Business

WTO ADMISSION TALKS EXPECTED

The Azerbaijan government is expected to initiate talks with the World Trade Organization (WTO) in two months. Apart from a number of issues to be discussed, the parties will focus on the country's acceptance to the organization, the Ministry of Trade told Azernews Monday.

Currently working groups on tariffs, services and subsidies are operating under the government, as the Cabinet of Ministers is to consider the proposal, prepared by the working group on subsidies on March 29. In April, the Azerbaijan government will forward its position concerning tariffs in writing to the WTO secretary general in Geneva.

According to the Ministry of Trade, the WTO intends to hold a seminar in Baku in the last week of April. The Azerbaijan government, in turn, is going to take some measures pertaining to the admission.

POVERTY ERADICATION PROGRAM TO BE READY SOON

The state poverty eradication program will have been ready by the end of March, deputy minister for economics Ogtay Hagverdiyev told Azernews Monday. The program is intended to be effective for several years.

President Aliyev decreed some two weeks ago to set up a commission to develop such a program. Mr. Hagverdiyev is a member of the program.

PROPERTY MINISTRY ANNOUNCES ANOTHER CHEQUE AUCTION

The Ministry of State Property announced the 48th specialized cheque auction, due from April 2 till 6 Saturday. The auction will sell 12 joint stock companies.

On the commencement day of the auction closed subscription will be also held for shares of such JSCs as "Mingachevir Mechanization-5", "Aghsu Mehmankhana", "Sumgayit Tricotaj", "Jeyranbatan AvtoNagliyyat", "KandNagliyyat", etc.

A source at the Ministry told AssA-Irada Tuesday that one share costs AZM10,000.

"AZERSUN HOLDING" PRIVATIZES LANKARAN TEA FACTORY

"Azersun Holding" has purchased 80% of the Lankaran tea factory in an auction, while 12% of the enterprise's shares has been won by its staff. According to the president of "Azersun Holding" Yunus Arifoglu, $3.5 million will be invested in the enterprise initially. The company plans to allocate advantageous credits for the development of tea-growing in Azerbaijan.

RESOLUTION ON FUEL SUPPLIES RETARDING

The Cabinet of Ministers is delaying to adopt a resolution to extend the term of selling fuel to agricultural entities on an advantageous basis. Such a resolution is approved each year, but no decision has been made yet.

A Cabinet source told Azernews Monday that there were no details on the issue.

According to the Ministry of Agriculture, it is because of the lack of a relevant resolution that only 48,500 hectares of land, 15,000 hectares below 2000, have been cultivated for cotton. Specialists think that if the delay takes three more months, productivity may reduce in half.

QUAKE DETECTOR BEING MADE

According to the renowned scientists-seismologist, president of the "InterGeoTetis" scientific and technical complex Elchin Khalilov, work for producing a special facility, an earthquake detector is underway at the complex.

Many people has got extremely scared following the November 25 quake, carefully observing the chandelier to assure that the earth is not shaking any longer (This is referred to as "Psychological chandelier disease"), Mr. Khalilov said. The detector, currently under preparation, is capable of forecasting the earthquake 15-20 seconds prior to the main tremor using sound and light signals. According to Mr. Khalilov, the time is quite enough for people to evacuate. The detector is able of reacting to 2- to 6-magnitude quakes.

Mr. Khalilov said that the complex is currently receiving applications for the detector, which allegedly cost $25.

WORK PROGRESSING AHEAD OF SCHEDULE

The work for reinforcing the foundation of the steam and gas facility at the "Severnaya" power station, 40 km off Baku, is expected to complete in April. The operations were earlier estimated to be finished in May, a source at the "AzerEnergy" JSC told AssA-Irada Monday. The facility is to be commissioned by the end of 2002.

The commissioning of the facility will save 400,000 tons of heating oil and eliminate the loss of 150 million kw/hours of power while being transmitted from Mingachevir to Baku.

Contractors of the construction are Japanese Mitsui and Mitsubishi. The total cost of the project, which is funded by the International Cooperation Bank of Japan under the state guarantee from Azerbaijan, is $180 million.

AZERCELL SIGNS NEW LOAN AGREEMENT

Azercell announced Wednesday of its signing a term-sheet, an agreement on the terms of a loan, valued at $100 million with the EBRD and the IFC. The loan will be used for the expansion of Azercell's GSM network and to refinance existing debt. Re-payment of the loan will be completed in year 2007.

Azercell the leading GSM operator in Azerbaijan with approximately 400,000 postpaid and prepaid customers as end of year 2000.

AZERBAIJAN APPEALS TO TACIS

The Azerbaijan government has applied to the TACIS program for assistance in preparing a three-year state investment program.

The investment department of the Cabinet of Ministers told Azernews Friday that the program, intended for 2001-2003, is expected to include priority projects. Since Azerbaijan cooperates with the WB, IMF, IDB, EBRD and other financial entities on the basis of three-year programs, the investment program is also scheduled for three years.