Business

ENI TO JOIN BTC SPONSORS

The Italian oil and gas consortium ENI has officially announced its intention to take part in the construction of the Baku-Tbilisi-Ceyhan export oil pipeline and to join the group of project sponsors with a 5% interest stake. The company has also declared its determination to participate in funding of the project.

In June, the ENI president Vittorio Minkato told an international conference in Turkey of the company's desire to join the BTC project. The company will take over 5% of SOCAR's 50% equity stake. bp, the BTC project operator, has recently suggested Russian Lukoil take part in the project and the proposal is currently under consideration. Besides, such companies as Chevron, Alberta Energy and TotalFinaElf are also negotiating the possibility of participating in the project.

SHAH-DANIZ GAS DEAL TO BE TABLED IN PARLIAMENT

The Milli Mejlis permanent parliamentary commission on natural resources, energy and ecology has decided to forward to the parliament the Azeri-Georgian agreement on the transit, transportation and sale of Shah-Daniz natural gas on the territory of the two republics and outside them via the South Caucasus pipeline system.

Chairperson of the commission Asya Manafova stated that the agreement had been signed for 60 years. Construction of the Baku-Tbilisi-Erzurum gas pipeline is expected to last till late 2004, while gas reserves in Shah-Daniz are estimated at 1 trillion cubic meters.

In 2005, the pipeline will transport 2 billion cubic meters of gas. Georgia will be paid $2.5 for the transportation of each 1,000 cubic meters, which will earn Georgia $5 million in the first year. The pipeline from Baku till Erzurum is 694km long, including 280km from Georgia to Erzurum.

GARADAGH CEMENT HOLDS WORKSHOP FOR JOURNALISTS

A workshop as part of the "From journalism to economy" project, organized by the information and analytical center of Garadagh Cement open joint stock company, was held Tuesday.

Opening the workshop, dedicated to the impact of the fourth estate on private sector development in Azerbaijan, author of the project Isgandar Sardarli said a resource center for economic journalists would be set up.

President of the Confederation of Entrepreneurs Alakbar Mammadov spoke of the role economic journalists play in developing private sector and the importance media represent in covering entrepreneurial problems. He also touched upon the contribution of the press to building a public opinion about entrepreneurs.

Another workshop will be dedicated to the approach of print and electronic media to safety issues, Mr. Sardarli said.

IBA CHARTER CAPITAL TO FULLY FORM THIS YEAR

Finance Ministry is expected to transfer the government's share of AZM8.5 billion in the International Bank's charter capital before the end of this year. Therefore, the charter fund will be fully formed, the Ministry said Tuesday.

The bank's statutory fund is expected to be doubled shortly to $10 million in a bid to hike IBA's privatization price.

The Ministry for Economic Development announced earlier that privatization of the Bank would start after its charter fund is formed completely.

The IBA charter fund is AZM20 billion, of which 50.2% is owned by the state. The government's share in the bank is expected to tumble down to 5% after privatization.

AZERBAIJAN's WTO ACCESSION DISCUSSED

A working group established over Azerbaijan's anticipated accession to the World Trade Organization (WTO) met at the Ministry for Economic Development Tuesday, the Ministry said. The meeting was attended by Minister Farhad Aliyev, US ambassador Ross Wilson, representatives of the US Trade and Development Agency, etc.

Minister Aliyev spoke of the developments relating to the process of acceptance since 1997 and asked the organization for certain privileges for Azerbaijan given its transitional difficulties.

US ambassador Wilson pointed out to political stability and availability of extensive opportunities for economic growth. He then stated that his country would offer full cooperation to Azerbaijan in facilitating its acceptance to WTO. He also pledged that Washington would appoint a special advisor in charge of such assistance.

REGION’s BIGGEST DETERGENTS FACTORY BEING BUILT

A section for soap production is due to be put into service at the detergents factory being built by "Azerpak" Azeri-Iranian joint venture. The enterprise will start operating to full capacity in May 2002. It will be manufacturing detergents, bleaches and soaps.

The plant, expected to be the largest in the Caucasus, will employ 400 people on the first stage and a total of 1,200 when it reaches full capacity.

"Azerpak" been established jointly with Iranian Emruz, which holds a lion's share of investments in the venture.

FUEL DISCOUNTS TO FARMERS PROPOSED

Unlike this year, farmers will enjoy privileges in receiving fuel and lubricants in 2002, according to the first vice-premier, chairman of the state commission on agricultural reforms Abbas Abbasov.

He said this is envisioned in the 2002 draft state budget. However, Mr. Abbasov declined to reveal the amount of such privileges.

According to the 1999 presidential decree, farmers received a 5-year exemption from all taxes excluding the land tax.

TAX MINISTRY TO SET UP ITINERANT BOOTHS

The Ministry of Taxes is going to establish itinerant tax stations in markets, customs checkpoints and commercial and state institutions that are particularly prone to tax evasion. The stations are expected to facilitate control over those dealing engaged in retail commerce, customs transactions, and trading of cigarettes and alcoholic beverages without excise marks.

According to the Ministry, 200 stations will be set up on the first stage, of which 70 will be based in Baku.

The Ministry also intends to install control stations in the underground.