Business

HALF OF CEMENT YET TO BE MET

The "Garadagh Cement" JSC plans to produce 400,000-450,000 tons of cement in 2001 with country needs of 850,000 tons. In 2000, 240,898 tons of cement, or 79,224 tons over 1999, were produced, the company told AssA-Irada Monday.

Currently, the JSC produces the Brand 400 cement, which meets European standards. A modern laboratory equipped in accordance with contemporary requirements has been set up, enabling to examine the quality of cement every 20 minutes.

A total of $3.35 million has been invested in reconstruction of the works to date, while monthly wages average around AZM750,000.

In 2000, "Garadagh Cement" transferred AZM3.96 billion to the state budget and AZM6.66 billion to the Social Security Fund.

AZERONLINE TO PROVIDE INTERNET SERVICES ACROSS COUNTRY

"Azeronline" company intends to provide Internet services to 25,000 subscribers in Baku, Sumgayit, Ganja and Nakhchivan on the first stage and Lankaran, Ali-Bayramli, Kurdamir, and Shaki - on the second. The third stage will encompass the entire republic, chairman of the company's Board of Directors Erdal Otuzbir told a news conference Friday.

According to him, the first investments in the Internet business were made by "Azercell" Joint Venture and current exceed $2 million. Experimental packages provided to 2,000 subscribers have already justified themselves. The services also envision unlimited monthly, 2-, 3-, 6-month and yearly Internet packages. The use of leading equipment and technologies in the world, including Ericsson, Kisko, etc. contribute to highly competitive services, he said.

AZERI, IRANIAN ENERGY SECTORS SIGN TWO AGREEMENTS

Azerbaijan and Iran signed two agreements on electricity supplies to the Nakhchivan AR in Tehran last week following two-day negotiations between the "AzerEnergy" JSC and Iranian "Tavanir" company.

After the signing ceremony, president of "AzerEnergy" Mr. Imanov said his visit to Iran was useful and the parties agreed on repaying Azerbaijan's arrears to Iran within 4 years.

The first agreement envisions the supply of 40 to 50 MW of electrical energy to the enclave, while under the second agreement, Azerbaijan will supply Nakhchivan with electricity by transmitting it to the Iranian party through the Imishli-Parsabad line for further transmission to the autonomous republic.

"The importance of this agreement for Azerbaijan is that we will be receiving energy for Imishli in winter months and returning in summer", Mr. Imanov said.

VOUCHER AUCTION SCHEDULED FOR FEBRUARY

The next specialized voucher auction is scheduled for February 13-17, Ministry of State Property told Azernews Thursday. Shares of 26 enterprises, including "AzerVtorChermet", "AliBayramliTikinti", "SamukhSharab-6", "KurdamirTikintiGurashdirma" JSCs, etc., will be put for sale.

Both Azeri nationals and expatriates can take part in 5-day closed-door auctions.

TRANSIT REGIME TO MEET INT'L REQUIREMENTS

A European Customs expert Fernando Campos Pereira is currently in Baku under the auspices of the Tacis program in order to study the existing customs legislation and issue recommendations on bringing it into conformity with international requirements.

The expert has met with employees of the state customs committee, according to the committee press-service.

IMF PLEASED WITH CUSTOMS COMMITTEE's WORK

The visiting director of the IMF mission John Linn has described the work of the Azerbaijan state customs committee as satisfactory in a meeting with the committee executives. The parties exchanged views on ways of developing the committee's work in the next 3 years, new customs fees, stepping up anti-contraband struggle, and IMF assistance in these issues.

Deputy chairman of the committee Mr. Muslimov said establishment of customs terminals and a gradual closure of smuggling channels require considerable financial resources.

BAKU GAS-SUPPLY TO IMPROVE IN FEBRUARY

Gas production is expected to surge by 600,000-700,000 cubic meters per day in February. The surplus will be used in addressing the needs for gas in Baku, president of the "AzeriGas" JSC Alikhan Malikov told a traditional weekly news conference of the governing "Yeni Azerbaijan Party" executives.

According to him, 11 million cubic meters of gas is needed to fully supply gas to the capital, with only 9.6 million currently supplied. Besides, the throughput capacity of gas pipes is designed for 1.5 million people, while the population of Baku is 2.5 million at present. Gas pipelines and equipment of gas distribution stations require reconstruction, which is unaffordable.

Mr. Malikov added that "AzeriGas" had started repair and reconstruction operations at its own expense and has already renovated 800 km of gas pipes.

CREDIT AGRICOLE KEEN ON STAYING

A mission of French "Credit Agricole" bank is currently in Baku to hold the second stage of talks with the National Bank and the Ministry of Finance, deputy minister for economics Ogtay Hagverdiyev told Azernews Monday.

The talks are expected to focus on further presence of the bank in Azerbaijan in the capacity of a crediting manager within the framework of World Bank's "Crediting of agricultural development in Azerbaijan" project.

A contract for execution of agent duties by the French bank as part of the project, as well as a similar project under the auspices of the International Development Association, is to be signed.

ADB TO ISSUE CREDITS TO AZERBAIJAN

A mission of the Asian Development Bank (ADB) is expected to visit Azerbaijan in February to choose projects for subsequent funding, deputy minister for economics Ogtay Hagverdiyev told AssA-Irada Tuesday.

Pursuant to the ADB crediting strategy for Azerbaijan, the Bank will be issuing 20% of the credits on commercial terms, while the other 80% will be provided in advantageous credits. The terms will be similar with those of the WB: with yearly interest stake of 0.75%-1% for 30-40 years with 10-15-year adjournment in repayment.

ENTREPRENEURS SUGGEST TO SET UP SPECIAL BANK

The Entrepreneurship Confederation of Azerbaijan (ECA) has suggested to the Cabinet of Ministers to establish a special bank for crediting small and medium enterprises. The need for such a bank is explained by the imperfect crediting system in the country.

Entrepreneurs propose to set up an entity similar to the Turkish "Halg Bank", which has successfully functioned for nearly two decades, providing advantageous credits to entrepreneurs.

Commenting on the proposal, deputy minister for economics Ogtay Hagverdiyev said establishment of the bank would mean setting up a new state-owned bank, which contradicts the bank reform program.

AZERBAIJAN, BULGARIA SET FOR NAVIGATION CO-OP

As reported earlier, a group of Bulgarian businessmen has visited Baku to hold meetings with Azeri counterparts. The businessmen exchanged draft agreements with the Caspian Shipping Company (CSC) on commercial navigation, according to the Ministry of Economics.

Under the agreement, vessels of both countries will have uninterrupted access to the ports of the two countries. Azerbaijan has signed similar agreements with Turkey, Romania, Turkmenistan, and Georgia. At present, draft treaties on navigation with Russia and Iran are currently in preparation.

DRAUGHT DAMAGE OF $100 MLN

According to the estimates of Azeri specialists, the economy has sustained the damage of 390 billion manats as a result of continuous draught in some Azeri provinces in the summer of 1999. Foreign experts assess the damage at $100 million.

A UN Food and Agriculture Organization (UN FAO) delegation has traveled to Azerbaijan following an appeal from the Azerbaijan Government. Azeri Ministry of Agriculture told Azernews Thursday that the delegation, in cooperation with the Cabinet of Ministers, state committee for melioration and water economy specialists, had visited the draught-affected regions and reported on its findings to the Rome-based FAO. A special WB-funded draught relief project will be prepared soon.

ECONOMICS MINISTRY TRYING TO REVIVE CHINA's 6-YEAR-OLD CREDIT

The Ministry of Economics has submitted a list of perspective industrial enterprises in need of financing to the Cabinet of Ministers for consideration. The enterprises are to be financed with the $7 million credit allotted by Chinese government back in 1994.

The list includes some light industry enterprises, including the Shaki silk-worm breeding enterprise and the Baku chinaware and faience JSC.

The latter is anticipated to manufacture sanitary engineering goods that are currently imported.

TENDER WINNER TO BE ANNOUNCED LATE FEBRUARY

A winner of the tender for long-term concession of the "Baku Electricity Network" JSC will be determined in late February and an agreement signed in March, Ministry of State Property said Friday.

The tender was conducted on November 28, 2000 and attended by 6 foreign companies, including "AES Parkshot Holdings B. V." (Netherlands), "AzerElectric" (Turkish-Northern Cyprus JV), "ETZ Praha A. S. (Czech Republic), "Barmek Holding A. S." (Turkey) and German "Stadtwerke Leipzig" and "Siemens".

After the initial evaluation of tender bids, the tender commission and consulting company "Arthur Andersen" held extra meetings with the companies focusing on tariff methodology, activity standards for future investors, etc.

Assessment of tender bids is currently underway.

INTERNET TARIFFS TOO HIGH

Internet tariffs in Azerbaijan are 40 times as high as in Turkey, while in comparison with the US and Europe the difference is even bigger, chairman of the Management Board of "Azeronline" Erdal Otuzbir.

According to him, if the Ministry of Communication agrees to the proposals of his company, the tariffs coordinated with ministries of finance and economics and the state committee for anti-monopoly policy may be reduced to the level of Turkish ones.

SLOWEST HOUSING PRIVATIZATION IN 2000

In 2000, 12,000 apartments with a total space of 700,000 square meters were privatized, the lowest indicator since the beginning of housing privatization. 0.3% of all apartments slated for privatization were privatized in 2000. In 1999, the figure stood at 0.4% and much higher in preceding years.

Since the beginning of privatization, 300,000 apartments with total dwelling space of 16 million square meters have been privatized, or 47.5% of total housing privatization volume.