Business

BARMEK HOLDING LAUNCHES WORK

Amid growing public concerns over the contract terms

By zernews Staff

It was on Wednesday that Turkish Barmek Holding, a company that possesses the 25-year concession to run Baku's electricity grid, officially started operating. Controllers of the company are touring apartments and enterprises, studying the status of electricity meters, collecting information and documenting meter readings. All data collected will be introduced in the centralized computer.

Controllers are responsible for taking the readings of meters only, while subscribers will pay for power in local branches of the International Bank or at desks of the company, Barmek Holding said Thursday.

'Explicit robbery'

Barmek’s operations came amid growing public concern over installation of power output meters at the population’s expense.

The move drew fire from public entities too. The Society for Democratic Reforms is planning to meet with the leaders of Turkish Barmek Holding to discuss the public concerns.

The society labels the company's intention to install power output meters at $50-60 for the population and $800-1000 for commercial entities as an 'explicit robbery'. It says the company is interested in the installation and should care for it at its own expenses.

The Society calls on the human rights groups to protect the population from the plans of Barmek Holding.

Consumers' Union warns of court

In another show of public frustration, the Union of Free Consumers intends to sue Barmek Holding. “The Union has repeatedly applied to the Turkish company for the disclosure of the terms of the 25-year contract for the management of Baku Power Grid”, Chairman of the Union Ayyub Husseinov told AssA-Irada Monday. He said he had sent a new letter to Barmek. "The Union will take the matter to court if an answer is denied this time", A. Husseinov said.

ABB LUMMUS TO STUDY SOCAR REFINERIES

By Azernews Staff

SOCAR has selected ABB Lummus Inc. out of the 8 contenders for complex researches into the status of its two refineries, "Azneftyag" and "Azerneftyanajag", with a view of their further upgrade, the state oil company said Saturday.

The installations to be studied include the special oil port Dubandi. A feasibility study into the upgrade of the oil refineries will be prepared to mull the possibility of refining exported crude. It entails the expansion of the Dubandi port to handle produced oil. Also studied will be the scope for transportation of additional volumes of oil extracted in the Caspian region via the Baku-Tbilisi-Ceyhan to international markets.

Funding the researches is the US Agency for Commerce and Development. ABB Lummus Global Inc. has an extensive experience in similar surveys, having implemented over 60 projects for reconstruction and upgrade of refineries.

WILL EURO AFFECT PRICES IN AZERBAIJAN?

By Arslan Abbas Azernews Contributor

The application of Euro in Azerbaijan won't affect the prices, according to a source from the International Bank of Azerbaijan (IBA).

The application of Euro has caused massive concerns across CIS nations. Since most of the CIS states heavily hinge on USD, the introduction of the new currency is largely feared due to its potential of affecting domestic price policies.

According to the source, Euro will simply replace the currencies of the European Union member states. It should be noted that 45% of Azerbaijan's trade turnover is with EU member countries. The IBA has exported a first lot of Euro totaling 200,000.

It is noteworthy that Euro caused the prices for railway tickets, power and gasoline to rise in Germany.

2% of daily currency flow

Europe's single currency, Euro, has been in place in Azerbaijan since January 2 this year and makes up 2% of the country's daily currency circulation, the International Bank of Azerbaijan said Friday.

Euro has 15 screening systems and is issued on 5, 10, 20, 50, 100, 200, and 500 Euro banknote. Euro cent isn’t used in Azerbaijan.

AZERBAIJAN, UAE MULL AIR CO-OP

Agreement was reached to prepare three new drafts on cooperation between Azerbaijan and the United Arab Emirates (UAE) during Azeri deputy foreign minister Khalaf Khalafov's visit to the UAE.

The experts of the two countries will devise draft intergovernmental agreements on avoiding double taxation, protecting investments and cooperating in air transport.

The agreement on air cooperation would enable a UAE company to operate in Azerbaijan. It is noted that Emirates Airlines abandoned its business in the country after what was described as ‘misunderstanding’.

PAKISTAN MAY EXPORT LOW-PRICE GOODS TO AZERBAIJAN

Pakistan may export agricultural and industrial goods at lower prices to Azerbaijan, Pakistani ambassador Faiz Muhammad Khoso has told journalists in Baku. He said his country is set to export rice, cotton, clothes, woolen threads, and operational equipment to Azerbaijan.

The ambassador said there is an opportunity to hold exchange of experience in the oil sector, as Pakistan, as an oil producing country, has an extensive practice in the area.

All these issues will be on center stage during a meeting of the Azerbaijani-Pakistani intergovernmental economic commission in the first half of the year in Islamabad.

SMALL BUSINESS COURSES DUE IN ISRAEL

International business development courses are due in Israel from January 20 till February 10. The courses organized by the International Cooperation Center of the Israeli Foreign Ministry will be attended by business executives from developed and developing nations, including Azerbaijan.

The training program of the courses comprises social and economic problems in transition to market economy, systems supporting small business, development of business plans, etc., the National Confederation of Entrepreneurship Organizations of Azerbaijan said Wednesday.

COMMS MINISTRY PLANS TO CUT MOBILE TARIFFS

The Ministry of Communication plans to cut tariffs for calls from the local telephone network to mobile phone users of Azercell and Bakcell since February 1. The tariff rate will be reduced from AZM1440 to AZM450 for a minute for Baku subscribers and to AZM900 for regional phone users. The Ministry has already forwarded its proposal to the ministries of economic development and finance for coordination. The application of the reduced tariff rates will be possible after the ministries approve it, a source from the Ministry of Communication said Tuesday.

INVENTOR COMPLAINS ABOUT OFFICIALS

An inventor, the author of several inventions and two patents, engineer with the regional civil defense department of Surakhani district of Baku Rasman Hajiyev held a news conference Tuesday. He specified his inventions, involving a bullet proof vest, a special microscope, a wheel chair, a bio-engine, and spoke of their importance and profitability under local conditions.

According to R. Hajiyev, Premier Artur Rasizadeh prevented the parliament-approved production of wheel chairs for the disabled that cost $200,000. "My appeals to state bodies, including President Office official Fatma Abdullazadeh turned sterile", he said, calling on media to help his inventions come into reality.

NBA PLACES CASH PRINTING CONTRACT WITH DE LA RUE

The National Bank of Azerbaijan has placed an order with De la Rue for printing manat banknotes totaling AZM931 billion. AZM28 billion worth of 1,000 manat banknotes printed by De La Rue were delivered to Azerbaijan later last year. In addition, 2.5 million 250 manat banknotes, 20 million 500 manat, 120 million 1,000 manat, 55 million 10,000 manat, and 5 million 50,000 manat banknotes are expected to arrive in the country shortly. Apart from the 1,000 manat, the design of other banknotes hasn't been changed, a source from the NBA said Tuesday.

AZM600 billion worth of cash has been taken out of use, according to the source.