Business

AZERBAIJAN GRANTED SIXTH-GRADE CREDIT RATING

An Azeri delegation led by minister for economic development Farhad Aliyev negotiated with German Hermez Kreditferixerunq AG on insurance of Azerbaijan-bound loans in a recent working visit to Germany. The company was provided with documents on economic reforms in Azerbaijan and measures to better the investment climate.

Following the talks, Hermez Kreditferixerunq AG decided to raise Azerbaijan's credit rating to the sixth grade since January 1, 2002. The decision has put the country in the same row with Russia, Kazakhstan, Turkey and Romania.

The enhancement in the credit rating means insurance of investments in Azerbaijan at a lower cost, something that could expedite the interest of German lenders, the Ministry of Economic Development said in a statement Friday.

Hermez Kreditferixerunq AG is Germany's largest loan insurer, allowing for 40% of the world's credit insurance market.

SIEMENS TESTS POWER EQUIPMENT

Equipment by German Siemens for a 330/110 k/W strong sub-station in Aghjabadi province of Azerbaijan has successfully passed final tests and ready to be shipped to Baku. Siemens won a relevant tender for construction.

The tests were held in Berlin last week with specialists from AzerEnergy joint stock company, deputy chief engineer Rafig Mammadov and senior engineer Azer Khammadov, present, the JSC said Friday.

The Azeri experts made sure that the device was reliable, accepting official minutes of the trial.

The work to construct the sub station commenced in late February this year as part of the Mingachevir Energy Project. All contracting activities are being done by local construction, mounting and repair companies. The construction is to be completed in 5 months.

The commissioning of the new capacity in Agjabadi would help AzerEnergy expand capabilities of securing sustained power supplies to the central, western and north-western parts of the country.

CHEMISTRY COMPANY ACCESSING NEW REGIONAL MARKETS

A joint Azeri-Latvian venture, Azbalt, has recently been set up in lieu of Latvian Baltpas in Riga, "Azerkimya" (Azerbaijan chemistry) state concern said in a statement Monday.

Market researches are being held to study the assortment and need for the products by the Azeri concern in Latvia and neighboring nations.

Initial data suggest that there is a great demand for polyethylene, Azeri-made iso-propylene spirits awarded with the international Europe's Arch, antifreeze and other products. The production of polyethylene covers will be launched shortly, the concern reported.

Up-to-date technological equipment will be installed in the enterprise to manufacture and process new chemical substances.

The joint venture will enable Azerbaijan to regulate marketing of Azeri chemical products in West and North European markets, organize new productions using raw materials and semi-finished goods of Azerkimya and reduce the share of transport outlays in production cost, which is an important factor for price formation.

A special site has been allotted for the concern in Riga that will be either leased or purchased by the state concern of Azerbaijan. The Latvian Baltpas owns the lion's share of Riga Seaport.

LOW WATER LEVEL HANDICAPPING POWER GENERATION

Power generation to supply hydro power stations of the country has reduced because of a sudden decrease in water level in the river Kur and its inflows. The usual water level in Mingachevir and Shamkir water reservoirs used to rise by 40-50 centimeters a day in spring, AzerEnergy joint stock company said Friday.

AzerEnergy specialists say the spring of 2002 is the worst in the past 5 years. At present, it is possible to accumulate only 5-10 centimeters of water a day in the Shamkir water reservoir. The water depth in the Mingachevir water reservoir is between 69,2 and 74,5 meters.

According to the specialists, the low water accumulation prevents using power generating facilities on the Kur to their full capacity, especially for nighttime maximum power consumption. The power stations are operating to half of their capacity, reducing power production.

Water is amassed in the Mingachevir-Varvara and Shamkir-Yenikand hydro power stations for their uninterrupted operation in autumn and winter. However, there has been a falling tendency of spring waters. Nowadays, average daily water flow is 220 cubic meters an hour, or 60-70 % of the figure over the past ten years.