Business

PRESIDENT INAUGURATES NEW FISHERY

By Saba Agayeva Azernews Staff Writer

President Aliyev attended the opening ceremony of a new fishery in Khirdalan district of Baku Saturday, that has been built by British "Caspian Fish Co. Azerbaijan".

In his opening remarks, Minister for State Property Farhad Aliyev said $5 billion in foreign investment had been made in the Azerbaijan economy over the last 5 years, with particular emphasis on private sector.

Director of "Caspian Fish Co. Azerbaijan" Mr. Pace said $56 million had been spent on building the factory, equipping it to the latest standard and launching primary production. 800 people are employed by the factory, which produces 10 types of fish products, as well as fish flour and grease.

The products will be exported outside Azerbaijan, he said.

According to Mr. Pace, $31 million more will be invested in the enterprise soon, to be spent on artificial ponds, establishment of a science center and purchase of new fishing vessels.

Mr. Pace informed the President of the problems encountered by investors, saying it would be useful to equalize the rights of state-owned and private sectors in fishing. He added that it was necessary to attend to the ecological problems of the Caspian and thwart poaching.

President Aliyev described the opening of the fishery as a landmark event for the country's economy and spoke highly of the first foreign investment in the fishing sector. According to him, it is particularly commendable that launch of the factory would also provide new jobs. H. Aliyev admonished government institutions against interference with the private sector.

The President said with some regret that Azerbaijan, which used to produce up to 60,000 tons of fish products a year, has to be content with 22,000 tons at present. Criticizing the work of the state concern "AzerBalig", he said the concern should try to radically change the situation as soon as possible.

IRANIAN DELEGATION IN AZERBAIJAN

Prime Minister Rasizadeh received a visiting Iranian delegation led by the head of the Ardabil province Seyyid Hamid Tekhai Friday. A Cabinet source has told Azernews that the parties agreed on industrial, tourism and agricultural cooperation between Azerbaijan and Ardabil.

Also on Friday, the delegation met with the State Customs Committee executives to talk over the opportunities of expanding trade and economic relations between Azerbaijan and the Iranian province. The Iranian party voiced an interest in collaborating with Azerbaijan.

Underscoring the importance of conducting an exhibition of goods made in Ardabil in Baku, the chairman of the Customs Committee K. Heydarov said it would promote the Ardabil-manufactured goods in Azeri markets.

IFAD FUNDS AGRICULTURAL DEVELOPMENT IN HIGHLAND PARTS

The International Foundation for Agricultural Development (IFAD) is expected to fund the second stage of the rural development program for mountainous and highland parts of the republic in March, director of the agency for assistance to the development of pilot farms Vagif Husseinov told journalists at a traditional weekly news conference at the "Yeni Azerbaijan Party" HQs Friday.

According to him, on this stage the funds will be spent on agricultural development in Shahbuz and Ordubad provinces of Nakhchivan. IFAD has allotted $3 million for the purpose.

IFAD representatives traveled to Baku lately to hold talks on the second stage of the program.

WHO IS TO ISSUE BAR CODES?

The "EAN Azerbaijan", the organization issuing bar codes on domestically manufactured goods, has for the third time applied to the Ministry of Justice for registration. The latter, however, has consistently refused to register the organization, because the Chamber of Commerce and Industry is also aspiring to obtain a relevant license and has too asked the ministry to register its subsidiary.

Meanwhile, "EAN Azerbaijan" has already been recognized by the "EAN International", which has issued 476 prefixes to Azerbaijan. As of January 1, 2001, "EAN Azerbaijan" had issued bar codes to 69 organizations, including Coca-Cola, Shollar, "AzerBaliq" state concern, etc., says the organization's manager Samir Aliyev.

According to him, Azerbaijan holds the last place in the Caucasus for the coverage of bar codes.

FINANCE MINISTRY TO TIGHTEN CONTROL OVER CREDIT EXPENDITURE

The government intends to attract $400 million in advantageous credits to develop the agricultural sector as a priority economic sphere. The funds will be provided by the WB and EBRD, Finance Ministry told Azernews Thursday.

In broad terms, the government is planning to limit the volume of credits being provided under state guarantees.

Besides, the Ministry is going to tighten control over credit expenditure and repayment, as its representatives will be sent to beneficiary organizations and monitor the process of expenditure.

Since gaining independence, Azerbaijan has received a total of $1.9 billion in credits, including $1.2 billion under state guarantee. Since 1992, as part of cooperation with the IMF, the Fund has allotted $462 million in credits to Azerbaijan and carried out 5 programs. $60 million has been received from the Islamic Development Bank.

As of January 1, 2001, Azerbaijan's foreign debt constitutes 25.1% of GDP, while in Russia the figure stands at 93% and in Armenia 45%.

MR. BRICOLAGE RENAMED INTO MASTER TIBOT

An official ceremony of renaming the "Mr. Bricolage" construction materials shop into "Master Tibot" was held in Baku last Wednesday. General director of the shop Ali Ihsan Genc told journalists that the renaming had been planned earlier, but was accelerated by the French Senate resolution that officially recognized the "Armenian genocide" by Ottoman Turkey in 1915.

He said "Master Tibot" was selling goods from many countries of the world, but a prohibition would be imposed on goods imported from France.

Mr. Genc also encouraged local manufacturers to step up their work and enrich the assortment of the shop's goods.

"Master Tibot" is the first foreign representation of the Turkish firm. In the future, it is expected to open shops in Russia, Central Asian and Balkan states.

Speaking of the work of the shop, Mr. Genc said it employed over 50 people. To date, the shop has transferred $2.65 million in tax to the state budget.

ISAR ANNOUNCES NEW STAGE OF GRANTS

ISAR-Azerbaijan humanitarian organization has announced the commencement of another stage of the Big Grants Program for public organizations funded by the USAID. ISAR-Azerbaijan told Azernews Thursday that the grant of around $10,000 would target improved work of public organizations, as well as implementation of social and ecological projects. Deadline for applications is February 16, while for projects proper - March 2.

INSURANCE COMPANIES MAINLY APPROACHED BY LEGAL ENTITIES

The 45 insurance companies functioning in Azerbaijan at present are mainly approached by legal entities, while the physical entities they serve are largely expatriates working in Baku. The state holds a share only in one of these - the state commercial company "AzerSigorta". The other 44 companies are private, including 9 Joint Ventures, according to the department for state insurance under the Cabinet of Ministers.

According to the legislation, the share of the Azerbaijan party in the charter fund of joint insurance companies formed with English, US, Russian, Turkish, Iranian, and Italian firms has been set at 51%.

According to preliminary data, insurance revenues are expected to grow 5-10% in 2000 as compared to 1999, when a total of AZM60,011,200,000 ($13,739,000) were collected on all types of insurance payments. 79.8% of these were made up of voluntary insurance and 20.2% of mandatory.

WATER COLLECTOR TO BE BUILT BY LOCAL COMPANIES

Results of a WB tender for construction of a water collector on the Samur river, needed to supply Baku and Sumgayit with potable water, were announced Friday. Local companies "AzerSuTikinti" and "AzerEnergyTikintiGurashdirma" have won the competition. In late February, these companies and WB will sign documents on the project valued at $2 million.

BETA CLOSING DOWN?

Turkish ambassador to Azerbaijan Gadri Ezvet Tezcan told journalists lately that the Azerbaijan government has been negligent of the problems of Turkish entrepreneurs in Azerbaijan. Many Turkish companies have had to leave Azerbaijan of late, with a similar lot in store for "Beta", the ambassador said.

Asked about the reason, he referred the question to the Azerbaijan government.

A source from the company, however, has said nothing is the problem with the company, which is not thinking of leaving Azerbaijan.

Neither the Cabinet of Ministers nor the Ministry of Economics has commented on the Turkish diplomat's utterance.