million does not seem too big, but Turkmenistan continues putting forward ungrounded claims to Baku nonetheless, A. Abbasov said.

911 SERVICE FINALLY IN AZERBAIJAN

The world-famous 911 service has been represented in Azerbaijan since 1998 by Group-4 Securitas (Azerbaijan). According to the STA-info director for Operative Work of Group-4 Securitas (Azerbaijan) Rafig Abbasov, the so-called Hotline service (911) functions on the round-the-clock basis. A client is provided with a code he can use in case of need. After receiving a signal, the prompt reaction service starts for the indicated address or provides verbal advice necessary to eliminate the problem.

R. Abbasov added that the Hotline system was established by Group-4 Securitas (Azerbaijan) with the direct involvement of Group-4 Securitas International (England) specialists.

Employees of the Hotline service were formerly employed with medical and law-enforcement bodies.

Any physical or legal entity can become a user of Hotline by signing a service contract with Group-4 Securitas (Azerbaijan).

However, Mr. Abbasov said, the 911 service is so far affordable only to foreign companies and citizens operating in Azerbaijan. Besides, the population is not sufficiently aware of the service.

SIEMENS DEAL TO BE SIGNED IN AUGUST

By Anar Jabrayilli Azernews Staff Wrter

Despite the effort of the Azerbaijan party, talks with German "Siemens" over a long-term concession of the Baku Electricity Grid joint-stock company have not completed before the end of July. Signing of the agreement is now being scheduled for August, according to the Ministry for Economic Development.

The delay stems from certain conditions put forward by the German company, which the Azerbaijan government is reluctant to agree to. For instance, the government wants electrical energy tariffs (AZM96 per kilowatt/hour for the population and AZM156 for legal entities) to remain unchanged, while Siemens would like to retain the right of altering them in the future.

Civil Unity Party opposes Siemens deal

The Ministry for Economic Development and German «Siemens» are expected to sign a long-term concession contract for the "BakElectricShabaka" (Baku Electricity Grid) JSC to Siemens. An executive of the Civil Unity Party Shahin Agabayli has said it is unacceptable from the viewpoint of national security to sell or lease such strategic enterprises to a foreign company.

The bulk of the population live from hand to mouth and are unable to pay for electricity, while a foreign company will not make any concessions. This will eventually deteriorate their living standards, he said.

CREDIT RATINGS UP

British international rating agency Fitch has set new credit ratings for Azerbaijan. A long-term foreign currency credit rating has gone one item up from B+ to BB-, while for short term ones to B-. The rating for long- term credits in national currency is BB-, with economic prospects evaluated as stable.

According to the rating benchmarks, Azerbaijan is ahead of such countries as Russia, Ukraine, Turkmenistan, Moldova, Romania, Bulgaria, and Turkey, the Ministry of Finance said Friday.