Business

SHAHDANIZ PARTNERS SIGN HGA WITH GEORGIA

By Azernews Staff

The partners on the transportation project of Azeri gas from the Shahdaniz field in the Caspian to Turkey signed the Host Government Agreement (HGA) with Georgia in Tbilisi Thursday. The signing ceremony took place in the Sheraton Hotel, where the President of Georgia Eduard Shevardnadze and other senior officials witnessed the signing.

The Agreement was ratified by the Georgian parliament on December 19 and by the Azerbaijan parliament on October 23 of 2001. The first gas supplies are scheduled for October of 2005.

The HGA signing represents a significant milestone for the Shahdaniz project, marking the transition into the final stage of engineering, tendering and commercial development work which will lead up to the planned sanction of the project in July 2002.

Gia Chanturia, President of the Georgian International Oil Corporation (GIOC), highly appreciated the signing. "The Shahdaniz gas export project is very important for Georgia's further development, and the people of Georgia fully recognize this and are supportive. The agreement signed today is the logical consequence of the intergovernmental agreement signed by President Eduard Shevardnadze and President Heydar Aliyev in Baku last September, and represents a significant milestone in realization of the South Caucasus Pipeline system", he said

The signing of the ratified Georgian HGA is "an important step which will enable construction activities to commence this year and the first gas to be delivered to Georgia and Turkey by 2005," said Natig Aliyev, President of the State Oil Company of Azerbaijan (SOCAR).

On his part, bp President in Azerbaijan David Woodward stated: "This is yet another remarkable milestone which paves the way for the development of the world-class Shahdaniz gas field in the Azerbaijan sector of the Caspian Sea and construction of a new gas pipeline from Baku to the Georgian-Turkish border and here to link up to a new BOTAS pipeline."

PIPELINE UNITING TURKEY, GREECE

By Dursun Ozden Azernews Staff Writer

Turkish minister for energy and natural resources Zeki Cakan said later last week that the South Europe's Gas Ring project envisions gas to be exported from the fields in the Caspian and other regions to Turkey and then to Europe through Italy and Greece. This pipeline is expected to unite Turkey and Greece, Mr. Cakan told the special AssA-Irada correspondent in Turkey and the Balkans Dursun Ozden before departure to Milan, Italy to take part in consultations on investing in the Balkan energy complex.

Z. Cakan spoke of rational projects underway in the international energy system. The minister pointed to rational and productive use of energy resources in both Turkey and the region.

Announcing the beginning of the work for the pipeline between Turkey and Greece, Mr. Cakan said that Turkish and Greek BOTAS and DEPA had started developing a blueprint to unite the gas systems of the two countries. An intergovernmental agreement will be signed and engineering will commence 6 months after the work is over.

Under regional power cooperation between Turkey and Bulgaria, the construction of the second additional electricity transmission line will be completed soon. Power supplies to Greece are also in consideration, the minister said.

ASIAN DEVELOPMENT BANK BRANCHING OUT IN AZERBAIJAN

By Azernews Staff

The Asian Bank for Development (ABD) has been recently intensifying its operations in Azerbaijan, as it opened a branch office in Baku last week.

The ABD coordinating office is located in the Hyatt Regency Hotel of Baku. The office is led by Faraj Husseinov.

Headquartered in Manila, Philippines, the bank was established in 1966 and has 60 members, including Azerbaijan admitted in 1999.

$850,000 for nutrition program

Minister for public health Ali Insanov and director of the Asian Bank for Development Department for Central Asia and Europe Giirt van Der Linden signed a document Wednesday on allocation of loan to Azerbaijan as part of the Assistance to Asian Nations for Nutrition of Poor Mother and Children program.

Azerbaijan is expected to get $850,000 and Asian nations $6 million in assistance. The country will use the funds to iodize salt, mineralize wheat, as well as hold relevant monitoring and conferences.

Implementing the project will be the Ministry of Public Health of Azerbaijan.

$23m for better water supplies

The Bank is also planning to allot $23 billion in loans to better water economy and water supply systems in Azerbaijan's regions. The decision to allocate the loan will be made in late 2002. However, Azerbaijan could get the bank's funds on commercial terms if necessary.

Funding refugee lodging

Houses, schools and nursery schools will be constructed for 20,000 refugees in Mingachevir using $2,5 million worth of grant allocated by the ABD.

Negotiations are underway between the bank and the Azerbaijan government on the conditions of the grant and an agreement on the allocation is to be signed soon.

ENERGY TRANSFORMER TO BE EXPORTED FROM CROATIA

The transportation project of a 200 Mega Watt strong large auto transformer from Zagreb, Croatia has stepped into its final stage. The transformer is to be installed in a sub-station being built in Agjabadi with the capacity of 330/110 k/W.

A team of German KN specialists are currently drawing an itinerary for the important consignment, which is likely to be carried through the Mediterranean Sea, the Black Sea, the Volga-Don Canal and the Caspian.

In Baku Sea Port, the facility will be modulated on a platform and transported overland to Agjabadi, Azerenergy said Wednesday.

Before being shipped to Azerbaijan, it is to undergo testing in the manufacturing enterprise in Zagreb in May. It is only after the trials that a final decision will be issued to convey the facility from the Balkans to Azerbaijan.

Work for construction of the sub-station in Agjabadi commenced in late February as part of the Mingachevir Energy Project. Winning the tender for the project was German Siemens, while contracting activities are being done by local construction, mounting and repair companies. The work is to complete in 5 months.

CASH DESKS TO BE INSTALLED IN ALL TRADE OUTLETS

The Ministry of Taxes has fixed timing for installation of small cash desks in all trade, catering and household outlets depending on the space occupied and administrative location.

In outlets with a total space of six square meters in Baku, Nakhchivan, Sumgayit, Ganja and Mingachevir the cash devices should be installed before October 1, 2002, while in other cities with shops of six square meters, in provincial centers and settlements with outlets of a space of nine square meters before December 1 and outlets of 12 square meters in rural regions before December 31 this year.

Small cash desks are not expected to apply to exchange points, the Ministry of Taxes reported Monday.

The devices will be manufactured in Azerbaijan, costing from $143 to 200 with VAT included. The Ministry has recommended to market the desks on interest-free loans, the Ministry said.

AZERI ENERGY SPECIALISTS LEAVE FOR MOSCOW

A delegation of Azeri energy specialists led by President of AzerEnergy joint stock company Etibar Pirverdiyev flew to Moscow Monday to take part in the tenth jubilee meeting of the CIS Electrical Power Council.

Joining the meeting presided by the Russian Common Energy System Anatoliy Chubays will be heads of 12 CIS and three Baltic nations, AzerEnergy said.

The parties are expected to exchange views on the situation with energy sector and ways of its development in prospect.

The Azeri delegation is expected to leave Moscow for Warsaw to attend a broad consultation to explore scopes for parallel operation of the CIS and European power grids.

NEW STEAM-GAS FACILITY IN REGIONAL POWER STATION

Serious technical errors were committed in the design of the Northern Regional Power Station (NRPS), which is currently under reconstruction, according to AzerEnergy.

Specialists allege that both turbines in the plant were placed on the same axis. It means that the stoppage of one of the turbines immediately sidelines the other. The blunder handicaps repair work and negatively affects the operation of the whole energy grid in the country.

The construction of a new steam and gas facility measuring 400 Mega Watts on different axes is a must in order to augment electricity supplies to Absheron Peninsula, the JSC said.

AzerEnergy and Japanese Mitsui/Mitsubishi signed a contract to build the facility in June of 2000. Its capacity with one gas and steam turbine stands at 400 Mega Watts.

Under the contract, test and laying work is due this summer, while the facility is to be commissioned in November 2002. But, the commissioning has fallen under question since delayed construction of the Garadagh-NRPS gas pipeline aiming to heat the station.

CHF INTERNATIONAL TO ORGANIZE TRADE FAIR IN IMISHLI

By Tofig Niftaliyev Azernews Staff Writer

CHF International's Community Employment and Economic Opportunity Program (CEEOP) is going to organize the Novruz trade fair in Imishli on March 28. This event is the first of its kind on development of small business and entrepreneurship in Azerbaijan. 60 entrepreneurs and small business owners from the conflict-affected southern regions of Azerbaijan - Saatli, Sabirabad, Bilasuvar, Fizuli, Imishli and Beylagan will be provided with the opportunity to set up working relationships with processing companies, Baku-based businessmen, representatives from the Ministry of Agriculture and local Executive Committees.

Also speaking in the fair will be international guests who will discuss the trade fair and hold multiple business sessions.

The CEEOP has been operating in Azerbaijan since May of 2002 and funded by the US Agency for International Development (USAID) and administered by the Mercy Corps Organization.