Contracts & Tenders

Tube rolling works looks for old glory

UK based Targol Investment Ltd. has been announced the winner of a tender for sales of shares in Azerboru tube rolling enterprise announced by the Ministry of Economic Development. The British company, especially noted for part in oil projects, is now to transfer 5bn manat to the state budget, including a deposit of 1bn already paid, and 4.88bn manat to Azerboru, as well as forward 240,000 state privatization vouchers and options to the Azeri Ministry's department for privatization of state property.

The British operation is expected to invest 244bn manat in three stages in a period of six years to create the enterprise's working capital and better competitive production. The investments will also help enhance output of quality oil pipes, stable operation and exports, returning the glorious name the enterprise had before.

Targol Investment intends to complete salary payments and raise average wages, with social security and environmental plans, including removal of ecologically harmful Marten furnaces and shift to new international standards.

President approves regional grid deals

The Azeri President approved the contract on the right to management of the power grid of Ali Bayramli, central Azerbaijan between the Ministry of Economic Development and Baku High Voltage Electricity Devices joint stock company in a decree dated 28 August 2002, according to the Ministry.

BHVED is to transfer 750,000 US dollars to the state budget in concession fee. It is also to reduce the level of technical losses from 16 to 11 percent in the coming 6 years and invest 28.8mln US dollars in the Ali Bayramli grid in the 5 years to come.

In another decree Thursday, the President legalized the contract between the Ministry and BHVED on management of the power grid in Ganca, the second biggest city in northwest Azerbaijan. BHVED will pay a concession fee of 750,000 US dollars, with an investment of 33.7mln US dollars in the first five years of the management.

The company is to supply reliable power to the population, and will have to refund any damage caused to the consumer due to non-quality supplies. Rise in wages is also in stock.

The investments will be spent on purchase of machinery and equipment, reconstruction and repair, update of electricity transmission lines and transformers, and a computerized network. The company will change the investment plan every three years in coordination with the authorities.