Here you can discuss the economy.

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Azerbaijan got niche market in ICT Sector, so it is open to investors

Azerbaijan remains leader for CIS growth
11-02-2009 05:01:30

Azerbaijan continues to have the greatest economic growth among members of the Commonwealth of Independent States (CIS). The country`s gross domestic product grew at 10.8% in 2008, according to the CIS Statistics Committee.The oil-rich South Caucasus republic is followed by Belarus with 10%, Tajikistan with 8%, Kyrgyzstan with 7.6%, Armenia with 6.8%, and Russia with 5.6%. The most modest growth was reported in Ukraine - 2.1%.
Overall economic growth in the Commonwealth was 5% in 2008, or a 3.5% decrease from 2007. Experts link the slowdown to the global financial crisis. According to estimates, Azerbaijan was the least prone economy to feel the impact of the downturn. This conclusion appears to be proven by investments channeled into the national economy. Investments in the country increased 34% in 2008, the highest indicator among the former Soviet republics. The Azerbaijani economy will grow 8% this year, the EBRD predicts.

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Azeris` income surged in 2008
28-01-2009 06:13:18

The income of the Azerbaijani population increased 37.8% in 2008 compared to the previous year to hit 20.1 billion manats ($24.8 billion), the state statistics body said.
The State Statistics Committee chairman Arif Valiyev said that per capita income rose 36.2% to reach 2,343 manats ($2,892). 66.1% of the funds were spent on consumption, while 10.2% went to tax payments, social insurance and membership fees and 23.7% on increasing deposits and capital.
Valiyev continued that the average monthly wage increased in the country last year as well. The salaries of citizens employed in the economic and social sectors rose 24.2% compared to 2007 to reach 268 manats (about $330). The wages of people working at industrial enterprises were higher - averaging $525, while those of people engaged in construction was $25 less. Transport workers received $375 a month on average, while those employed in the field of communications - $460.The Committee chairman noted that Azerbaijani citizens maintain bank deposits worth over 1.8 billion manats (over $2.2 billion) in local banks and their volume increased 32.2% compared to 2007, despite the global financial crisis. 53.5% of the deposits are kept in the national currency. The deposits held in manats increased 67.1%, while those kept in foreign currencies rose 6.5% last year. 1.3bn manats ($1.6bn) of the deposits were held in private banks.

http://www.azernews.az/site/?name=cats&cid=14&list=35&p=8#

Azerbaijan got niche market in ICT Sector, so it is open to investors


IT growth 28% last year
28-01-2009 06:08:27

Azerbaijan`s information technologies sector registered a growth of 28.1% last year -- three times above the world average, Minister of Communication and Information Technologies Ali Abbasov has said. Abbasov added that this development has been ongoing in the IT sector for five years, which has led to its growth by 4.4 times.
The minister indicated that one of the landmark events of last year was the installation of telephone lines to every home in the country. The mobile communication sector has expanded as well. There are currently 68 mobile telephone users per 100 people in the country.
A source from the ministry has said that the volume of revenues from the IT sector has risen 28% in comparison with the previous year to make up a total of 990.5 million manats ($ 1.22 billion).
A total of 140 million manats ($173 million) was invested in the IT sector in 2008.

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IT sector to fetch as much as oil in a decade
30-12-2008 04:45:42

The revenues of Azerbaijan`s communication and information technologies sector will be equal to those brought in by the oil sector by 2018, Minister of Communication and Information Technologies Ali Abbasov has said.
The minister said if the project on the establishment of regional innovation zones is implemented, this will give an impetus to the IT sector development in Azerbaijan. The tariff benefits envisaged in this regard will facilitate the development of small and medium-sized businesses. "If our plans are successfully implemented, the revenues fetched by the IT sector will rise from $1 billion at present to $4 billion in 2013 and $12 billion in 2016. In 2018-2020, the IT revenues will reach those of the oil sector," Abbasov said.
The minister added that the average annual growth in the IT sector was 34-35% during the last five years. Over these years, Azerbaijan has expanded its IT potential 4.5 times. The number of Internet users in the country has increased 20 times in 2000-2007. At present, their number has reached 1.5 million.He said the IT sector was the third largest tax generating industry in Azerbaijan, next to the oil industry and the construction sector. He said the communication sector commands 6-7% of revenues in developed countries of the world. In Azerbaijan, however, this figure remains low.

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Azerbaijan ranking 4th on minimal pensions among CIS and Baltic states

06 March 2008 Today.Az


Azerbaijan is ranking fourth among the CIS and Baltic states by the minimal pension, according to chairman of the State Fund of Social Protection of Azerbaijan Salim Muslimov, reports Novosti-Azerbaijan.
"Estonia is ranking first with minimal pension making $170, Lithuania is second with $136, Kazakhstan is third with $101, Azerbaijan is fourth with $93.2", he told a press conference Friday.

According to Muslimov, minimal pension made $50.66 in Russia and $68 with compensations. "This information is as of February 1 of 2009", added he.
Head of the fund noted that minimal pension in Georgia made $33, in Belarus 67, in Ukraine 70, in Moldova 45, in Uzbekistann 40, in Armenia 26.2, in Latvia 92, in Tajikistan 16, in Kyrgyzstan 13.

In late 2008 Muslimov said that Azerbaijan is ranking second among the CIS states for minimal pension.

"Currently, most countries experience decline in the living conditions of the population, which is connected with deepening of the global economic crisis. Azerbaijan almost does not feel the influence of the crisis", said he during the conference "2008 presidential elections: new development prospects", organized by the Yeni Azerbaijan ruling party.

He said this is a result of measures, adopted by the president and his economic team in time.

Oqtay Asadov: "In 2008 economic growth in Azerbaijan made 11%"

13 March 2009 [18:19] - Today.Az

Last year the economic growth in Azerbaijan made 11%, said Milli Medjlis speaker Oqtay Asadov at a plenary session of the parliament on discussion of the report of the Azerbaijani government by results of the socioeconomic development of the country in 2008.
"Through the past five years the poverty rate in the country dropped from 45 to 13%. Real monetary incomes of the population grew 117% last year", said he.

He said the global financial crisis had a weak influence on Azerbaijani economy.

According to Asadov, the monetary reserves of Azerbaijan top $18 bln.

"In 2008 the budget revenues of the state grew 80%. The volumes of tax and customs revenues are growing every year. Last year the customs revenues rose 44%", noted the speaker.

/Day.Az/

Exports to CIS targeted

Bangkokpost Published: 21/03/2009 at 12:00 AM


The Thai government is aiming to expand exports to potentially lucrative markets such as Russia and the former Soviet satellites known as the Commonwealth of Independent States (CIS).

Prime Minister Abhisit Vejjajiva and Commerce Minister Pornthiva Nakasai are scheduled to lead a trade mission to explore trade opportunities in CIS countries in October.

The 12 CIS states are Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan. The CIS states have a population of 274 million and many markets with relatively limited exposure to the global slowdown.

The government has established eight regional hubs in an effort to improve trade and investment in overseas markets. It set up a CIS hub this week, headed by Winichai Chaemchaeng, a commercial adviser to the Commerce Ministry.

Trade between Thailand and the CIS countries last year totalled US$4.68 billion, up 81% on 2007. Thailand's exports rose 55% to $1.31 billion, while imports were worth $3.37 billion, up 94%.

Major Thai exports are automotive and parts, radio and television, rice, electrical appliances, canned and processed fruit. Leading imports include steel, crude oil, energy, fertiliser, medicine, pesticide and ore.

Mr Winichai said the government aims to increase exports by at least 20% to $1.57 billion, with key targets for growth being Russia, Kazakhstan and Ukraine.

Mr Winichai added that 311,919 tourists from CIS countries visited Thailand last year. There is also joint private-sector investment between Thailand and the CIS, especially in furniture, jewellery products and cosmetics.

"Given the current export slump, in light of the world's troubled economy, it is a must for Thailand to explore new lucrative markets like CIS, despite having to compete with Malaysia and South Korea, which have for long penetrated this market," he said.

Poj Aramwattananont, president of the Thai Frozen Foods Association, said CIS is attractive for its high demand for canned food, shrimp and poultry, but Thailand still lacks a close distribution network with large-scale importers.

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Azerbaijan, Baku, May 4 / corr Trend Capital S.Aliyev /

The Nakhchivan automobile plant will launch producing automobiles of Chinese producer's Lifan in Azerbaijan in the near future, plant director Musa Abdullayev said.


"Contract will be signed with the Chinese company. Within 2.5 months of signing the contract 108 sets of automobiles will be brought to Azerbaijan to assemble further at the plant, Abdullayev said.

Chinese specialists will arrive at the enterprise soon to commission the equipment needed to assemble cars.

The plant will assemble four modifications of Lifan-NAZ: Lifan-320, Lifan - 520 (sedan and hatchback) and Lifan - 620 (the newest model set up in Chinese). Major market to sell automobiles is Azerbaijan. Necessary facilities will be offered in Azerbaijan to serve cars, Abdullayev said.

The annual manufacture is expected to amount in up to 1,500 cars a year. Lifan will open its office in Azerbaijan in the near future.

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AzSamand automobile factory has also been constructed in Shamakhi and it produces AzSamand automobiles which respond all the contemporary demands. These automobiles have different automobile definitions, comfortable cabin, 405 Peugeot Engine, provided with brake system, audio system/CD radio, electric package, and other superior peculiarities. AzSamand brand automobiles have won the sympathy of people both inside the country and abroad.

The automobiles branded "Aziz" have the "AzSamand" label and "Aziz" means "Azərbaycan inamla zirvələrə", that is "Azerbaijan confidently at the top".



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Ganja Auto

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"Ganca" Model
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The construction of the institution was ended in 1989 and the production of lorries of 1,5 ton was begun at the beginning of the year 1990. According to the contract the strength of the institution was equal to the production of 30 000 automobiles per year. But the unreasonable pretention of Armenians about Nagorno Garabakh and the events happened in connection with this in Azerbaijan has influenced the construction of the factory. Taking an opportunity of this the Armenian worship Ministers Cabinet of USSR interrupted the construction of the factory and gave the technological project to Bryansk automobile plant.


Famous Automobile Companies interested in Ganja automobile plant in the different years. But because of the objective and subjective causes the negotiations held with the foreign companies didn't give any efficient and during 15 years the death silence was dominated on the hectares territories of this giant construction.

The company "Renault" of France Republic was interested in this factory in 1999. This famous automobile magnate gave consent to give technical support in completing of the building and construction of the production possess. It was considered in the project of the collaboration contract signed with "Renault to construct 920 pieces of middle tonnage lorries of "Renault - Midlum" models on the base of the completing details received from France". In the next stages on the account of the production of the completing details under the local conditions the annual issues should be increased. It demanded an allocation of 10 million dollars to realize this project and France required the state guarantee from Azerbaijan state. But it is a pity that the available economical condition didn't allow to realize this project. The negotiations held during 4 years ended without result.

Then, "Volkswagen" channel of companies interested in the automobile factory. Bur because of certain reasons the realization of this project was impossible.

But in spite of all difficulties after 15 years, in December 2004 Ganja automobile plant began working and the first automobile constructed at the factory was issued. It began the construction of automobiles of VAZ 11113 "OKA" models at the factory. The construction of "OKA" in 3 models was realized on the ground of the completing details brought from the factory on the production of Small capacity automobiles situated in Naberejniye Chelni. The first automobile is concerned to the conveyer of the institution on December 24 and this event was celebrated ceremonial in the city view. The first production of Ganja automobile plant was demonstrated to the city public personally by the leader of the institution. The first production of the factory came true to the Garabakh fighters.120 Garabakh invalids and Great Patriotic War Veterans residing in different regions of the country possessed the automobiles "OKA" constructed at the factory.

www.ganjaauto.az

Economy / 18.05.2009 23:15
Baku Steel Company resumed its activity

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However poor raw material creates obstacles to full potential.

Baku Steel Company resumed its activity. Press service of the company told ANS that works were carried out in his direction and the company resumed it today. However poor raw material creates obstacles to full potential.

Despite theses difficulties the enterprise has obtained to hold metal scrap to renew its activity./ANS TV/


© 2008-2009 All rights reserved. Citing to ANS PRESS is necessary upon using news.

Южная Африка и Азербайджан приступили к совместному производству бронетехники

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15:09 12-05-2009

Южноафриканская компания Paramount Group планирует экспортировать в страны Центральной Азии и СНГ бронетранспортеры, произведенные совместно с министерством оборонной промышленности Азербайджана.


Как передает АПА-Экономикс, об этом сообщил председатель правления Paramount Group Ивор Ичиковиц (Ivor Ichikowitz).

«Мы поддерживаем министерство оборонной промышленности Азербайджана в достижении поставленных целей. Верим, что Азербайджан сможет стать региональным центром в производстве продукции военного назначения», - подчеркнул руководитель компании.

И.Ичиковиц отметил, что в рамках совместного соглашения уже получены первые заказы и на предприятии в Баку началось производство бронемашин типа матадор и мараудер. Первая партия бронетехники будет сдана в конце текущего года.

Он также добавил, что первые автомобили, произведенные в Баку, относятся к версии «Бронированный персональный перевозчик» (APC). Позже на данном предприятии планируется производство и других моделей. В Баку также будет производиться предусмотренная для внутренней безопасности и сил полиции техника третьей модели Maverick Paramount Group, которая в прошлом году была продемонстрирована в ЮАР на выставке Авиации и обороны.

Отметим, что бронетранспортеры типа матадор и мараудер производятся на заводе электронно-вычислительных машин министерства оборонной промышленности.

Vesti.az

SOCAR to build a new refinery in Turkey

The State Oil Company of the Azerbaijan Republic (SOCAR), which owns 51 percent share of the Turkish petrochemical holding Petkim in the alliance of companies Turcas Petrol and Injaz Projects, is planning to commence the construction of an oil refining plant, SOCAR's high ranking official said.

A foreign company is estimating the influence on the environment, as well as plant's preliminary feasibility study. The official did not call the name of the foreign company." The construction works re expected to be commenced in 2010," the official added.
The cost of the project is $3 billion. However, there are factors that may further affect the final figure, the official said. The amount of investments will depend on the power of the plant. The initial power is about 8-10 million tons per year. Earlier, SOCAR considered two versions of construction of oil refining plant in Turkey, one of which should have located in Geyhan and the second near Petkim. The oil refining near Petkim is more priority. The new plant will provide Petkim with virgin gasoline. The construction period will cover four years. Currently, Petkim provides 25-27 percent of production at Turkey's market. The index is planning to increase to 40 percent.

/Trend Capital/

Мощность энергосистемы Азербайджана достигнет 7 тыс. МВт

АО «Азерэнержи» рассчитывает на значительное повышение объема выработки электроэнергии в Азербайджане и проводит в рамках Госпрограммы социально-экономического развития регионов целенаправленную работу по созданию новых генерирующих мощностей.

Как сообщил сегодня вице-президент «Азерэнержи» Марлен Аскеров, после ввода в эксплуатацию парогазовой установки в Сумгайыте мощностью 525 МВт и электростанции «Джануб» в г.Ширван мощностью 780 МВт мощность национальной энергосистемы к 2010 году достигнет отметки в 7 тыс. МВт.

На сегодняшний день мощность энергосистемы страны оценивается в 5,6 тыс. МВт.

Строительство электростанции «Джануб» началось 24 декабря 2007 года. На станции будет внедрена новейшая технология, позволяющая станции работать как на газе, так и на мазутном топливе. Станция состоит из турбин, газового компрессора, административного здания, бассейна, автостоянки, парка, пожарного пункта, подстанций в 110, 220 и 330 кВ, водоочистительной установки, чанов, насосной станции, трансформаторов и др. Сдача станции в эксплуатацию запланирована на 2010 год. Строительство ведет азербайджанская компания «Azenko». Общая стоимость проекта составляет около 600 млн. евро.

Как ранее заявлял глава «Азерэнержи» Этибар Пирвердиев, новая газовая установка «Бухар газ» в Сумгайыте мощностью 525 МВт будет сдана в эксплуатацию в текущем году. Ее строительство завершено полностью, и в настоящее время идут наладочные и инсталляционные работы.

/1news.az/

SOCAR to build own filling stations in Azerbaijan

03 June 2009 [12:22] - Today.Az

The State Oil Company of the Azerbaijan Republic (SOCAR) will build own filling stations in the country, SOCAR high ranking official said on June 3.

This year the company invested 10 million manats to the SOCAR Petrolium company.

The joint venture is operating owing to loan resources and will gradually build filling stations through these funds.

The official did not say the exact number of stations to be build in Azerbaijan. SOCAR owns filling stations in Georgia and is planning to bring their number to 60.

SOCAR produces and refines oil at its two oil refining plants with a total capacity of 20 million tons. Annually, 6-7 million tons of oil are refined at the plants.

/Trend Capital/


URL: http://www.today.az/news/business/52809.html

If I haven't been to Azerbaijan, directly thought this is a weird Republic in the world....

All hoaxes. Be trust please! There is great unemloyment, curroption, and famine... Imported money from Moscow rather Market places you know what I mean....

There is no need cheating awful

If I haven't been to Azerbaijan, directly thought this is a weird Republic in the world....

All hoaxes. Be trust please! There is great unemloyment, curroption, and famine... Imported money from Moscow rather Market places you know what I mean....

There is no need cheating awful

You don't need to come here and speak in this way. I already understood to which people or i would say nation you belong to. So stop this flood here

/delete/

^^You think he's armenian?

На другой теме он писал на непонятном языке. Мне больше кажеться что он перс

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In the SOCAR successful nanotechnology laboratory, the results of its work already in place in the oil and gas production, told reporters Advisor, First Vice-President of SOCAR Eldar Shahbazov.

According to him, Azerbaijan, together with the United States and the Netherlands is a leader in the development of nanotechnology. Azerbaijani scientists have become the founders of the use of nanotechnology in the oil.

«Nanotechnologies« galvanized »56 old wells, which produces an additional one thousand tons of oil, gas production increased 15%, reduced the level of reservoir water. Potentially there is a possibility to return to production by means of nanotechnology to 4 thousand «dead» wells. Technology developed by our scientists received international patents and has attracted the attention of specialists from around the world », he said.

Source: 1news Azerbaijan

The President Ilham Aliyev participated in the opening of plant for the production of the mineral water “Badamli” in Nakhchyvan city

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Азербайджан вновь в числе лидеров по производству ВВП

Межгосударственный статистический комитет СНГ обнародовал социально-экономические показатели первой половины 2009 года.

Азербайджан, увеличив производство внутреннего валового продукта на 3,6 процента по сравнению с аналогичным периодом минувшего года, занял среди стран СНГ второе после Узбекистана место.

Таджикистан с 2,8 процента находится на третьем, Беларусь и Кыргызстан с 0,3 процента – на четвертом месте.

В отчетный период производство внутреннего валового продукта в Армении сократилось на 16,3 процента, в России – на 13,4 процента, в Казахстане – на 4,1 процента.

В январе-июне объем производства в других странах СНГ, за исключением Узбекистана и Азербайджана, снизился. По сравнению с тем же периодом прошлого года объем производства в Украине снизился на 31,1 процента, в Молдове – на 24,9 процента, в Кыргызстане – на 18,9 процента, в России – на 14,8 процента, в Таджикистане – на 13,3 процента, в Армении – на 11,5 процента, в Беларуси – на 3,6 процента, в Казахстане – на 2,7 процента. А объем производства в Узбекистане и Азербайджане за этот период возрос соответственно на 9,1 процента и 1,3 процента.

Объем промышленного производства по СНГ в среднем снизился на 25 процентов.

По росту розничного торгового оборота Азербайджан с 8,5 процента занимает второе место. Первое место занимает Таджикистан с 13,8 процента.

В январе-июне этот показатель по СНГ снизился на 4 процента.

05.08.2009
/1news.az/

Rise in Azerbaijan's GDP

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In January-July 2009, Azerbaijani GDP increased 2.7 percent compared to 2008, the State Statistics Committee said.

In current prices GDP indicator made up 17.34 billion manat.

GDP per capita increased 1.3 percent to settle at 1968.7 manat ($2448.7).

Roughly 7.2 percent of extra cost was created owing to net taxes from production and import.

General production volume in all economic sectors increased 2 percent, amounting to 63.3 percent of the GDP. Industry composed 48.2 percent, or 8.4 billion manat. The services sector grew 29.5 percent compared to similar period of 2008.

In January-July of 2009, agriculture, hunting and forestry provided 1.08 million manat, or 6.6 percent of the GDP; construction - 1.53 billion manat (0 percent); transport - 1.16 billion manat (1.6 percent); communication and post service - 396.3 million manat (12.7 percent); wholesale and retail trade, automobile field, domestic products and repairing personal-use items - 1.34 billion manat (8.4 percent); restaurants and hotels - 197.2 million manat (15.8 percent); and social and other services - 2.02 billion manat (3.6 percent).

/Trend Capital/

McDonald's расширяет бизнес в Азербайджане

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McDonalds Azerbaijan ближайшем будущем планирует открытие нескольких ресторанов в различных городах Азербайджана

Баку, Fineko/abc.az. В скором времени сеть ресторанов McDonalds появится в таких городах Азербайджана, как Гянджа и Сумгаит.

Как сообщил Fineko/abc.az управляющий директор McDonalds Azerbaijan Максуд Мирзоев, в скором времени планируется открытие ресторана McDonalds в городе Гяндже.

«До конца 2010 года в наши планы входит открытие нескольких ресторанов, в первую очередь в Гяндже, а затем по одному ресторану в Баку и Сумгаите», - сказал М.Мирзоев.

Также McDonalds Azerbaijan планирует реализацию масштабного проекта по строительству в Азербайджане распределительного центра.

«Его производственные мощности позволят обслуживать рестораны McDonalds не только в самой республике, но и в ближайшем зарубежье – в Грузии и странах Средней Азии, где пока нет ресторанов этой сети. На эти цели будет направлено порядка $4,5 млн. из общего объема инвестиций в размере $9,5 млн., выделенных на реализацию инфраструктурных проектов компании McDonalds в Азербайджане течение 2009-2010 годов», - сказал М.Мирзоев.

По плану центр также будет оснащён современной полностью автоматизированной пекарней, что позволит выпекать хлебобулочную продукцию согласно стандартам компании, и устранит необходимость её импорта из Украины и России.

«Разрешение центрального офиса компании на строительство центра уже получено. В конце текущего месяца ожидается визит руководства и специалистов компании для ознакомления с ситуацией на местном рынке по проекту Распределительного центра, а также для встреч с производителями сельскохозяйственной продукции, которые уже на протяжении 5 лет являются нашими поставщиками», - сказал М.Мирзоев.

24.08.2009
/Fineko/

Исламский банк развития предоставит кредит на строительство мусороперерабатывающего завода в Баку

Баку, Fineko/abc.az. Правительство Азербайджана и Исламский банк развития (IDB) согласовали сроки и объёмы кредита на строительство мусороперерабатывающего завода около Баку.

«Размер кредита составит 100 млн. евро», - отметили в Министерстве.

В настоящее время на участке расположения завода ведутся земельные (гражданские) работы. Подрядчиком строительства и управляющей компанией завода выступает французская компания CNIM S.A., которая в декабре заключила с Министерством экономического развития Азербайджана контракта на строительство мусороперерабатывающего завода около Баку. Как ранее заявил директор компании по международным проектам Андре Берте, работы по строительству осуществляются по графику. Уже завершены геологические и топографические исследования.

«Строительство завода завершится к 2012 году», - сказал А.Берте.

Завод расположится на площади 10 гектаров в посёлке Балаханы. С 1 сентября компания начнёт геологические исследования на местности, рассчитанные на 4 месяца. Непосредственные строительные работы стартуют в декабре. Строительные работы рассчитаны на 3 года. Завод будет эксплуатироваться в течение 10 лет с возможной пролонгацией до 20 лет. Перерабатывая 500 тыс. тонн отходов, завод будет производить 125 тыс. тонн шлама, 231,5 млн. киловатт/часов электроэнергии, покрывая 15% собственной потребности. Стоимость проекта составит 346 млн. евро. CNIM будет строить, и управлять предприятием.

24.08.2009
/Fineko/abc.az/

Robbins EPB to rebuild Azerbaijan waterways

The city of Baku in Azerbaijan is to renovate canal tunnels using the country’s first ever TBM. The Robbins EPBM is supplied to contractor Azerkorpu which expects to use the machine on several other needed tunnelling projects in the country.

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Azerbaijan’s first-ever TBM

For centuries a lack of surface water has led to intensive use of groundwater for irrigation in Baku, Azerbaijan. The Samur-Apsheron Irrigation Project will help remedy current water problems by overhauling a main canal that provides water supplies to Baku. New tunnels will be built using a 6.3m (20.7ft) diameter Robbins EPB—the first-ever TBM to be used in Azerbaijan.
Contractor Azerkorpu awarded Robbins the contract for the complete EPB boring system in June 2008. The TBM order includes all associated and ancillary equipment including the trailing back-up, cutting tools, segment molds, segment manufacturing plant, rolling stock, ventilation system and spares. It also includes a team of experienced and professional TBM operating personnel.

http://www.tunneltalk.com/images/Robbins-Azerbaijan/2-Robbins-Azerbaijan-mixed-face-cutterhead.jpg

EPBM with foam injection

Major components of the machine, including the main bearing, electrical, and hydraulic systems, were procured in the US, Europe, and Japan. Assembly was completed in April 2009 by the Robbins EPB Division in Guangzhou, China.
The TBM is scheduled for a summer 2009 launch and is expected to bore for eight to nine months in hard clay, silt, sand, and mixed face rock. The machine features a mixed ground cutterhead with interchangeable disc cutters and carbide bits. Four independent foam injection points in the cutterhead evenly consolidate the face in varying ground conditions. Multiple detection systems provide electronic information about clogged ports, preventing unnecessary cutter and cutterhead wear.

The machine will excavate one tunnel of approximately 3.5km and line it with 300mm thick rings of precast concrete, universal type segments, five segments and a key in each ring. Once the tunnels are complete in 2010, Azerkorpu plans to use the EPB on several other projects in the country.
The Samur-Apsheron Irrigation Project, for the Azerbaijan Government’s Irrigation Department, consists of open canals and TBM-driven tunnels totaling 5.7km (3.5 miles). The network will convey water from the Samur River to use for both irrigation and the new Takhtakerpu hydropower station that will provide power to the Cusar District in Baku.

http://www.tunneltalk.com/images/Robbins-Azerbaijan/4-Robbins-Azerbaijan-in-Guanzhou-factory.jpg

At the Robbins factory in Guangzhou

Source: tunneltalk.com

Inaugurated the brickworks in Hajigabul

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Ненефтяной экспорт Азербайджана вырос на 37-40%

За январь-июль 2009 года ВВП Азербайджана вырос на 2,7%.

Как заявил на пресс-конференции председатель правления Центрального банка Азербайджана (ЦБА) Эльман Рустамов, за отчетный период нефтяной сектор страны продемонстрировал рост в 3,6%, ненефтяной – в 2,3%.

«В текущем году экспорт ненефтяного сектора вырос на 37-40%», - отметил Э.Рустамов.

По словам главы Центробанка, «в настоящее время экономика Азербайджана сохраняет свою конкурентоспособность».

«Это позволит стране вступить в 2010 год с хорошими показателями», - резюмировал Э.Рустамов.

Алена Салаева

Source: 1news.az

Азербайджан приступает к экспорту колбасы и колбасных изделий

Азербайджанские производители колбасы и колбасных изделий намерены экспортировать свою продукцию на мировой рынок.

Как сказал член Ассоциации производителей мяса и мясопродуктов (АПММ) Эльчин Рустамов, в частности, у отечественных производителей есть намерение отправлять свою продукцию в арабские страны.

«Производимые в Азербайджане колбасные изделия не отстают по качеству от аналогичного товара иностранного производства. На азербайджанских заводах по производству колбасы и колбасных изделий есть техническое оборудование, которым пользуются известные мировые бренды», - подчеркнул Э.Рустамов.

Отметим, что сегодня в Баку было объявлено о создании Ассоциации производителей мяса и мясопродуктов (АПММ). Девиз Ассоциации - «Гарантируем качество своего производства».

Учредителями Ассоциации являются 6 крупных производителей колбасы и колбасных изделий в Азербайджане - Sevimli Dad, Elba-999, SAB, 1000 bereket, GF Kristal и Kral. По словам председателя АПММ Фуада Гулубекова, членом Ассоциации сможет стать каждая компания, процесс производства которой отвечаем всем требуемым нормам и стандартам.

Документы на регистрацию Ассоциации уже переданы в Минюст.

1news.az

Азербайджан усилил свои позиции в рейтинге конкурентоспособности стран мира

Азербайджан усилил свои показатели в рейтинге конкурентоспособности, рассчитываемом Всемирным экономическим форумом (ВЭФ), поднявшись на 51-е место.

Об этом говорится в Глобальном обзоре конкурентоспособности (Global Competitiveness Report) за 2009-2010 гг., размещенном на сайте организации.

По мнению авторов отчета, азербайджанская экономика показывает высокое развитие. «Макроэкономическая ситуация и бизнес-климат в Азербайджане улучшились.

Также отмечается рост внутренних и внешних инвестиций в экономику страны. Как положительный фактор для развития показателей отмечается упрощение процедуры регистрации бизнеса, фермерских хозяйств и частных предприятий. Однако Азербайджан не должен останавливаться на достигнутом и продолжать реформы»,- говорится в отчете.

Согласно обзору, Россия в рейтинге конкурентоспособности опустилась с 51-го на 63-е место.

Самой конкурентоспособной страной мира стала Швейцария, опередив по этому показателю США, которые опустились на 2-е место из-за «ослабления финансовых рынков и макроэкономической стабильности».

В пятерку лидеров входят также Сингапур, Швеция и Дания.

В первой десятке по-прежнему преобладают европейские страны, туда попали Финляндия (6), Германия (7) и Нидерланды (10).

Япония (8) и Канада (9) улучшили свои позиции по сравнению с прошлым годом на одно место. Рейтинг Великобритании продолжает падать - в этом году ей досталось «несчастливое» 13-е место.

Первым среди крупнейших развивающихся стран и 29-м в общем зачете является Китай, поднявшийся на одну строку. Индия (49) и Бразилия (56) также повысили свои показатели. Россия - единственная из стран БРИК, конкурентоспособность которой ухудшилась за прошедший год.

На постсоветском пространстве лидером, как и в предыдущие два года, остается Эстония, занимающая 35-ю позицию. В верхней половине рейтинга, помимо Азербайджана, оказались Литва (53), Казахстан (67) и Латвия (68). Как и в прошлом году, замыкают этот список Таджикистан (122) и Киргизия (123). Отметим, что Армения опустилась в рейтиге и заняла 97 место.

1News.az

Azerbaijan Shipbuilding Plan

A memorandum on construction of a shipbuilding plant was signed by the State Oil Company of Azerbaijan (SOCAR), Azerbaijani Investment Company (AIC) and Korean company STX in Baku on 19 May, according to a report on http://capital.trendaz.com. The plant -- which reportedly is owned 65%, AIC – 10% and STX – 25%. -- will reportedly be built in Garadag region of Azerbaijan.The yard, which is intended to build ships for the Caspian Sea trade, is scheduled to be in operation by 2011. (Source: http://capital.trendaz.com)

IMF: Azerbaijan’s nominal GDP to reach record $51.9 bn in 2010

Baku, Fineko/abc.az. According to International Monetary Fund’s Regional Economic Outlook, Azerbaijan is to achieve a record in 2010 on nominal gross domestic product for entire history of its independence.

The IMF report says that country’s nominal GDP in 2010 is expected to be $51.9 bn versus $42.5 bn in 2009 (expectations) and $46.4 bn in 2008. By its GDP volume in the region of the Caucasus and Central Asia Azerbaijan will cede only to Kazakhstan ($120.7 bn, $107 bn and $135.6 bn respectively).

Azerbaijan’s real GDP in 2010 will rise by 7.4% against 7.5% in 2009 and 11.6% in 2008. Kazakhstan’s relevant indicators are 2%, -2% and 3.2% respectively.

Ground-breaking ceremony of hard wastes disposal facility

Ilham Aliyev On November 3 President of Azerbaijan attended a ground breaking ceremony of the hard wastes disposal facility.

The head of state was informed that a land area of 20 hectares had been allotted for construction of a plant at the Balakhany polygon – the area of hard waste accumulation. The facility will be build by French CNIM that won a tender. The project capacity of the plant is 500,000 tons of waste per annum.

The wastes will be sorted and separated for further disposal and reprocessing. There is a plan to generate 231,500 MW of energy from disposed wastes.

President of Azerbaijan entered a capsule into the foundation and launched a concrete discharging facility.

President Ilham Aliyev set recommendations and instructions to the constructors and wished them success.

/AzerTaj/


Photos:

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Opening ceremony of the residential complex in Binagadi district of Baku for refugees from Karabakh

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I wish we open this kind of residential in Karabakh for Azeri displaced people when they will return back to their homeland in near future :)

Not in Nagorno Karabakh you wont :)

Not in Nagorno Karabakh you wont :)

Don't speak so sure about tomorrow, better think what can Armenia make for its budget in 2010. At time when Azerbaijan adopted a special program and investing more and more money into sending students to study in the best universities of USA and Europe, Armenia cut off the scholarships in the state high schools for 2010. So we see who is who :lol:

Don't speak so sure about tomorrow, better think what can Armenia make for its budget in 2010. At time when Azerbaijan adopted a special program and investing more and more money into sending students to study in the best universities of USA and Europe, Armenia cut off the scholarships in the state high schools for 2010. So we see who is who :lol:

Definitely agree with you Galandar...

Armenia`s economy is troubling and getting worse day after day. The government of Armenia will soon agree to give back our land in order to rescue their crashing economy...So sad scenario but the current tendencies indicate these...:cool:

Textile Factory “Lalə-Tekstil” in Goranboy

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Opening ceremony of "Azərelektronika” electronic home appliances factory in Shamakhi

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BAKU, December 1 (Itar-Tass) -- The European Bank for Reconstruction and Development (EBRD) has granted a loan worth 120 million U.S. dollars to Azerbaijan for the construction of a plant for methanol production.

The relevant agreement was signed between the EBRD and Azerbaijani Methanol Company AzMeCo on Tuesday.

The project cost is 300 million U.S. dollars, of which 70 million U.S. dollars is AzMeCo’s investment. The International Bank of Azerbaijan, the Black Sea Bank of Commerce and Development, and Canada’s EDC company also take part in the financing of the project.

The construction of the methanol plant started in 2008. It is located in one of Baku’s industrial suburbs. Up to date, 55 percent of all operations have already been made. The plant will be commissioned at the end of 2010.

The plant’s capacity is 720,000 tonnes of methanol a year.

The EBRD loan will be spent for the purchasing and installation of technological equipment.

Former UK Prime Minister Tony Blair arrived in Baku to attend the signing ceremony.

In his opinion, the granting of the big loan to Azerbaijan testifies to the confidence of international financial institutions in the country.

Blair also said that the United Kingdom is one of the biggest investors of Azerbaijan. He voiced confidence that Azerbaijan’s importance for the UK will increase in the future.

As for AzMeCo plans, the company will build several chemical facilities in Azerbaijan, including plants for the production of acetic acid, formaldehydes, and melanin. Total investments in the construction of the above-mentioned plants are estimated at more than one billion U.S. dollars.

All in all, the EBRD granted loans worth 865 million euros for the implementation of 90 projects over 17 years of cooperation.

Earlier in the day, Blair also met with Azerbaijani President Ilham Aliyev to discuss prospects for economic cooperation between the two countries.


http://www.itar-tass.com/eng/level2.html?NewsID=14593150&PageNum=0

^^Thanks bro, I forgot to put this news here. This factory is a good start for AzMeco http://www.azmeco.com , which is going to start the construction of some more chemical factories soon.

Yup, i think it is the right choice of Azeri goverment to slowly transfrom the economy from raw materials to more manufacture & services. Cause we all know the oil will run out 1 day.

Yup, i think it is the right choice of Azeri goverment to slowly transfrom the economy from raw materials to more manufacture & services. Cause we all know the oil will run out 1 day.

Yeah, exactly and that is why the government tries to develop non-oil sector.

Baku Waste to Energy Project

http://www.durangobrowne.ie/assets/images/galleries/baku_waste/1-baku.jpg


The Azerbaijani Ministry of Economic Development is undertaking the development of a 500,000 tonne per annum waste to energy facility as part of an upgraded waste management system for the capital city of Baku.

Following an inconclusive initial tender in late 2007, Durango Browne was asked to assist with the procurement of a designer-builder-operator. The procurement was conducted and the development contract was signed all within one year. Development is expected to commence in 2009.

Investment opportunities in Azerbaijan

By Denise Law


Azerbaijan’s economy has weathered the recession better than most frontier markets in the Central Asian region, growing at a modest pace while neighbouring countries struggle to recover.

Over the past 10 years the country’s economy has grown by a staggering 900 per cent, fuelled mostly by the private sector. But its economic potential remains relatively unknown as investors and fund managers continue to favour emerging markets instead.

But experts from the region believe 2010 will provide the country with more opportunities for attracting higher levels of foreign investment.

The country has for years benefited from its vast supply of natural resources, including gold, ethanol and renewable energy, but has recently diversified into transportation, infrastructure and technology.

“For many years the people of Azerbaijan were very Azeri-centric. We weren’t active in promoting the country,” said Farid Akhundov, chairman of Pasha Bank, the country’s largest commercial bank by capital.

“At the same time this might explain why we didn’t participate in fancy financial instruments. We just didn’t trust it.”

Unlike Kazakhstan, Azerbaijan was never over-exposed to financial markets, though small and mid-sized companies have still suffered from a decline in global demand.

Local companies are now taking bigger strides in reaching out to foreign investors.

In October the European Bank for Reconstruction and Development (EBRD) agreed to finance a $120m (£73m) construction of a methanol plant, which is owned by the Azerbaijan Methanol Company (AzMeCo). Executives and fund managers met in London earlier this week at the first Azerbaijan Investment Summit.

Azerbaijan, however, remains more popular with active fund managers seeking to generate greater returns in what is still considered an inefficient market.

Institutional advisers such as Sturgeon Capital Management invest in fixed income, long and short equity, and special situations.

“Inefficient markets are good for sophisticated investors with an information hedge. Azerbaijan is still completely undiscovered from any standpoint,” said Clemente Cappello of Sturgeon Capital Management.

However most investments are still made via private equity purchases, but valuations remain at attractive levels.

Mr Cappello concedes that many challenges remain. The country still lacks a sustainable equity market, making it difficult for foreign investors to gain exposure to listed companies.

Frontier markets have also become less popular over the past year, as investors look elsewhere for a more stable flow of income. The volatility of governments, combined with complex legal systems in this sector also increase the risk in holding foreign assets.

Going forward, however, experts remain optimistic in Azerbaijan’s economic future, especially as it recovers quickly from the crisis.

“The public is still relying on private equity, but we do foresee the stock market to improve in two to three years, when companies start looking to initial public offerings as a way to raise financing,” Mr Akhundov said.

December 10 2009
/FINANCIAL TIMES/

The opening of the facilities, built during the first phase of Sumgait Techno Park

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what are they going to build there?

Sumgait Techno Park covers 45 hectares. The area of the factory and plant facilities in the park covers 140.000 m2. Putting in commission this techno park, that has no analogue in the Post-Soviet countries, will boost Azerbaijan`s power industry, increase the country`s potential to manufacture competitive products, create great opportunities for reconstruction and modernization of power facilities.

Азербайджан ведет переговоры об экспорте 27 видов оборонной продукции

03 Января 2010 [11:22] - Day.Az

Министерство оборонной промышленности Азербайджана наращивает производство и ведет переговоры об экспорте своей продукции.

Об этом сообщил глава министерства Явер Джамалов.

«В настоящее время ведутся переговоры со многими странами об экспорте 27 видов нашей продукции, которые мы представили на международной выставке в Стамбуле в апреле 2009 года», - сообщил министр азербайджанскому телеканалу AzTV.

По словам Я.Джамалова, министерство оборонной промышленности планирует реализовать в 2010 году ряд новых проектов, среди которых реконструкция 12 видов производственных отраслей, закупка современного оборудования из ряда развитых стран для производства восьми видов продукции оборонного назначения. Кроме того, ведутся переговоры о закупке новейшего оборудования для налаживания серийного производства еще пяти-шести видов продукции.

Наряду с этим в Баку начато производство военной техники при сотрудничестве с южноафриканской фирмой Paramount Group. В частности, речь идет о машинах с броневой защитой Matador и Marauder, которые уже в первой половине этого года будут переданы в распоряжение Минобороны. Кроме этого в 2010-11 годах планируется производство снайперских винтовок различного калибра.

«В этом году мы планируем принять участие в трех международных выставках: в мае в Иордании, в сентябре – в ЮАР и в ноябре - в Греции. Постараемся представить там широкий ассортимент нашей продукции», - отметил Я.Джамалов.

/Интерфакс-Азербайджан/

The opening of the facilities, built during the first phase of Sumgait Techno Park

http://prezident.az/galpics.php?h=400&im_id=41906&item_id=20091223015117290
Very happy to see this. Sounds like an ambitious project! Any info on the resident companies? :cheers:

Very happy to see this. Sounds like an ambitious project! Any info on the resident companies? :cheers:

Thank you very much.

What do you mean by resident companies?

Я имею ввиду компании-резиденты технопарка. Известно ли какие компании собираются завести там производство?

Я имею ввиду компании-резиденты технопарка. Известно ли какие компании собираются завести там производство?

Ya tochno ne znayu kakiye kompanii tam rabotayut ili budut rabotat. Koe kakoe prizvodstvo v etom texnoparke uje nalajeno. Na primer prizvodstvo mnogo voltnoy kabeli i. t. No ya znayu chto gosudarstvo odno vremya sobiralsya obyavit Sumgait kak ekonomicheskuyu svobodnuyu zonu. Tak chto naverneyeka tam rabotayut razniye mejdunarodniye kompanii po prizvodstvu.

Avtomobil zavodunun fəaliyyətə başlaması ləngiyir

http://www.avtomobil.az/pub/content/AuVGPUi5tB.jpg

Naxçıvanda inşa olunan yeni avtomobil zavodunun fəaliyyətə başlaması ləngiyir. Naxçıvan Avtomobil Zavodunun direktoru Musa Abdullayevin verdiyi məlumata görə, hələ noyabr ayının ortalarında istifadəyə verilməsi planlaşdırılan zavodun istismara buraxılması 2010-cu ilin yanvar ayınadək təxirə salınıb: "Bunun səbəbi zavoda test avadanlıqlarının gətirilməsində gecikmələrlə bağlıdır ki, bu avadanlıqları göndərən xarici şirkət maliyyə böhranı səbəbindən bir qədər ləngiyir. Lakin artıq məsələ həllini tapıb və artıq yanvarın 4-də həmin avadanlıqlar Azərbaycana gətiriləcək və yanvarın ikinci yarısından etibarən zavod fəaliyyətə başlayacaq".
M.Abdullayev onu da qeyd edib ki, zavodun fəaliyyəti üçün Azərbaycan tərəfi üzərinə düşdüyü bütün öhdəlikləri və işləri yerinə yetirib.
Qeyd edək ki, ilkin olaraq müəssisədə 108 ədəd, ikinci mərhələdə isə 216 minik avtomobili yığılacaq.
Xatırladaq ki, 2009-cu ilin may ayının sonunda Pekində keçirilən Çin-Azərbaycan biznes-forumu çərçivəsində Naxçıvan Avtomobil Zavodu ilə Çinin Lifan Avtomobil Korporasiyası arasında əməkdaşlıq sazişi imzalanıb. Sazişə əsasən, Naxçıvanda Lifan minik avtomobillərinin yığılması həyata keçiriləcək.

//apa

Source: avtomobil.az

Azerbaijan negotiates export of 27 types of defense products

Azerbaijan’s Ministry of Defense Industry is increasing production and is negotiating the export of its products, Defense Industry Minister Yavar Jamalov said.

“Currently, negotiations are underway with several countries on the export of 27 kinds of our products that we presented at the international exhibition in Istanbul in April 2009,” the minister said in his interview with local AzTv TV channel.

Jamalov said the Ministry of Defense Industry is planning to implement a number of new projects, including reconstruction of the 12 types of manufacturing industries, purchase of modern equipment from a number of developed countries for the production of eight types of product defense in 2010. In addition, negotiations are held to purchase the latest equipment to start production of another five or six kinds of products.

“In the meantime, production of military equipment has started in Baku in collaboration with South African Paramount Group. In particular, we are negotiating about armor cars Matador and Marauder, which will be handed over to the Defense Ministry already in the first half of this year. Besides, sniper rifles of various calibres are planned to be manufactured in 2010-2011,” he added.

“This year we are planning to take part in three international exhibitions: in Jordan in May, in South Africa in September and in Greece in November. We will try to provide a wide range of products,” Jamalov noted.

/Interfax Azerbaijan/

ISR Holding Plans IPO: Interview with Well-Known Businessman Isgandar Khalilov

Sourse: Mənbə: TREND.az

Interview of well-known businessman Isgandar Khalilov, head of ISR Holding with TrendCapital.

Question: It is known that EU and US offer governments to interfere with the solution of the financial crisis to a great extent. What impact can it have on the system of market economy?

Answer: It think it will have a positive impact. The governments plan to allot money to the companies in exchange of their stocks until they restore normal financial situation. It will help companies to continue work and develop their business. This is much better than bankruptcy. I may also ask Russian government for help if financial crisis hurts my business there.

Question: Has the financial crisis hurt your business?

Answer: The only sphere of my business hurt by the financial crisis to some degree is Toyota Center Baku where demand fell by almost 50%. If previously we were selling 100 cars, this figure has dropped to 45 to 50 now. I think the situation will normalize as soon as crediting related issues are addressed.

Question: In what stage are ISR Holding projects in Baku?

Answer: ISR Holding continues building Hilton hotel in Baku. About $140mln will be invested in this project. The hotel is expected to become operational in 2011. Hotel designed by the English Pubic Areas, will be 23-storied. There is no such hotel in Azerbaijan at present. Hilton hotel will offer the service itself and the prices will be fixed by them. We continue work on realization of project of iodine production plant. Then first production line has already been commissioned. The second phase of the project calls for commissioning two more lines. This is our second largest project in Azerbaijan. We expect EBRD credit to continue work within the second phase.

Question: Recently, ISR Holding obtained two insurance companies. You said that you were going to obtain two more. In what stage are talks with these companies?

Answer: Actually, today we have two insurance companies – Ateshgah and Kavkaz Sigorta. We plan to expand insurance business and buy two more companies the names of which I will not divulge in favor of their own interests. But talks with these companies have been suspended since owners of these companies have not yet made a final decision.

Question: On what new projects ISR Holding is working in Baku at present?

Answer: One of the large projects of ISR Holding is the designing new micro district – City Center in Heydar Aliyev avenue which requires $500mln-$600mln and only $200mln for the first phase of construction. City Center will include dwelling complex, school, kindergarten, outpatient department, trade center and other social facilities. We also plan IPO. We plan to distribute our shares in London exchange. We have completed transition to the international financial accountability standards and we are fully transparent in conduct of business. ISR Holding is one of the large tax-payers and pay taxes worth AZN 200mln annually.

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Posted By: Azer Akhundov

Azərbaycanda yeni avtomobil zavodu fəaliyyətə başlayıb

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11 Yanvar 2010 18:15
Naxçıvan. Nicat Əliyev – APA. Azərbaycanda yeni avtomobil zavodu fəaliyyətə başlayıb. Naxçıvan Avtomobil Zavodu (NAZ) bu gün istehsal etdiyi ilk “NAZ Lifan” avtomobilinin təqdimatını keçirib.

Zavodun direktoru Musa Abdullayevin APA-ya verdiyi məlumata görə, artıq “NAZ Lifan” avtomobilləri üçün sifarişlərin qəbuluna da başlanılıb.

Zavodda gün ərzində 5-7 minik avtomobilin istehsalı nəzərdə tutulur. Çindən gətirilən ehtiyat hissələrinin yığılması prosesi zavodun istehsal sexində aparılır. Bəzi hissələr isə yerli mütəxəssislər tərəfindən hazırlanılır. İlkin olaraq müəssisədə 108 ədəd, ikinci mərhələdə isə 216 minik avtomobili yığılacaq.

Yeni istehsal edilən avtomobillər yerli əhaliyə nəğd ödəmə və kreditlə satılacaq. Qiymətlər isə modeldən asılı olaraq 8-14 min manat arasında dəyişir.

Gələcəkdə zavodun imkanlarının daha da genişləndirilməsi və avtomobillərin xarici ölkələrə ixracı da planlaşdırılır.

Xatırladaq ki, 2009-cu ilin may ayında Pekində keçirilən Çin-Azərbaycan biznes-forumu çərçivəsində Naxçıvan Avtomobil Zavodu ilə Çinin “Lifan” Avtomobil Korporasiyası arasında əməkdaşlıq sazişi imzalanıb. Sazişə əsasən, Naxçıvanda “Lifan” minik avtomobillərinin yığılması həyata keçiriləcək. Zavodda “Lifan-320”, “Lifan-520” (sedan və xetç-bek) və “Lifan-620” (sedan) modelləri yığılacaq.

Source: apa.az

www.naz.az

Azerbaijan launches new auto plant

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11 Jan 2010 19:39
Nakhchivan. Nijat Aliyev - APA-ECONOMICS. A new automobile plant NAZ Lifan has been launched in Nakhchivan Autonomous Republic of Azerbaijan.

Musa Abdullayev, Director of Lifan Nakhchivan Automobile Plant, said the plant has started to receive orders for cars.

In his words, 5 to 7 cars will off the assemble line a day at the initial phase.

“108 cars will be assembled at the initial phase and 216 cars in the second phase. Cars will be sold on the local market. Prices will be reasonable, ranging from AZN 8 000 to AZN 14 000. These cars include Lifan-320, Lifan-520 (sedan and hatchback) and Lifan-620 (sedan). Parts are supplied from China,” he added.

A partnership agreement was signed with Chinese Lifan Corporation on the sidelines of China-Azerbaijan Business Forum in Beijing to establish the assembly of cars in Nakhchivan.

Source: apa.az

www.naz.az

^^Congratulation to Azerbaijan now we have 3 car plants (Ganja Auto, Shamakhi Car Plant and Nakhchivan Car Plant).:banana:

We had also one in Baku which was making small buses. Anyone knows is this plant active now?

We need more car plants, such as Mughan area needs a lot investments

Construction of Caspian Shipbuilding Factory in Baku to be launched in 2010, including for military necessity

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Baku, Fineko/abc.az. Ilham Aliyev, President of Azerbaijan, returned specially to the issue of construction of Caspian Shipbuilding Factory at a meeting of the Cabinet.

I.Aliyev said that construction of Caspian Shipbuilding Factory in Baku will be started in 2010.

“We hope that it will be finished in short term. The plant is required for satisfaction of demands of the Azerbaijan State Caspian Sea Shipping Company and the State Oil Company (SOCAR) for new ships and tankers. The plant can build the vessels for military use as well,” I.Aliyev said.

He also noted that SOCAR and the Azerbaijani Investment Company (AIC) will take part in financing of construction of the plant besides foreign investors.

On 19 May 2008 in Baku SOCAR signed the Memorandum on Caspian Ship-Building Factory between SOCAR, Korea’s STX Shipbuilding Co. Ltd and Azerbaijan Investment Company (AIC).

SOCAR president Rovnag Abdullayev says that they were considering the project, but it is inappropriately to launch it at present.

Germany’s Marine Service has been operating within the project as the feasibility study consultant. Specification of the feasibility study is linked with change of future factory construction concept in accord with the agreement on May 19.

The consulting company is re-evaluating the project, conducting market analysis and making a business plan jointly with STX.

Under the Memorandum, SOCAR subscribed for 65% equity stake in the project, STX for 25% and AIC for 10%.

When organizing project financing it was planned to raise money from foreign sources and re-distribute partly equity stakes among the shareholders. But these issues will be solved after feasibility study is ready.

It is expected that due to use of Baku Deepwater Jackets Factory (BDJF) n.a. Heydar Aliyev and its infrastructure as basis, the project is expected to be cheaper than earlier announced $400 million.

STX that initiated the project offers parity distribution of the project shares between all the shareholders – STX itself, AIC, SOCAR, and Azerbaijan State Caspian Shipping Company (Kaspar).

Azerbaijan insisted that STX should acquire an equity stake of at least 35% of shares to make the latter to be more interested in the project operatorship and to raise more investments from abroad.

The new factory will be located nearby BDJF belonging to SOCAR and both enterprises will complement each other with orders and work. The ship-building factory will make all vessels necessary for work on the shelf. Azerbaijan is applying 27 types of vessels. SOCAR itself that is numbering 270 vessels is going to renew them at the new enterprise.

Under the primary feasibility study, the ship-building factory was estimated at $400 million. In accordance with world practice 30% of the project cost will be financed at the expense of shareholders and 70% will be raised. At the same time STX will undertake project management and construct the factory under turnkey.

For the time being, the parties expect to construct tankers with tonnage of up to 30,000 tons for four Caspian states (except Iran whose position on the occasion is unknown).

Holding of project presentation in Baku was scheduled for the end of 2007.

It was planned to produce a whole range of vessels (from yachts to large tankers) at the new enterprise.

The Memorandum on Ship-Building Factory was signed in Seoul on 24 April 2007, under which AIC was ready to acquire 25% equity stake in the project.

The shipbuilding plant will be oriented on construction and conduction of repair of vessels, including tankers for transportation of Kazakhstan’s and Turkmenistan’s oil. It will be the unique plant in Azerbaijan, but its capacity will depend on availability of a portfolio of orders.

Azerbaijani plant Kur starts producing mini-notebooks

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Baku, Fineko/abc.az. Computer equipment national producer plant Kur plans to launch production of mini-notebooks.

Director General of the plant Rizvan Osmanov said that in 2010, the business intends to increase types and configuration of computers.

“We will begin manufacturing mini-notebooks, using modern technologies. Production is in large demand among consumers, especially students,” R. Osmanov said.

The prices for mini-notebooks will be moderate.

“The prices for this type of computers will be formed in accordance with market ones – AZN 300-350. Although, their screens will be larger than netbooks’ ones, however, a computer will be very easy with effective configuration,” R. Osmanov said.

http://www.sife-mpi.org/images/photoalbum/album_2/kur.jpg
"Kur" computer plant in Mingachevir city

Президент Ильхам Алиев: «В 2009 году в Азербайджане был заложен фундамент ряда грандиозных проектов» - ОБНОВЛЕНО

18 января под председательством Президента Азербайджанской Республики Ильхама Алиева состоялось заседание Кабинета министров, посвященное итогам социально-экономического развития в 2009 году.

По итогам заседания президент Азербайджана Ильхам Алиев выступил с заключительной речью на заседании Кабинета министров, посвященном итогам социально-экономического развития в 2009 году.

Как передает государственное информационное агентство АзерТАдж, президент Ильхам Алиев сказал:

«Итоги 2009 года являются еще одним свидетельством того, что в прошлом году Азербайджан продолжал успешно развиваться. Мы избрали верный курс. Мы опираемся на собственные ресурсы и ведем всю работу в направлении защиты национальных интересов Азербайджана. Для нас это главный фактор. У нас есть все возможности для наращивания мощи страны, ее модернизации, решения всех стоящих перед ней проблем. Еще раз хочу сказать, есть как продуманная политика, так и твердая воля.

Вновь хочу отметить – я говорил об этом и ранее, было отмечено и сегодня, - 2009 год для всех стран стал годом испытаний. Раньше круги как за рубежом, так и внутри страны, со злобой или с завистью относившиеся к нашим успехам, не желавшие признавать их, чаще всего увязывали наши успехи с нефтяным фактором.

Хотя нефтяной фактор также существует благодаря труду азербайджанского народа и самоотверженности великого лидера Гейдара Алиева. Наличие нефти в глубинных пластах еще не означает реализации нефтяной стратегии.

Мы вообще сегодня говорим о нефтяном факторе благодаря тому, что в самые тяжелые, самые трудные годы, несмотря на все сложности, были проявлены большая воля, дальновидность, мужество и в Азербайджан были привлечены иностранные инвестиции, подписан «Контракт века», обеспечена его реализация.


Но, тем не менее, повторяю, силы, желающие указывать нам на недостатки или же приуменьшить наши успехи, увязывали экономическое развитие с нефтяным фактором. Не секрет, что этот фактор, конечно же, играет свою роль. И это будет продолжаться, так как в последние годы добыча нефти и газа в Азербайджане в значительной степени выросла.
Однако 2009 год стал годом, когда мы разнесли в пух и прах все злонамеренные слова. Наша страна, наша экономика продолжали успешно развиваться и в кризисный год.

Все познается в сравнении. Я не хочу сейчас сравнивать Азербайджан с другими странами, но существует статистика, есть показатели. Самая стремительно развивающаяся страна на пространстве СНГ – это Азербайджан. Во всем регионе царит экономический спад, происходит спад промышленного производства, а в Азербайджане наблюдается рост.

Авторитетная в мире международная организация – Всемирный экономический форум поставила Азербайджан на 51-е место по конкурентоспособности, что является первым местом на пространстве СНГ. То есть, наша экономика самая конкурентоспособная, диверсифицированная, современная и сильная на всем пространстве СНГ. Это реальность, которой мы справедливо гордимся».


В 2009 году продолжалось вложение инвестиций в Азербайджан. В течение года было вложено 9,2 миллиарда долларов инвестиций, из которых 7,3 миллиарда – внутренние капиталовложения. И это прекрасный показатель, так как мы знаем, что и сложившееся в мире серьезное положение в банках, и сокращение финансовых ресурсов не могли положительно влиять на продолжение инвестирования. Но, мобилизовав все возможности – как по линии государства, так и по линии местных компаний, частного сектора, а также учитывая интерес иностранных компаний к Азербайджану, мы сумели организовать в Азербайджане инвестирование в большом объеме. И здесь также проявляются особенности проводимой в нашей стране общей политики.

Как вкладываемые государством капитальные инвестиции, так и разрастание местных компаний и расширение их возможностей, создание для них прекрасных условий, средства, кредиты, субсидии и другие льготы, выделяемые государством на развитие предпринимательства, реализация в стране крупных инфраструктурных проектов, строительство повсюду дорог, электростанций, социальных объектов, с другой стороны, создание хороших условий и для зарубежных инвесторов – все эти факторы способствовали возникновению нынешнего положения. Я уверен, что Азербайджан и в предстоящие годы будет представлять интерес и для внутренних, и для иностранных инвесторов как привлекательная страна, благодаря реализации проектов, начавшихся в прошлом, 2009 году, и новым проектам мы увидим еще большие объемы инвестиционных вложений.

В 2009 году в Азербайджане был заложен фундамент ряда грандиозных проектов или же реализована определенная часть этих проектов. Был заложен фундамент нового крупного цементного завода, финансируемого зарубежными инвесторами. Сумма инвестиций, которые будут вложены в это предприятие, составят почти 400 миллионов долларов.

Азербайджанским государством был заложен фундамент нового завода по утилизации бытовых отходов, который будет способствовать значительному улучшению экологической ситуации. Инвестиции, которые будут вложены в это предприятие, составят примерно 400 миллионов долларов. Уже сдана в эксплуатацию определенная часть Сумгайытского технопарка, где ведутся грандиозные строительно-монтажные работы. Этот технопарк имеет огромное значение для того, чтобы Сумгайыт стал на самом деле современным промышленным городом. Сейчас трудно подсчитать общий объем инвестиций, которые будут вложены в этот проект. Но если учесть, что там будут сооружены по меньшей мере 10 крупных заводов, то, наверное, объем инвестиций будет измеряться сотнями миллионов долларов.

Я отметил только три проекта, каждый из которых имеет для страны очень большое значение. Это говорит о том, что объем инвестиций, вкладываемых в Азербайджан как по линии государства, так и по линии иностранных и местных компаний, растет. Мы продолжим эту политику и в будущем. Уверен, что это будет иметь очень большие и важные результаты для развития ненефтяного сектора Азербайджана.

Source: Day.az

Azerbaijani President: The country managed to survive the global financial crisis with minimal losses - UPDATE

On Jan. 18, President of Azerbaijan Ilham Aliyev presided over a Cabinet`s meeting dealing with the outcomes of socio-economic development in 2009.

The President made opening remarks in the meeting, saying Azerbaijan managed to survive the global financial crisis with “minimal losses.”

The Head of State noted serious social and economic reforms underway in Azerbaijan create opportunities for comprehensive development in the country. “Our country protected its economic interests in 2009, and improved social welfare of the population.”

He underlined according to the results of 2009, Azerbaijan was the most rapidly developing country.

The President pointed out, in 2009, gross domestic product (GDP) in the country increased by 9, 3 percent, describing this as a “historical accomplishment”.

The Head of State noted industrial production grew 8. 6 percent, while the agricultural sector saw 3, 5 percent increase. He added the inflation level made up 1, 5 percent.

President Ilham Aliyev pointed out $9. 2 billion investments were made in Azerbaijan, 7, 3 billion of which was an internal one.

The Head of State noted huge infrastructure projects were carried out in the country. He stressed 74 thousand jobs were created in Azerbaijan, while the poverty level decreased to 11 percent. He said the county`s currency reserves increased to reach $ 20, 4 billions.

According to the President, 64 schools and 59 healthcare facilities were constructed in the country in 2009.

The Head of State also touched upon the country`s foreign policy, underlining important steps have been taken in this direction. “The number of our friends and strategic partners increases,” the President added.

On the Armenia-Azerbaijan, Nagorno Karabakh conflict, President Ilham Aliyev said the principle of territorial integrity was a priority in the issue.

Finance Minister Samir Sharifov, Chairman of the Central Bank`s Board Elman Rustamov, Minister of Communication and Information Technology Ali Abbasov, Chairman of the State Social Protection Fund Salim Muslumov reported on the last year`s socio-economic measures in the country.

President Ilham Aliyev made closing remarks, saying Azerbaijan was relying on its resources, and there is a powerful will to strengthen the country even more and to address the outstanding tasks.

The Head of State underscored Azerbaijan was an economy that has completed its transition into a liberal, sustainable and self-sufficient one.

President Ilham Aliyev said implementation of social programs and infrastructure projects will continue in 2010

Source: Today.az

Economy of Azerbaijan

Azerbaijan is an economy that has completed its post-Soviet transition into a major oil based economy (with the completion of the Baku-Tbilisi-Ceyhan Pipeline), from one where the state played the major role. Azeri GDP grew 41.7% in the first quarter of 2007, possibly the highest of any nation worldwide.[24] Such rates cannot be sustained, but despite reaching 26.4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea), and 2006 over 36.6% (world highest), in 2008 dropped to 11.6%.

It has substantial oil reserves and a significant agronomic potential based on a wide variety of climatic zones. Since 1995, in cooperation with the IMF, Azerbaijan has pursued an economic stabilization program, which has brought inflation down from 1,800% in 1994 to 1.8% in 2000. The national currency, the Azerbaijani manat, was stable in 2000, depreciating 3.8% against the dollar. The budget deficit equaled 1.3% of GDP in 2000.

Progress on economic reform has generally lagged behind macroeconomic stabilization. The government has undertaken regulatory reforms in some areas, including substantial opening of trade policy, but inefficient public administration in which commercial and regulatory interests are co-mingled limit the impact of these reforms. The government has largely completed privatization of agricultural lands and small and medium-sized enterprises. In August 2000, the government launched a second-stage privatization program, in which many large state enterprises will be privatized.

Economy of Azerbaijan
Currency 1 Manat = 100 gopiks
Fiscal year Calendar year
Trade organisations CIS, ECO, GUAM, WTO(observer)

Statistics
GDP ranking 76th (2008[update]) [3]
GDP (nominal) $46,38 billion (2008) [4]
GDP (PPP) $74,8 billion (2008[update]) [5]
GDP growth 11,6% (2008[update]) [6]
GDP per capita $8,600 (2008[update]) [[7]]
GDP by sector agriculture (6%), industry (62,6%), services (31,4%) (2008[update]) [8]
Inflation 21,6% (2008[update]) [9]
Pop below poverty line 24% (2005[update]) [10]
Labour force 5,78 million (2008[update]) [11]
Labour force by occupation services (48,6%), industry (12,1%), agriculture and forestry (39,3%) (2005[update]) [12]
Unemployment 0,8% (2008[update]) [13]
Main industries petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals;petrochemicals; textiles; machinery; cotton; foodstuffs

Trading Partners
Exports $38,280bn (2008[update]) [15]
Main partners Turkey 17,4%, Italy 15,5%, Russia 8,7%, Iran 7,2%, Indonesia 6,4%, Israel 6,1%, Georgia 5,7%, United States 4,8%, France 4,3% (2007[update]) [16]
Imports $7,496bn (2008[update]) [17]
Main Partners Russia 17,6%, Turkey 10,9%, Germany 8,2%, Ukraine 8,2%, United Kingdom 7,2%, Japan 5,2%, China 4,9%, United States 4.7%, Italy 4.5%, Ukraine 4.3% (2007[update]) [18]
Public finances
Public debt (15,2% of GDP) 2008[update]) [20]
Revenues $14,519bn 2008[update]) [21]
Expenses $15.660bn 2008[update]) [22]
Economic aid (recipient) $223.4 million

Macro-economic trend
This is a chart of trend of gross domestic product of Azerbaijan at market prices estimated by the International Monetary Fund with figures in millions of Manats.

Year Gross Domestic Product US Dollar Exchange Per Capita Income
(as % of USA)
1995 10,669,000 4,414.14 Manats 1.13
2000 23,590,500 4,473.82 Manats 1.87
2005 79,378,500 4,727.21 Manats 3.74

For purchasing power parity comparisons, the US Dollar was exchanged at 1,565.88 Manats only. Now the new Manat is in use, with an exchange rate of about 1 manat = $1.10. Average wages in 2007 are around $18–21 per day.

For more than a century the backbone of the Azerbaijani economy has been petroleum, which represented 10 percent of Azerbaijan’s GDP in 2005, and is projected to double to almost 20 percent of GDP in 2007[1]. Now that Western oil companies are able to tap deepwater oilfields untouched by the Soviets because of poor technology, Azerbaijan is considered one of the most important areas in the world for oil exploration and development. Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, and Turkmenistan, are comparable in size to the North Sea, although exploration is still in the early stages.

http://upload.wikimedia.org/wikipedia/en/c/c8/2006Azerbaijani_exports.PNG

Azerbaijani exports in 2006

External trade

Azerbaijan has concluded 21 production-sharing agreements with various oil companies. An export pipeline that transports Caspian oil to the Mediterranean from Baku through Tbilisi, Georgia to Ceyhan, Turkey (the Baku-Tbilisi-Ceyhan Pipeline) became operational in 2006. The pipeline is expected to generate as much as $160 billion in revenues for the country over the next 30 years. The recent high price of oil is highly beneficial to Azerbaijan's economy as the nation is in the midst of an oil boom. Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production. In March 2001, Azerbaijan concluded a gas agreement with Turkey, providing a future export market for Azerbaijan.

In 2002 the Azerbaijani merchant marine had 54 ships.

Overview

Through the Soviet period, Azerbaijan had always been more developed industrially than Armenia and Georgia, two neighboring Transcaucasia countries - but also less diversified, as a result of slow investment in non-oil sector. With a history of industrial development of more than 100 years, Azerbaijan proved to be a leading nation in Southern Caucasus throughout the turmoil of Soviet Union collapse in early 1990s until nowadays.

Oil remains the most prominent product of Azerbaijan's economy with cotton, natural gas and agriculture products contributing to its economic growth over the last five years. More than $60 billion was invested into Azerbaijan's oil by major international oil companies in AIOC consortium operated by BP. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997 and now is about 500,000 b/d. People visit petroleum spas (or "oil spas") to bathe in the local crude in Naftalan[3] A leading caviar producer and exporter in the past, Azerbaijan's fishing industry today is concentrated on the dwindling stocks of sturgeon and beluga in the Caspian Sea.

Azerbaijan shares all the problems of the former Soviet republics in making the transition from a command to a market economy, but its energy resources brighten its long-term prospects. Azerbaijan has begun making progress on economic reform, and old economic ties and structures are slowly being replaced. An obstacle to economic progress, including stepped up foreign investment, is the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance while trade is building up with Turkey, Iran, UAE, and the countries of EU. Azerbaijan is also a member of the Economic Cooperation Organization (ECO). Long-term prospects will depend on world oil prices and the location of new pipelines in the region.

Environmental issues
Azerbaijan faces serious environmental challenges. Soil throughout the region was contaminated by DDT and toxic defoliants used in cotton production during the Soviet era. Caspian petroleum and petrochemicals industries also have contributed to present air and water pollution problems. Several environmental organizations exist in Azerbaijan, yet few funds have been allocated to begin the necessary cleanup and prevention programs. Over-fishing by poachers is threatening the survival of Caspian sturgeon stocks, the source of most of the world's supply of caviar. The Convention on International Trade in Endangered Species (CITES) has listed as threatened all sturgeon species, including all commercial Caspian varieties

Diversification
In 2007, mining and hydrocarbon industries accounted for well over 95 per cent of the Azerbaijani economy. Diversification of the economy into manufacturing industries remain a long-term issue.

http://upload.wikimedia.org/wikipedia/commons/thumb/a/a1/Baku_pipelines.svg/800px-Baku_pipelines.svg.png

The Baku-Tbilisi-Ceyhan pipeline (green) is one of several pipelines running from Baku.

Business environment
In 2008, Azerbaijan was cited as the top reformer by the World Bank's Doing Business report[4]:

Azerbaijan led the world as the top reformer in 2007/08, with improvements on seven out of 10 indicators of regulatory reform. Azerbaijan started operating a one-stop shop in January 2008 that halved the time, cost, and number of procedures to start a business. Business registrations increased by 40% in the first 6 months. Azerbaijan also eliminated the minimum loan cutoff of $1,100, more than doubling the number of borrowers covered at the credit registry. Also, taxpayers can now file and pay their taxes online. Azerbaijan’s extensive reforms moved it far up the ranks, from 97 to 33 in the overall ease of doing business.

Other statistics
Data from CIA World Factbook: Azerbaijan economy unless noted otherwise
Investment (gross fixed): 21% of GDP (2008 est.)

Household income or consumption by percentage share:

lowest 10%: 3,1%
highest 10%: 29,5% (2001)
Inflation rate (consumer prices): 21,6% (2008 est.)

Agriculture:

utilized agricultural land: 4,755,100 hectares (2007)
total wood resources: 136 million m³
crops: cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco
livestock products: beef, mutton, poultry, milk, eggs

Industrial production growth rate: 12% (2008 est.)

Electricity:

production: 23,80 billion kWh (2007)
consumption: 27,50 billion kWh (2007)
exports: 800 million kWh (2007)
imports: 500 million kWh (2007)

Current account balance: $19,36 billion (2008 est.)

Exports - commodities: petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals, petrochemicals, textiles, machinery, cotton, foodstuffs.

Reserves of foreign exchange and gold $8,50 billion (2008 est.)

Debt - external: $2,73 billion (2008 est.)

Economic aid - recipient: ODA, $223.4 million (2005 est.)[citation needed]

Currency: 1 Manat = 100 gopiks

Exchange rates:[citation needed]

Azerbaijani manats per US dollar - 0.85(2008)
Azerbaijani manats per Euro - 1.24(2008)

Fiscal year: calendar year

Source: wikipedia

SOCAR new refineries to be oriented to output on euro-5 standard

Baku, Fineko/abc.az. The State Oil Company of Azerbaijan (SOCAR) is preparing to realize a quality breakthrough in manufacture of petroleum products, and first of all, light oil products.

At today’s media conference in Interfax-Azerbaijan news agency SOCAR vice president for environment Mukhtar Babayev said that current fuel produced by their refineries conforms to euro-2 standard.

“We, however, decided to give up from euro-3 standard production at our refineries. It would demand from us billions of investments in the enterprises to be closed in any case in the next few years. That is why we suppose to jump over several stages at once and construct new refineries for manufacture of fuel on euro-5 standard,” Babayev said.

The relevant state commission is preparing now proposals for domestic oil refining development, petrochemical and gas-chemical complex.

“It is making the suggestions with coordination role of the Cabinet Ministers. Already today it is apparent that both our refineries will be withdrawn from Baku for a short period and re-built to ensure their maximum efficiency,” Babayev said.

SOCAR has two Baku refineries with overall capacity of up to 22 million tons of oil a year. Indeed refining volumes at them do not exceed 9 million tons.

Azerbaijan and Korea sign protocol on cooperation in nuclear energy sector

Baku, Fineko/abc.az. The Institute of Radiation Problems of the Azerbaijani National Academy of Sciences (ANAS) and the Korea Atomic Energy Research Institute signed protocol of intentions in the sphere of scientific cooperation.

The academy informed that the document was signed during the visit of Azerbaijani delegation, headed by director of the institute Adil Garibov, to Korea.

“The protocol envisages carrying out of joint research work, preparation of personnel, implementation of the projects,” it was informed.

In addition, Azerbaijani scientists visited Korean atomic power station.

Azerbaijani Ministry of Communications and Information Technologies strengthens reliability of own satellite launching project

Baku, Fineko/abc.az. The Azerbaijani Ministry of Communications and Information Technologies put new requirements for production of the satellite.

Minister of Communications and Information Technologies Ali Abbasov said, in order to provide profitability of the project and taking into account of high competition in this sphere, new moments appeared after negotiations with a consulting company.

“In order to provide large reliability of the project, we put several new requirements. It took additional time, but it is now possible to say that work has been finished,” minister said.

Presently, the ministry plans to launch the satellite in June, 2012.

Azerbaijan President Ilham Aliyev approved the state program on creation and development of space industry, adoption of which was envisaged by his decree №27 on 4 November 2008 “On creation of space industry and placing telecommunications satellites into orbit”.

In compliance with the new decree, the Ministry of Communication and Information Technologies is in charge of coordination of implementation of the state program. The measures are financed by the state budget, as well as other sources not banned by legislation. The Cabinet of Ministers was entrusted to resolve issues, arising from real decree.

The program intends establishment of an organization in 2009-2010 to prepare for placing the satellites in orbit and managing them, preparation for regulatory legal acts for exploitation and management of satellites and satellite systems, development of the plan to increase opportunities to render satellite services. In 2009, it is necessary to make choice of optimal orbit for native satellites and prepare feasibility study of the project. In 2010, earth-based systems should be created to manage the satellites and the systems should be placed in orbit in 2011-2012.

SOCAR plans to completed full gasification of Azerbaijan only by 2021

Baku, Fineko/abc.az. Azeriqaz, a sub-company of the State Oil Company of Azerbaijan (SOCAR), intends to ensure full gasification of the country by 2021.

Nazim Samedzadeh, first deputy general director of Azeriqaz, says that reconstruction of thre old gas system in regions will be over by 2013.

“We expect to finish the reconstruction of old gas system in villages by 2013 and the program on development of regions covers that. Another question is new gas line laying. These works will be carried out in 2018-21. Our country has such high-mountain regions where use of other fuel is much rational,” Samedzadeh said.

Opening of “Gilan” piano factory in Gabala

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http://prezident.az/makeim.php?w=600&h=400&im_id=26668&item_id=20100227024129226&ext=.jpg

http://prezident.az/makeim.php?w=600&h=400&im_id=8486&item_id=20100227024129226&ext=.jpg

Azərbaycan başqa ölkələrdən gəmi almayacaq

http://anspress.com/images/photos/856.jpg

Bu barədə Xəzər Dəniz Gəmiçiliyi İdarəsinin rəisi Aydın Bəşirov məlumat verib

“Bundan sonra Azərbaycan başqa ölkələrdən gəmi almayacaq. Çünki ölkədə gəmi zavodu tikilir”. Bunu bu gün keçirilən mətbuat konfransında Xəzər Dəniz Gəmiçiliyi İdarəsinin rəisi Aydın Bəşirov deyib. Onun sözlərinə görə, zavodun inşası gələn il başa çatacaq. Qurum rəsi bildirib ki, zavodda əvvəlcə 7-8 min tonluq tankerlər inşa ediləcək.

Xatırladaq ki, 2002-ci ildən bəri Azərbaycan digər ölkələrdən 13 yeni gəmi alıb. Bundan başqa yeni gəmi təmiri zavodu da tikilir. Milli Parkdakı gəmi avtobazası isə parkın genişləndirilməsi məqsədilə Zığ şosesinə köçürülür.

Əldə olunan mənfəət barədə məlumat verən A.Bəşirov bildirib ki, bu rəqəm 19 milyon dollar təşkil edir.
Xəzər Dəniz Gəmiçiliyi İdarəsinin rəisi qurumda olan nəqliyyat vasitələrindən də danışıb. O, qeyd edib ki, bunlar 80 nəqliyyat vasitəsi, 42 tanker, 28 qurudaşımaları, 9 gəmi bərə, 37 yedəkdir.

ans.az

State Oil Company of Azerbaijan Republic
http://www.telebe.az/foto/socar.jpg
SOCAR is ranked 68th largest company in the world and is worth $20 billion.

For more info: www.socar.az or,
Official Facebook Page:http://www.facebook.com/group.php?v=wall&viewas=707264021&ref=ts&gid=218941270736

cool!

SOCAR is really a big company and it is still growing!

More renderings of Baku Solid Household Waste Combustion Plant

http://www.tamizshahar.az/files/photoalbum/BAKU5.jpg

http://www.tamizshahar.az/files/photoalbum/z3-%282%29.jpg

http://www.tamizshahar.az/files/photoalbum/zavod-1.jpg

www.tamizshahar.az

Koreyalılar dəmir yollarımızı yenidən quracaq
Koreyalı biznesmenlər Azərbaycanda nəqliyyat infrastrukturunda müxtəlif layihələr həyata keçirə bilər


Koreyalı iş adamları Azərbaycanda nəqliyyat infrastrukturunda müxtəliflayihələr həyata keçirə bilər. Azərbaycanda səfərdə olan Cənubi Koreyanın torpaq, nəqliyyat və dəniz işləri naziri Conq Hvan Çunq deyib ki, Azərbaycan hökuməti dəstəkləsə, koreyalı sahibkarlar nəqliyyat sahəsində öz təcrübələrini tətbiq edəcək. Onun sözlərinə görə, Koreya şirkətləri daha çox avtomobil və dəmir yolu layihələrinə böyük maraq göstərir.

“Azərbaycanda Koreya şirkətlərinin iştirak etdiyi iki böyük layihə var. Birinci layihə Qafqazdakı dairəvi yolla bağlıdır. Onu indi “Penxa İnjenerinq” şirkəti hazırlayır. Digəri isə dəmir yolunun yenidənqurulması layihəsidir. Onu da Koreya şirkətləri hazırlayır”, - deyə Çunq bildirib.

Bundan başqa Koreya şirkətləri lokomotivlərin alınması layihəsinə də maraq göstərir. Çunq qeyd edib ki, ölkənin inkişafının davamlı olması üçün yaxşı nəqliyyat infrastrukturu lazımdır: "Koreya şirkətləri bu sahədə böyük təcrübəyə malikdir və biz ümid edirik ki, bu şirkətlər Azərbaycanda öz təcrübələrini tətbiq edə biləcək. Bu sahədə hökumət tərəfindən də köməklik göstərilməsini istəyirik".

ANS.az

Azerbaijan Central Bank has granted fully a 10-year loan to Azeraluminium

The Central Bank of Azerbaijan (CBA) has completed disbursal of its history’s second direct loan to a strategic enterprise of the country.

CBA first deputy chairman of board Alim Guliyev informed that the Bank extended the second and last tranche of the loan to OJSC Azeraluminium under governmental guarantees.

Currently recipients of such loans are The State Oil Company of Azerbaijan (AZN 750 million) and Azeraluminium (AZN 202 million).

“If necessary we are ready to continue practice of such financing,” Guliyev said.

Azeraluminium received the loan by two tranches – AZN 141 million and AZN 61 million. The loan finances were given 10-year term under annual rate of 3%. SOCAR was the first recipient of similar loan and got the 750 million loan for 7-year period under 2% per annum.

Fineko/abc.az
18.03.2010

Groundbreaking ceremony of the Shipbuilding Plant held in Baku

Groundbreaking ceremony of shipbuilding plant which will be built near Baku Deepwater Plant and meet modern standards was held on March 19. Azerbaijani President Ilham Aliyev also attended the ceremony, APA reports.

The head of the state was informed that it would be possible to prepare 25 000 tons of metal constructions, construct 4 tankers-shipment in capacity of 15 000 tons and 4 towing equipment ships, repair of different kinds of 80-100 ships at the only plant in the Caspian Sea.

Last year Memorandum of Understanding was signed on construction and exploitation of the plant between the State Oil Company of Azerbaijan Republic (SOCAR), Azerbaijan Investment Company and Singapore’s “Keppel Offshore & Marine” Company. SOCAR has 65 per cent of share, AIC 25 and “Keppel Offshore & Marine” 10 in the project. According to preliminary calculation, the project cost will be comprised by $300-350 million. The construction of the plant is going to be commissioned within 2.5 - 3 years. At first period 1000 people, then, after 3-5 years 1700-2000 people will work at the institution.

President Ilham Aliyev familiarized himself with the project and model of the plant. Delivering speech at the ceremony, the head of state noted the special significance of such modern plant - first in the Caspian Sea and added that it would contribute to the construction and maintenance of new and existing ships of the Azerbaijani Marine.

Singaporean Foreign Minister George Yong-Boon YEO also made a speech at the ceremony.

19 Mar 2010
Baku - APA

^^

http://www.president.az/galpics.php?h=400&im_id=18818&item_id=20100319035630494

http://www.president.az/galpics.php?h=400&im_id=23012&item_id=20100319035630494

^^Men bilen bunu evvelde Koreyali sirket tikmeli idi.

George Yeo on official visit to Azerbaijan from March 18-21
http://www.channelnewsasia.com/imagegallery/store/phpSvOwkZ.jpg
SINGAPORE: Singapore and Azerbaijan on Friday reaffirmed their friendly relations and discussed ways to enhance their bilateral relationship.

The two countries agreed on ways to strengthen the political dialogue on issues of mutual concern and promote economic cooperation. This was discussed during Singapore Foreign Minister George Yeo's visit to Azerbaijan on Friday.

Mr Yeo is in Azerbaijan on a four-day official visit, from March 18 to 21, at the invitation of Minister of Foreign Affairs Elmar Mammadyarov. This is the first high-level visit to Azerbaijan by a Singapore Minister since the establishment of diplomatic relations in 1994.

The ministers also emphasised the importance of a peaceful resolution of the Armenia-Azerbaijan Nagorno Karabakh conflict, based on the principles of sovereignty, territorial integrity and inviolability of borders of Azerbaijan in accordance with the norms of international law and relevant resolutions of the UN Security Council.

They also expressed their intention to promote further their cooperation in the fields of economy, trade, industry, energy, information technologies, education and culture.

Mr Yeo noted that a number of officials from Azerbaijan had attended courses to develop human resource capabilities in such sectors as project management, information technology, transportation and logistical management, civil aviation and tourism under the Singapore Cooperation Programme (SCP), which is a technical assistance programme administered by the Singapore Ministry of Foreign Affairs.

Mr Yeo said: "A new chapter has opened in our bilateral relationship. There is great potential for the strengthening of economic and other ties.

"Azerbaijan is a country with a long history and a rich culture. It has been growing rapidly. This morning when I called on President Aliyev, he told me that the GDP tripled in six years. And last year, despite the global economic crisis, Azerbaijan's economy continued to grow rapidly at a rate of 9.3 per cent."

He also noted that the oil and gas sector is an obvious area of greater cooperation.

Mr Yeo said: "Although Singapore has no oil or gas, we have a strong chemicals and maritime support cluster, with many Singapore-based companies supporting the operation of large oil and gas companies. I am certain that they would be keen to explore opportunities in Azerbaijan."

He added: "As part of the Oil Strategy to import world-class technology, Keppel was invited to Azerbaijan in 1997, and a partnership with SOCAR, the Caspian Shipyard Company in Baku, was quickly established.

"It was the region's first international rig-building, repair and conversion yard. Today, the Caspian Shipyard Company employs over 500 Azerbaijanis."

Mr Yeo also called on President Ilham Aliyev and had discussions with the Minister of Emergency Situations Kamaladdin Heydarov.http://www.channelnewsasia.com/stories/singaporelocalnews/view/1044757/1/.html

^^Keppel O&M in new Azerbaijan shipyard joint venture

http://www.marinelog.com/IMAGESMMIX/kepsocar540.jpg

Singapore's Keppel Offshore & Marine Limited is entering a joint venture to develop and manage a new 52-hectare shipbuilding and ship repair facility in Baku, Azerbaijan.

Azerbaijan's fixed capital investment climbs up
March 24 - Azerbaijan saw 310.9 million manats or nearly $388.7 million invested in its fixed capital in the first two months of 2010, which means a 84.1-percent increase from a year earlier, the State Statistical Committee has announced.

According to the official figures, foreign investment in the fixed capital since the start of the year made 88.6%.

United Kingdom, the USA, Japan, Norway, Turkey and Korea have been the largest investors in Azerbaijan in the first two months of 2010, according to the State Statistical Committee.http://www.today.az/news/business/64635.html

Azerbaijan permits construction of buildings with height up to 58 m

Normative standard Az.DTN 2.3-1 “Construction in seismic regions” endorsed by the State Committee for Town-Planning & Architecture of Azerbaijan raised height of buildings permitted for construction in the country.

The Committee says that in accordance with the new normative standard when using connecting frame systems height of buildings permitted for construction in Azerbaijan was raised from 12 stores (39 m) up to 16 stores (up to 58). At the same time concrete grade of no less than B25 should be applied for that.

The Committee emphasizes that 75% of country’s territory relates to the zone of seismicity at the level of 8-magnitude and 25% at the level of 9-magnitude.
http://abc.az/eng/news_30_03_2010_43704.html

Opening of new plants for Defence Industry in city Shirvan

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http://prezident.az/makeim.php?w=600&h=400&im_id=38818&item_id=20100401082102534&ext=.jpg

:applause::applause::applause:

Azerbaijan's Economy Is World's Fastest Growing Economy
SHIRVAN (Azerbaijan) -- Azerbaijan is the world's leading country in terms of economic growth rates, Azerbaijan's AZERTAC news agency reported President Ilham Aliyev as saying during a meeting with the Shirvan public.

He noted that 2009 year was a test for the world countries.

The president said that although the economic and financial crisis hit all nations in 2009, Azerbaijan posted the fastest growing economy across the world in that year, and managed to gain economic accomplishments.

"Our economy has grown by about 10 percent", the President added.http://www.bernama.com/bernama/v5/newsindex.php?id=487768

Azerbaijan's Parliament ratifies loan deal with Saudi Development Fund
BAKU - Azerbaijan's Milli Medjlis has ratified a loan agreement on the "Project of reconstruction and expansion of the water supply and sewerage system in Baku between Azerbaijan and the Saudi Development FundSaudi Development FundLoading...".

The project envisions reconstruction and expansion of the system of water supply and sewerage of the 20th section residential massive in Bibieybat area of Baku and adjacent regions. By the forecasts, in the next 15 years the population here will be about 170,000 people.

There is a plan to build a 500 mm main water pipe extending to 22 kilometers with a capacity of 1400 cubic meters per hour. In addition, the sewerage system extending to 72 kilometers and 200-600 mm in diameters will also be created.

The fund allocates SR93,750,000 (about $25 million) for 20 years with a grave period of 5 years under the annual rate of 2 percent. The overall cost of the project is estimated at about $63 million.

Separately, in Minsk, investments from Saudi Arabia may pour into Belarus following the ratification of Belarus-Saudi Arabia intergovernmental agreement on the assistance and mutual protection of investments, Deputy Foreign Minister of Belarus Valery Voronetsky said at a session of the House of Representatives' permanent commission for international affairs and links with the CIS on Tursday.

"The policy of Saudi Arabia to increase strategic external assets might be used by Belarus to raise investments for major joint projects," Voronetsky said.

According to experts, the international reserves of the Gulf states are bigger than those of China and are estimated at $1.6 trillion. The bulk of these reserves accounts for the UAE, Saudi Arabia and Kuwait. In the near term, this figure might rise to $3 trillion. Some of these reserves are expected to be invested into major new markets, like India, China, Pakistan, and Malaysia.

"Belarus could also become an appealing investment destination," the deputy foreign minister said. He admitted, though, that the interest of foreign business in potential projects in Belarus in not high yet.

Voronetsky believes that Belarus-Saudi Arabia agreement on the mutual protection of investments will help galvanize the business activity in the country.

Voronetsky noted that the capacity of the Saudi market, alongside with the efforts to promote the manufacturing industry, create preconditions for the investment of Belarusian companies to get a foothold on this promising market.

The deputy foreign minister meant the establishment of assembly production facilities, introduction of scientific know-how.

He added that a number of organizations affiliated with the National Academy of Sciences of Belarus are already operating on the Saudi market and implementing projects worth $11 million.

The agreement to be ratified is aimed to create favorable conditions for raising investments. http://www.zawya.com/Story.cfm/sidZAWYA20100403052109/Azerbaijan%27s%20Parliament%20ratifies%20loan%20deal%20with%20Saudi%20Development%20Fund

SOCAR will invest a big amount of money to the chemical sector of Azerbaijan over next few years

The State Oil Company of Azerbaijan (SOCAR), in the course of integration and reanimation of transferred to it state-owned company Azerikimya, does not refuse to set up a creation of a new oil-processing complex.

SOCAR president Rovnag Abdullayev said in Baku that at present the issue on the new oil-processing and petrochemical complex is considered by a commission, established by Azerbaijan President Ilham Aliyev.

“The commission studies step-by-step all connected issues, including where and how to build the new complex. Under a feasibility study, the new petrochemical complex can be located in Garadag district of Baku, where there is simplified access to oil resources and a chemical complex can be located neary oil refining. That, in turn, can be integrated with existing complex Azerikimya,” R. Abdullayev said.

As for Azerikimya, the oil company has scheme of activity as follows: restoration of production, expansion of opportunities and competitiveness, building of new the enterprises for output of prepared finished products, and not only raw stuff and half-finished products.

In compliance with instruction of Azerbaijan President Ilham Aliyev, the company will create a chemical city technopark in Sumgait during 2-3 years.

Enterprises of this industrial small town will manufacture prepared production of complete processing on the basis of production and semi-products of Azerikimya. To this end, those small plants are planned to be opened that will allow to create not less than 10,000 jobs.

SOCAR is prepared for restoring in short terms activity of nonworking or functioning by 50% capacities of Azerikimya’s plants. To this end, a special program is being worked out as well. It is expected, Azerikimya will become a industrial association in structure of SOCAR.

07.04.2010
Fineko/abc.az

"Azerspace" hazırlıq mərhələsindədir

Aprelin sonunda əsas müqavilənin imzalanması gözlənilir

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Bu ay “Azerspace” Milli Telekommunikasiya peykinin buraxılması layihəsi üzrə ilk müqavilənin imzalanması gözlənilir. Rabitə və informasiya texnologiyaları naziri Əli Abbasov müqavilənin peykin istehsalçısı olan ABŞ-ın “Orbital sayns korporeyşn” şirkəti ilə imzalanacağını bildirib. Onun sözlərinə görə, peyklə bağlı artıq bütün uyğun olan rəylər yığılıb.

“Aprelin 15-də ilkin müqavilənin, axırında isə əsas müqavilənin imzalanması gözlənilir. Bütün bunlar ilin sonunda edilmiş düzəlişlərin üzərində gedir. 2012-ci ilin iyun ayında biz peykimizi orbitə çıxaracağıq”, - deyə nazir vurğulayıb.

Məlumat üçün bildirək ki, “Azerspace”in qiyməti 160 milyon manatdan çoxdur. Peykin inşası təxminən 87 milyon manata başa gələcək. 40 milyon manat onun orbitə buraxılmasına sərf olunacaq. Peykin idarəedilməsi mərkəzinə 16 milyon manat sərf ediləcək. Qalan 18 milyon manat isə onun 100 faizlik sığortasına xərclənəcək.

Peykin baha başa gəlməsinə baxmayaraq, süni peyk layihəsi iqtisadi baxımdan sərfəli layihə kimi qiymətləndirilir. Belə ki, bura çəkilən xərci 5-7 ilə çıxarmaq mümkündür. Bunun üçün peykin xidmətlərini beynəlxalq bazarlara çıxarmaq lazımdır. Milli peyk layihəsi baş tutduqdan sonra digər ölkələrin telekanalları Azərbaycanın peykindən istifadə etməklə yayımlanacaq ki, bu da ölkəyə xeyli vəsaitin daxil olması deməkdir.

Peykin buraxılması ilə Azərbaycan dünyada kosmik işlər aparan ölkə kimi tanınacaq.

Source: anspress

SOCAR increases payments to country’s budget
SOCAR informs that this March the Company transferred AZN 87.058 million to the State Budget.

This March, the State Oil Company of Azerbaijan (SOCAR) increased (compared to February) to the certain extent the pace of its payments to the State Budget and to the State Social Protection Fund (SSPF).

In March 2010 the Company paid to $122.6 million to the government, including $108.389 million to the State Budget and $14.25 million to the Fund.

SOCAR informs that this March the Company transferred AZN 87.058 million to the State Budget versus AZN 79.89 million this February.

In December 2009 the Company transferred AZN 532.562 million to the State Budget that was record index for the past year.

“This March payments to the Fund’s budget made up AZN 11.447 million that is more by 38.9% or AZN 3.207 million than payments in March 2009,” it was informed.

Last December AZN 11.96 million was paid to the SSPF budget (also record for 2009).

"For Jan-Mar 2010 the SOCAR transferred AZN 254.745 million to State Budget that was 1.8-fold (by AZN 118.29 million) more against payments for the 2009 same term and AZN 28.55 million to the Fund (+18.9% or AZN 4.548 million),” it was reported.

In 2009, AZN 1.468 bn was transferred to the State Budget and AZN 115.163 million to the SSPF.

Thus, this March alone it was transferred AZN 98.505 million to the government versus AZN 544.5 million in December 2009 (record volume of payments). The Jan-Mar 2010 payments totaled AZN 283.295 million against overall payments for entire 2009 for AZN 1.58 bn.

As of 1st April 2010 exchange rate was AZN 0.8032 to the US dollar.http://www.news.az/articles/13003

I am confused, how many sats we gonna launch? 1 or 2? Some news media say, it will be named Azerspace, other says AzerSat

I am confused, how many sats we gonna launch? 1 or 2? Some news media say, it will be named Azerspace, other says AzerSat

2 sattelites

Azerbaijan State Oil Fund’s assets reached $16.2 bn

In the 1st quarter of 2010 assets of the State Oil Fund of Azerbaijan (SOFAZ) increased by 9.1% compared with the indicator by early 2010.

This indicator growth since early 2010 made up 9.1%,” Movsumov said.

As of 1st April 2010 SOFAZ earning totaled AZN 2.75 bn and expenditures AZN 1.29 bn.

Revenues from implementation of PSA oil agreements for Jan-Mar 2010 made up AZN 2.7 bn, including AZN 2.7 bn from sale of oil and gas, transit revenues AZN 2 million, dividends from assets received from foreign companies AZN 300,000.

“In the 1st quarter of 2010 revenues from management with Fund’s assets totaled AZN 50 million. For the reported period Fund’s extra-budgetary expenditures in connection with exchange rate difference reached AZN 379 million,” Movsumov emphasized.

For this period it was spent AZN 2.9 million on improvement of social condition of the population, AZN 23.2 million and AZN 36.5 million respectively on reconstruction of the Samur-Absheron irrigational system and construction of the Oghuz-Gabala-Baku water supply system.

SOFAZ’s transfer to State Budget totaled AZN 1.225 bn.

It was directed AZN 1.9 million for State Program on Youth Education Abroad. Expenditures linked with Fund’s management reached AZN 2.8 million.

Fineko/abc.az
27.04.2010

Azerbaijan imports nearly 500 Daewoo buses.
[ 27 Apr 2010 16:54 ]

Baku. Rashad Suleymanov – APA-ECONOMICS. Azerbaijan imported nearly 500 Daewoo buses of Southern Korea, the spokesperson of the Ministry of Transportation, Namig Hasanov told APA.

According to him, 24+1 placed Daewoo BS090 buses can transport nearly 75 passengers. Azerbaijan will import more buses till the end of the year.

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^^Good news! We can also see the construction of Hilton and Marriott hotels on Azadlyg Square :D

New buses is good but Baku needs good transport system

New buses is good but Baku needs good transport system

The System of Intellectual Regulation of Transport Operations will be launched in Spring 2011, so everything will be fine soon! ;)

EBRD invests for first time in Azerbaijani telecommunication sector

The European Bank for Reconstruction and Development (EBRD) is supporting wider penetration of internet services in Azerbaijan with a $4 million equity investment in Datacell JSC, a wireless broadband service that already serves the capital, Baku.

On May 5, Dino Shiatis leading banker of EBRD informed about it in the conference, held on this occasion, that these are the first investments by EBRD in Azerbaijani telecommunication sector.

“We are glad that we have chance of assistance to development of Internet-services in Azerbaijan. We hope that our investments will allow to raise a competition in ICT field and will give to Azerbaijanis the best access to information services,” D. Shiatis said.

According to General executive director of Datacell Ramiz Sharifov, volume investments EBRD in Azerbaijani telecommunication sector will allow Datacell to continue growth of subscriber base and to expand coverage of wireless mobile Internet service elcell, which is popular in Azerbaijan now,” R. Sharifov said.

EBRD invested $4 million in shareholders’ capital of Datacell JSC. The agreement also envisaged to appoint by the bank one of five members of board of directors of Datacell.

Datacell, which was established in 2005, operates under the elcell brand name. The company’s services are based on the latest wireless data communication technology HC-SDMA iBurst, providing high speed reliable wireless fixed and mobile internet access at competitive prices. In addition to broadband, Datacell also offers a range of other high quality internet-based services for banking sector, trade, transport and other industries. 40% of users are corporate clients and 60% - individuals.

Fineko/abc.az.
05.05.2010

New buses is good but Baku needs good transport system

As we mentioned in some previous posts - Baku Intellectual Transport Management System will work starting in April 2011 :)

Мост через Бакинскую бухту построят за 5 лет
Азербайджан в числе приоритетов Южной Кореи
Р.ОРУДЖЕВ
Как известно, на днях в Министерстве транспорта состоялась встреча с южнокорейской делегацией. Делегацию, возглавляемую членом корейского парламента Ли Санг-Деукуном, принял министр транспорта Зия Мамедов. На встрече обсуждались вопросы строительства моста через Бакинскую бухту, системы интеллектуального управления транспортом, восстановления автомобильных дорог, в том числе перспективы трассы Шамаха-Губа, прокладки скоростных железнодорожных линий, закупка локомотивов, связи с корейскими компаниями, обновление автобусного парка, подготовка кадров и др.

Цели проекта строительства моста через бухту - совершенствование транспортной инфраструктуры Баку, повышение опыта азербайджанских специалистов за счет применения опыта Кореи в строительстве морских мостов и дорог и другие. По предварительным оценкам, стоимость строительства моста через бухту превышала один миллиард долларов.

Грантовое соглашение по подготовке проекта строительства автомобильного моста над Бакинской бухтой было подписано в марте в ходе визита в столицу Азербайджана министра по земельным, морским и транспортным делам Южной Кореи Чун Джонг Квана.

Грант на 1,5 млн. долларов на подготовку технико-экономического обоснования (ТЭО) проекта и первичный дизайн моста предоставило Корейское агентство по международному сотрудничеству (KOICA). ТЭО разработают корейские проектировщики. Компании этой же страны построят мост. Как заявил министр транспорта Азербайджана Зия Мамедов, идея строительства моста, соединяющего Зыхский и Шиховский мысы - противоположные оконечности Бакинской бухты - одобрена президентом страны Ильхамом Алиевым. "По своим масштабам этот проект станет одним из крупнейших в транспортном секторе", - сказал министр. Мамедов добавил, что мост будет строиться "на средства частного сектора с условием платной эксплуатации и дальнейшей передачей его в собственность Азербайджана". Министр не уточнил, однако, сколько инвестиций понадобится для реализации проекта. По предварительным оценкам специалистов, протяженность моста составит 14 км. Он фактически замкнет кольцевую дорогу вокруг Баку и разгрузит автомобильный трафик в столице примерно наполовину. Проект оценивается экспертами в 3-4 млрд. долларов. Мост будет построен за пять лет. Проект рассматривается также с точки зрения туристической инфраструктуры, так как от моста предполагается провести ответвление на остров Беюк Зиря (Наргин), где планируется реализовать многомиллиардный проект строительства курортно-развлекательной зоны. По словам главы отдела транспортной политики и экономики Министерства транспорта Азербайджана Садреддина Мамедова, корейская компания Dong Sang Engineering подготовит технико-экономическое обоснование (ТЭО) нового моста в районе Бакинской бухты. По словам Мамедова, ранее Dong Sang Engineering стала победителем объявленного тендера. "Представители компании в течение месяца должны прибыть в Азербайджан для проведения необходимых исследований на месте", - сказал С.Мамедов.

Отметим, что сфера транспорта является отраслью, где азербайджано-корейское сотрудничество развивается наиболее активно. Так, по словам министра транспорта Мамедова, "азербайджанское правительство тесно сотрудничает с правительством Кореи и частными компаниями этой страны в развитии дорожно-транспортной инфраструктуры". "Компания DAEWOO Corporation поставила в Азербайджан в течение последних двух лет сотни пассажирских автобусов", - сказал министр. Корейские банки финансируют реконструкцию автомагистрали Евлах-Гянджа, являющегося участком транспортного коридора Европа-Кавказ-Азия (восстановление Древнего Шелкового пути). На эти цели было выделено 180 млн. долл., из которых $70 млн. долл. уже использовано. Минтранс также намерен модернизировать локомотивный парк Азербайджанской государственной железной дороги с участием корейских производителей. В свою очередь, министр по земельным, морским и транспортным делам Южной Кореи Чун Джонг Кван подчеркнул, что его страна придает "большое значение двустороннему сотрудничеству с Азербайджаном в сфере транспорта как на уровне правительств, так и частного сектора". По его словам, одним из рассматриваемых проектов является участие корейских компаний в модернизации железнодорожной линии Баку - Гянджа - Беюк Кесик - государственная граница Грузии с целью ускорения движения железнодорожных составов. С участием корейской компании SKCNC в Баку создается Система интеллектуального управления транспортом, которую планируется применить в первом квартале 2011 года. Помимо этого, по словам корейского министра, компании его страны, выпускающие легковые автомобили изучают возможности наладить в Азербайджане сборку машин. Большая часть импортируемых в Азербайджан легковых автомобилей имеет корейское происхождение. Корейский министр также сообщил, что он пригласил азербайджанского коллегу Мамедова в Сеул для участия в международной конференции, посвященной управлению движением общественного транспорта с использованием информационных технологий. Конференция пройдет в октябре текущего года. Еще одной сферой двустороннего сотрудничества Кореи и Азербайджана является экология. Так, Южная Корея окажет Азербайджану содействие в реализации генерального плана по управлению окружающей средой. Детали сотрудничества корейский министр обсудил с главой Минэкологии Азербайджана Гусейном Багировым. План предусматривает реализацию в Азербайджане трех проектов: "Вторичное использование для орошения зеленых насаждений очищенных сточных вод", "Строительство полигона твердых отходов в Гобустанском районе" и "Создание системы автоматизированного мониторинга экологической обстановки". Предполагается, что план будет реализован с применением корейских технологий в несколько этапов. Отметим, что в 2009 году, по данным Госкомстата Азербайджана, из Южной Кореи было импортировано товаров на общую сумму 125 млн. долл. Около половины импорта приходится на долю легковых и грузовых автомобилей и пассажирских автобусов. Азербайджан включен в список 30 приоритетных стран, с которыми Сеул намерен активно развивать экономическое сотрудничество. В то же время из-за глобального кризиса ряд проектов с участием корейского бизнеса были отложены. Среди них проект строительства шоссейной дороги Губа-Шамаха. Еще корейские компании отказались от участия в проекте строительства нового порта и судостроительного завода. В результате дизайн-проект нового судостроительного завода был передан сингапурской компании. Однако не исключено, что некоторые корейские компании все же примут участие в строительстве судостроительного завода после объявления международного тендера на строительство. Такой интерес есть у компании Hunday Industry.

В Баку проходит бизнес-форум Азербайджан-Сербия
[ 13 Mай 2010 12:44 ]
Баку. Ниджат Мустафаев – АПА-Экономикс. Сегодня в Баку проходит бизнес-форум Азербайджан-Сербия, организованный Фондом поощрения экспорта и инвестиций (Azpromo) при поддержке Минэкономразвития Азербайджана.

Замминистра экономического развития Ниязи Сафаров отметил заинтересованность Азербайджана в расширении связей с Сербией. Он сообщил, что в 2009 году ВВП Азербайджана вырос на 9,3%, рост промышленного сектора составил 12,8%, сельского хозяйства – 3,5%: «В первом квартале этого года ВВП повысился на 5,4%, номинальные доходы населения – на 6,5%. До настоящего времени в Азербайджан было инвестировано 70 млрд. долларов, половину из которых составили внешние инвестиции». Н.Сафаров добавил, что товарооборот Азербайджана с Сербией в 2009 году превысил 1 млн. долларов.

Госсекретарь министерства экономики и регионального развития Сербии Джиридж Небойжа сообщил, что в 2008 году экономический рост страны составил 7-8%, в 2009 году ВВП снизился на 3%. В этом году ожидается 2%-ный экономический рост и 3 млрд. долларов внешних инвестиций. «Товарооборот между Азербайджаном и Сербией в 2009 году снизился до 5 млн. долларов, из которых 4 млн. долларов составил экспорт из Азербайджана. У нас есть потенциал для повышения товарооборота до 100-150 млн. долларов. Второй бизнес-форум планируется провести в Белграде. Мы намерены как вкладывать инвестиции в Азербайджан, так и привлекать азербайджанские средства».

Президент Azpromo Адиль Мамедов выступил с презентацией бизнес-возможностей Азербайджана, исполнительный директор инвесткомпании Афган Исаев - с презентацией проектов АИК, президент бизнес-ассоциации Сербии Бронислав Крожич - с презентацией бизнес-возможностей страны.

Отметим, что на форуме участвуют около 40 компаний обеих стран, действующих в секторах сельского хозяйства, строительства, косметологии, энергетики, нефти, текстиля.
http://ru.apa.az/news_%D0%92_%D0%91%D0%B0%D0%BA%D1%83_%D0%BF%D1%80%D0%BE%D1%85%D0%BE%D0%B4%D0%B8%D1%82_%D0%B1%D0%B8%D0%B7%D0%BD%D0%B5%D1%81-%D1%84%D0%BE%D1%80%D1%83%D0%BC__162648.html

Serbia interested in Azerbaijani crude
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Serbia and Azerbaijan are keen to boost trade, with Serbia negotiating to buy Azerbaijani crude.

Trade levels were a topic of discussion at an Azerbaijani-Serbian business forum that opened in Baku today.

'The first Azerbaijani-Serbian business forum will help expand ties between the business communities and lay a new stage of investment cooperation between the two countries,' Ciric Nebojsa, state secretary at the Serbian Ministry of the Economy and Development, told the opening of the forum.

He said trade between Azerbaijan and Serbia stood at $5m.

'Serbia exports goods worth $4m to Azerbaijan, while Azerbaijan's exports to Serbia are worth $1m. These figures do not match the potential, of course. I think that in a very short period of time, two years at the most, we will be able to increase trade to $100-150m. We have the potential for this,' Nebojsa said.

He urged Azerbaijani entrepreneurs to invest in Serbia.

Azerbaijan's deputy economic development minister, Niyazi Safarov, agreed with Nebojsa that Azerbaijan's current level of exports to Serbia did not meet potential.

'Our countries do not have broad trade and economic relations and the main aim of today's forum is to make contacts and exchange information,' Safarov told the forum's opening ceremony.

Ciric Nebojsa told journalists at the forum that Serbia was interested in buying crude oil, oil products and natural gas from Azerbaijan, but primarily crude oil.

'Serbia has a powerful petrochemicals complex. I cannot give exact volumes for the purchase of crude oil. Talks are under way at present with the Azerbaijani side,' Nebojsa said.

The business forum coincides with Serbian President Boris Tadic's visit to Azerbaijan.http://www.news.az/articles/15400

Mayın 25-də duz zavodunun açılışı olacaq

Açılış mərasimində prezident İlham Əliyevin iştirak edəcəyi gözlənilir

Yodlaşdırılmış və saflaşdırılmış xörək duzu istehsal edən zavodun 25 mayda işə düşəcəyi gözlənilir. "Azersun holding" şirkətlər qrupu ilə Azərbaycan İnvestisiya Şirkəti ASC-nin (AİŞ) iştirakı ilə 7 hektar sahədə tikilən yeni zavod əhalinin xörək duzuna olan ehtiyacını ödəyəcək.

Xörək duzuna illik tələbat 25 min tondur. Bu gün tələb yerli istehsalçıların, Ukrayna, Türkiyə və Rusiya tədarükçülərinin hesabına təmin edilir.

Masazır qəsəbəsində yerləşən zavod Masazır gölündən çıxarılan duzdan istifadə edəcək. Sonra Türkmənistandan da xammal gətiriləcək. Zavod gündə 200 ton, ildə 30 min ton yodlaşdırılmış duz istehsal edə biləcək.

Zavodun tikintisinə 20 milyon manat qoyulub. “Azersun Holding” və AİŞ-in bu məqsədlə yaradılan Duz emalı üzrə Azərbaycan İstehsalat Birliyində payı 75 faiz və 25 faizdir.

Qeyd edək ki, müəssisənin avadanlığı İsveçrədən (“Euroterm” şirkəti) gətirilib. Tikinti işlərinin podratçısı Türkiyənin “Inova” şirkətidir. Zavodun açılış mərasimində prezident İlham Əliyevin iştirakı gözlənilir.

Source: www.anspress.com

Mayın 25-də duz zavodunun açılışı olacaq

Açılış mərasimində prezident İlham Əliyevin iştirak edəcəyi gözlənilir

Yodlaşdırılmış və saflaşdırılmış xörək duzu istehsal edən zavodun 25 mayda işə düşəcəyi gözlənilir. "Azersun holding" şirkətlər qrupu ilə Azərbaycan İnvestisiya Şirkəti ASC-nin (AİŞ) iştirakı ilə 7 hektar sahədə tikilən yeni zavod əhalinin xörək duzuna olan ehtiyacını ödəyəcək.

Xörək duzuna illik tələbat 25 min tondur. Bu gün tələb yerli istehsalçıların, Ukrayna, Türkiyə və Rusiya tədarükçülərinin hesabına təmin edilir.

Masazır qəsəbəsində yerləşən zavod Masazır gölündən çıxarılan duzdan istifadə edəcək. Sonra Türkmənistandan da xammal gətiriləcək. Zavod gündə 200 ton, ildə 30 min ton yodlaşdırılmış duz istehsal edə biləcək.

Zavodun tikintisinə 20 milyon manat qoyulub. “Azersun Holding” və AİŞ-in bu məqsədlə yaradılan Duz emalı üzrə Azərbaycan İstehsalat Birliyində payı 75 faiz və 25 faizdir.

Qeyd edək ki, müəssisənin avadanlığı İsveçrədən (“Euroterm” şirkəti) gətirilib. Tikinti işlərinin podratçısı Türkiyənin “Inova” şirkətidir. Zavodun açılış mərasimində prezident İlham Əliyevin iştirakı gözlənilir.

Source: www.anspress.com

Sevindirici xeberdir!

Azerbaijan-Russia trade turnover may reach $3 bn
http://www.news.az/photos/picture/22263.jpg
Vladimir Dorokhin

Russian ambassador in Azerbaijan Vladimir Dorokhin stressed the high level of economic cooperation between the two countries.

'After the level of commodity turnover of $2.4 bn in 2008, in 2009 we lost this volume, but it cannot be said that last year was tragic. The most important that we have stood it, Russia remains the big trade and economic partner of Azerbaijan', Dorokhin said at the awarding ceremony of the Progress premium in Baku on May 21.

In addition, according to the ambassador in the first four months of this year the trade between these two countries increased by 18%, while Azerbaijani export has risen by 75% and this occurred in particular thanks to gas and agricultural production supplies.

The Progress award was set in 2007 by the Azerbaijan-Russian business cooperation chamber, Russian embassy in Azerbaijan and Russian trade office in Azerbaijan.

Head of the Russian trade office in Azerbaijan Yuri Shedrin also noted that both countries may reach the trade turnover of 3 bn.

'We really attain a breakthrough in the trade and economic relations between Azerbaijan and Russia. The indicators of the first four months show that by results of the year our countries can fulfill the will of the presidents of Azerbaijan and Russia to raise the trade turnover between our countries to $3 bn', Shedrin told a session in the Azerbaijani-Russian commercial chamber. http://www.news.az/articles/16028

Inflation in Azerbaijan will make 8.3% over floods in 2010
http://www.news.az/photos/picture/22274.jpg

Azerbaijani Center for Economic Surveys, carrying out alternative calculation and forecasting inflation.

The centre informed, inflation in the country will total 8.3% in 2010. .

“The prognosis was prepared with the account of deflation, expected in June to July. In accordance with calculations, inflation will begin strengthening from August and will reach 8.3% following the results of the year,” it was informed. At the same time, the official governmental prognosis for the year makes 3% and the number of government officials suppose that it will reach the level of 7 %.

“In connection with floods and mudflows, the rise in prices for agricultural production will be felt especially strongly, and in regard to this type of goods average inflation will make 10.05% per annum. Regarding other commodity positions, under the influence of this factor, average inflation will total 7.1 %,” it was informed.

In accordance with data, cited by the centre before, in April CPI grew by 0.03 % in comparison with March, 2010. In January to April, the index increased by 6.82 % in January to April, 2009. Over 4 months of the year inflation totaled 2.47%.http://www.news.az/articles/16042

Investment international rating assigned first time to Azerbaijan
May 21-Yesterday first time in its history Azerbaijan was assigned international rating of investment level.

Fitch Ratings has upgraded Azerbaijan’s Long-term foreign and local currency Issuer Default Ratings (IDRs) to ’BBB-’ from ’BB+’. The Outlooks on both ratings are Stable. Fitch has also upgraded Azerbaijan’s Country Ceiling to ’BBB-’ from ’BB+’ and upgraded its Short-term foreign currency IDR to ’F3’ from ’B’.

“Fitch’s upgrade of Azerbaijan’s sovereign rating to investment grade reflects the rapid increase and prudent management of oil revenues that are being used to build a strong public and external net creditor position. The strong sovereign balance sheet provides a powerful buffer against potential shocks emanating from the country’s structural weaknesses,” says Andres Klaar, Associate Director in Fitch Sovereigns Group.

The prudent use of the oil windfall has brought about an accumulation of assets in the State Oil Fund of Azerbaijan Republic (SOFAZ), the sovereign wealth fund, to US$16.2 bn as of end-March 2010 (38% of 2009 GDP). Despite volatile international oil prices and the global financial crisis, Azerbaijan ran a general government budget surplus of 6.3% of GDP in 2009, as the authorities’ cut budget expenditures rather than increasing transfers from SOFAZ, delivering an increase in SOFAZ assets of US$3.7 bn.

The current account surplus was 20.7% of GDP in 2009, while inflation fell to 1.5% in 2009 from 20.8% in 2008.

As an oil exporting country, virtually every external finance indicator in Azerbaijan is superior to the peer group median. Its sovereign net foreign assets reached 37% of GDP at end-2009, similar to Kazakhstan’s 41% and Russia’s 33%. However, the moderate private sector indebtedness in Azerbaijan is strength relative to its two CIS peers, as illustrated by Azerbaijan’s strong net external creditor position of 36% relative to Russia’s 26% and Kazakhstan’s net external debt position at 27%. The Central Bank of the Republic of Azerbaijan (CBRA) has successfully maintained the manat’s exchange rate against the USD during the global financial crisis.

However, Azerbaijan’s oil windfall is relatively moderate. Fitch calculates that at the 2009 production level, the country’s oil reserves will be depleted in 18 years compared with Kazakhstan’s 54 years. Oil production is projected to be roughly stable from 2010 to 2014 and decrease slowly thereafter. Fitch forecasts that this will lead to a slowdown in real GDP growth to 3% in 2010 and 2% 2011, after an average of 21% in the five-years to 2009.

The relatively limited life span of the oil windfall underscores the importance of both prudent fiscal management and diversification of the economy. Fitch believes the fiscal rule that limits the annual expenditure of oil revenues to a level consistent with the "permanent income" from the oil endowment is appropriate. The agency also draws comfort from the transparency of the SOFAZ, underlined by Azerbaijan being the first country to be fully compliant with the international Extractive Industries Transparency Initiative. Fitch forecasts assets in SOFAZ to increase to around USD22bn at end-2010 (45% of GDP).

Diversifying the economy and boosting the non-oil growth rate will require structural reforms to reduce corruption and improve the non-oil business climate which is poor, notwithstanding a reasonable ranking of 38 in the World Bank’s Ease of Doing Business Survey. GDP per capita is only two-thirds of the ’BBB’ category median.

“Political risks also weigh on the rating. Although Fitch does not anticipate a significant increase in instability, the frozen conflict with Armenia over the Nagorno-Karabakh region and the centralised and opaque structure of political power, weak institutions and governance, and high level of corruption carry event risk,” the Agency reports.http://www.news.az/articles/15957

ADB APPROVES FIRST PRIVATE SECTOR INFRASTRUCTURE INVESTMENT IN AZERBAIJAN
MANILA, June 3 (NNN-ADB) -- The Asian Development Bank (ADB) is providing EUR20 million to an integrated cement plant in Azerbaijan to expand output and improve fuel efficiency.

The loan marks ADB's first ever private-sector infrastructure investment in the Central Asian nation.

The loan will help "Garadagh Cement" Open Joint Stock Company raise its cement production capacity by around 30% to 1.7 million tons per year.

At the same time, the replacement of the existing four wet kilns with a single, more efficient dry kiln will significantly reduce the plant's fuel consumption, cut water consumption and effluent discharge, and bring the plant in line with international environmental standards.

Azerbaijan’s economy is one of the fastest growing in the world. Given sustained commercial construction and the government's wide-ranging infrastructure program, "Garadagh Cement" estimates medium- to long-term demand to grow 5%-8% per year.

With limited domestic production, Azerbaijan is currently forced to import much of its clinker and cement. Clinker is an intermediate cement product.

"Additional supply of high-quality, locally made cement will help the government and others complete the infrastructure needed to boost regional trade and tourism and diversify the country's sources of economic growth beyond the oil and gas sector," said Philip Erquiaga, Director General of ADB’s Private Sector Operations Department.

"Garadagh Cement" is majority owned by Switzerland-based Holcim Ltd. The plant, 35 kilometers from the Azerbaijan capital of Baku, is the only integrated clinker and cement producer in the country.

In 2008, the European Bank for Reconstruction and Development (EBRD), a minority shareholder in "Garadagh Cement", was mandated to arrange the loans needed to help upgrade the plant. ADB’s loan will be in parallel to EBRD's funding.

"This project represents a key opportunity for ADB to support Azerbaijan’s infrastructure development in a way that increases efficiency and brings valuable energy savings," said Don Purka, Senior Investment Specialist of ADB's Private Sector Operations Department. "At the same time, it demonstrates the opportunities for foreign direct investment outside the oil and gas industry."

The EUR325 million project will be financed by EUR140 million in senior debt from the EBRD and ADB, subordinated debt from Holcim and from the cash flow of "Garadagh Cement".

A steering committee of "Garadagh Cement" and Holcim officials will oversee the project, with CBMI Construction Company, a subsidiary of Sinoma International, contracted to carry out the main part of the investment under a turnkey engineering, procurement, and construction contract. http://namnewsnetwork.org/v2/read.php?id=122414

Could you please say what is the official minimum monthly wage in Azerbaijan in 2010 in USD? Thx!

Could you please say what is the official minimum monthly wage in Azerbaijan in 2010 in USD? Thx!

Not much, around USD 100 :(

Not much, around USD 100 :(

That's a crime against own nation. The same in Kazakhstan, thanks God it's my daily wage. I can't even imagine how to live for 100 bucks. I'm writing a comparative analysis now for emerging markets, would share later on.

I doubt that an average Kazakh earns 100$ a day as that is above average even in most of the western countries.

I doubt that an average Kazakh earns 100$ a day as that is above average even in most of the western countries.
well life there is harder due u pay more taxes

I doubt that an average Kazakh earns 100$ a day as that is above average even in most of the western countries.

Who's saying Evertraveller is an average Kazakh. Sounds like a very lucky one to me :)

I doubt that an average Kazakh earns 100$ a day as that is above average even in most of the western countries.

Average wage in KZ is app. 500-600 USD in provinces and 600-700 in Almaty.
Minimum monthly wage is fixed just below 100 usd - that's awful.

I just want to say that the prices in KZ for services and goods are very high and money that I earn is not enough to make some savings.

CNN to broadcast report on Azerbaijan's economy
Fri 09 July 2010 | 11:50 GMT Text size:


CNN International will broadcast report about Azerbaijan five times within 4 days beginning fro 10 July.

The report is on Azerbaijan's economy that has the highest growth rates in the world and has led to significant changes inside the country.

According to CNN anchorman Guillermo Arduino, Aezrbaijan has been demonstrated record economic growth for already several years. The author and the archorwoman of the program is Sevinj Osmangizi.

The report prepared by ANS TV channel is broadcast within World View program. CNN International which has the audience of more than 800 million people is broadcast in more than 212 countries via 23 satellites from the center located in US Atlanta.

The video report on Azerbaijan can be watched on CNN International on 10 July, Saturday, 05.30 GMT, 10:30 Baku time, 13.30 GMT, 18.30 Baku time, on 11 July, Sunday, 01.30 GMT, 06:30, 12 July, Monday 08.30 GMT, 13.30, on 13 July, Tuesday 03.30 GMT, 08.30.

The reports on Azerbaijan will be available on www.cnn.com beginning from 14 July.

International Bank of Azerbaijan - Great Britain in Azerbaijan

Great Britain continues to retain its leading positions in terms of the volume of investments in Azerbaijan economy, its share in the total amount of foreign investments currently accounts for about 50 percent.
A trade and investment forum 'Great Britain in Azerbaijan' took place in London on March 8 aimed at
a greater strengthening of cooperation between two countries and presentation of investment opportunities in Azerbaijan for British business community. The forum was organized under the auspices of the Middle East Association and the International Bank of Azerbaijan (IBA).
Azerbaijan delegation at this forum was represented by the high-ranking officials of government bodies and representatives of business community. Including Jahangir Hajiyev - Chairman of the International Bank of Azerbaijan, Shahmar Movsumov - Managing Director of the State Oil Fund of Azerbaijan, Suleyman Gasymov - Vice-president of SOCAR on economic issues, Akim Badalov - Head of Agency for Alternative and Renewable Energy Sources under the Ministry of Industry and Energy, Reza Veziri - President of Anglo Asian Mining, Nasib Piriev - General Director of AzMeCo, and others.
The Britain was represented by such a high-ranking officials as Rt. Hon. the Lord Howell of Guilford - Cochairman of Britain Azerbaijan Business Council, Michael Thomas - General Director of Middle East Association (MEA), and the Alderman Nick Anstee - Lord Mayor of the City of London. The opportunities of Azerbaijan economy in such fields as energy, financial services and insurance, education, infrastructure, agriculture, retail trade and tourism were presented at this forum.
The forum 'Great Britain in Azerbaijan' covered such issues as the current investment climate, project financing, investment incentives, opportunities for British business in Azerbaijan, energy, diversification of economy, education, and entrepreneurship.
At the forum's opening ceremony, which has taken place in Mansion House, Michael Thomas - General Director of Middle East Association (MEA), has noted that Azerbaijan is the strategic country in the region and has much more than only oil and gas of what the British business community is currently aware. As he has noted in his speech, the City of London is the world's leader in rendering financial services, and this is the best place for bringing together all leading bankers and businessmen with an aim of promoting the trade and investments between Great Britain and Azerbaijan.
According to Rt. Hon. the Lord Howell of Guilford - Cochairman of Britain Azerbaijan Business Council, considering the opportunities currently offered to the British investors, the future of relations between two countries are much more broader than the energy issues.
Jahangir Hajiyev - Cochairman of Business Council and Chairman of IBA, has expressed his hope that the Business Council between Great Britain and Azerbaijan, established in London in September last year, would help in bridging the gaps and raising the business relations between two countries to a much higher level. According to him, the contribution and work of MEA in Azerbaijan has become a turning point in the sphere of intensification of business contacts, and the contribution of London to economic successes of Azerbaijan is considerable and valuable. Azerbaijan is getting over the financial crisis much better than its neighbors owing to a prudent economic management and thanks to the policy carried out by the President aimed at diversification of economy that has offered a good opportunities for immediate transition to the second stage of economic development and ensured the economic and political stability for consolidation of this process.
In his speech, the Alderman Nick Anstee - Lord Mayor of the City of London, has stated that such a conference is very timely nowadays, it follows the two visits of British business delegations to Baku, demonstrating the broad interest of British financial services sector towards Azerbaijan.
In his opinion, Azerbaijan is regarded as an important agent in emerging market. Over 160 British companies are currently operating in Azerbaijan, ranging from the small and medium-sized enterprises to such a large ones as AIOC, Rolls Royce, and BP. Azerbaijan is the third largest export market for Great Britain in the Eastern Europe and CIS, after Russia and Ukraine. In his speech he has expressed the hope for the future broadening of investment opportunities and intensification of bilateral trade between Azerbaijan and Great Britain.
Since Azerbaijan gained its independence, the Great Britain played a key role in its development, considers Fahraddin Gurbanov, the ambassador of Azerbaijan in Great Britain. According to him, over 170 British companies are currently operating in the country and about 5,000 citizens of Great Britain work and live in Azerbaijan.
A particular attention at the forum was given to the measures taken by the government of Azerbaijan with the view of diversifying the economy.
Shahmar Movsumov - Managing Director of the State Oil Fund of Azerbaijan, has noted that education is the main sphere in the course of economic diversification, and knowledge and skills is the most important that Azerbaijan needs. Thus, Great Britain can assist in diversification of Azerbaijan economy by sharing the expertise and skills accumulated by its companies.
According to Sevindzh Gasanova - the deputy minister of economic development of Azerbaijan, Azerbaijan is aimed at increasing the volume of non-extraction export per capita up to 5,000 dollars by 2020 as compared to 287 dollars following the results of 2009. As an example, in Japan, it has amounted to 6,154 dollars, and in the USA - 4,191 dollars. In order to achieve these parameters, the annual growth of non-extraction export in Azerbaijan shall make 21%.
In 2001-2009, this indicator increased on average by 20.3%. The deputy minister considers that to meet these targets the annual growth rate of real non-extraction GDP shall reach the level of 7%, investments in non-oil sector - the level of 8%, and the volume of investments in non-oil sector shall increase from 750 million dollars in 2009 up to 4200 million dollars in 2016. Having informed the British business community about the projects implemented in the non-oil sector, the representatives of Azerbaijan companies tried to draw investors' attention to participation in their financing. Reza Veziri - president of Anglo Asian Mining plc, the only producer of gold in Azerbaijan, plans to produce 72 thousand ounces of gold by the end of 2010 from the Gadabey gold and copper mine in Azerbaijan. This month, the company has also started the production copper from the Gadabey deposit. Much of financing the company currently receives from the International Bank of Azerbaijan, the fact that, according to Veziri, makes it the main business partner of the company.
Under the long-term agreement with the government of Azerbaijan, signed as PSA in August 1997, the company has been awarded the mineral rights for development of six deposits in the southwest Azerbaijan - Gadabey, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu. The Azerbaijan company 'AzMeCo', which implements the largest project in the country's non-oil sector, presented the current and future projects and has also invited the British investors to cooperate. According to Nasib Piriev - the company's chief executive, the project consists of three phases. Within the framework of first phase at the cost of 324 million dollars, it is planned to construct the methanol plant with the annual capacity of 720 thousand tons of methanol.
The second phase of this project is estimated at 700 million dollars and is aimed at construction of fertilizer plant - Azershavre - a complex for production of ammonia, calurea, and formaldehyde. The third phase of this project provides for production of methanol and carbamide derivatives. 'AzMeCo' plans to start the production of acetic acid, DME, and melamine. According to Luke Marshand - the acting director of sovereign ratings of Standard & Poor's international rating agency, the great demand for the products of oil and gas sector will facilitate to raising of the rates of growth of Azerbaijan economy. In his speech, he set forth the progress and positive trends in Azerbaijan economy. According to Marshand, pursuant to the sovereign rating received by Azerbaijan from the agency in December 14, 2009 at the level of 'BB+' with the positive forecast, the strengths of Azerbaijan economy are the significant fiscal and external buffers, low volume of public debt, and the large fund created on the basis of oil and gas revenues.
The attendees have also familiarized themselves with the current situation in the country's energy sector, thus, Suleyman Gasymov - Vice-president of SOCAR (State Oil Company of Azerbaijan Republic) on economic issues, has informed that in years to come Azerbaijan will increase its role in ensuring the energy security of regional countries and the European Union. According to him, by 2015, SOCAR plans to bring the country's production of oil up to 60 million tons and production of gas up to 35-40 billion cubic meters. Last year, more than 50 million tons of oil were produced in Azerbaijan, up by six million tons as compared to 2008. In 2009, the production of gas constituted about 24 billion cubic meters, up by 276 million cubic meters in comparison with the similar indicator for the previous year. According to Vice-president, all this creates the conditions for fulfillment of forecasts.
Akim Badalov - Head of the State Agency for Alternative and Renewable Energy Sources, has told about the agency's main objectives, specifically, by 2015, it is planned to bring the volume of electric-power production out of alternative energy sources up to 1,000 megawatt, and, by 2020 - up to 2500 megawatt, that makes about 20-25% of the overall estimated volume of power generation for 2020. The strategic planning for implementation of this program is currently in progress.
Thus, the British business community that participated at this forum was presented with the full and true picture of current situation in the main sectors of Azerbaijan economy and the reforms carried out with the view of strengthening the process of diversification. The success of this forum has become apparent in the great interest of displayed by the representatives of British companies and government bodies, who have actively cooperated with Azerbaijan delegation
[Editorial queries for this story should be sent to newswire@enpublishing.co.uk ]

TRACECA: Cargo transportation via Azerbaijan's transport sector will up by 2030

11 March 2010
By 2030, the volume of the cargo transportation via the Azerbaijani transport sector in the foreign trade with non- TRACECA countries will grow by 500 percent compared to the figure in 2007, the Transport and Trade Atlas of TRACECA prepared by the Dutch NEA company under the project "Improving the quality of training in the transport sector in CIS countries (TRACECA).
According to NEA, in 2007 crude oil led Azerbaijan's trade with non- TRACECA countries. The volume of oil transportation was more than 12 million tons.
The company forecast that by 2030, traffic volumes of crude oil will reach 30 million tons. This applies mainly to exports.
It is projected that by 2030, oil products will occupy the second highest volume in the traffic. The figure will be 9mln tons compared to 2mln tons in 2007. The highest growth is expected in the field of transport machinery, transport equipment and miscellaneous manufactured products, which by 2030 will be approximately 480 percent.
In 2007, volumes of oil products in trade with the TRACECA countries amounted to 1.5 million tons and were presented in the main export lubricants.
In 2007-2030, the growth is estimated at nearly 300 percent. This means that by 2030, volumes will grow to 6.3 million tons./Trend/

Azerbaijan took another step closer towards reviving and expanding its ailing petrochemicals industry in H110 with renewed plans for a new petrochemicals complex at Sumgait coupled with major restructuring of industry management. Based on the failure of previously announced projects, BMI’s latest ‘Azerbaijan Petrochemicals Report’ remains skeptical that such a complex will come on-stream in the next five years. The government is undertaking the restructuring of the petrochemicals industry by placing the troubled and partly idled Azerkimya plant under the control of the State Oil Company of Azerbaijan (Socar). BMI believes this is a long overdue move towards fully integrating the sector with upstream industries that supply feedstock and should improve the unit’s profitability and efficiency. Socar is aiming to rehabilitate production, expanding capacity and competitiveness and constructing new enterprises for manufacture of ready products, not just raw materials and semi-manufactures. It is aiming to create a chemical city technopark in Sumgait by 2013. Over the short term, it is planning to restore Azerkimya plants that have been idled or operating at below capacity. Socar President Rovnag Abdullayev has also suggested that Azerkimya could be integrated with Petkim in Turkey, of which it owns 50% of the stocks, which could also optimise logistical operations for the two companies.
Azerbaijan appeared to move closer to constructing a new petrochemicals complex and fertiliser factor as Societe Generale launched a bid for financing for the project in Q110. Working with the government, the French bank is preparing conditions of the tender procedure for financing in which potential partners apply to their countries' export and import agencies to receive financing. The project is expected to cost US$5.5bn with production beginning within four years of the commencement of construction. The new complex, including 19 factories, will be designed for manufacture of 700,000tpa HDPE and LDPE, 130,000tpa PP, 40,000tpa benzene and 110,000tpa of styrene. According to a feasibility study, the new petrochemical complex could be located in Garadag district of Baku, which will provide it direct access to oil resources, and the chemical complex could be located near the oil refineries. The new complex could be integrated into the existing Azerkimya complex.
BMI is mindful that Azerbaijan has been in a similar position in the past, yet has been unable to either attract investor interest or restructure the petrochemicals sector to overcome its infrastructural problems, namely the rising cost of electricity and naphtha feedstock. However, by bringing Azerkimya under the ambit of Socar, the company can begin to tackle some of these problems along with the poor corporate management that has plagued the petrochemicals industry. This would put the industry in a better position to cope with globalisation and improve economic diversification.
Azerbaijan is in last place in BMI’s proprietary Europe Petrochemicals Business Environment Rankings with a score of 33.1, up 4.8 points since the previous quarter because of a significant improvement in the country’s risk ratings, particularly with regards to long-term external factors. Azerbaijan lies 5.0 points behind Ukraine in 10th place, and 26.5 points behind regional leader Russia. The score could rise yet further if plans for a new petrochemicals complex come to fruition. Azerbaijan’s considerable energy reserves and rising gas output have been hampered from improving the country’s petrochemicals capacity, largely due to the poor business environment which has deterred investors. However, there are signs that this is changing for the better as the government makes a concerted effort at restructuring the sector

Azerbaijan economy: Budget rides the oil wave
25.06.2010 | Author: admin | Posted in Economic News Analysis
[Translate]
FROM THE ECONOMIST INTELLIGENCE UNIT
Azerbaijan’s budget recorded a surplus in the first quarter, thanks to higher-than-expected oil prices. Social spending has continued to rise though the government has cut back on spending on infrastructure and industry. An upward revision of the budget’s US$45/barrel oil price could be the trigger for further spending ahead of November’s parliamentary election.
The state budget recorded a surplus of Manat467m (US$595m) in the first quarter of 2010. In this period expenditure fell by 15.7% year on year, to Manat1.98bn (US$2.5bn). Continuing the trend of 2009, the decline in expenditure was primarily driven by a reduction in spending on industry and construction, whereas social spending continued to rise rapidly. Budget revenue in the first quarter totalled Manat2.45bn. Tax revenue rose by 21.6% year on year, to Manat1bn. Budget income from the State Oil Fund of the Republic of Azerbaijan (SOFAZ), the overseas windfall fund, was Manat1.2bn, as planned. This was slightly lower than in the same period of 2009.
State budget expenditure, Jan-Mar
(Manat m, unless otherwise indicated)
2009 2010 % change,
Outturn Planned Outturn year on year
General government services 154.1 222.3 164.4 6.7
Defence 128.2 134.6 111.6 -12.9
Law & order 124.8 154.3 125.8 0.8
Education 222.0 281.3 239.2 7.7
Health 62.6 72.7 60.0 -4.2
Social protection & security 291.9 342.0 342.0 17.2
Culture, arts, information & sports 24.4 34.1 28.6 17.2
Local & communal policies 31.6 36.8 28.7 -9.2
Agriculture, forestry, fishing & the environment 53.7 81.3 59.0 9.9
Industry & construction 1,058.0 757.4 576.5 -45.5
Transport & communications 13.5 8.4 7.1 -47.4
Economic activities 36.2 45.6 36.4 0.6
Other services 146.7 222.8 199.8 36.2
Total expenditure 2,347.7 2,393.6 1,979.1 -15.7
Source: Ministry of Finance
The state budget for 2010 aims for a deficit of Manat1.25bn, or 3.9% of GDP, with transfers from SOFAZ expected to remain unchanged compared with their level in 2009, at Manat4.9bn. The budget assumes an average oil price of US$45/barrel. Revision of the budget in line with a more realistic oil price assumption could pave the way for higher public spending in advance of the parliamentary election in November.
Excluding transfers from SOFAZ, the budget showed a deficit of Manat758m for January-March. (Unless otherwise indicated, the data in the Economist Intelligence Unit’s tables refer to the consolidated budget, excluding transfers into SOFAZ, into which all oil revenue over the price stipulated in the budget is directed.) SOFAZ is primarily financed by the state’s share of the proceeds generated under Azerbaijan’s oil and gas concessions.
In the first quarter of 2010 SOFAZ revenue totalled Manat2.7bn, and the fund transferred Manat1.2bn to the state budget. During this period, in addition to transfers to the state budget, the fund spent about Manat65m on infrastructure works, relief for refugees and the internally displaced, and the education of young people abroad. Including exchange-rate effects, investment income and operating costs, SOFAZ’s assets rose by 9.1% between the end of 2009 and the end of the first quarter of 2010, to reach Manat13bn.
Azerbaijan economy: The shrinking current-account surplus
Azerbaijan continued to run a current-account surplus and attract foreign investment in 2009, notwithstanding lower oil prices and tight global financial conditions. The current account ended the year with a surplus of US$10.2bn in 2009, US$6.3bn lower than the surplus in 2008. The decline in the current-account balance was primarily caused by a US$9.5bn reduction in export revenue, reflecting the weakness of oil prices.
The Central Bank’s balance-of-payments data reveal that goods export revenue totalled US$21.1bn in 2009, of which US$20bn came from revenue associated with the oil and gas sector. Crude oil exports amounted to US$17.9bn (with AIOC accounting for US$16.8bn), oil products contributed US$1.2bn and natural gas exports contributed US$800m.
The impact of the fall in exports on the current-account balance was mitigated by a lower import bill and contractions of the perennial deficits on services and income. Imports fell by US$1.1bn, to US$6.5bn, owing to reduced payments both for investment goods (mostly for the oil and gas sector) and consumer goods. The services deficit was US$700m smaller than in 2008, at US$1.6bn, reflecting in part a slowdown in construction expenditure as the pace of investment moderated.
The income deficit narrowed from US$5.3bn in 2008 to US$3.5bn in 2009 as a result of lower profit repatriation by foreign investors, mostly in the hydrocarbons sector. Inward direct investment in Azerbaijan, mostly in oil and gas, fell from US$4bn in 2008 to US$2.9bn in 2009. However, repatriation of capital by foreign investors also slowed, falling from US$4bn to US$2.4bn.
The relative deterioration in external balances was already over by the end of 2009, in line with the gradual recovery in oil prices. According to balance-of-payments data, fourth-quarter exports, at US$6.3bn, were higher than in any of the four preceding quarters. In year-on-year terms, exports showed a sharp increase, of 45.2%. The fourth-quarter trade surplus of US$4.5bn was almost twice as high as the year-earlier figure. Inward direct investment in the fourth quarter was US$794m—the highest figure for any quarter of 2009, although still lower than in the fourth quarter of 2008.
Azerbaijan economy: Slow ahead?
Azerbaijan’s growth rate eased in January-April, compared with the first quarter, and at 5% it is well below the 9.3% rate seen for all of 2009. Rising oil and gas production is driving the economy, together with a recovery in private investment and consumption. However there is uncertainty over the economy’s growth trajectory from hereon: while the Asian Development Bank (ADB) sees another year of near double-digit growth, the IMF says GDP will rise by less than 3% this year.
Year-on-year GDP growth was 5% in January-April, according to the State Statistics Committee (SSC), down from 5.4% in January-March. GDP for the four-month period was put at Manat13bn. Expectations for GDP growth in 2010 continue to diverge. Although the IMF has reiterated its low forecast of 2.7% growth for the year, the Asian Development Bank (ADB) expects the pace of GDP expansion to accelerate slightly, to 9.5%, compared with a figure of 9.3% for 2009. The government forecasts growth of 6.8%, and the European Bank for Reconstruction and Development (EBRD) raised its forecast in January from 7.1% to 9%.
Industrial production rose by 5.2% year on year during the first four months of 2010, down from 5.6% in the first quarter. The output of the extractive industries, which accounted for 78% of all industrial production, was up by 5.1%, and the output of manufacturing rose by 9.9%. Among the more important manufacturing branches, those producing intermediate goods, such as metals and refined products, showed the strongest growth on a year-on-year basis, whereas food production was stagnant. Data from the SSC reveal that the volume of communications services continued to experience robust growth, increasing by 24.9% year on year, in the first four months. In contrast, transport services and agricultural production expanded by only 2.4% and 1.4%, respectively.
Industrial production by sector, Jan-Apr 2010
Manat m % change, year on year
Mining industry 7,473.7 5.1
Manufacturing 1,577.8 9.9
Food industry & alcohol 638.3 0.3
Oil-refining 553.9 15.0
Chemical products 62.2 380.0
Metallurgy 101.9 40.1
Metal goods 19.3 5.4
Machinery 37.4 98.0
Supply of electric energy, gas & water 516.2 2.5
Water & sewage treatment 46.9 0.4
Total 9,614.6 5.2
Source: State Statistics Committee
Production of oil and gas continued to increase in the first four months of 2010. Oil and condensate production in January-April 2010 was 16.7m tonnes–an increase of 4.9% in comparison with the same period of 2009. Of this, the Azerbaijan International Operating Company (AIOC), which operates the offshore Azeri-Chirag-Guneshli (ACG) field, accounted for 13.9m tonnes. The deputy minister of industry and energy, Natiq Abbasov, reaffirmed the government’s target of an increase in oil production to 52m-53m tonnes in 2010, compared with 50.4m tonnes in 2009.
Gas production reportedly rose by 9.3% year on year in the first four months of 2010, to 8.75bn cu metres. Gas production is booming as the first phase of the Shah Deniz gasfield development approaches full capacity of 7.6bn cu metres per year. Nevertheless, the pace of growth has slowed to less than one-half of the level in 2009, primarily because of base-period effects linked to the resumption in production following the rectification of technical problems encountered in the final quarter of 2008 and into 2009.
In addition to rising oil and gas production, the bulk of which is exported, recent economic growth appears to have been driven by a recovery in private investment and consumption, reflecting and increase in confidence as a consequence of the recovery in the oil price, as well as the improvement in external and internal liquidity conditions. Other factors, such as the reduction in tax rates, which came into effect at the start of the year, and the relative improvement in the Russian economy, may also have played a role. According to the SSC, in January-April fixed capital expenditure rose by 5.5%, to Manat2.3bn, as a result of a pick-up in foreign investment. Meanwhile, retail trade turnover rose by 8.2% year on year and paid services by 10.5% year on year in the same period.
Low inflation has continued to provide modest support to real incomes, although this effect is significantly lower than at the same point a year earlier. According to the SSC, nominal wages in April, at Manat309.8 (US$387), were up by 4.8% year on year on the same period of 2009, and household incomes by 8.6%, and consumer price inflation was just 4.4% year on year in January-April. Not all indicators of economic activity are positive, however: imports have been slow to recover, for instance, and the SSC put electricity consumption in January-April 6.6% lower than a year earlier, at 6.6bn kwh.
Azerbaijan economy: The LNG option
The Nabucco pipeline consortium and Russia continue to vie for the additional gas that Azerbaijan will have available for export in the next five years. However Azerbaijan is now examining another option: sending liquefied natural gas to south-east European markets by tanker across the Black Sea. A feasibility study has been commissioned, with a view to exporting 7bn to 20bn cubic metres of gas annually. This is potentially an alternative to Nabucco, rather than a complementary project.
Reinhard Mitschek, the head of the Nabucco pipeline consortium, said on June 23rd that he hoped to conclude deals with gas suppliers including Azerbaijan for the supply of gas via the pipeline by the end of 2010. Four days earlier Alexei Miller, the CEO of Russian state-run gas monopoly Gazprom, reiterated Russia’s offer to buy all the gas that Azerbaijan had available for export. Until recently, all of Azerbaijan’s options for exporting gas to Europe have involved pipelines via Turkey-principally Nabucco but also the Turkey Greece Italy interconnector. However Azerbaijan is now looking at an alternative method for delivering its gas to EU states–by a pipeline to Georgia and from there shipping it across the Black Sea in the form of liquefied natural gas (LNG).
In mid-April, during a visit to the Romanian capital, Bucharest, the industry and energy minister, Natiq Aliyev, signed a three-way agreement with the Romanian economy minister, Adriean Videanu, and the Georgian energy minister, Aleksander Khetaguri, on gas co-operation, after almost a year of negotiations. The three countries agreed to establish a company, the Azerbaijan Georgia Romania Interconnection (AGRI), that will undertake a feasibility study into the transit of Azerbaijani gas through Georgia, across the Black Sea by ship to Romania, and on to European markets. The necessary investment is currently being estimated at around €4bn-6bn (US$5.5bn-8.2bn). The amount of gas that might be transported annually has been put between 7bn cu metres and 20bn cu metres. The study will determine the likely capacity and cost of the project, as well as the relative advantages of liquefied natural gas (LNG) and more experimental compressed natural gas (CNG) technologies.
Azerbaijan currently exports 6.6bn cu metres of gas annually through the Baku-Tbilisi-Erzurum pipeline from the first phase of the Shah Deniz project. The second phase of production at Shah Deniz may be postponed until 2017, owing to delays in discussions between Azerbaijan and Turkey on the volume of gas to be transported, along with differences between the two on transit and tariff issues. Nonetheless, when the second phase of production comes on stream, Azerbaijan’s gas exports are expected at least to double, increasing the need to find new export routes for the gas.
Several other options of bringing Azerbaijani gas to European markets are being considered, including the proposed EU-backed Nabucco pipeline, which would run through Turkey on to Bulgaria, Romania, Hungary and Austria. Azerbaijan would be an important supplier to the Nabucco pipeline, but as the Shah Deniz project is estimated to yield 10bn-16bn cu metres per year, this would be insufficient to make the 31bn-cu-metre pipeline feasible. Turkmenistan has shown increasing interest in signing up to the Nabucco project, as this would allow it to reduce its reliance on exporting its gas through Russia. Together, Azerbaijani and Turkmen gas exports would be sufficient to fill the Nabucco pipeline.
With the feasibility study on the LNG/CNG train (which would liquefy and purify the natural gas ready for transportation) pending, Azerbaijan may continue to avoid committing gas to Nabucco during the “open season” that the Nabucco consortium plans to stage in the second half of 2010 to sign up suppliers, who may also include gas producers in Iraq alongside Turkmenistan. The consortium has been aiming to start construction in 2011. Nabucco is designed to transport an initial 8bn-10bn cu metres per year from 2014, rising to 31bn cu metres per year from 2018. Both Nabucco and the Georgia-Romania route have the advantage of bypassing Russia. Azerbaijan does not want to be beholden to Russia for its gas exports to third countries. Likewise, the EU, which is heavily dependent on Russian gas, wants to diversify its sources of supply.

http://www.cnn.com/video/data/2.0/video/international/2010/07/12/wv.azerbaijan.oil.boom.cnn.html

the link for CNN,s broadcast report on Azerbaijan's economy

World Bank Group Record Lending to Europe and Central Asia in Fiscal 2010 to Address Global Economic Crisis

Date: 12-07-2010



The World Bank Group responded quickly in fiscal year 2010 (FY10) to requests from countries in
Europe and Central Asia (ECA) for help in addressing the global economic crisis, providing record lending of $14.8 billion at a time when the crisis hit the Region harder than any other region
in the world. “The countries of Emerging Europe and Central Asia were hit the hardest by the global economic crisis and are likely to be one of the slowest to resume economic growth,” said Philippe Le
Houérou, World Bank Vice President for the Europe and Central Asia Region. “Growth in the Region, which had peaked at about 7 percent in 2007, fell to a negative 5 percent in 2009. The post-crisis recovery will be slow as growth will reach only about 3 percent in 2010, while the prospects for 2011-2013 are only slightly better.”

Le Houérou added that, “Rising joblessness is pushing households into poverty and making things even harder for those already poor. The World Bank has been and will be there to help the countries of Europe and Central Asia respond to the crisis.”


ECA is a diverse region. Differentiation among countries resulted in varying degrees of impact that the crisis has had on individual countries and will also define their prospects for recovery. About half of the Region’s 30 countries experienced a decline in GDP in 2009, with GDP growth ranging from a negative 18 percent in Latvia to a positive 9.3 percent in Azerbaijan.

The World Bank Group consists of the International Bank for Reconstruction and Development (IBRD), which provides financing, risk management products, and other financial services to
members, as well as analytical services, capacity building, and technical services; the International Development Association (IDA), which provides interest-free loans and grants to the poorest countries; the International Finance Corporation (IFC), which makes equity investments and provides loans, guarantees, and advisory services to private-sector business in developing countries; and the Bank Group’s political risk insurance agency, the Multilateral Investment Guarantee Investment Agency
(MIGA).

The IBRD/IDA recipients in ECA are using the $10.8 billion for 57 projects across all sectors in FY10 (July 1, 2009 – June 30, 2010). IDA commitments were $0.6 billion in FY10 – up from $0.4 billion in FY09 – and IBRD commitments totaled $10.2 billion in FY10 – up from $8.9 billion in FY09. The top
borrowers in ECA in fiscal year 2010 by volume were Turkey at $2.9 billion, Hungary with $1.4 billion, Poland at $1.3 billion, and Kazakhstan at $1.1 billion.

Much of the new lending –$8 billion – came in the form of Development Policy Loans (DPLs) to help countries restore growth and employment (e.g., $1.3 billion for Turkey), rehabilitate the financial sector (e.g., $400 million for Ukraine), address the social impact of the crisis (e.g., $144 million for Latvia),
improve the efficiency of social spending (e.g., $1.3 billion for Poland, $200 million for Belarus, $100 million for Serbia, and $111 million for Bosnia and Herzegovina), and enhance energy security and integrate principles of environmental sustainability (e.g., $700 million for Turkey).

Protecting safety net programs is critical to helping families deal with the crisis. In FY10, the Bank worked with governments to protect and expand their safety net programs, including the $15 million Bosnia and Herzegovina Social Safety Nets and Employment Services Project, and additional financing of $5 million for the Armenia Social Protection project and $7 million for the Armenia Social Investment Fund.

World Bank assistance was also provided to mitigate the energy emergencies in the Region. For example, additional financing of $4 million for the Kyrgyz Emergency Energy Project, approved in
November 2009, is increasing the volume and reliability of the national energy supply, especially thermal power in the winter season, thereby supporting implementation of the Energy Emergency
Mitigation Action Plan. An additional grant of $15 million was approved in March 2010 for the Energy Emergency Recovery Assistance project for Tajikistan to ensure basic access to electricity for about 250,000 people in northern Tajikistan, and increase the heat and power supply to the entire country, without overdrawing or depleting hydro resources in winter.

To help create jobs, the Bank financed labor-intensive infrastructure projects across the Region. The $36.6 millionLifeline Roads Improvement Project in Armenia upgraded selected sections of the road network with an estimated 7,650 people per month involved in community works. In Georgia, a $30 million Kakheti Regional Roads Improvement Project and $147 million for the Third East-West Highway Improvement Project will allow the country to scale up and rehabilitate its roads while creating jobs. The $25 million National Road Rehabilitation Project in the Kyrgyz Republic will improve transport connections for about one million people or about 18 percent of the population while
promoting local employment.

The Region held its third annual “Improving the Lives of People in Europe and Central Asia” event in June 2010 to recognize innovative activities that have achieved concrete results on the ground. Included in this year’s 12 winning submissions was this fiscal year’s $143.9 million Safety Net and Social Sector Reform Special Development Policy Loan for Latvia to support the most vulnerable groups of Latvian society and to help them successfully return to the labor market, as well as help to implement reforms in the social, healthcare, and education sectors.

The IFC continued investing in strategic areas in FY10, with a particular focus on existing clients and supporting financial markets. In FY10, IFC committed $2.9 billion for its own account and mobilized an additional $682 million in financing for its clients in the Region. IFC supported 100 projects, of which 46 percent are in IDA countries and in frontier regions of middle-income countries. Advisory services were an integral part of IFC’s activities, delivering training to over 500 stakeholders in the financial sector on crisis-related topics, helping to catalyze the market for investments in energy
efficiency and cleaner production, supporting infrastructure development through public private partnerships, developing the agricultural sector, and improving corporate governance.

“As the global economic crisis evolved this year we continued to provide critical support to banks and businesses in Europe and Central Asia through a mix of investments and advice,” said Rashad Kaldany, IFC's Vice President for Asia, Eastern Europe, Middle East and North Africa. “We also focused on regional priorities including addressing climate change and the sustainable development of important sectors such as agribusiness and infrastructure.”

During fiscal year 2010, MIGA provided support for 12 projects with $1.1 billion in political risk insurance coverage in the Region. MIGA continued to support the financial sector by providing political risk insurance to parent banks providing recapitalization support to their subsidiaries in countries that were hit by the global crisis. Such support this past fiscal year went to banks in Croatia, Kazakhstan, Latvia, and Serbia. MIGA also supported manufacturing projects in the Russian Federation.

“Last year, MIGA continued to help countries hit by the financial crisis by supporting lending to the real economy through private banking groups,” said MIGA’s Executive Vice President Izumi Kobayashi. “We have stepped up to assist recovery and growth in developing countries during undeniablychallenging times.”

Going Forward – A New and Tougher World for ECA Countries
Countries in the ECA Region will recover from the crisis more slowly than in other regions. Economic growth should reach about 3 percent in ECA in 2010, as compared to 5.5 percent in other developing regions. The recovery will be relatively slow over the next few years as 2011-2013 projections show the Region growing between 3 and 4 percent, as compared to approximately 5 percent in the Middle East and about 8 percent in developing Asia.

The Region experienced the largest deterioration in fiscal balances among all of the world’s developing regions during the global economic crisis. Emerging Europe and Central Asia ran a fiscal deficit of over 5 percent in 2009, compared with 1 percent in the Middle East, 3 percent in Latin America, and about 4 percent in developing Asia and Africa. Slower growth after thecrisis means that ECA governments will need to enhance spending efficiency in order to live within tighter budgets while
promoting inclusive growth.

The ECA Region also faces a big agenda on climate change. The Region has the highest energy intensity of production, more than twice as high as developing Asia and Latin America. According to
the Adapting to Climate Change in Europe and Central Asia report issued in June 2009, the impact of climate change will be more significant than expected. This is due to a lingering legacy of environmental mismanagement and the poor state of much of the Region’s infrastructure, leaving the countries ill-prepared toadapt.

To help ECA countries address these challenges in 2010 and beyond, the World Bank programs in the Region will focus on three strategic directions:1. Increasing competitiveness to achieve faster growth;2. Supporting fiscal adjustment and social sector reforms to achieve more inclusive growth; and3. Aiding climate action to achieve more sustainable growth.
(Source: WB Statement)

Azerbaijan’s GDP growth ‘hampers’ to 3.7%

Baku, Fineko/abc.az. At today’s meting presided by President Ilham Aliyev the Azerbaijani government has summarized the results of country’s socio-economic development in the first half of 2010.

Addressing to the meeting President Aliyev stated that for the passed half-year GDP rise reached 3.7%. At that, it made up 15.3% in non-oil sector.

“The country also observed growth of investments that totaled $3.8 bn, including $3 bn from domestic sources,” he added.

36,000 jobs were created in Azerbaijan for the reported term

ULY 13, 2010, 2:08 A.M. ET
Amec Gets 5-Year Project From BP Azerbaijan, $340M Chirag Oil Project

LONDON (Dow Jones)--Amec PLC (AMEC.LN), the international engineering and project management company, as part of the Amec Tekfen Azfen, or ATA, consortium, said Tuesday it has been awarded a five-year Master Services Agreement by BP Azerbaijan, including the Chirag Oil Project - West Chirag project valued at $340 million.

MAIN FACTS:

-Five-year agreement for the ATA consortium covers the provision of project management, engineering services, construction management and commissioning and completions for BP's oil and gas projects in Azerbaijan, and, in the future, the Shah Deniz 2 project.

-First tranche of work under the new agreement is for the project start-up and associated yard preparation works for an 18,000 ton topsides facility for the Chirag project.

-Amec shares closed Monday at 871 pence valuing the company at GBP2.88 billion.


-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com

IEA Forecasts World Oil Demand Growth to Slow in 2011
July 13, 2010, 6:44 AM EDT


July 13 (Bloomberg) -- Global oil demand will increase at a slower pace next year, as advanced nations trail China and other developing countries, the International Energy Agency said in its first assessment of 2011.
Worldwide daily crude oil consumption will climb 1.3 million barrels, or 1.6 percent, to average 87.8 million a day, the Paris-based adviser said in a monthly report today, leaving its estimate for this year unchanged at 86.5 million. The rate of demand growth for 2011 will be less than this year’s 2.1 percent as a result of increased fuel efficiency in the industrialized nations of the Organization for Economic Cooperation and Development, the IEA said.
“Despite economic recovery, oil demand growth slows” next year because of “a continued structural shift away from oil in the OECD and the dual impact of improving end-use efficiency and gradual phase-down of economic stimulus in the non-OECD,” according to the report.
China, the world’s second-largest oil user, will account for about 30 percent of next year’s demand expansion compared with 50 percent this year as the country’s government phases out stimulus measures, the IEA said. Oil futures last traded at about $75 a barrel in New York, having lost 5 percent this year on signs the economic recovery is losing momentum.
The Organization of Petroleum Exporting Countries will need to provide more crude in 2011 than this year as supply growth from outside the group slows, the IEA said. OPEC, responsible for 40 percent of worldwide output, will need to provide an average of 29.2 million barrels a day next year, or 400,000 a day more than in 2010.

Non-OPEC

Non-OPEC producers will boost supplies by 400,000 barrels a day next year to 52.8 million a day, or about half the amount of growth as this year, according to the report. The additional supply will come from Brazil, Azerbaijan, Colombia, Ghana and Oman. North Sea supply will decline.

The 11 OPEC members bound by production quotas raised supplies last month by 40,000 barrels to 26.6 million barrels a day, according to the IEA. That means the organization’s compliance rate with production cuts announced in late 2008 dropped to 59 percent. Iraq is exempt from the quota system.

Output from all 12 members fell 60,000 barrels a day in June to 28.9 million barrels a day.
Oil demand is set to increase in 2010 for the first time in three years as the global economy emerges from its worst crisis since World War II, the IEA said. Consumption will increase by 1.8 million barrels a day, or 2.1 percent, to average 86.5 million barrels a day.

Refiners around the world processed 1.3 million barrels of crude a day more in the last quarter than a year ago, handling 73.5 million barrels a day in the second quarter, according to the report.
Nonetheless, oil inventories in industrialized nations rose by 35 million barrels to 2.8 billion barrels in May, equivalent to 61 days of consumption and near the top of their five-year range, the agency said.

-- Editors: Raj Rajendran, Mike Anderson.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net

Azerbaijan using oil revenue to diversify economy - llham Aliyev
Wed 14 July 2010 | 08:40 GMT Text size:


Ilham Aliyev
President Ilham Aliyev has given an upbeat assessment of the country's economic progress in the first six months of the year.

He addressed an expanded session of the Cabinet of Ministers yesterday on Azerbaijan's socioeconomic development.

"Our national economy saw considerable development in 2009, although the year was marked by global financial crisis and economic recession in many countries. These positive trends have been continuing this year, and there has been progress in all spheres of our economy," Aliyev said, according to state-run news agency AzerTAj.

"In the first half of 2010 our economy grew 3.5%. And it is a very good figure. Azerbaijan's economy is developing in a diversified manner, and, as you know, developing the non-oil sector is our priority."

On the oil and gas sector, the Azerbaijani president said: "What we've achieved here is enough for us, and we need to maintain the production rate. Some 25 million tonnes of oil and 13 billion cubic metres of gas have been produced in the country in the first half of this year.

"If we divide our industrial potential, we'll see that growth in the oil sector was 2.4% and in the non-oil sector 15.3%."

Economic diversification remains a priority for the government.

"We'll continue to place particular emphasis on developing the non-oil sector, and the fact that growth here exceeded 15% percent proves that Azerbaijan's economy is a diversified economy," the president said. "Our goal is developing all spheres of life in Azerbaijan through the effective use of oil revenues, and we've achieved it. We must reinforce this trend in the coming years. We must ensure that in the years and decades to come Azerbaijan's dependence on oil is reduced as far as possible."

Inflation and investment

In his closing speech at the session, the president said that Azerbaijan had followed its own policy in investment and spending. "We emerged successfully from the crisis because jobs were created in the non-oil sector, local production began and dependence on imports was reduced."

Azerbaijan could have faced Dutch disease, when the economy suffers as a result of a huge inflow of foreign currency, the president said. "But we chose our own path... We increased our reserves but at the same time were able to make big investments where needed."

The president painted a positive picture in other areas of the economy in the first six months of the year. "Inflation was 4.9%, and this is a normal figure. The population's incomes increased 9% and this shows that even though the years 2009-2010 have been marked by global crisis, Azerbaijani citizens have seen their incomes rise."

President Aliyev highlighted the country's achievements in the financial and investment sector.

"We've created large financial resources. Thanks to our successful oil policy Azerbaijan is today expanding its financial potential. Our currency reserves have increased from $20bn to $24.7bn since the start of the year. And this allows us to meet any economic objective, to see through any infrastructure project by ourselves.

"Azerbaijan will further increase its currency reserves, which will ensure our successful economic and independent policy."

Overall investments in Azerbaijan were $3.8bn in the reporting period, of which $3bn were domestic investments, the president said.

He dwelt on the importance of making finance available to businesses.

"The National Fund to Support Entrepreneurship must speed up the granting of loans," the president said, so that businesses can make use of the funds by the end of the year. "More than AZN 100m will be granted in loans this year."

Business financing has been especially productive in agriculture, food processing and tourism, Aliyev said.

Social problems

Social problems featured prominently in the president's speeches, in this a parliamentary election year.

"The average [monthly] wage is nearly 400 dollars in Azerbaijan, and it is increasing year by year. The first half of 2010 has also seen growth in the average wage. The average pension is around 130 dollars, and there has been an increase here as well," the president said.

He returned to wages and pensions in his closing speech, promising to look at increasing both the minimum wage and pension in the coming months.

Aliyev said that the number of people living in poverty had fallen four-fold over the past six years. "Nevertheless, 11% of the population are living in poverty today and the state must care for them."

"We've worked in every sphere of life – hospitals, schools, sports facilities, cultural centres. The beautiful, state-of-the-art social facilities that have opened in Baku and the regions in the first half of the year are vivid evidence of this." The construction of health, education, sport and cultural facilities across the country should continue, the president said.

He praised the state program for the development of the country's regions.

"We can see development in every region. We are investing and carrying out socioeconomic programs in all regions.'

"Some 36,000 jobs have been created in Azerbaijan in the first six months. Nearly 900,000 jobs have been created in the country in the last six years, 600,000 of them permanent," the president said, without going into details.

"Azerbaijan has considerable achievements in cutting unemployment," the president said, but gave no jobless figures.

Flood aftermath

The president said that an additional AZN 1.5bn should be invested in the economy by the end of the year. These funds should be spent on further strengthening the military, on economic infrastructure and on building new homes for those who lost their homes in the spring floods.

The flooding caused considerable damage to the economy over a large area, the president said. "Thousands of homes and thousands of hectares of land were flooded." But he said that Azerbaijan had managed to escape with minimum loss of life.

Many countries had offered assistance with the flood aftermath, but Azerbaijan could cope on its own, the president said. The relevant state bodies and private companies have been working hard to tackle the aftermath of the flooding and much work remains to be done.

"Specific plans have been drawn up. First, we must restore the damaged homes as quickly as possible. The Azerbaijani state has undertaken this work itself. I can say that this is very unusual in international practice. In other countries houses are insured and the state is not involved in repairing houses and does not allocate resources to this," the president said.

He said that many of the destroyed houses had been built from poor quality materials but that their replacements would be better. "We must try to complete most of the work by the onset of winter," Aliyev said.

News.Az

Research and Markets: Azerbaijan - Telecoms, Mobile, Broadband & Forecasts
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BusinessWire · Wednesday, Jul. 14, 2010

Research and Markets (http://www.researchandmarkets.com/research/f40639/azerbaijan_telec) has announced the addition of the "Azerbaijan - Telecoms, Mobile, Broadband & Forecasts" report to their offering.

Coming into 2009 there were around 6 million mobile subscribers (70% penetration) in Azerbaijan, with Azercell continuing to command a majority share of the market (almost 60%), but this dominance was being slowly eroded. Although the fixed network provides good national coverage, there was little sign of a growth surge in this market; fixed-line penetration edged up past 15% by end-2008. At the same time Internet users in the country reportedly numbered 1.5 million, while broadband subscriptions increased fourfold in 2008, according to International Telecommunications Union (ITU) figures.

On the back of a strong economy, Azerbaijan has been making healthy progress in the building its telecommunications and information technology sectors.

In doing so it has had to confront a number of major problems including:

Poor telecom infrastructure inherited from the past;
Low public awareness and understanding of computer technology;
The high cost of computer equipment in comparison to the average salary;
Very high tariffs for satellite connections due to a monopoly held by the Ministry of Communications & Information Technologies (MCIT).By 2001 there were four joint ventures offering telephone services, two mobile operators, and a number of Internet Service Providers (ISPs) operating in the country. All these ventures, established under the MCIT, were providing a range of basic telephone services, including mobile services. Prices varied considerably depending on the different cost of services offered to these companies by the ministry.
Government-owned Aztelekom has been the countrys main telecom service provider, being directly controlled by the MCIT. A second operator, AzEuroTel, won a licence to provide international communication services in August 1999. In June 2006, in a move that suggested a widening interest in the Azerbaijan telecom sector, a small UK-based company, Polton Vencars, announced plans to develop telecommunications services in Azerbaijan. It intended to invest US$4 million in Bakinsky Telegraph, a company it had earlier acquired at auction, over a four year period to develop 3G mobile services using Code Division Multiple Access (CDMA) technology, as well as dial-up and broadband Internet access services. It also hoped to add triple play services (TV, Internet and fixed-line) to its portfolio. Polton Vencars had acquired an 89.8% stake in Bakinsky Telegraph.

This report provides an overview of the trends and developments in the telecommunications markets in Azerbaijan. Subjects covered include:

Key Statistics;
Market and Industry Overviews;
Major Operators (Mobile and Fixed);
Regulatory Environment;
Infrastructure;
Mobile Market - Voice and Data;
Internet Market, including Broadband.
Key Topics Covered:

1. Executive summary

2. Key statistics

3. Telecommunications market

4. Regulatory environment

5. Fixed network operators in Azerbaijan

6. Telecommunications infrastructure

7. Internet market

8. Broadband market

9. Mobile communications

9.3 Major mobile operators

10. Forecasts

Companies mentioned:

Aztelekom
AzEuroTel
Terracom Inc (Fire Telecom) - EurAsiaCom
Azercell
Bakcell
Azerfon (Nar Mobile)
Catel
For more information visit http://www.researchandmarkets.com/research/f40639/azerbaijan_telec



Read more: http://www.financialpost.com/markets/news/Research+Markets+Azerbaijan+Telecoms+Mobile+Broadband+Forecasts/3274062/story.html#ixzz0tf02A7Kn

8.5m mobile phones in use in Azerbaijan
Wed 14 July 2010 | 13:50 GMT Text size:


The number of mobile phones registered to users in Azerbaijan increased by 19%, or 1.4m, in the first six months of the year to reach 8.5m.

The figures come from the State Statistical Committee.

In 2009, the number of registered mobile phones increased by 1,209,120 to 7,757,120.

The use of mobile phones in Azerbaijan is some 25% higher than the international average, Communications Minister Ali Abbasov said in January.

Azerbaijan's population was 9.47 million as of 1 July.

Azerbaijan To Produce 50 Million Tons Of Crude In 2010

Print
According to preliminary calcualtions, Azerbaijan will produce about 50 million tons of crude in 2010, Azerbaijan Deputy Minister of Industry and Energy Natik Abbasov said speaking July 14, at an international conference on alternative and renewable sources of energy.
"However, by the end of the year, that figure could reach 52 million tons", Abbasov said.
Abbasov also noted that at the present time, annual gas production in the country was 23 billion cubic meters of gas. "We expect that by the end of the year, gas production in Azerbaijan will reach 28-30 billion cubic meters of gas", the deputy minister stressed.
Copyright 2010, 1news.az. All rights reserved.

Investments in Azerbaijani economy rose by 10.9%

Baku, Fineko/abc.az. Investments in Azerbaijani economy grew this June by 11.5% versus May of the year.

The State Statistics Committee (SSC) informs that for Jan-Jun capital investments in country’s economy totaled AZN 3.766 bn ($4.708 bn in accord with average exchange rate: AZN 0.8 to the US dollar) that is by 10.9% more versus Jan-Jun 2009. This June investments totaled AZN 745.6 million versus AZN 730 million (this year’s still best index) in May and AZN 654.5 million in April.

The forecast for 2010 was fixed at the level of AZN 11.315 bn ($14.07 bn) with rise of 12.5% and for Jan-Jun actual investments made up 33.3% of the 2010 forecast and their growth turned out by 1.6% less than it was expected.

According to the SSC data, for Jan-Jun domestic sources’ investments totaled AZN 2.96 bn ($3.7 bn) that makes up 31.7% of the 2010 forecast of AZN 9.3 bn ($11.6 bn) with growth of 15.5%.

Foreign investments totaled AZN 803.2 million ($1.004 bn) that makes up 40.7% of the forecast for 2010 of AZN 1.975 bn ($2.455 bn) with zero growth.

Tendency of domination of domestic investments in Azerbaijani economic over external ones, which stopped in January, strengthened in June.

Last month internal investments reached AZN 671.5 million versus AZN 128.1 million of foreign investments or 82.8% and 17.2% of all investments respectively. For Jan-Jun 2010 ratio was 78.7% to 21.3%.

In 2009, foreign investments made up 20.1% of all investments and domestic investments 79.9%.

In 2007 this ratio was 40.4% and 59.6% and in 2008 – 24.5% and 75.5% respectively.

Last year the best index of domestic investments was registered in February (AZN 927.12 million), while the best index of foreign investments was registered in October (AZN 241.7 million).

For Jan-Jun 2010 investment sources were enterprises’ funds (AZN 2.03 bn with 31.9% rise), budget finances (AZN 1.236 bn with drop of 10.2%), extra-budgetary funds (AZN 195.1 million with decline by 13.5%), population’s funds (AZN 132.3 million with rise of 17.3%), and bank loans (AZN 165.4 million with rise by 19.8%),

Over the last 6 months state investments totaled AZN 2.689 bn and investments from State Budget AZN 1.158 bn with target for the year in the amount of AZN 3.549 bn.

In 2009, capital investments in Azerbaijani economy reached AZN 7.358 bn ($9.198 bn) that is by 18.7% less against the 2008 figure.

In 2008, Azerbaijani economy was invested AZN 9.07 bn ($11.065 bn; USD 1 = AZN 0.82) that exceeds investments in 2007 by 34.3%. In 2006, Azerbaijani economy was invested AZN 5.963 bn ($6.7 bn) with growth of 14.8% and in 2007 - AZN 6.774 bn ($7.97 bn) with growth of 17.8%.

Renewable energy gaining ground in Azerbaijan

Oil-rich Azerbaijan is paying increasing attention to renewable sources of energy, with plans to produce its own solar panels.

An international conference on developing alternative and recoverable sources of energy is being held in Baku today.

Wind power alone will allow Azerbaijan to generate a further 800 MW of electricity, Deputy Minister of Industry and Energy Natig Abbasov told the conference, according to 1 news.az.

He said that Azerbaijan was considering biomass energy and had started solar power generation on a small scale.

He was echoing remarks by President Ilham Aliyev yesterday, who told an expanded session of the Cabinet of Ministers that Azerbaijan had taken its first steps in solar power generation in 2010. The president said that the new Central Election Commission building was the first in Azerbaijan to have solar panels and would be supplied entirely with solar power, state-run news agency AzerTAj reported.

The president said that Azerbaijan should start producing its own solar panels and appealed to businessmen to consider their manufacture.

The invitation could be said to have received a rapid response. The deputy chief of the Industry Ministry's State Agency for Alternative and Recoverable Energy Sources, Jamil Melikov, told today's conference that plans for a plant to produce solar panels near Baku were already in place. The plant will be built with private investments.

"Construction usually takes eight months or a year. After commissioning, we hope the plant's output will be in demand in other countries, but it must first meet Azerbaijan's own needs," Melikov said.

President Aliyev said yesterday that small hydroelectric power plants should be built wherever feasible on the country's rivers.

He said that generating hydroelectricity was beneficial for the environment and in terms of ensuring energy security.

The president said that construction had started this year of three small hydroelectric power stations in Goychay, Agdash and Balakan districts, while 10 more power stations were planned for Balakan alone.

Cheaper power generation will allow Azerbaijan to save gas for export, Aliyev said.

Azerbaijan should start generating other types of energy, which as well as boosting the economy, would be Azerbaijan's gift to a world concerned about climate change, the president said.

News.Az

Growth in Azerbaijan’s non-oil sector tops GDP rise for first half of 2010

Baku, Fineko/abc.az. This June Azerbaijan’s non-oil sector strengthened its status of economy “engine” lost in August 2009 and returned a month earlier. First time since August year-on-year growth of non-oil GDP exceeded rise of general GDP by 1%.

Last month rise in non-oil GDP declined by 0.2% against 0.6% of growth retardation on general GDP.

The Central Bank of Azerbaijan (CBA) reports that for Jan-Jun 2010 country’s non-oil GDP totaled AZN 7.865 bn that is by 4.7% more versus Jan-Jun 2009 (AZN 6.7 bn).

At that, for Jan-Jun 2010 overall GDP reached AZN 19.68 bn with rise of 3.7% (the indicator was AZN 14.287 bn a year ago).

Over the last 6 months oil GDP grew only by 2.7%. This June non-oil GDP reached AZN 1.47 bn while overall GDP totaled AZN 3.146 bn.

For Jan-Jun 2010 non-oil GDP made up 39.96% of overall GDP (including 46.8% in June).

Last year growth in non-oil sector (3.2%) which in August ceased playing the role of engine of country’s economy dropped 4.9-fold versus the 2008 index (+15.7%), when it for the first time exceeded increase of total GDP of the country’s economy (10.8%).

In September 2009 non-oil sector demonstrated GDP growth less than 1% (0.8%) year-on-year for the first time since 1999.

Following 2009 non-oil GDP totaled AZN 15.68 bn with growth of 3.2% (overall GDP of AZN 34.578 bn (+9.3%)) and made up 45.36% of overall GDP against 38.81% in 2008.

Non-oil GDP growth exceeded overall GDP rise for the last 12 months successively (August, September, October, November, December of 2008, and Jan-Jul of 2009).

Exchange rate by early July 2010 was AZN 0.8039 to the US dollar. According to this rate, non-oil GDP reached $9.78 bn.

Azerbaijan communications sector sales totals $643 million for Jan-Jun

Baku, Fineko/abc.az. Over the last 6 months communication sector sales in Azerbaijan totaled $642.5 million in accord with average exchange rate for the reported term.

The State Statistics Committee informs that for Jan-Jun 2010 communications sector rendered services for AZN 514 million that is 28.2% more versus the 2009 same period.

“The population was a major consumer of rendered services – 74.3%. The sector received most part of earnings from mobile communications – 68.6%, where the indicator increased by 17.5% up to AZN 352.6 million,” it was informed.

At that, quantity of mobile phone communication users grew by 9.3% and reached 8.5 million subscribers by 1 July.

In 2009, Azerbaijani communication sector sales totaled AZN 1 bn.

Azərbaycan I yarımildə 800 kq-a yaxın qızıl hasil edib

Gədəbəydə qızıl emalı zavodu istismara verilib

2010-cu ilin I yarısında Azərbaycanda qızıl hasilatı 797 kq təşkil edib. Bu barədə Dövlət Statistika Komitəsinin nümayəndəsi məlumat verib. “Azərbaycan 2009-cu ildə qızılın sənaye hasilatına başlayıb. 2010-cu ilin yanvar-iyun aylarında qızıl hasilatının həcmi 797 kq təşkil edib və bu həcm emala göndərilib", - deyə DSK nümayəndəsi bildirib.

Statistik məlumatlara görə, 2009-cu ildə 333 kq qızıl hasil edilib.

Xəbər verildiyi kimi, Azərbaycanın qızıl yataqlarının işlənməsi ilə məşğul olan Azerbaijan International Mining Company (AMIC) 2009-cu ilin mayında Gədəbəydə qızıl emalı zavodunu istismara verib.

AMIC “Gədəbəy” yatağı da daxil olmaqla Azərbaycanın 6 qızıl yatağının işlənməsi layihəsinin operatoru olan Anglo-Asian Mining PLC şirkəti (R.V. Investment Group Services LLS şirkəti tərəfindən təsis edilib) tərəfindən yaradılıb. Müqaviləyə görə, bu yataqlardan 400 ton qızıl, 2500 ton gümüş və 1,5 ton mis hasilatı planlaşdırılır.

ANS

Мощность энергосистемы Азербайджана достигнет 9 тыс. МВт

Если до 2010 года планировалось увеличение мощности энергосистемы Азербайджана до 6 тыс. МВт, то сегодня этот показатель составляет 6,5 тыс. МВт.

Как передает 1news.az, такое заявление сделал сегодня журналистам директор Азербайджанского научно-исследовательского проектно-поискового энергетического института Нурали Юсифбейли.

По его словам, только за последние 5 лет мощность энергосистемы увеличилась на 2,7 тыс. МВт.

«Уже до 2015 года мощность энергосистемы страны будет наращена до 9 тыс. МВт», - сказал Н.Юсифбейли.

Глава института отметил, что порядка 10% этого показателя будет достигнуто за счет альтернативных и возобновляемых источников энергии. Как ранее заявлял заместитель министра промышленности и энергетики Азербайджана Натиг Аббасов, «только за счет ветряных генераторов мы можем нарастить генерирующие мощности еще на 800 МВт».

20.07.2010
/1NEWS.AZ/

Ilham Aliyev attended the opening ceremony of Masazyr Salt Refinery


http://president.az/photos/small-gallery/775-4daa5e1ae7362c516089a25269fea0c2.jpg

President Ilham Aliyev attended the opening ceremony of a salt refinery of Azerbaijan Salt Production Union near the Masazyr Lake.

People gathered for the ceremony greeted the President with ardor.

President Ilham Aliyev cut the ribbon symbolizing the official opening and toured the facility.

There was a photo exhibition in the refinery`s foyer featuring national leader Heydar Aliyev`s and President Ilham Aliyev`s participation in opening of different industrial facilities across the country.

During the tour of the facility, the President was informed that based on “Program for elimination of illnesses as a result of iodine deficiency through iodination of salt, “Azersun Holding” took the mission of building the first salt refinery plant in the country. The project was undertaken in partnership with Azerbaijan Investment Company.

The production facility, with 7 hectares of general area, has a daily processing capacity of 300 tons. The work mechanism of the plant is totally automated. Approximately 130 people will be employed at the refinery.

It was noted that additional road was constructed between Masazyr-Novkhany highway and the plant for transportation of salt, and blocks were laid at the coast to prevent soil and equipment from contact with water.

The plant`s “Azerduz” and “Bizim duz” brands of salt will be exported to world markets.

President Ilham Aliyev viewed the production samples of the plant.

While viewing the panorama of Masazyr Lake, the President was told that salt exists in two forms – as a layer in the ground and as a solution in the water of the lake with a general area of 10 square kilometers. The salt reserves of the lake is approximately 1 million 735 thousand tons.

Having looked at the model and photos of the plant in the conference hall, the President congratulated the staff and gave his instructions and suggestions.

Azerbaijan economy: External surplus rises
21.07.2010 | Author: admin | Posted in Economic News Analysis
[Translate]
________________________________________
Azerbaijan economy: External surplus rises

July 20 (Economist Intelligence Unit) — The recovery of the
current-account surplus continued in the first quarter of 2010.
According to the Central Bank, the current-account surplus for
January-March totaled US$3.9bn. This is a significant increase
from the US$1.8bn in the first quarter of 2009, when the global
economy was in crisis and oil prices fell sharply. The
first-quarter merchandise trade surplus reached US$5bn, compared
with US$4.5bn in the preceding quarter and just US$2.1bn in the
first quarter of 2009. First-quarter goods exports-almost 95% of
which were from the oil and gas sector-totaled US$6.3bn, which
was marginally lower than in the fourth quarter of 2009, but well
up on the US$3.6bn recorded in January-March 2009.
The year-on-year increase in the trade and current-account
surpluses is likely to moderate during the remainder of 2010, as
global oil prices are expected to remain broadly stable,
averaging around US$80.2/b for dated Brent Blend, and as base
effects start to weaken. Imports may also start to pick up.
According to customs-based data from the SSC, the value of
imports declined by 3% year on year, to US$1.76bn in
January-April 2010, whereas the value of exports rose by 77% year
on year, to US$6.25bn. However, the pace of growth of exports and
the pace of contraction of imports were both slower than in
January-March. SSC data substantially underestimate export
revenue, as they do not fully account for exports of oil and gas
from fields developed by international consortia.

Azerbaijan economy: Down to earth with a bump

July 20 (Economist Intelligence Unit) — Year-on-year GDP growth
slowed to 4.3% in the first five months of 2010, according to the
State Statistics Committee (SSC), slower than the 5% recorded in
January-April and the 5.4% in January-March. Nominal GDP totaled
Manat16.5bn. Data from the SSC reveal that the oil sector-which
accounted for 55% of GDP-expanded by 3.5% year on year in the
five-month period, and the non-oil sector grew by 4.9% year on
year. The growth rates in the first five months of 2010 are
modest compared with those achieved in recent years, apart from
2009.

The slowdown in growth reinforces how dependent the economy is on
the oil and gas sectors. For 2010 as a whole, oil output is
officially expected to increase by around 4%, to 52.5m tones.
This is smaller than the increase in 2009, when oil production
rose by 11.4% year on year, largely driven by the resumption of
oil production at the Azeri-Chirag-Guneshli (ACG) oilfields,
following technical difficulties in the final quarter of 2008.
The authorities expect a sharper rise in the output of gas in
2010.

Industry peaking

The performance of other sectors was varied. Communications
services grew by around 25% year on year in the first five
months, helped by ongoing investment into telecommunications, but
the transport sector rose by just over 3% year on year.
Agricultural output rose by a paltry 0.4% year on year. According
to the SSC, fixed capital expenditure rose by 11.3% year on year,
to Manat3bn in the first five months, as domestic and foreign
investment increased in year-on-year terms by 4.4% and 44.6%,
respectively. Retail trade turnover rose by 8.1% year on year and
paid services rose by 10.4%. Nominal wages averaged Manat304.6
(US$392) per month in January-May-a 3.8% year-on-year increase
compared with the year- earlier period. Total household income
was up by 9.5% year on year.

Azerbaijan economy: Spending more of the oil-price windfall

July 20 (Economist Intelligence Unit) — On June 18th parliament
approved the government’s revisions to the level of expenditure
and revenue in the 2010 state budget. The amendments raise
planned expenditure by just over Manat1bn, to Manat12.3bn. Of the
additional expenditure, Manat300m will be allocated towards work
to combat flooding, and Manat99m will be used to increase social
spending.
More significantly, an additional Manat1bn would be transferred
to the budget from the State Oil Fund of the Republic of
Azerbaijan (SOFAZ, the overseas oil windfall fund), in addition
to the Manat4.9bn that was allocated in the initial 2010 state
budget. The government now forecasts that revenue will reach
Manat11.5bn in 2010 and that the deficit will be Manat770m,
compared with Manat1.25bn in its earlier forecast. According to
government estimates, the deficit would be equivalent to 2.3% of
GDP-down from the 3.9% previously envisaged. The data in the
Economist Intelligence Unit’s annual tables exclude transfers
from SOFAZ.

Ganja hosts Azerbaijan-Germany business forum
Thu 22 July 2010 | 13:15 GMT Text size:


Azerbaijan-Germany business forum was held today in Ganja.

Forum was held by the organizing of Azerbaijan Ministry of Economic Development, AZPROMO (Azerbaijani Export & Investment Promotion Foundation) and German-Azerbaijan Economic unity.

According to ministry, near 100 representatives from state officials, alternative energy, agriculture, food industry, finance, machine-building, industry, oil-gas and other spheres of Azerbaijan and Germany participated in the forum.

AZPROMO head Adil Mammadov, Head of Entrepreneurship Development Policy Department of Economic Development Ministry Zaur Gasimov, head of Executive Power of Nizami District of Ganja Pasha Pashayev, AEC president Mammad Musayev, The German Economy and Technology Ministry’s Economic Cooperation with CIS Countries Department head, Andreas Neuman spoke about the development of current relations and cooperation, importance of extending of coopera5tion among the Azerbaijani and German businessmen.

The business meeting was held among the businessmen and economic relations and cooperation perspectives were discussed in the business forum.

APA

Azerbaijan economy: Spending more of the oil-price windfall

July 20 (Economist Intelligence Unit) — On June 18th parliament
approved the government’s revisions to the level of expenditure
and revenue in the 2010 state budget. The amendments raise
planned expenditure by just over Manat1bn, to Manat12.3bn. Of the
additional expenditure, Manat300m will be allocated towards work
to combat flooding, and Manat99m will be used to increase social
spending.
More significantly, an additional Manat1bn would be transferred
to the budget from the State Oil Fund of the Republic of
Azerbaijan (SOFAZ, the overseas oil windfall fund), in addition
to the Manat4.9bn that was allocated in the initial 2010 state
budget. The government now forecasts that revenue will reach
Manat11.5bn in 2010 and that the deficit will be Manat770m,
compared with Manat1.25bn in its earlier forecast. According to
government estimates, the deficit would be equivalent to 2.3% of
GDP-down from the 3.9% previously envisaged. The data in the
Economist Intelligence Unit’s annual tables exclude transfers
from SOFAZ.

Azerbaijan economy: Down to earth with a bump

July 20 (Economist Intelligence Unit) — Year-on-year GDP growth
slowed to 4.3% in the first five months of 2010, according to the
State Statistics Committee (SSC), slower than the 5% recorded in
January-April and the 5.4% in January-March. Nominal GDP totalled
Manat16.5bn. Data from the SSC reveal that the oil sector-which
accounted for 55% of GDP-expanded by 3.5% year on year in the
five-month period, and the non-oil sector grew by 4.9% year on
year. The growth rates in the first five months of 2010 are
modest compared with those achieved in recent years, apart from
2009.

The slowdown in growth reinforces how dependent the economy is on
the oil and gas sectors. For 2010 as a whole, oil output is
officially expected to increase by around 4%, to 52.5m tonnes.
This is smaller than the increase in 2009, when oil production
rose by 11.4% year on year, largely driven by the resumption of
oil production at the Azeri-Chirag-Guneshli (ACG) oilfields,
following technical difficulties in the final quarter of 2008.
The authorities expect a sharper rise in the output of gas in
2010.

Industry peaking

The performance of other sectors was varied. Communications
services grew by around 25% year on year in the first five
months, helped by ongoing investment into telecommunications, but
the transport sector rose by just over 3% year on year.
Agricultural output rose by a paltry 0.4% year on year. According
to the SSC, fixed capital expenditure rose by 11.3% year on year,
to Manat3bn in the first five months, as domestic and foreign
investment increased in year-on-year terms by 4.4% and 44.6%,
respectively. Retail trade turnover rose by 8.1% year on year and
paid services rose by 10.4%. Nominal wages averaged Manat304.6
(US$392) per month in January-May-a 3.8% year-on-year increase
compared with the year- earlier period. Total household income
was up by 9.5% year on year.

Azerbaijan economy: External surplus rises

July 20 (Economist Intelligence Unit) — The recovery of the
current-account surplus continued in the first quarter of 2010.
According to the Central Bank, the current-account surplus for
January-March totalled US$3.9bn. This is a significant increase
from the US$1.8bn in the first quarter of 2009, when the global
economy was in crisis and oil prices fell sharply. The
first-quarter merchandise trade surplus reached US$5bn, compared
with US$4.5bn in the preceding quarter and just US$2.1bn in the
first quarter of 2009. First-quarter goods exports-almost 95% of
which were from the oil and gas sector-totalled US$6.3bn, which
was marginally lower than in the fourth quarter of 2009, but well
up on the US$3.6bn recorded in January-March 2009.
The year-on-year increase in the trade and current-account
surpluses is likely to moderate during the remainder of 2010, as
global oil prices are expected to remain broadly stable,
averaging around US$80.2/b for dated Brent Blend, and as base
effects start to weaken. Imports may also start to pick up.
According to customs-based data from the SSC, the value of
imports declined by 3% year on year, to US$1.76bn in
January-April 2010, whereas the value of exports rose by 77% year
on year, to US$6.25bn. However, the pace of growth of exports and
the pace of contraction of imports were both slower than in
January-March. SSC data substantially underestimate export
revenue, as they do not fully account for exports of oil and gas
from fields developed by international consortia.

Azerbaijan economy: External surplus rises

July 20 (Economist Intelligence Unit) — The recovery of the
current-account surplus continued in the first quarter of 2010.
According to the Central Bank, the current-account surplus for
January-March totalled US$3.9bn. This is a significant increase
from the US$1.8bn in the first quarter of 2009, when the global
economy was in crisis and oil prices fell sharply. The
first-quarter merchandise trade surplus reached US$5bn, compared
with US$4.5bn in the preceding quarter and just US$2.1bn in the
first quarter of 2009. First-quarter goods exports-almost 95% of
which were from the oil and gas sector-totalled US$6.3bn, which
was marginally lower than in the fourth quarter of 2009, but well
up on the US$3.6bn recorded in January-March 2009.
The year-on-year increase in the trade and current-account
surpluses is likely to moderate during the remainder of 2010, as
global oil prices are expected to remain broadly stable,
averaging around US$80.2/b for dated Brent Blend, and as base
effects start to weaken. Imports may also start to pick up.
According to customs-based data from the SSC, the value of
imports declined by 3% year on year, to US$1.76bn in
January-April 2010, whereas the value of exports rose by 77% year
on year, to US$6.25bn. However, the pace of growth of exports and
the pace of contraction of imports were both slower than in
January-March. SSC data substantially underestimate export
revenue, as they do not fully account for exports of oil and gas
from fields developed by international consortia.

Azerbaijan Airlines Orders Boeing 767-300 Passenger and Freighter Models

FARNBOROUGH, United Kingdom, July 22 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA) and Azerbaijan Airlines have signed an agreement to substitute two Next-Generation 737 airplanes for one 767-300ER (extended range) and two 767 Freighters, a new model type for the Baku, Azerbaijan-based airline. The substitution has been updated on Boeing's Orders and Deliveries website.
"With our centralized geographic location, Azerbaijan is becoming a busy hub in the region between east and west and north and south," said Jahangir Askerov, president of Azerbaijan Airlines. "We are capitalizing on this development by expanding our long-haul passenger fleet and growing our cargo business with the proven efficiencies of the 767 Freighter."
Including today's announcement, Azerbaijan Airlines has a total of eight Boeing airplanes on order: two 767-300ERs, two 767 Freighters, two Next-Generation 737s and two 787-8s.
"With the economic recovery gaining momentum at various speeds around the world, our customers are making changes to their fleets to accommodate the upturn," said Marlin Dailey, vice president of Sales, Boeing Commercial Airplanes. "We have worked with Azerbaijan Airlines to make changes to its order book that meet its needs."
The Boeing 767 family is a complete family of clean, quiet, fuel-efficient airplanes that provide maximum market versatility in the 200- to 300-seat market. The Boeing 767 family includes three passenger models -- the 767-200ER, 767-300ER and 767-400ER -- and a medium-widebody freighter, which is based on the 767-300ER fuselage.
Contact:
Andrew Davis
International Communications
Boeing Commercial Airplanes, London

Azerbaijan to construct 36 small hydroelectric power stations
Thu 22 July 2010 | 06:09 GMT Text size:


Azerbaijani Scientific-Research, Design Institute of Energy has studied prospects of development, potential of small hydro power sector in Azerbaijan.

According to Institute’s surveys, there is a possibility to build about 280 small hydropower plants on rivers and water facilities in Azerbaijan.

The primary research shows that capacity of these stations is established in 700 MW and generation of energy in about 3.5 bn kWh.

Taking this into account, the country can construct in the near future about 36 small hydropower plants capacity of which was defined at the level of 113.29 MW and annual energy generation in 510.99 kW/h.

Associative agreement to give impetus to relations between EU, Azerbaijan
Fri 16 July 2010 | 07:47 GMT Text size:


The associative agreement between EU and Azerbaijan will open new opportunities for development of relations in different spheres.

'The preparation and signing of the associative agreement is another important step in the relations between EU and Azerbaijan which also promotes integration of our country with Europe. This document lays a great responsibility on us', said Azerbaijan’s Deputy FM Mahmud Mammadquliyev opening an event on the start of negotiations on conclusion of the Associative agreement between Azerbaijan and EU.

According to him, the first legal document concluded between Azerbaijan and EU became the agreement on bilateral cooperation and partnership signed in 1996.

'In 1996 the sides undertook due responsibilities, in the result of which the relations between EU and Azerbaijan are developing successfully. Azerbaijan has created due mechanisms within the agreement on cooperation and partnership with EU. Baku joined the EU Eastern Partnership program later', Mammadquliyev said.

According to the deputy minister, 'this will naturally had a positive impact in reforms implemented in Azerbaijan in different spheres'.

'Today Azerbaijan is a state with rapidly developing economy. Thus, the country has achieved a great success in the past six months. The GDP growth in Azerbaijan made up 3.17%, growth in oil sector made up 2.4%, nonoil sector 15%, population incomes 9%, monetary reserves grew from $20bn to 20bn in six months, the overall volume of investments has reached $3.8bn, including local investment making up $3bn. UN has included Baku into the A category cities list', Mammadquliyev said.

He noted that this shows the successful economic development of Azerbaijan and successful implementation of reforms in different spheres in the country.

'However, much is to be done in this direction. The preparation and the signing of the associative agreement between Azerbaijan and EU will strengthen bilateral relations and promote economic development', Mammadquliyev said.

Mahmud Mammadquliyev also noted that Azerbaijan hopes the associative agreement with the European Union will also reflect the Nagorno Karabakh conflict.

'EU has a potential to contribute to restoration of peace and stability in the region and provision of assistance to peace solution of the Karabakh conflict in line with norms and principles of international law', he noted saying that the unsettled Karabakh conflict is a hindrance on the way to establishment of peace and security in the region.

In turn, head of the EU delegation at the talks on associative agreement Ion Kjayer said the start of talks on the associative agreement between Azerbaijan and EU shows the country's adherence to European integration.

'Europe is strategically interested in provision of stability and development of its eastern neighbors', said head of the delegation.

He said this document promotes economic development, fix market reforms, promote democratic development, raise human rights development, increase competitiveness of the Azerbaijani production and ensure its wider access to the European market.

'This is a long way and it may be complex, but it should be launched', he said. 'Our talks will be watched closely not only by EU members but also the European parliament', he said.

He noted that the success of the negotiation process will depend on Azerbaijan's WTO membership.

1 news.az, Interfax-Azerbaijan

Azerbaijan's dividends from hydrocarbon sales to grow
Fri 23 July 2010 | 11:25 GMT Text size:


Changes to the budget of State Oil Fund of Azerbaijan for 2010 were introduced by the decree of Azerbaijani President Ilham Aliyev on 22 July 2010.

SOFAZ reports that the revenues of the fund's budget have been raised from AZN 5,963,126,700 to AZN 9,032,139,400, expenses from AZN 5,428,431,200 to AZN 6,428,431,200.
Thus, the SOFAZ forecast of revenues from the sale of hydrocarbons has been raised from AZN 5,564,476,900 to AZN 8,615,782,100, regulation of SOFAZ funds from AZN 241,936,000 to AZN 250,002,700 and the revenues from the transportation of oil and gas through Azerbaijan will be AZN 9,640,800 by forecasts.

The increase in the forecast on fund revenues is related to the fact that the world oil prices will remain on quite a high level.
Changes in the structure of expenses were related to transfers to the state budget which have increased from AZN 4,915,000 to AZN 5,915,000.

1news.az

Drop in fruit and veg exports from Azerbaijan

Fruit and vegetable exports from Azerbaijan in the first six months of the year fell 17.38% compared to the same period last year.

Fruit and vegetables accounted for 0.52% of Azerbaijan's overall exports of over $10bn in the reporting period, according to figures from the State Customs Committee, reported by 1 news.az.

This makes fruit and veg exports of $53.276 million in January to June.

Fruit and veg accounted for 0.32% of exports in May and 0.29% in April, with the June increase the result of seasonal factors.

In 2009 as a whole, fruit and veg exports accounted for 1.31% of all Azerbaijan's exports, which itself was a 10.93% drop on 2008, the Customs Committee said.

Fruit and veg exports in 2009 were worth $192.55 million.

Azerbaijan's exports remain dominated by oil and gas, with crude oil alone accounting for over 85% of exports in the first half-year.

Economic diversification is a government priority. "We'll continue to place particular emphasis on developing the non-oil sector," President Ilham Aliyev told an expanded government meeting on 13 July.

International financial institutions, including the World Bank and European Bank for Reconstruction and Development, have urged Azerbaijan to diversify its economy, with the Asian Development Bank describing the country's dependence on oil as an "Achilles heel".

Source: news.az

Asian Bank urges Azerbaijan to develop non-oil sector
Fri 23 April 2010 | 13:50 GMT Text size:


Asian Development Bank
The Asian Development Bank has called on Azerbaijan to diversify its economy, describing its dependence on oil as an 'Achilles heel'.

In its annual survey of member states, Asian Development Outlook (ADO 2010), published on 13 April, the bank outlined the action it thought Azerbaijan should take to boost the economy.

'Forceful moves to diversify are required for strengthening services and the non-oil industry subsector, for raising agricultural productivity (building on the budgetary allocations for irrigation), and for developing fisheries and livestock.

'The fact that the country ranks number two among the Central Asian republics and 38 among 138 countries worldwide on the World Bank’s Doing Business 2010 report suggests that the relatively sound business environment offers a springboard from which to catalyze growth and innovation in the non-oil economy,' the report said.

The bank urged Azerbaijan to boost the tax-to-GDP ratio and to improve and expand the electricity supply, describing investment in the sector as critically needed.

The calls for diversification echo similar comments made by the World Bank and European Bank for Reconstruction and Development.

The Azerbaijani leadership has acknowledged the need to broaden the country's economic base. President Ilham Aliyev told an expanded cabinet session on 14 April that Azerbaijan would continue to diversify its economy.

Looking back at last year, the report noted, 'Strong performance in the oil and gas sector, despite lower international prices, and a countercyclical policy helped sustain buoyant growth in 2009. Transfers from the State Oil Fund [SOFAZ] propped up public investment, while the authorities eased monetary policy aggressively. High growth is expected to be maintained in 2010 as oil prices climb and as public investment expands.'

'Despite the global financial crisis and fall in international oil prices from their 2008 highs, growth slipped only a little to 9.3% in 2009, from 10.8% in 2008,' the report said. 'Helped by higher oil prices in the second half of 2009 and by increased production of hydrocarbons from the Caspian Sea, the oil and gas sector (constituting 55% of GDP and 95% of total export revenue) remained the major driver of growth.'

The report acknowledged that growth prospects hinge on oil. 'As oil prices rise in 2010 and as production levels increase, GDP is projected to accelerate a shade to 9.5%. Higher oil revenue through increased SOFAZ transfers in 2010 (for a total of AZN4.9 billion, or $6.1 billion) will also enable greater public investment that will sustain growth at this higher level. At the same time, cuts in corporate profit and personal income taxes should help boost domestic demand. Ample liquidity and a likely continued expansionary monetary policy will permit commercial banks to expand their lending and lower lending rates to the private sector. Agriculture is expected to be more robust as various public investment projects are completed. Communication and transport sectors will also continue to contribute to growth. With oil prices set to rise further next year, GDP growth will edge up to 9.7.%'

The report was optimistic about the effects for Azerbaijan of recovery in the global economy.

'The external account is expected to remain strong on higher oil export receipts with the current account surplus projected at 23.0% of GDP before easing to 21.7% next year (as stronger GDP growth sucks in imports). The recovery of the global economy will boost non-oil exports, too, while the upturn in the Russian economy will support higher workers’ remittances. The larger current account surplus, along with larger transfers from SOFAZ, will preclude the need for net foreign borrowing. External debt is projected to fall over the forecast period.'

News.Az

THE EU-AZERBAIJAN ASSOCIATION AGREEMENT: A NEW FRAMEWORK FOR UPDATED COOPERATION?

By Samuel Lussac (07/22/2010 issue of the CACI Analyst)

On July 16, 2010, Azerbaijan and the European Union (EU) started to negotiate for the signature of an Association Agreement. In the framework of the Eastern Partnership, launched in May 2009, it will provide a new basis for the relationship between Baku and Brussels. These negotiations will help updating the latter, highlighting both the changes of perceptions of Azerbaijan in Brussels and the new regional role Baku intends to play in the South Caucasus.

BACKGROUND: The EU started to cooperate with Azerbaijan right after the fall of the Soviet Union in 1991. It implemented the TACIS (Technical Assistance to the Community of Independent States) program to maintain economic and political links among the post-Soviet states. This cooperation was essentially based on energy and transportation. Azerbaijan, as the other South Caucasian countries, was part of the TRACECA (Transportation Corridor Europe-Caucasus-Asia) program as well as of the INOGATE (Interstate Oil and Gas Transport to Europe) one. The idea then was not so much to develop cooperation between the South Caucasus and the EU but rather to increase it among these three states.

Bilateral cooperation between the EU and Azerbaijan was concretely implemented after the signing of a Partnership and Cooperation Agreement (PCA) in June 1999. This agreement paved the way for further links between the two institutions. A climax was reached in June 2004 when the European Neighborhood Policy (ENP) was created. While the South Caucasian countries were not considered until then as “European neighbors”, they were incorporated at the last minute in this EU initiative. The aim was then to foster cooperation between Azerbaijan and the EU in almost all the sectors, with a focus on democratization. Brussels also tried to get involved in the resolution of the Nagorno-Karabakh conflict but its proposal to Europeanize the Minsk Group was rejected by the French co-presidency, eager to retain its position.

If energy was among the EU priorities, it did not produce concrete results in the first years of implementation of the ENP. This field was then perceived as too geopolitical and sensitive, following the competition between the United States and Russia around the construction of the Baku-Tbilisi-Ceyhan oil pipeline. This slightly changed when Brussels decided to breathe new life into the INOGATE program under a new name: the Baku Initiative. Then, the Russian-Ukrainian gas crisis of January 2006 convinced the EU of its need to diversify its oil and gas imports. It then turned towards the Caspian producers to supply its desperate need for hydrocarbons. Following the signing of a memorandum of understanding in the field of energy in November 2006, Azerbaijan clearly appeared as a key energy partner for the EU.

IMPLICATIONS: Since the mid-1990s, the position of Azerbaijan in the EU agenda has progressively increased and Baku now lies at the core of the European energy external policy. The evolution of the organization of the EU reinforces such a trend. The institutional evolutions within the EU have led to a change in the actors Azerbaijan deals with. One of the main aims of the Lisbon Treaty, which entered into force in December 2009, is to help the EU developing a coherent and consistent foreign policy. For this purpose, it has been decided to implement a European External Action Service that would lay the basis for a real EU diplomacy. But, for the moment, this process has only undermined the foreign policy-making institutions. The civil servants of Directorate General (DG) External Relations (RELEX) from the European Commission are waiting for their successive appointments, the new office of the High Representative for Foreign Affairs and Security Policy does not know what its new prerogatives are, and the future of the EU Special Representative for the South Caucasus is in question.

Taking advantage of this institutional turmoil, DG Energy has decided to take the lead in policy-making towards Azerbaijan. It knows that this country is the only one, in the short run, that can provide gas to the European-backed Southern Corridor project and is thus willing to build a special partnership between Baku and Brussels. In this perspective, Roland Kobia, who previously worked with former Energy Commissioner Andris Piebalgs, was appointed as the new head of the EU delegation in Baku in October 2009. Then, DG Energy became the key counterpart of Azerbaijan in every issue that slightly deals with energy. For instance, it succeeded in May 2010 in handling the EU mediation between Azerbaijan and Turkmenistan on the delimitation of borders in the Caspian Sea, a diplomatic issue that in Brussels should normally have been managed by DG RELEX or Catherine Ashton’s office. Finally, as a result, energy has become central in the relationship between the EU and Azerbaijan and DG Energy has been able to influence the policy the EU implements towards Azerbaijan’s neighbors. It has notably successfully lobbied Brussels to be less outspoken on the Turkish-Armenian rapprochement in order to help finalizing the gas negotiations between Azerbaijan and Turkey.

The Azerbaijan the EU used to deal with in the mid-1990s is very different from the Azerbaijan it negotiates with today. In the late 1990s, it was a post-Soviet state among others, struggling to promote its interests abroad. Now, it is a wealthy country that uses the huge oil revenues flowing from 2003 to build a coherent and consistent foreign policy in the Caspian and the South Caucasus. First, it has proved its ability to sustain external pressures from great powers. For instance, despite promises to meet with Hillary Clinton and President Obama, Ilham Aliyev refused to come to the Alliance of Civilizations summit in April 2009 to protest against the Turkish-Armenian rapprochement (see Turkey Analyst, 10 April 2009 issue). Such a move was totally unexpected in Washington, where diplomats still thought that the promise to meet with the U.S. President was the solution to any deadlock. Rejecting this offer, Ilham Aliyev proved the ability of his country not to compromise on issues that put the Azerbaijani interests at stake.

Secondly, the EU must take into account that Azerbaijan is turning into a regional economic leader in the South Caucasus. The Azerbaijani oil company SOCAR is now the largest taxpayer in Georgia, where it controls all the gas distribution system. Azerbaijan also funds the Georgian section of the construction of the Baku-Tbilisi-Kars railroad, which may be an important axis of transportation across the South Caucasus in the next decade. The role of Baku in the energy field in Turkey is also becoming increasingly important. Following the Azerbaijani-Turkish gas agreements of early June 2010, Baku is poised to emerge favorably from these tough negotiations. A company that is co-owned by SOCAR, PETKIM, may be allowed to sell Azerbaijani gas directly to the Turkish domestic market. Baku may also earn the right to sell up to 4 billion cubic meters of its gas directly to its European customers from Turkey’s Western border. At least in the economic sphere, Azerbaijan is becoming a major player in the South Caucasus and this will need to be considered in the future Association Agreement with the EU.

CONCLUSIONS: The start of the negotiations between the EU and Azerbaijan for an Association Agreement should coincide with an update of the relationship between the two. One of the first outcomes to draw may be the inability of Brussels to impose its will over Baku. Due to its increasing gas dependency, the former has to compromise to maintain its privileged partnership with the latter. This may lead, at least in the short term, to the failure of the EU to act as a normative power in Azerbaijan, especially in the field of democratization, which was a EU priority in the early 2000s.

This also reflects the success of the Azerbaijani leadership, which was willing to focus EU activism in Azerbaijan on energy. Baku has taken advantage of its key role within the South Corridor to focus EU policies towards itself but also, to some extent, towards the South Caucasus more broadly. The next step for Baku is now to get the EU to play a larger role in the resolution of the Nagorno-Karabakh conflict. So far, Brussels has been unwilling and unable to get involved in this issue. But, due to the inertia of the Minsk Group in the last couple of years, there is definitely room for a stronger EU involvement. But to play a more active and coherent role in the South Caucasus, Brussels first needs to finalize its inner institutional changes.

AUTHOR’S BIO: Samuel Lussac is a Ph.D. candidate in International Relations at the Institute of Political Science of Bordeaux.

Source URL:
http://cacianalyst.org/?q=node/5376

Country Report Azerbaijan July 2010

Outlook for 2010-11

The president, Ilham Aliyev, will face a more testing second term, as economic growth will be slower than in the historical period.

There will be an intensification of competition between the EU and Russia for Azerbaijani energy resources during the forecast period.

Real GDP grew by 9.3% in 2009. Despite higher global oil prices, slower growth of oil production over the forecast period will prove a significant drag on economic activity.

The Economist Intelligence Unit now expects real GDP growth to slow to 3.5% in 2010. Lower international demand for oil will slow growth to 3.1% in 2011.

In 2009 weaker money supply growth, along with lower commodity prices, resulted in annual average price inflation falling to 1.5%. In 2010-11 higher energy prices will lead to a resumption of inflationary pressures.

We expect the manat to remain stable against the US dollar in 2010, at Manat0.8:US$1, before starting to appreciate in 2011, owing to an increase in foreign-exchange inflows.

After falling to US$10.2bn (24% of GDP) in 2009, the current-account surplus is expected to rise to an annual average of 29% of GDP in 2010-11, reflecting higher oil prices and external demand.

Monthly review

Armenian and Azerbaijani forces clashed in the disputed territory of Nagorny Karabakh in June. The skirmishes were the worst violation of the ceasefire agreements between the two countries since 2008.

Parliament approved amendments to the Electoral Code in June that will make the operating environment for opposition parties more difficult ahead of the parliamentary election in November 2010.

Parliament has approved amendments to the 2010 state budget. The government raised transfers from the State Oil Fund of the Republic of Azerbaijan (SOFAZ, the overseas windfall fund) to Manat5.9bn (US$7.3bn).

Year-on-year GDP growth slowed to 4.3% in the first five months of 2010. Slower growth in the oil sector—which accounts for 55% of GDP—is the primary reason for the lower growth rate.

The current-account surplus in the first quarter of 2010 rose to US$3.9bn, up from US$1.8bn in the year-earlier period. Higher export revenue from the energy sector strongly contributed to the increase in the surplus.

This report covers the following industry codes:
SIC Code: 10
NAICS Code: 212

Azerbaijan economy: Market opportunities

July 21 (Economist Intelligence Unit) –

2009 2010 2011 2012 2013 2014
Population (m) 8.9 9.0 9.1 9.3 9.4 9.5
GDP (US$ bn at market 43.0 50.0 55.3 63.7 71.5 80.2
exchange rates)
GDP per head (US$ at 4,835 5,544 6,059 6,881 7,616 8,429
market exchange rates)
GDP (US$ bn at PPP) 110.3 115.3 120.4 126.8 135.3 145.3
GDP per head (US$ at 12,393 12,797 13,186 13,697 14,419 15,277
PPP)
Personal disposable 20.4 22.2 24.0 26.9 29.8 33.1
income (US$ bn)
Household consumption 18.6 20.6 22.3 25.2 28.0 31.2
(US$ bn)
Household consumption 2,090 2,290 2,440 2,730 2,980 3,280
per head (US$)
Exports of goods & -31.4 12.7 6.0 8.0 8.0 8.5
services (% change)
Imports of goods & -0.4 2.0 3.0 6.0 9.0 12.0
services (% change)

A relatively small population and low—albeit gradually
rising—levels of income will constrain domestic market
opportunities. Although real wages have risen sharply since 1996,
there remains a large difference between those paid to state
employees and those paid to private-sector employees by foreign
firms, which tend to be denominated in hard currency.
Nevertheless, because the shadow economy is still believed to be
large, the purchasing power of consumers, and their demand for
consumer goods, is probably underestimated considerably.
Economic growth, and the concomitant rise in average real wages
for employees in sectors such as rapidly growing services
industries (communications, for example), will present foreign
companies with opportunities to penetrate the market, although
these will be more limited than in previous years, owing to the
much slower growth rates expected over the forecast period.
Moreover, gradual development of the banking sector, including
greater provision of consumer loans, should lead to a gradual
increase the population’s purchasing power, particularly in the
later years of the forecast period. However, potential investors
should bear in mind that most households remain poor by
international standards, notwithstanding the large size of the
shadow economy.

Poor infrastructure will constrain market opportunities

Market opportunities will be constrained by the uneven quality of
infrastructure as the country’s distribution networks become
progressively worse away from the capital, Baku. Most of the 6m
people outside Baku and the Absheron peninsula live at low income
levels, rely on pre-industrial techniques to work the land, and
suffer frequent power shortages. In conjunction with
international financial institutions (IFIs), the government has
begun to upgrade the road and rail networks, as well as
infrastructure such as water supply and electricity systems.

However, these deficiencies are unlikely to be fully addressed by
the end of the forecast period, and the disparities between rural
areas and Baku—which, together with the surrounding region, has
benefited the most from the country’s oil boom—will remain large.

Azerbaijan economy: Ten-year growth outlook

July 21 (Economist Intelligence Unit) –

2011-20 2021-30 2011-30

Population and labour force (% change; annual av)
Total population 1.07 0.56 0.81
Working-age population 1.07 0.33 0.70
Working-age minus total population 0.01 -0.23 -0.11
Labour force 0.92 0.33 0.62
Growth and productivity (% change; annual av)
Growth of real GDP per head 2.8 2.5 2.7
Growth of real GDP 3.9 3.1 3.5
Labour productivity growth 2.9 2.8 2.9
Growth of capital stock 6.1 6.0 6.1
Total factor productivity growth 1.2 0.8 1.0

Initial conditions: Low living standards—even by Soviet
levels—and the war with Armenia over Nagorny Karabakh compounded
the effects of economic dislocation in Azerbaijan caused by the
break-up of the Soviet Union. Rapid growth since the mid-1990s
reflects the low base created by the post-Soviet collapse, as
well as massive investment in the hydrocarbons sector. However,
the country’s natural resource endowment diminished the pressure
for reform, as has been the case in other oil-rich countries.

This contributed to the slow reform process, particularly with
regard to institutional quality, bureaucratic efficiency and the
promotion of private enterprise. Until 2006 there was also an
emphasis in the public finances on current spending at the
expense of capital expenditure, resulting in a deteriorating
infrastructure, poor health indicators and falling education
standards.

Location hampers prospects of becoming a regional producer

Azerbaijan’s domestic market is comparatively small, and its main
hope for a broader production base would be to supply a regional
market. However, its location presents an obstacle to its
prospects of becoming a leading regional producer, since the
ongoing dispute with Armenia over Nagorny Karabakh has disrupted
conventional trade routes, and tension over Iran’s nuclear
programme presents a likely obstacle to the expansion of
Azerbaijan’s southbound trade. Azerbaijan has only a short land
border with Turkey, but it is located in its exclave of
Nakhichevan, which is accessible to the main part of Azerbaijan
only by air, or by road through Iran, or Georgia and Turkey.
Trade through Georgia is therefore crucial, given Georgia’s
location on the Black Sea. Azerbaijan’s pipeline network is good,
with oil being transported to Western markets through the
Baku-Supsa and Baku-Novorossisk pipelines in recent years. The
opening of the Baku-Tbilisi-Ceyhan (BTC) pipeline in 2006 and the
South Caucasus Gas Pipeline (SCP) in 2007 have boosted
Azerbaijan’s importance as a transit hub.

Demographic trends: The population will continue to grow, helped
by the fact that rural dwellers hold traditional values, where
economic subsistence is still premised on large family units.
This will ensure steady growth in the labour force in 2011-30,
although it will grow more slowly than the overall population.
Official unemployment is unlikely to decline as rapidly as in
recent years (when services employment had picked up), owing to
the fact that the main driver of the economy will still be the
hydrocarbons industry, which is a capital- rather than a
labour-intensive sector. This is a serious problem for most oil
producers, as oil windfalls tend to be spent on rising social
payments. A general lack of reform will ensure that the non-oil
industry will continue to use low-level technology. In
conjunction with a difficult environment for private businesses,
this will force skilled workers to emigrate to find employment.
External conditions: The oil-dependent economy has benefited in
recent years from high global oil prices and the discovery of two
large hydrocarbons fields. British and US companies have already
invested substantial amounts in the oil sector, and this is set
to continue throughout the forecast period, albeit at a
decreasing rate. Although some offshore fields are believed to
hold large quantities of oil, their ownership is the subject of
disputes between Azerbaijan, Iran and Turkmenistan, which has
held back their development. A rapprochement with Turkmenistan
could lead to the two countries jointly exploring hydrocarbons
fields in their disputed sector of the Caspian Sea, but even if
this proves viable, it does not overcome the broader problem that
the status of the sea has not yet been resolved. This could
prevent larger projects—such as the construction of trans-Caspian
pipelines—from being realised, at least until the medium term.
The coming on stream of the second phase of the Shah Deniz
project from 2016-17 will boost growth through the export of
large quantities of gas, although it is not clear whether
Azerbaijan will sell this gas to Western customers via the
projected Nabucco pipeline. Azerbaijan may decide to diversify
its export routes further and to export the gas through
Kazakhstan onto China. It may also prefer to deal with Russia,
for which the export infrastructure is already largely in place
Azerbaijani oil production is set to start to decline from the
end of the next decade. In the absence of a viable non-oil
sector, overall economic growth in 2011-30 is set to weaken
sharply compared with the historical period. Growth of transit
trade might partly offset this if Kazakhstan were to resume its
use of the BTC pipeline as a means of accessing Western
markets—albeit at higher volumes than previously. Azerbaijan
would also benefit if Turkmenistan started to use Azerbaijan as a
means of connecting to Western markets, although ongoing
disagreements over the demarcation of the Caspian Sea would need
to be resolved before this could become a possibility.

It will be difficult to bring an end to endemic corruption
Institutions and policy trends: One of Azerbaijan’s most serious
weaknesses is institutional quality, and in this respect the
country ranks poorly compared not only with eastern Europe, but
also with Latin America and Asia. Legislation is still not in
line with Western standards, regulatory and economic functions
are not clearly separated, and rent-seeking remains rampant among
government officials unwilling to surrender their discretionary
powers. Corruption is so endemic as to have become the basic
assumption when dealing with state officials and civil servants
at every level. Such ingrained negative attitudes to public
office will be difficult to change.

Moreover, the experience of other oil-producing countries has
shown that large oil receipts tend to boost corruption, giving
weak states a resource that is used to buy support, and thus acts
as a disincentive to reform. With administrative, institutional
and structural reforms in their infancy, an appropriate policy to
reduce inter-regional differences in incomes and living
standards, and to ensure appropriate redistribution channels, is
lacking. This has exacerbated imbalances in the quality of
resource endowments and regional growth. Prospects for serious
reform have already started to decline, owing to the entrenchment
of powerful vested interests.

Long-term performance: Having posted annual average real GDP
growth of more than 14% in 1998-2009, the size of the economy
exceeded its 1991 level in 2005. However, long-term growth
prospects are not favourable, owing to a narrow economic base and
dependence on goods of low value added. Moreover, the emphasis on
development of the hydrocarbons sector over the past few years
has led to steadily increasing oil dependence, raising the risk
of the so-called Dutch disease—whereby rising commodity revenue
leads to real exchange-rate appreciation, undermining the
competitiveness of the manufacturing sector and crowding out
investment. Azerbaijan’s economic base is thus likely to have
narrowed, especially taking into account the fact that the
apparent expansion of some non-oil sectors is oil-related. This
is particularly the case in construction, transport and
communications.

Economic growth will slow from 2010 onwards

A lower growth rate in oil production—which has been the main
driver of growth in recent years—will weigh on economic growth.
Preparations and the coming on stream of the second phase of the
Shah Deniz project in 2016-17 will be supportive of economic
growth in that decade. However, the economy’s capacity will be
strained in 2021-30 and real GDP growth will slow. The need to
develop the country’s manufacturing and agricultural bases, which
are geared towards supplying a regional rather than a global
market, will therefore become more urgent. The Economist
Intelligence Unit expects that any reforms will be piecemeal and
will not fully address structural imbalances in the economy until
oil begins to run out towards the end of the longer-term forecast
period, thereby increasing the incentives for reform. The
discovery of new oil reserves, or higher recoverable reserves, is
an upside risk to our forecast and would lead to higher growth in
2010-14.

Income and market size

2010 2020 2030
Income and market size
Population (m) 9.0 10.0 10.6
GDP (US$ bn at market exchange rates) 50.0 132.0 254.0
GDP per head (US$ at market exchange rates) 5,540 13,150 24,000
Private consumption (US$ bn) 20.6 65.4 118.6
Private consumption per head (US$) 2,290 6,520 11,190
GDP (US$ bn at PPP) 115.7 228.0 450.8
GDP per head (US$ at PPP) 12,830 22,760 42,540
Exports of goods & services (US$ bn) 27.4 67.9 118.4
Imports of goods & services (US$ bn) 12.8 49.9 87.6
Memorandum items
GDP per head (at PPP; index, US=100) 26.6 29.9 32.1
Share of world population (%) 0.13 0.13 0.13
Share of world GDP (% at market exchange 0.08 0.11 0.10
rates)
Share of world GDP (% at PPP) 0.16 0.16 0.16
Share of world exports of goods & services 0.15 0.16 0.12
(%)

Azerbaijan economy: Social indicators & living standards

July 21 (Economist Intelligence Unit) –
Social indicators and living standards

2009 2014
Eastern Eastern
Azerbaijan Europe Azerbaijan Europe
(av) (av)
Health
Healthcare spending 3.7 6.0 5.5 6.0
(% of GDP)
Healthcare spending 179 513 464 934
(US$ per head)
Infant mortality
rate (per 1,000 11.9 9.2 11.0 8.3
live births)
Physicians (per 3.6 3.9 3.7 4.0
1,000 population)
Food and beverages
Food, beverages &
tobacco (% of 78.1 23.7 75.6 22.8
household spending)
Meat consumption 27.1 51.6 32.2 57.6
(kg per person)
Milk consumption 425.8 179.4 834.2 188.5
(litres per person)
Consumer goods in use (per 1,000 population)
Passenger cars 84 250 137 286
Households
No. of households 3.7 107.8 4.0 109.9
(m)
No. of people per 2.4 2.6 2.4 2.5
household (av)
Income and income distribution
Average monthly 335 625 532 1,094
wage (US$)
Gini coefficient 36.5(a) 35.6(a) – –
Share of household
income (%):
lowest 20% 7.4(a) 7.3(a) – –
highest 20% 44.5(a) 43.3(a) – –
highest 10% 29.5(a) 28.2(a) – –
top 20%/bottom 20% 6.0(a) 6.4(a) – –
ratio
(a) Latest available year.

Sources: UN Statistical Office; World Bank; Food and Agriculture
Organisation (FAO); Euromonitor; World Health Organisation (WHO);

national statistical offices; Pyramid Research; Economist
Intelligence Unit estimates and forecasts.

Azerbaijan economy: Demographic profile
July 21 (Economist Intelligence Unit) –

Demographic profile

2004 2009 2014
Population (m)
Total 8.3 8.9 9.5
Male 4.1 4.4 4.7
Female 4.2 4.5 4.8
Age profile (% of total population)
0-14 29.1 24.6 22.9
15-64 64.0 68.6 70.8
65+ 6.9 6.8 6.3
Young-age dependency ratio 0.46 0.36 0.32
Old-age dependency ratio 0.11 0.10 0.09
Working-age population (m) 5.3 6.1 6.7
Urbanisation (% of total) 52.7 54.2 55.7
Labour force (m) 5.0 5.9 6.3
Period averages 2005-09 2010-14
Population growth (%) 1.3 1.3
Working-age population growth 2.7 2.0
(%)
Labour force growth (%) 3.2 1.4
Crude birth rate (per 1,000) 17.7 17.6
Crude death rate (per 1,000) 6.3 6.2
Infant mortality rate (per 12.1 11.3
1,000 live births)
Life expectancy at birth (years)
Male 69.7 70.4
Female 75.2 75.7
Average 72.5 73.1
Sources: International Labour Organisation (ILO), labour force
projections; Economist Intelligence Unit estimates and forecasts;
national statistics.

Azerbaijan’s population will expand by 1.3% per year in 2010-14

Azerbaijan’s population will continue to grow over the forecast
period. The Economist Intelligence Unit forecasts annual
population growth to average 1.3% in 2010-14. This compares
favourably with growth trends in Russia, for example, where the
population is expected to contract by an average of around 0.2%
annually in these years. Demographic trends began to improve in
the second half of the 1990s, reflecting the economic recovery,
which appears to be encouraging a slight acceleration in the
population growth rate. Notably, the birth rate increased to 17.8
per 1,000 population by 2008, and the death rate fell marginally,
to 6.2 per 1,000 population in 2008.

The population was 8.9m in 2009, up from 7.3m in 1991. The rise
disguises fluctuations in annual growth rates, which averaged
1.2% in 1989-99, before falling to 1.1% in 2000-09. Together with
some net emigration, the decline in the population growth rate
was attributable to a fall in the birth rate, which nearly halved
between 1990 and 2002, dropping from 25.9 to 13.8 per 1,000 of
the population over this period. The decrease was a reflection of
an economic crisis in the early 1990s, linked to the Nagorny
Karabakh war and the transition to a market economy, which
resulted in reduced state provision for education, health and
unemployment benefits. The death rate has remained broadly stable
at 6.2-6.3 per 1,000 population since 2004.
In 2009 the share of the population living in urban areas rose to
54.2%, a gradual increase from 52.7% in 2004. This is partly
because population growth has traditionally been higher in rural
areas, even though people have moved from the countryside to the
town in search of work in construction and the services sector.
Continuing agricultural reform, which is likely to result in
labour shedding (the agricultural sector currently employs about
40% of the workforce), will probably result in more people moving
to urban centres over the forecast period, although the
difficulty of enforcing rapid change in this sphere will slow
down sectoral shifts in labour allocation.

The government will find it difficult to create jobs for the
growing labour force

Those aged below 15 years accounted for around 25% of the
population in 2009, although this share is expected to fall
slightly over the forecast period. Of concern is the fact that
the government is likely to find it hard to generate jobs for
young people in the coming years, at a time when the proportion
of the population of working age is set to rise from around 69%
in 2009 to 71% in 2014, as economic growth has traditionally been
predicated on the country’s natural resources. Experience in
other countries has shown that oil-exporting states often find it
difficult to create jobs for their expanding populations, as the
oil industry is not labour-intensive. Despite this, expansion in
services sectors and construction, once the economic outlook
begins to improve in the second half of the forecast period, will
reduce official unemployment, and help to push up labour costs.
The pace of emigration has slowed considerably since the early
1990s, when the Nagorny Karabakh war and the dire economic
situation led to the emigration of thousands of Armenians,
Russians and Jews. Net emigration declined from 53,600 people in
1990 to 1,250 in 2003 and was virtually zero in 2004, before
picking up again in 2005 to 1,000. Net emigration remained at
about this level in 2007, as Azerbaijanis sought employment
opportunities elsewhere, chiefly in Russia. It is estimated that
about 800,000 Azerbaijanis were displaced by the war, which will
continue to place strains on housing and infrastructure until the
dispute with Armenia is resolved.

Terms of start of new Baku Port construction fixed
Sat 24 July 2010 | 06:43 GMT Text size:


Musa Panakhov
The construction of the new port can start already in 2010, but its launch is more probable in early 2011 - Deputy transport minister Musa Panakhov.

Discussion of the environmental impact assessment (EIA) of the project of new Baku International Sea Trade Port in Alat settlement in 40 km from the capital of Azerbaijan makes it closer the beginning of construction works.

Deputy transport minister Musa Panakhov says that the presented EIA will be elaborated further.

“After that one can transfer to planning of construction works. Although the construction of the new port can start already in 2010, but its launch is more probable in early 2011,” Panakhov said.

According to the Ministry of Transport of Azerbaijan, the discussion involved representatives of the State Oil Company of Azerbaijan (SOCAR), the Ministry of Environment & Natural Resources, and transport organizations. Within the EIA discussion it was also presented a plan of environmental management and an environmental monitoring plan.

Construction of the port will be conducted by three stages. Within the first stage it is expected to build: 2 berths with length of 50 m and 4 berths for dry cargo, including container wharf with length of 650 m; a ro-ro berth - 300 m; a service berth of 300 meters.

It is supposed to lay 10 pairs of parallel rails with length of 800 m in the south-western part of the future port.

The process of selection of contractors for dredging works in the future port’s water area and preparation of building area for its ground capacities has been started within the Project.

In the process of work over feasibility study the project was added the creation of a modern logistics centre.

Earlier Holland’s Royal Haskoning Group finished work on the feasibility study and was given certain time for its changes with taking into account the remarks following the primary consideration.

The Ministry of Transport planned to announce a tender procedure for construction within the first stage of the port project.

First phase of the construction is three years. Financing is envisaged from state sources within the framework of the State Investment Program.

The project consultant (Royal Haskoning) should prepare technical requirements and full technical documentation (including Technical Design Assignment).

Earlier Korea’s GS Engineering & Construction finished and submitted a feasibility study of the project and results of primary design work.

Construction of the new port to be implemented by three stages will be finished by 2016.

Stage I (2008-10) envisages construction of two ferry and three cargo bridges for acceptance of containers, Ro-Ro and usual dry-cargo (universal) vessels; Stage II (2011-13): construction of three more cargo bridges; Stage III (2014-15): construction of two more cargo bridges. The project is evaluated at more than $400 million.

Vol. III, No. 14 (July 15, 2010)

Oil Revenues and Azerbaijan
A Conversation with Dr. Jeffrey Frankel
Professor, Harvard University
and
Visiting Professor, Baku Summer Energy School

July 7, 2010
Baku, Azerbaijan


Azerbaijan in the World: Azerbaijan receives a substantial income from oil, and experts project that in a few years, its earnings will rise substantially when off-shore gas fields come on line. How should Baku use this money most wisely?

Prof. Jeffrey Frankel: The first thing Azerbaijanis must be aware of is the unfortunate experiences of other countries in such circumstances. Most of them spend the money quickly on high visibility projects with few long-term positive consequences. That has happened many times, sometimes even in the presence of the best of intentions. Indeed, it is so common that a term has arisen to describe it: the natural resource curse. Sometimes this happens because governments assume that the money will always be coming in and thus fail to save enough for when the oil runs out or prices fall: unfortunately, even the countries that say they are going to save the oil revenue end up not doing it, because it is so tempting just to spend. And sometimes it happens because governments try to monopolize the earnings rather than include individual citizens and private markets as players.

AIW: Do you expect oil prices to remain high?

Prof. Frankel: Given demand from China and other Asian economies where the recession of 2008-09 is already over, prices are likely to go up as demand increases while supplies fail to expand at the same rate.

AIW: Given your years of experience in the White House, do you think we should extract as much oil as possible and sell it, or should we extract it more slowly so that future generations will be able to benefit?

Prof. Frankel: That is an excellent question. Doing it slowly is a way of saving for the future. Some countries make the mistake of extracting it too fast and damage the environment in the meantime. After they have used it up, they don't have the economy; they don't have the environment; they have lost everything. Here is one example, although it doesn’t involve oil. The island of Nauru in the South Pacific used to have the highest income per capita in the world because much of the island consisted of phosphate deposits. By over-mining these deposits, the people of Nauru ruined their island, and, worse, they did not save enough. As a result, they are poor again. You don't want to repeat that.

AIW: Now that you are giving lectures on the resource curse at the Baku Summer Energy School, what is your overall impression of the school and Azerbaijan Diplomatic Academy organizing the event?

Prof. Frankel: I have been very pleased to be here. Many people make the mistake of thinking that education and research and development are important only in the manufacturing sector and that these things are not needed in the energy and raw materials sectors. But in fact, technical progress is important there as well. Consequently, I am both glad to see and impressed by the research and training taking place at the Azerbaijan Diplomatic Academy. I hope ADA will play a role in helping Azerbaijan think about the future.

President of Azerbaijan visits Gilan canning factory

President Ilham Aliyev visited Gilan canning factory in Gabala region of Azerbaijan and looked at the new production fields there.

According to APA, the Head of State was informed that the factory, which is located in 12-ha territory, has no analogue in the Caucasus for its production capacity and technological equipments. Tetra Pack packaging and processing line was put into operation in the factory and foreign equipments were installed there. The enterprise’s working principle covers all processes from reception of primary products to packaging of ultimate products. President Ilham Aliyev attended the opening of the factory in March, 2007. Nearly 100 types of packed products, including Jale, Bagdan, Aycan, Zolotoy Sad juices, Ice Tea- Jale and tinned fruits are produced in the factory. The factory has a capacity to process 700 000 tons of fruits and to produce 210 000 tons of juices per year. It has a modern storage to save quality of the products, which are exported to more than 30 countries. The number of workers is nearly 400.

July 29, 2010
/APA/

ATAZ to organize Central European & Azerbaijani Investment und Trade Summit in Vienna


http://img.photobucket.com/albums/v302/ganjaganja/248d2230c9.jpg


ATAZ (Austrian-Azerbaijani Chamber of Commerce) was established in Vienna in 2009 at the initiative of leading entrepreneurs from both countries. Its purpose is to intensify and strengthen economic relations between Azerbaijan and both Austria and Central Europe.

ATAZ supports the business activities of Austrian and Azerbaijani enterprises in both markets. To this end, ATAZ offers a platform where entrepreneurs can deepen existing business relationships and make new contacts. In order to promote the active exchange of information and experience, ATAZ regularly invites its members to events including lectures, conferences, evenings of discussion, economic missions and informal get-togethers.

Alongside its business objectives, ATAZ also views itself as a clearinghouse for intercultural and humanitarian exchange. To this end, it regularly organizes exhibitions and concerts which serve to promote each side’s understanding of the other’s culture

In addition to the numerous services and events for its members, ATAZ is planning to stage a “Central European & Azerbaijani Investment und Trade Summit” in Vienna during the early months of 2011.

For moe information visit the official website of ATAZ http://www.ataz-cc.com

Good article about Azerbaijani economy
http://www.eurasianet.org/node/61261

I especially like this part -

A plan to open local airports throughout Azerbaijan was announced in 2006, but the two airports that opened – in Lankaran in the south and Zagatala in the northwest – closed a month after they opened. Flights could not be found to justify the airport operating costs.

Good article about Azerbaijani economy
http://www.eurasianet.org/node/61261

I especially like this part -

^^Both airports are operating now (since night bus transportation from Baku is canceled). Lankaran and Zaqatala airports have international status. Most countries do not know about them because they are new airports. We hope flights to these airports will be increased in the near future.

Ilgar, it is not about new, it is about economic flaws. You can open 20000 airports but main thing is also earning from it

Azerbaijan State Oil Fund assets exceed $18.1 bn


http://www.news.az/articles/20204

Unfortunately, Azerbaijan suffers from poor infrastructure inherited from the Soviet years. Poor infrastructure will constraint market opportunities. It seems that the government is investing heavily in building its infrastructure specially around Baku or rather the Absheron peninsula which has about 3.5 million people or about 40% of the population. The problem is that it always takes time to build the necessary foreign investors to use the new infrastructure. Azerbaijan is not yet attractive for large investments and a major obstacle is its poor infrastructure. I suspect upgrading the port (which is slated for completion in 2016 at the cost of $400 million) and the railway system ( slated to be completed by 2012 estimated at $600 m) should take precedence over airports. Airports were most likely a poor investment and it seems to me some poor choices have been made and the government seems to lack transparency, but Internet and technology (ICT) are critical for moving Azerbaijan into the 21st century and beyond. I do believe the government is making some wise investments in ICT, railroads, Ports and roads.

Trend commentator: Azerbaijan’s East-West information superhighway project to open direct access to Internet network core

Azerbaijan, Baku, Aug. 2 /Trend/

Huseyin Veliyev, Trend commentator

The way that today the countries of the South Caucasus and Central Asia regions pass is quite significant in their independent development despite the political and economic problems.

Making a start from the general idea of the development of the region and including it in the global system of global economic relations, Azerbaijan once again appeared as the initiator of global-scale project of constructing the information superhighway "East West", which is the beginning to acquire real incarnation.
Azerbaijan's resolution on the project to establish information superhighway "East-West" was adopted by the UN General Assembly late last year
http://en.trend.az/capital/it/1729021.html

Azerbaijan
Internet usage, broadband and telecommunications reports

Internet Usage Statistics:
3,689,000 Internet users as of June, 2010;
44.4% of the population, according to ITU

http://www.internetworldstats.com/asia/az.htm

Ilgar, it is not about new, it is about economic flaws. You can open 20000 airports but main thing is also earning from it

Xtreminal, when you do investment you do it for future. You can't make money right away you should think long term. These airports are most important part for developing tourism industry.

Xtreminal, when you do investment you do it for future. You can't make money right away you should think long term. These airports are most important part for developing tourism industry.
I agree but look at other way, Baku airport is opened more than 10 years, yet is not making good money. It is making money but not good enough compared to other european airports and 10 year is long term for me. This shows marketing structure and management of airport is surely not good

NABUCCO future to be finalized by the end of 2010

By Messenger Staff
Monday, August 2
The Head of the economic and social development centre of Azerbaijan, Vugar Bairamov thinks that the final decision for NABUCCO project should be taken before the end of this year. If a final agreement on the document is not reached by Azerbaijan, Turkmenistan and the EU in 2010 the project practically will be frustrated. As is known, the NABUCCO project is supported by the EU and the USA, as an alternative project to provide Europe with natural gas from sources other than Russia. According to preliminary estimations Azerbaijan can only provide around 1/3 of the necessary natural gas while the rest should be supplied from other sources, maybe from Turkmenistan or Iraq as Bairamov suggests. However after the change of power in Turkmenistan, its position is not yet clear. Meanwhile Bulgaria and Romania are trying to get direct links with Azerbaijan via Georgia and its Black Sea ports. It is hoped many things will be clearer by the end of the year.

Baku-Tbilisi-Kars railway to boost regional cooperation
Tue 03 August 2010 | 10:10 GMT Text size:


BTK railway project
The second meeting of the Trilateral Coordination Council on Baku-Tbilisi-Kars railway project has started in Baku today.

Azerbaijan's Transport Minister Ziya Mammadov has made a welcoming speech to the session participants.

He said Azerbaijan attaches a great importance to the implementation of this project at the good will of the presidents of Azerbaijan, Georgia and Turkey

http://news.az/articles/20276

I agree but look at other way, Baku airport is opened more than 10 years, yet is not making good money. It is making money but not good enough compared to other european airports and 10 year is long term for me. This shows marketing structure and management of airport is surely not good

I think you are right, the money need to be spend wisely. But the only way Azerbaijan will increase its importance is to become a major trading partner with larger economies in Europe, Asia, North American, and in the region. That can only be achieved, if she builds its infrastructure. The Absheron Peninsula is getting the bulk of the investments and that only covers 40% (3.5 million people) of the population. But I would be happy to see Azerbaijan build a superb infrastructure and invest every penny in it. That will also allow Azeris (who have a tradition of being great business people and superb merchants) to unleash their entrepreneur spirit, and become great business people. Tourism, Manufacturing and agriculture need superb infrastructure. The better it is, the wealthier the people of Azerbaijan will be. Also the conflict with Armenia ( our troubled neighbor to the west), plus having Russia ( our expansionist neighbor to the north who seeks to influence Azerbaijan ) and Iran ( our isolated and sanctioned neighbor to the south )as neighbors, that only leaves Georgia our northwestern neighbor as the only route to Europe and Turkey (Nakhjavan enclave is not a solution). So i think the better the infrastructure, the better Azerbaijan can overcome the limitations that are imposed by its neighbors and environment. it will give Azeris an edge over the region.

Turkey: at primary stage Baku-Tbilisi-Kars railway to carry 1 million passengers and 6 million tons of cargo

Baku, Fineko / abc.az. The IX meeting of the Azerbaijani-Georgian Coordinating Council for Baku-Tbilisi-Kars Railway Project and the II meeting of the Tripartite Coordinating Council on the Project, which was chaired by the transport minister Ziya Mammadov of Azerbaijan, minister of regional development & infrastructure Ramaz Nikolaishvili of Georgia and transport minister Binali Yildirim of Turkey.

According to the Ministry of Transport of Azerbaijan, at the meeting Yildirim stated that creation of a railway branch between Turkey and Georgia is on schedule.

"At the primary stage Baku-Tbilisi-Kars railway line will carry 1 million passengers and 6 million tons of cargo a year, and then traffic volumes will increase," he said.

http://abc.az/eng/news_03_08_2010_46980.html

^^The economy point of view airports are part of all infrastructures which help to attract foreign investment and tourists from other countries with comfortable access to the place.

^^The economy point of view airports are part of all infrastructures which help to attract foreign investment and tourists from other countries with comfortable access to the place.

Ilgar, Sure everything will help. All infrastructures will improve the economy of Azerbaijan. Airports eventually will play a critical role. You correctly mentioned tourism and it is a vital industry. But i think sometime the priority of some these projects make people question the wisdom behind them. You are right tourism will be a major source of income and it employes so many people. So in the long run you will be proven right. But maybe airports could have been built after better roads or sewage systems etc. which have as Xterminal put it have higher rate of return.

Deputy Communications Minister: Azerbaijan, Korea consider opportunities to expand cooperation in ICT sphere
28.07.2010 14:21



Azerbaijan, Baku, July 28 / Trend H. Veliyev /

Azerbaijan and Korea consider the perspectives of development of the bilateral cooperation in the sphere of information and communication technologies, Azerbaijani Deputy Minister of Communications and IT Elmir Valizade said July 28.

He said issues will be considered during the two-day joint workshop on ICT, which started today. The Korean side's delegation includes representatives from 22 enterprises and companies.

The two sides will discuss cooperation in the field of education, training of staff, the field of scientific achievements.

"The level of ICT development in Korea is at a sufficiently high level and high technologies in this country are being introduced in virtually all industries. This is the sphere of mobile communications, electronics, e-government, and postal communication. We are interested in studying the experience of the country, which could achieve such high levels of ICT development in a short period," Valizade said.

Valizade believes that learning the advanced countries' experience in high technology allows Azerbaijan to take concrete steps in the ICT field, which defines further ways of the development of Azerbaijan.

Communications and IT Minister: Signing contract with Azerbaijani satellite Azerspace’s carrier rocket expected in next two months
04.08.2010 15:08


Azerbaijan, Baku, Aug.4 / Trend, H.Veliyev /

Signing a contract with the carrier rocket of the first national telecommunications satellite Azerspace is expected by early October, the Minister of Communications and Information Technologies Ali Abbasov said at the Ministry's board on the results of the first half of the year.

http://en.trend.az/capital/it/1730733.html

EU Seeks Caspian Gas Accord to Cut Russian Dependence
By Nicholas Comfort and Stephen Bierman - Aug 4, 2010 6:25 AM EDT
Email Share Print

Azerbaijan has yet to receive a concrete proposal from Turkmenistan, holder of the world’s fourth-largest gas reserves, Aliyev said by phone from Baku. “We are ready to provide transit for Turkmen gas,” he said. Photographer: Nelson Ching/Bloomberg

The European Union is seeking an agreement on a natural-gas pipeline between Turkmenistan and Azerbaijan as the 27-nation bloc aims to import Caspian fuel and reduce its dependence on Russia.

The EU regulator’s energy unit drafted a document that the parties could use as the basis for a deal on building at least one pipeline across the Caspian Sea, according to a copy of the non-binding paper obtained by Bloomberg.

The EU, seeking less reliance on Russia, wants Turkmen gas for the proposed Nabucco pipeline. Turkmenistan, where foreign investment was held back until the 2006 death of isolationist President-for-Life Saparmurat Niyazov, ships gas to Russia and Iran, and opened a pipeline to China last year. Plans to build a link across the Caspian Sea have been frustrated by unresolved marine borders and opposition from Russia and Iran.

“Without Turkmen gas, Nabucco wouldn’t make sense,” said Alexander Rahr, a Russia and Eurasia expert at the German Council on Foreign Relations in Berlin. “The EU is trying to get this pipeline through, but they’re running out of time as the Turkmen are sending more gas to China.”

http://www.bloomberg.com/news/2010-08-03/eu-seeks-turkmen-azeri-gas-pipeline-accord-to-reduce-russian-dependence.html

I feel if President Aliyev can convince all the parties to build Nabucco and make Azerbaijan the transit route for Turkmenistan's gas to Europe and Turkey then the current projections of 2-3% GDP growth for Azerbaijan over the next 2 decades will increase to 3-5%. This may very well define his presidency. It will be a major game changer for Azerbaijan. It will also increase the chances for a resolution of the Karbakh conflict too, by motivating Armenians to cooperate with Azerbaijan.

http://www.news.az/articles/20366
Mobile communications Azerbaijan's top ICT earner
Wed 04 August 2010 | 14:07 GMT Text size:


Ali Abbasov
Azerbaijan's Ministry of Communications and Information Technology has reviewed progress in the ICT sector over the first six months of the year.

Minister Ali Abbasov told the review meeting that revenues from the ICT sector and postal services were AZN 638.1m ($794.4m) in the first six months of 2010, 28% up on last year.

Growth in the sector was 28.2% in six months. In telecommunications growth was 29.6% and in postal services 19.5%.

Abbasov said that revenue from ICT and postal services accounted for 1.6% of Azerbaijan's GDP.

The minister said that the private sector produced almost 80% of revenue, while mobile communications accounted for 75% of revenue.

AUGUST 4, 2010, 4:59 A.M. ET
UPDATE: Statoil: Shah Deniz Consortium Seeks Talks With Customers

By Jan Hromadko

Of DOW JONES NEWSWIRES


FRANKFURT (Dow Jones)--Norwegian energy company Statoil ASA (STO) said Wednesday that the consortium operating the Shah Deniz gas field in Azerbaijan plans to begin bilateral talks with potential customers over the supply of around 10 billion cubic meters of gas a year to be produced in the field's second stage of expansion.

A second development phase of the Shah Deniz natural gas field--located in the south Caspian Basin and Azerbeijan's largest gas field--is crucial for the European Union's aim to diversify its gas supply away from Russia because at the moment it offers the best potential for an easy export to the 27-country bloc. The European Commission has been strongly pushing to build a pipeline to carry that gas through Turkey to its countries.

The second expansion stage of Shah Deniz is expected to reach output of 16 BCM a year from 2016 or possibly as early as 2014.

"We're planning bilateral negotiations with potential customers...," a spokeswoman for Statoil, which is a member of the Shah Deniz consortium, said in a response to emailed questions.

The Statoil spokeswoman added that the Shah Deniz 2 consortium isn't planning a tender process, denying recent reports in the Turkish media that said potential customers have been notified about an upcoming auction process.

"A number of potential customers have been prequalified and negotiations will be initiated in a short while," the spokeswoman said.

She added that the customers include three "potential pipeline projects," but didn't name any of them.

Turkish media had reported that the Shah Deniz owners are seeking talks with members of the Nabucco, Trans Adriatic Pipeline, or TAP, and Interconnector Turkey, Greece, Italy, or ITGI, consortia.

Germany's RWE AG (RWE.XE)--a member of the Nabucco project--said it is interested in gas from Shah Deniz and in contact with the consortium.

Rival E.ON AG (EOAN.XE)--a member of the TAP project--also expressed interest to source Azeri gas, a spokesman for its gas arm E.ON Ruhrgas said.

"We're in talks with Azerbaijan regarding gas procurement," he said.

BP PLC (BP) operates the field. BP and Statoil both own 25.5% stakes in the consortium developing Shah Deniz. The State Oil Co. of Azerbaijan, or Socar, OAO Lukoil Holdings (LKOH.RS) of Russia, France's Total SA (TOT) and National Iranian Oil Company all own 10% each, while Turkey's TPAO owns 9%.


-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503; jan.hromadko@dowjones.com

Azərbaycanda sürətli qatarlar istehsal olunacaq

Lokomotivlər Bakının Qaradağ rayonunda yığılacaq

Azərbaycan yaxın illərdə sürətli qatarların istehsalına hazırlaşır. Onlar "İmprotex" qrupunun yeni zavodunun bazasında Qaradağ rayonunda yığılacaq. Zavodun tikintisinə bu il başlanılacaq. Layihəni "İmprotex İndustries" MMC həyata keçirəcək.

İlk mərhələdə zavodda Fransanın “Lohr” nəqliyyat şirkəti avtovozları üçün qoşqu və yarımqoşqu istehsal olunacaq. İki il sonra ordu avtotexnikası, sonra isə sürətli lokomotivlər buraxılacaq.

Qeyd edək ki, “Lohr Industrie” şirkətlər qrupu 1963-cü ildə yaradılıb. Yük və sərnişin daşınması üçün nəqliyyat vasitələri istehsal edir. Baş ofisi Fransanın Elzas şəhərindədir. “Lohr” avtovozlarının 3 əsas modeli var - “EuroLohr”, “MultiLohr” və “MaxiLohr”. Şirkət həmçinin ordu texnikası - zirehli avtomobillər, polis maşını, tankdaşıyan qoşqular düzəldir. 1980-ci illərdə "Lohr Industrie" daha iki istiqamət yaradıb. "Translohr" monorelsdə gedən yeni nəsil tramvay, "Modalohr" isə dəmiryol platformaları ilə məşhurdur.

06.08.2010
/ANSPRESS/

Fəlakət bölgəsində 1500-ə yaxın evin tikintisinə başlanılacaq

Bu gün Saatlı Rayon İcra Hakimiyyətinin binasında fövqəladə hallar naziri Kəmaləddin Heydərovun rəhbərliyi ilə Saatlı, İmişli və Sabirabad rayonları icra hakimiyyətlərinin müvafiq strukturlarının, nazirliyin sifarişçi təşkilatının və 12 podratçı təşkilatının nümayəndələrinin iştirakı ilə müşavirə keçirilib. ANS PRESS-in Fövqəladə Hallar Nazirliyinin saytına istinadən verdiyi məlumata görə, müşavirədə su basmış bütün rayonlarda yaşayış evləri və sosial obyektlərin bərpası və yenidənqurulması ilə bağlı təşkilatı məsələlər müzakirə olunub və müvafiq qərarlar qəbul edilib.

Belə ki, artıq gələn həftənin bazar ertəsi günündən etibarən 1500-ə yaxın fərdi yaşayış evinin tikintisinin başlanılması və oktyabr ayının sonuna kimi yekunlaşdırılması, fəlakət zonasında yerləşən 20-yə yaxın məktəb binalarının bərpa-gücləndirmə və təmir-tikinti işlərinin dərs ili başlanana qədər tamamlanması barədə müvafiq qurumlara tapşırıqlar verilib. Bundan əlavə, yaxın günlərdə bərpa-gücləndirməyə ehtiyacı olan evlərdə işlərin, habelə bəndlər arasında yerləşən və əvəzinə yeni tikiləcək evlərin köçürülməsinə başlanılması barədə tapşırıqlar verilib.

06.08.2010
/ANSPRESS/

Statoil: Shah Deniz Consortium Seeks Talks With Customers


By Jan Hromadko

Of DOW JONES NEWSWIRES


FRANKFURT (Dow Jones)--Norwegian energy company Statoil ASA (STO) said Wednesday that the consortium operating the Shah Deniz gas field in Azerbaijan plans to begin bilateral talks with potential customers over the supply of around 10 billion cubic meters of gas a year to be produced in the field's second stage of expansion.

A second development phase of the Shah Deniz natural gas field--located in the south Caspian Basin and Azerbeijan's largest gas field--is crucial for the European Union's aim to diversify its gas supply away from Russia because at the moment it offers the best potential for an easy export to the 27-country bloc. The European Commission has been strongly pushing to build a pipeline to carry that gas through Turkey to its countries.

The second expansion stage of Shah Deniz is expected to reach output of 16 BCM a year from 2016 or possibly as early as 2014.

"We're planning bilateral negotiations with potential customers...," a spokeswoman for Statoil, which is a member of the Shah Deniz consortium, said in a response to emailed questions.

The Statoil spokeswoman added that the Shah Deniz 2 consortium isn't planning a tender process, denying recent reports in the Turkish media that said potential customers have been notified about an upcoming auction process.

"A number of potential customers have been prequalified and negotiations will be initiated in a short while," the spokeswoman said.

She added that the customers include three "potential pipeline projects," but didn't name any of them.

Turkish media had reported that the Shah Deniz owners are seeking talks with members of the Nabucco, Trans Adriatic Pipeline, or TAP, and Interconnector Turkey, Greece, Italy, or ITGI, consortia.

Germany's RWE AG (RWE.XE)--a member of the Nabucco project--said it is interested in gas from Shah Deniz and in contact with the consortium.

Rival E.ON AG (EOAN.XE)--a member of the TAP project--also expressed interest to source Azeri gas, a spokesman for its gas arm E.ON Ruhrgas said.

"We're in talks with Azerbaijan regarding gas procurement," he said.

BP PLC (BP) operates the field. BP and Statoil both own 25.5% stakes in the consortium developing Shah Deniz. The State Oil Co. of Azerbaijan, or Socar, OAO Lukoil Holdings (LKOH.RS) of Russia, France's Total SA (TOT) and National Iranian Oil Company all own 10% each, while Turkey's TPAO owns 9%.


-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503; jan.hromadko@dowjones.com

Talks, not tender to sell Shah Deniz gas
Thu 05 August 2010 | 09:00 GMT Text size:


The consortium developing Azerbaijan's major gas field, Shah Deniz, is to begin talks with potential customers for 10bn cubic metres of gas per year.

The gas will be produced as part of the second stage of development of the offshore field.

A spokeswoman for consortium member Statoil said on Wednesday that the talks were at the planning stage.

"We're planning bilateral negotiations with potential customers...," the spokeswoman said in a response to emailed questions from Dow Jones.

She added that the Shah Deniz 2 consortium wasn't planning a tender process, contradicting recent reports in the Turkish media that potential customers had been notified about an upcoming auction process.

"A number of potential customers have been prequalified and negotiations will be initiated in a short while," the spokeswoman said.

She added that the customers included three "potential pipeline projects", but did not name any of them.

Three pipeline projects designed to pump gas to Europe via what is known as the Southern Corridor have made no secret of their interest in Shah Deniz gas.

The chief executive of the Nabucco pipeline project, Reinhard Mitschek, said in Baku in June that, "Azerbaijan is one of the most important countries in the issue of gas supplies for Nabucco. We mostly propose taking gas for this project from the second stage of the Shah Deniz field."

A spokesman for the Trans-Adriatic Pipeline (TAP), which will supply gas to south-eastern Italy via Greece and Albania, in June described stage two of Shah Deniz as a potential source of gas.

The Interconnector Turkey-Greece-Italy (ITGI) pipeline is also being built with Azerbaijani gas in mind. An official of ITGI shareholder Edison, Elio Ruggeri, told a conference in March that only Azerbaijan was capable of delivering new supplies of natural gas to the European market in the next few years, with the development of Shah Deniz Stage 2.

Nabucco is to have an annual capacity of 31bn cu.m, TAP of 10bn cu.m and ITGI of 8-10bn cu.m.

In the second stage of development, Shah Deniz is expected to produce 16bn cubic metres of gas per year from 2016, if not before.

The EU is keen to see Azerbaijani gas supplied to Europe as it will help diversify supply routes and reduce dependence on Russian gas.

Heinz Hilbrecht, director for security of supply and energy markets at the European Сommission's Directorate General for Energy, told a Baku conference in June: "We are working on gas supplies within the framework of the second stage of the Shah Deniz field development and the European Commission has already expressed interest in supplies of Shah Deniz gas via the Southern Corridor. This proves the growing role of Azerbaijan for the whole of Europe and its increasing potential to diversify energy sources."

He said that the Nabucco, Turkey-Greece-Italy and Trans-Adriatic gas pipeline projects were mutually complementary systems.

The production sharing agreement on the Shah Deniz field includes BP as the operator with a 25.5% share, Statoil (25.5%), SOCAR (10%), LUKOIL (10%), the National Iranian Oil Company (10%), Total (10%) and TPAO (9%).

News.Az

Baku-Tbilisi-Kars railway project discussed in Azerbaijan
Turkish Transportation Minister met with Azerbaijan and Georgia officials in Baku to discuss the Baku-Tbilisi-Kars railway project.

Wednesday, 04 August 2010 09:47

Turkish Transportation Minister Binali Yildirim met with Transportation Minister Ziya Mammadov of Azerbaijan and State Minister for Regional Development & Infrastructure Ramaz Nikolaishvili of Georgia in Baku to discuss the Baku-Tbilisi-Kars railway project.

Yildirim said at the meeting, "the first coordination meeting for the railway project was held in Turkish resort town of Bodrum on May 23 and 24, 2009. Today, we gathered in Baku to attend the second meeting. We will hold such tripartite meetings once in a year till the project is completed."

He highlighted importance of the project for both the region and the world, and added, "this is not a project only for Turkey, Azerbaijan and Georgia. This project will extend to the Far East, Central Asia, Caucasus and to the Balkans and Europe via Turkey."

"After the Marmaray project in Turkey and the Baku-Tbilisi-Kars railway project are completed, there will be a continuous connection from Beijing in the People's Republic of China to London in the United Kingdom," he added.

AZERBAIJANI, GEORGIAN AND ROMANIAN PRESIDENTS TO HOLD MEETING ON JOINT GAS PROJECT

Sept.14, Baku will host the Azerbaijani President Ilham Aliyev, the Georgian President Mikheil Saakashvili and the Romanian President Traian Basescu7acute;s meeting to support the project of gas supplies on the route Azerbaijan-Georgia-Romania Interconnection, the Ministry of Industry and Energy said.

The sides will sign a Baku declaration on the results of the upcoming summit.

Baku will host a meeting of working groups to coordinate all necessary documents Sept.6.

Also a meeting at the level of energy ministers of the three countries will be held Sept. 13 in Baku . The Baku summit will be attended European Commission President Jose Manuel Barroso and EU Energy Commissioner Günther Oettinger.

Earlier, a trilateral working group, which will be engaged in establishment of the JV, was created within the Azerbaijan-Georgia-Romania Interconnection.

It7acute;s expected that the process of establishment of the JV in Romania will end in autumn, which will consist of representatives of all three participating states of this project. At the initial stage the JV will prepare a feasibility study, and, then, the company will search investment and construct terminals in Georgia and Romania, as well as construct the infrastructure in all three participating countries. Since September, the JV will able to announce a tender for the preparation of feasibility study.

Romania, Azerbaijan and Georgia signed a memorandum on liquefied gas transportation in Bucharest April 13.

The agreement involves liquefied gas deliveries from Azerbaijan through Georgia and Romania and the construction of two terminals for liquefied natural gas to Georgia and Romania.

In accordance with the memorandum, the parties expressed their intention to promote energy transit corridor connecting the Caspian region and Europe as a part of the Southern Corridor.

A decision was made to sell gas and use Romania7acute;s underground storage facilities, as well as to engage in research opportunities for increased cooperation between relevant energy agencies.

BAKU. 07.08.2010. TREND

Population deposits in Azerbaijani banks grow 24.5%
Mon 09 August 2010 | 11:42 GMT Text size:


As of 1 July 2010 the deposits of individuals in Azerbaijani banks made up AZN 2,562,800,000.

Central Bank of Azerbaijan reports that the deposits of citizens in the banks increased by AZN 81.1m or 3.2%.

The growth made up AZN 227.9m or 8.9% since the start of the year and AZN 628.6m or 24.5% throughout a year.

To compare, as of 1 June, the deposits of the population in the banks of the country made up AZN 2,481,700,000, as of 1 May 2,474,800,000, as of 1 April 2,395,000,000, 1 March AZN 1,422,800,000, 1 February 2,385,800,000, 1 January 2,334,900,000, 1 July 2009 AZN 1,934,200,000.

1news.az

Nonoil sector to ensure significant contribution to economic growth
Mon 09 August 2010 | 05:21 GMT Text size:


The next report of Companies and markets “Caucasus Business Forecast Report Q4” has been released.

In its report Companies and markets predicts prospects on different indicators of the economies of the three South Caucasus countries in 2010.

1news.az reports with reference to it that by the version of Companiesandmarkets, the recovery of the Georgian economy will lag behind the average rates of recovery of other regional economies because of dependence on foreign investments before crisis.

“Azerbaijan will demonstrate the sound growth thanks to good indicators of gas sector and production. Meanwhile, Armenia’s economic growth will be ensured by the recovery of Russian economy”, the forecast says.

http://www.news.az/articles/20553

US expert: “Azerbaijan’s role as gas supplier and transit country for Europe and Balkans grows”

[ 09 Aug 2010 15:00 ]
Washington. Isabel Levine – APA. Borut Grgic, a senior fellow at the Washington DC based Atlantic Council and the founder of the TransCaspian Initiatives believes that, Azerbaijan’s role as gas supplier and transit country for Europe and Balkans grows, APA’s Washington correspondent reports.

“The good news for the Balkans comes from the Caspian in the form of the recently signed Azerbaijan-Turkey transit deal that sets the transit price for Azerbaijani gas passing through Turkey” , he said. The analyst reminded that, Azerbaijan, the western state on the Caspian shores is a major producer of natural gas and of oil: “It has been the darling of the big western oil companies for over a decade now, because its energy markets are open to direct foreign involvement. In light of this, an international consortium is developing and operates the Shah Deniz natural gas field where the local oil and gas company SOCAR has only a minority share. This structure helps ensure that market principles rather than politics drive the deals forward and that the price of natural gas is transparent”.

http://en.apa.az/news.php?id=127501

Azerbaijan Likely To Acquire Stake in Russia-Armenia Gas Pipeline

A source in the Georgian government has confirmed information that the North-South (Mozdok-Tblisi-Yerevan) pipeline which links Russia and Armenia will likely be acquired in part by the Azerbaijan state oil and gas company (SOCAR), the Turkish newspaper Hurriyet reports.
According to Hurriyet, the newspaper's sources in Tblisi said "Because of the economic crisis, Georgia has decided to take the North-South pipeline off the list of strategic assets not to be privatized. Observers in Tblisi say the new owner of the pipeline is 99 percent likely to be SOCAR".
"Last month, the president of Azerbaijan, Ilham Aliyev conducted negotiations on the topic with Georgian president Mikheil Saakashvili", the newspaper's journalists wrote.
According to the article, this means Baku will control the tap of Armenian energy.
"Yerevan is seriously concerned that the gas pipeline may end up in the hands of Azerbaijan", the article says.
On 6 July, the Georgian parliament passed a bill in the first reading which excludes the pipeline from the list of strategic assets.
Pavel Kublashvili, an MP from the ruling party, proposed the pipeline be sold.
He said private investors were better than the state at managing any enterprise and "no enterprise should be an exception".
Copyright 2010, 1news.az. All rights reserved.

Petkim joins repair work in Azerbaijani chemical plants

President of the State Oil Company of Azerbaijan (SOCAR) Rovnag Abdullayev got familiarized with progress of repair work in ethylene - propylene plant of production enterprise Azerikimya.

Specialists of Turkish company Petkim will join repair work soon, the company informed. At that, R. Abdullayev set a task of in-depth cooperation between Azerikimya and Petkim, where SOCAR has 51% of participation.

09.08.2010
Fineko/abc.az

Azerbaijan Oil and Gas Report Q3 2010
Business Monitor International
July 14, 2010


The latest Azerbaijan Oil & Gas Report from BMI forecasts that the country will account for 1.47% of the Central and Eastern European (CEE) regional oil demand by 2014, while providing 9.58% of supply. CEE regional oil use of 5.42mn barrels per day (b/d) in 2001 rose to an estimated 5.81mn b/d in 2009. It should average 6.03mn b/d in 2010 and then rise to around 6.69mn b/d by 2014. Regional oil production was 8.88mn b/d in 2001, and in 2009 averaged an estimated 13.35mn b/d. It is set to rise to 14.57mn b/d by 2014. Oil exports are growing steadily, because demand growth is lagging the pace of supply expansion. In 2001, the region was exporting an average 3.46mn b/d. This total had risen to an estimated 7.54mn b/d in 2009 and is forecast to reach 7.88mn b/d by 2014. Azerbaijan and Kazakhstan have the greatest production growth potential, although Russia will remain the key exporter.

In terms of natural gas, the region in 2009 consumed an estimated 668.5bn cubic metres (bcm), with demand of 780.0bcm targeted for 2014, representing 13.7% growth. Production of an estimated 830.3bcm in 2009 should reach 1,025.7bcm in 2014, which implies net exports rising from an estimated 162bcm in 2009 to 246bcm by the end of the period. Azerbaijan’s share of gas consumption in 2009 was an estimated 1.65%, while its share of production is put at 1.93%. By 2014, its share of gas consumption is forecast to be 1.98%, with the country accounting for 3.02% of supply.

We are sticking with our forecast that the OPEC basket of crudes will average US$83.00/bbl in 2010. Wide variations in crude differentials so far in 2010 make forecasting tricky for Brent, West Texas Intermediate (WTI) and Urals, but we believe the three benchmarks will average around US$85.11, US$88.22 and US$83.62/bbl respectively, with Dubai coming in at US$83.14. By 2011, there should be further growth in oil consumption and more room for OPEC to regain market share and reduce surplus capacity through higher production quotas. We are assuming a further increase in the OPEC basket price to an average US$85.00/bbl. For 2012 and beyond, we continue to use a central case forecast of US$90.00/bbl for the OPEC basket.

For 2010, the BMI assumption for premium unleaded gasoline is an average global price of US$96.83/bbl. The y-o-y rise in 2010 gasoline prices is put at 38%. Gasoil in 2010 is expected to average US$92.45/bbl, with the full-year outturn representing a 37% increase from the 2009 level. For jet fuel in 2010, the annual level is forecast to be US$95.58/bbl. This compares with US$70.66/bbl in 2009. The 2010 average naphtha price is put by BMI at US$82.46/bbl, up 39% from the previous year’s level. Azeri real GDP is assumed by BMI to have risen by 9.3% in 2009, followed by forecast 11.0% growth in 2010. We are assuming average annual growth of 7.4% in 2010-2014. Domestic oil consumption, having tumbled since the 1990s, should now have resumed a growth tack, and is estimated at an average of 7% per annum. By 2014, the country is projected to be using 98,000b/d of oil. The main government vehicle, Socar, currently accounts for almost half of domestic oil production but, in partnership with international oil companies (IOCs), should raise national output from an estimated 1.04mn b/d in 2009 to 1.40mn b/d by 2014. Gas output should increase from an estimated 16bcm in 2009 to 31bcm during the forecast period.

Between 2010 and 2019, we are forecasting an increase in Azeri oil and gas liquids production of 20.5%, with volumes reaching a peak of 1.45mn b/d in 2016/17, before falling to 1.35mn b/d by the end of the 10-year forecast period. Oil consumption between 2010 and 2019 is set to increase by 83.9%, with growth averaging an assumed 7.0% per annum towards the end of the period and the country using 138,000b/d by 2019. Gas production should rise from the estimated 2009 level of 16bcm to 33bcm by 2019, providing export potential increasing to at least 13bcm.

Azerbaijan takes second place behind only Kazakhstan in BMI’s composite Business Environment (BE) Ratings table, which combines upstream and downstream scores. The country continues to occupy second place in BMI’s updated upstream Business Environment Ratings, now just three points behind neighbour Kazakhstan. Its oil and gas production growth outlook, asset immaturity, high reserves-to-production ratios (RPR) and competitive landscape work in the country’s favour, but are undermined by a relatively unappealing risk environment. Azerbaijan is around the mid-point of the league table in BMI’s downstream Business Environment Ratings, ranked eighth ahead of Hungary with some high scores, but progress further up the rankings is unlikely. The low level of retail site intensity represents a strong suit, along with region-leading oil demand growth prospects.

Caucasus Business Forecast Report Q4 2010(Business Monitor International)

We continue to forecast divergent growth trajectories for the three Caucasian economies this year as a result of their differing growth models. While Georgia's recovery will lag the regional average due to its pre-crisis reliance on foreign investment, which is unlikely to return strongly, the other two economies will fare better. Azerbaijan should post robust growth thanks to a strong showing for gas and manufacturing, while the Russian recovery will benefit Armenia, which we forecast to grow 4.0%. Political risk will remain prevalent, with an easing of tensions between Georgia and Russia, Armenia and Azerbaijan, and Armenia and Turkey, looking highly unlikely until 2011 at the earliest. Azerbaijan and Armenia's banking sectors are in good shape which should support consumption, although we caution that a high rate of non-performing loans will take time to work out of the system in Georgia.

We hold to our core view that the Armenian economy is on track to grow 4.0% this year, driven mainly by private consumption on the back of increased remittance inflows and the ability of the banking sector to extend credit to firms and households. Over the medium term, although we do not expect the economy to return to its precrisis growth levels, we forecast still robust trend growth of 5.5%.

Our core view for weak consumer demand to prevent a sharp rebound in real GDP growth in Georgia this year remains firmly on course. A 125 basis points (bps) hike in interest rates reinforces our core view that commercial bank lending to firms and households will not bounce back strongly, while unemployment will remain stubbornly high and remittances appear unlikely to return to pre-crisis levels in the near term.

We have revised down our Azerbaijani real GDP forecast for 2010 to 5.0%, on the back of a much lower than expected bounce in growth through the first five months of the year. While net exports look set to make a positive contribution to growth, this will be primarily driven by the non-oil sector, while final consumption and capital investments should boost the headline number. Over the medium term, we forecast private consumption and gas and manufacturing exports to become increasingly important to the economy.

Akkord's granite and marble plant opened

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EU Seeks to Broker Trans-Caspian Pipeline Deal Between Turkmenistan and Azerbaijan; Russia Finds Project 'Absurd'
August 10, 2010 - 11:08pm, by Catherine A. Fitzpatrick
Sifting the Karakum Turkmenistan

AY Deezy
Trans-Caspian Pipeline
The European Union is attempting to broker a deal between Azerbaijan and Turkmenistan to enable Turkmen gas ultimately to flow to Europe, Bloomberg reported August 3, citing a draft document of the EU regulator's energy unit. The EU is hoping to re-boot the long-stalled Trans-Caspian pipeline project across the Caspian Sea bed, envisioned to support the Nabucco pipeline.

In a speech July 27 at the International Odessa Forum published on the EU's website europa.eu, Günther Oettinger, EU Commissioner for Energy, indicated the EU would find a way to end dependency on Russia's energy transit corridors. He outlined a number of projects to achieve the EU's goals and acknowledged that the Southern Corridor required an "extraordinary effort" and that the energy industry has said "no institution, the European Union included, had the muscle to open the Corridor" given the many difficult bilateral and multilateral relations among Caspian states.

However, "the European Commission is showing that a way can be navigated through this tangle of countries," said Oettinger, admitting that the EU "may need extraordinary measures" to build the Trans-Caspian pipeline.

Azerbaijan recently attended an EU-hosted meeting in Brussels with Turkmenistan but no agreements were signed, Vagif Aliyev, head of investment at Azerbaijan's State Oil Company, told Bloomberg. Azerbaijan has yet to receive a concrete proposal from
Turkmenistan, he said, although Baku is ready to provide transit for Turkmen gas.

http://www.eurasianet.org/node/61716

Azerbaijan, WB sign new loan agreement
11.08.2010 12:34


Azerbaijan, Baku, Aug. 11 / Trend E.Ismayilov /

The World Bank (WB) and the Azerbaijani Transport Ministry signed a new loan agreement on a project to expand the Baku-Shamakhi-Mugan Highway from two to four lanes Aug. 11, Trend correspondent reported from the signing ceremony.

Transport Minister Ziya Mammadov and WB Country Manager Joseph Owen signed the agreement. This is the first such agreement signed by Owen since his appointment in August 2010.

The bank will allocate $241.6 million to finance the project in the form of mixed credits - $70 million will be funded by the WB International Development Association (IDA), and $171.6 million will be provided by the International Bank for Reconstruction and Development (IBRD). The remaining funds will be provided by the state. The total project cost is $356.15 million.

IDA credit resources allocated for a period of 20 years with a grace period of 10 years, and the IBRD - 17 years with deferred payments in four years.

Baku-Shamakhi-Mugan is 122 kilometers in length. A total of 101 kilometers will be built within the project. The remaining section of the road has already been constructed.

Azerbaijan became a WB member in 1992. During this period, the bank has approved loans worth $2.5 billion to finance 47 projects in Azerbaijan. In the 2008 fiscal year alone, the bank intended to finance 13 projects worth $1.251 billion, thus accomplishing the four-year budget strategy in two years. Over the next two years (2009-10 years), the WB has expressed readiness to allocate more than $1 billion on commercial terms from the IBRD. But the bank still continues to provide funding for Azerbaijan in parallel on concessional terms.

Central Bank forecasts single-digit inflation this year
Wed 11 August 2010 | 13:35 GMT Text size:


Central Bank of Azerbaijan
The Central Bank of Azerbaijan has reviewed the first half-year and does not expect inflation to move into double figures in 2010.

Inflation will be somewhere between 4.5% and 7% by the end of the year, the Central Bank said.

Inflation in the first six months of the year was 4.9%. The Central Bank calculates that this was 43.3% down to external factors, 27.4% to exchange rates, 29% to the money supply and 0.3% to seasonal factors.

"The average annual inflation rate according to the figures for the first half of the year was 4.9%; of this, 2.6% is related to the rise in food prices, 1.4% to the rise in non-food prices and 0.9% to services," the bank says.

GDP growth slows slightly in July
Fri 13 August 2010 | 11:46 GMT Text size:


Azerbaijan's GDP grew 3.5% in January to July compared to the same period in 2009, slightly less than the 3.7% growth posted in January to June.

GDP in the first seven months of the year was AZN 23.2bn ($28.88bn), according to figures from the State Statistical Committee.

Industry accounted for 55.5% of GDP, construction 6.9%, agriculture 4.3%, services 27.1%, transport 6.6%, trade and catering 8.1%, and enterprises in the social and other spheres 10.6%.

Net taxes on imported goods and services accounted for 6.2% of GDP.

Per capita GDP was up AZN 2,599.7 ($3,235.5) as of 1 August, a 2.3% rise on last year.

1news.az

U.S. company plans to use wireless solutions in Azerbaijani oil and gas industry


Aug 13, 2010 (Trend News Agency - McClatchy-Tribune Information Services via COMTEX) -- The U.S. company Emerson Process Management plans to use wireless solutions in the production process in the oil and gas industry of Azerbaijan, the Communications and IT Ministry said.

The issue was discussed during the meeting between Azerbaijani Minister of Communications and Information Technologies Ali Abbasov, Emerson vice-president for Europe Bob Sharp and vice-president for CIS Johan Vanderplaetse.

According to the ministry, the company plans to lease the necessary frequency resources to deploy their wireless systems.



The company also considers the use of wireless solutions in the sewer system in the field of navigation and water supply. Using of wireless networks for monitoring processes will increase the amount of collected information for more effective management. Today, Emerson Process Management cooperates with SOCAR and BP in Azerbaijan.

Smart Wireless solutions offered by the company allow to get access to information at the enterprise. The customer will have an opportunity to add new points of measurement, where it was hard to do earlier or require too much money to connect it.

Smart Wireless solutions provide the opportunity for direct connection of measuring devices in a wireless network to receive the information via a wireless gateway.

Each sensor is equipped with its own antenna and an autonomous power source to maintain efficiency for a long time. The technology was developed specifically for use in the field of process automation, based on the experience of Emerson Process Management in this area.

Smart Wireless solutions operate in the frequency range 2,4 GHz. They safely coexist with other wireless networks established in the enterprise.

Devices in wireless networks use encryption, authentication, verification, protection from interference and control keys to ensure sending of the data only through a wireless gateway.

Today, Emerson Process Management's activity is aimed at further expanding its presence in Azerbaijan. During a meeting with Minister, the company's management has expressed its plans to open a representative office in Azerbaijan. The company thinks that such priorities of economic development, as innovation and modernization of production, make Emerson technologies and products to be in demand.

Do you have any feedback? Contact our journalist at capital@trend.az To see more of the Trend News Agency, or to subscribe to the newspaper, go to http://en.trend.az/. Copyright (c) 2010, Trend News Agency, Baku, Azerbaijan Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544).

Overview of recent openings

President Aliyev inaugurates Academy of State Border Service

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President Aliyev opens new building of Central Election Commission

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President inspects newly reconstructed building of Health Ministry

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Ilham Aliyev inaugurates new building of State Migration Service

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President Aliyev inspects Respublika Hotel after complete overhaul

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President Ilham Aliyev visits National Flag Square

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President opens central office of Azerbaijan community of Karabakh

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Fountain Square after reconstruction

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President opens multi-level road junction in Baku

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Groundbreaking ceremony of Belarus embassy in Baku held

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Ilham Aliyev inaugurated some pedestrian overpasses in Baku

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Khaqani Park after reconstruction

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^^ Thanks a lot for your contribution to our forum :cheers1:

I am glad to see all this development in our friendly Azerbaijan :cheers:

Construction of the Lexus Center in Baku

The ISR Holding group of companies has obtained a permit from Lexus Europe to build the Lexus Center in Baku.

ISR Holding will be the only official dealer of the Lexus brand in the territory of the Republic of Azerbaijan, which enables us to hope for a colossal success of the project.

The project involves a team of high-level professionals under command of European colleagues.

Start of construction of the center is projected for the end of this year.

23.07.2010
/ISR HOLDING/

Lexus Awesome! :)

Hanging a flag upside down is usually a sign of disrespect. ;)

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^^ You are right. I have just reported it to respective organs and hopefully it will be corrected soon.

may be it is new country)))

[August 24, 2010]

Azerbaijan ups volume of incoming traffic

Aug 24, 2010 (Trend News Agency - McClatchy-Tribune Information Services via COMTEX) -- The Azerbaijani Primary Internet Service Provider Delta Telecom company increased the volume of traffic coming in Azerbaijan for more than 3 Gb / s, reaching 35 Gb / s, Delta Telecom's Technical Director Rahid Alakbarli told Trend.

Delta Telecom system directly connected to one of Europe's biggest points of Internet exchange in Stockholm, which enhances the status of Delta Telecom as an effective operator of the passage services IP-traffic for Azerbaijani operators.

The company's traffic comes through optical lines from Iran, Russia and Turkey. The data transmission rate within the country reaches up to 40 Gbps through the use of transport technology DWDM (Dense Wavelength Division Multiplexing).



Actual data transfer speed in the company's backbone network exceeds the real needs of the segment AzNet. The actual data transfer rate of Delta Telecom network allows to download information equal to the total capacity of 33 DVD-media for a second.

The presence of high-speed network infrastructure allows Delta Telecom to implement the traffic flow to neighboring countries. Some of the traffic is realized in Uzbekistan and Turkmenistan.

The company's network infrastructure plays a transit role in connecting the telecommunications infrastructures of Russia and Iran. More than 10 percent (1.25 Gbps) bandwidth is involved in the traffic transit. In general, the company's infrastructure can increase bandwidth to 10 Gbps.

Do you have any feedback? Contact our journalist at: capital@trend.az To see more of the Trend News Agency, or to subscribe to the newspaper, go to http://en.trend.az/. Copyright (c) 2010, Trend News Agency, Baku, Azerbaijan Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544).

BP to Drill New Wells in Azerbaijan
Asia Pulse Pte Ltd. 8/26/2010

URL: http://www.rigzone.com/news/article.asp?a_id=98003

A BP-led consortium of foreign companies is to start drilling new wells in East Azeri platform from the block of oil fields Azeri-Chirag-Gunashli (ACG).

Drilling of a water-injection well D-17 in the platform came to the end, BP-Azerbaijan said.

Two producing wells, D-18 and D-19, will be drilled in eastern part of the Azeri field by the end of 2010.

Fourteen wells were put into operation in the East Azeri platform. In six months, 150 million barrels, or over 20.2 million tons of oil, was produced in Azeri-Chirag-Gunashli, while daily production made up about 827,600 barrels.

About 300 million barrels, or over 40.3 million tons of oil, was produced in ACG in 2009, while daily production stood at 817,700 barrels. Over 112 barrels of oil was produced daily in East Azeri.

(C) 2010 Asia Pulse Pte Ltd.

Azerbaijan's Azerkimya in desperate need of modernisation

By Will Beacham on September 2, 2010 4:12 PM | No Comments | No TrackBacks

A new report suggests that Azerbaijan's leading petrochemical producer, Azerkimya, needs to undergo a serious modernisation programme if it is survive in the global chemical arena.
According to Business Monitor International , Azerbaijan is likely to be plagued by volatility and low capacity utilisation until Azerkimya undergoes restructuring and expansion.

We write very little at ICIS on Azerbaijan's chemical sector - maybe it is time to expand coverage. According to a recent press report, state-controlled oil group, Socar, this year took control of Azerkimya. I wonder what the real story is behind the scenes there?

The report says: "In 2009 Azerkimya produced chemical goods worth AZN163.1mn (US$203.11mn), down around 20% y-o-y. BMI has raised its 2010 chemicals output growth forecast from 25-30% to 30-35%, although most local demand will continue to be met by imports as the industry is unable to fulfil all domestic requirements.

This will come after an estimated decline of around 35-40% in 2009, but close to the 35% growth reported in 2008. While the company has heralded the results in 2010 as proof that restructuring is producing significant results, the level of output is still very small-scale and until production facilities are upgraded and expanded it is unlikely that Azerkimya will compete effectively against foreign rivals on both domestic and export markets.

Rather, for the time being it owes its existence to state patronage and protection, while remaining plagued by major disruptions in output caused by periodic rapid rises in electricity and raw material costs. Azerkimya's output has tended to be highly sensitive to changes in the non-oil economy with the rate of petrochemicals sales growth tending to be two or three times the rate of overall economic growth, amplifying the overall economic trends.

While the strongly pro-cyclical nature of the industry is likely to result in high rates of growth with real GDP growth forecast at 11% in 2010, with low level of capacity it will not add much value and Azerbaijan will remain dependent on imports of chemical products. Moreover, with economic growth set to decline to 7.5% in 2011 and 5.0% by 2014, unless the industry is improved and restructured it will see yet further declines in the years ahead."

Azərbaycan Avropa İttifaqına balıq və digər dəniz məhsulları ixrac edəcək

Bu gün Bakıda Tvininq layihəsinin yekunlarına həsr olunmuş konfrans keçirilib

Bu gün İqtisadi İnkişaf Nazirliyinin, Hollandiya Krallığının Ərzaq və İstehlak Mallarının Təhlükəsizliyi üzrə Səlahiyyətli Orqanı və Latviya Respublikasının Ərzaq və Baytarlıq Xidmətinin təşkilatçılığı ilə “Park İnn” mehmanxanasında Tvininq layihəsinin yekunlarına həsr olunmuş konfrans keçirilib. İqtisadi İnkişaf Nazirliyinin mətbuat xidmətindən ANS PRESS-ə verilən məlumata görə, tədbirdə aidiyyəti dövlət qurumlarının, diplomatik nümayəndəliklərin, beynəlxalq təşkilatların nümayəndələri, həmçinin sahibkarlar iştirak ediblər.

Konfransı giriş sözü ilə açan İqtisadi inkişaf nazirinin müavini Sevinc Həsənova Tvininq layihəsinin ölkəmizin Avropa İttifaqına inteqrasiya prosesində əhəmiyyətini vurğulayıb. Qeyd olunub ki, “Azərbaycan Respublikasının ərzaq keyfiyyəti və təhlükəsizliyinin təminatı və Azərbaycan mənşəli balıq məhsullarının sertifikatlaşdırılmasının hüquqi və texniki təkmilləşdirilməsinə dəstək” Tvininq layihəsinin həyata keçirilməsi Azərbaycan mənşəli balıq və digər dəniz məhsullarının Avropa İttifaqına ixracını təmin etmək üçün mövcud qanunvericilik bazasının təkmilləşdirilməsi, yerli mütəxəssislərin peşəkarlığının artırılması, Dövlət Xidmətinin laboratoriyalarının beynəlxalq standartların tələblərinə uyğunlaşdırılması, məhsulların keyfiyyət və təhlükəsizliyinə daha effektiv nəzarətin həyata keçirilməsi sahəsində mühüm rol oynayıb.

S. Həsənova layihə çərçivəsində əldə olunmuş təcrübədən digər yeyinti məhsullarının Avropa bazarlarına ixracının artırılması məqsədilə istifadə olunacağını, Avropa Komissiyasının müvafiq qurumları ilə əməkdaşlığın genişləndirilməsi istiqamətində səylərin bundan sonra da davam etdiriləcəyini bildirib.

Antiinhisar Siyasəti və İstehlakçıların Hüquqlarının Müdafiəsi Dövlət Xidmətinin rəisi Zahid İsayev Tvininq layihəsinin icrası ilə bağlı görülmüş işləri və əldə edilmiş uğurlu nəticələri tədbir iştirakçılarının diqqətinə çatdırıb. Bildirib ki, layihə çərçivəsində Dövlət Xidmətinin müvafiq sahədə çalışan əməkdaşları və laboratoriya mütəxəssisləri üçün ümumilikdə 35 təlim kursu keçirilib, Hollandiya Krallığının və Latviya Respublikasının müvafiq qurumlarında təcrübə keçmək üçün 3 təlim səfəri təşkil edilib, balıq məhsullarının keyfiyyətinə və təhlükəsizliyinə nəzarətin həyata keçirilməsi və sertifikatlaşdırılması ilə bağlı 10-dan artıq normativ-hüquqi sənəd hazırlanıb.

Eyni zamanda Avropa Komissiyasının qərarı ilə Azərbaycan 2010-cu ilin yanvarın 1-dən etibarən balıq kürüsünün Avropa İttifaqına idxalına icazə verilən üçüncü ölkələr siyahısına daxil edilib. Z. İsayev hazırda digər növ balıq məhsullarının Avropa İttifaqına ixracı üçün icazənin alınması istiqamətində işlərin davam etdirildiyini də qeyd edib.

Avropa İttifaqının Azərbaycan Nümayəndəliyinin, Hollandiyanın Ərzaq və İstehlak Mallarının Təhlükəsizliyi üzrə Səlahiyyətli Orqanının, Latviyanın Ərzaq və Baytarlıq Xidmətinin rəhbərləri və digər rəsmilər çıxış edərək sözügedən layihənin Azərbaycanın Avropaya inteqrasiya prosesini sürətləndirmək baxımından əhəmiyyətini qeyd edib, layihə çərçivəsində əldə olunmuş uğurları yüksək qiymətləndirib.

ANSPRESS

Azerbaijan's GDP reaches AZN 23.2 bn

16 August 2010 [14:35] - Today.Az



Azerbaijan's Gross Domestic Product has reached AZN 23.2 billion in the first seven months of the current year, up by 3.5% from a year earlier, State Statistical Committee said. The committee said the GDP grew 55.5% in industry, 6.9% in construction and 4.3% in agricultural sector, 6.6% in transport and 1.8 % in communication. The GDP per capita made nearly AZN 25,992 ($3,235), according to the official figures.

Azerbaijan doubles gas sales to Russia: company
(AFP) –

BAKU — Azerbaijan will double gas exports to Russia in 2011 to two billion cubic meters, and further increase them from 2012, gas giant Gazprom said on Friday, in a move that may deal a blow to the European gas project Nabucco.
The agreement betweeen Azerbaijan's state state energy company SOCAR and Russia's Gazprom was signed on the sidelines of Russian President Dmitry Medvedev's visit to the energy-rich ex-Soviet nation.
"Gazprom and SOCAR signed an addendum to the current purchase contract of Azerbaijani gas, according to which the acquisition volumes will grow to 2.0 billion cubic metres per year from 2011," Gazprom said in a statement.
Gas supplies will then grow above 2 billion cubic metres from 2012, the statement added.
"It's clear to everyone that the Russian direction is the most reliable and safe corridor to deliver Azerbaijani gas to the market," the company quoted its chief executive Alexei Miller as saying in the statement.
The increase adds to the existing contract signed in October 2009. The contract was doubled in December 2009 from 500 million cubic meters to one billion cubic meters.
The agreement on increasing gas supplies may ultimately deprive the European pipeline project Nabucco of a portion of gas from Azerbaijan.
The Nabucco project aims to deliver gas from the Caspian Sea to Europe through Turkey starting in 2014 in order to decrease European reliance on Russian gas supplies.
Rich in oil and gas and strategically located between Russia and Iran, Azerbaijan has been courted by both Moscow and the West since gaining its independence with the 1991 collapse of the Soviet Union.
Copyright © 2010 AFP. All rights reserved. More »

Azerbaijan becomes third in list of competitive countries among former USSR republics

[ 09 Sep 2010 14:55 ]
Baku. Nijat Mustafayev – APA-ECONOMICS. Azerbaijan takes third at the list of most competitive countries among the former USSR republics made by World Economic Forum.

Estonia takes first place at this list. The second place was taken by Lithuania. At the total list these countries have take 33rd and 47th places. Azerbaijan is at the 57th place. Russia took 63rd place after Azerbaijan among former USSR countries.

The first place was taken by Switzerland, second by Singapore, third by USA. The top tens includes Germany, Japan, Finland, Netherlands, Denmark and Canada.

Note that the list was made in accordance of efficiency of commodity and labour markets, quality of health and education, macro economy situation, innovation, development of financial market and other factors.

BTC Oil Pipeline Scheduled To Pump 26.55 Mln Bbl In Oct-Trade

LONDON (Dow Jones)-The Baku-Tbilisi-Ceyhan oil pipeline is expected to pump 26.55 million barrels of crude oil in October, 2.05 million barrels more than the September program, a crude oil trader said Thursday.

October loadings will amount to 856,452 barrels of oil a day, compared with 816,667 barrels a day in September, the trader said.

The October program comprises five cargoes of one million barrels each, 20 cargoes of 800,000 barrels, three cargoes of 650,000 barrels, and six cargoes of 600,000 barrels, the trader said.

BP PLC (BP) is a 30% stakeholder in the BTC pipeline, which carries Azeri crude from Baku in Azerbaijan to Turkey's Mediterranean port of Ceyhan.


-By Sherry Su, Dow Jones Newswires; +44(0)20-7842-9329; sherry.su@dowjones.com

Azerbaijan Outlook for 2010-11

The president, Ilham Aliyev, will face a more testing second term, as economic growth will be slower than in the historical period.

Competition will intensify between the EU and Russia for Azerbaijani energy resources during the forecast period.

Real GDP grew by 9.3% in 2009. Despite higher global oil prices, slower growth of oil production in 2010-11 will prove a significant drag on economic activity.

The Economist Intelligence Unit expects real GDP growth to slow to 3.5% in 2010. In 2011 growth will slow to 3.1% owing to lower international demand for oil and a slowdown in the growth of oil production.

In 2009 weaker money supply growth, along with lower commodity prices, resulted in annual price inflation falling to 1.5%. In 2010-11 higher energy prices will contribute to stronger inflationary pressures.

We expect the manat to remain stable against the US dollar in 2010-11. The Central Bank of the Azerbaijan Republic will continue to purchase foreign exchange as the trade surplus increases and capital inflows rise.

After falling to US$10.2bn (23.7% of GDP) in 2009, the current-account surplus is expected to rise to an annual average of 31% of GDP in 2010-11, reflecting higher oil prices and external demand.

Monthly review

Azerbaijan and Turkey signed a "Strategic Partnership and Mutual Co-operation" treaty in mid-August. Although it does not contain any concrete commitments, it reconfirms the improvement in relations between the two.

The assets of the State Oil Fund of the Republic of Azerbaijan (SOFAZ, the overseas oil windfall fund) rose to US$18.1bn at the end of June, from US$11.9bn a year earlier; the increase was driven by higher global oil prices.

BP has purchased an additional stake in the Azeri-Chirag-Guneshli (ACG) oil project, increasing its share to 37.4% following Devon Energy's decision to sell its holdings. The deal represents BP's ongoing commitment to Azerbaijan.

Real GDP growth slowed to 3.5% year on year in January-July as oil production slowed. Year-on-year expansions of 2.3% and 4.2% were recorded in the oil and non-oil sectors, respectively.

Exports grew by 76.2% year on year in the first half of 2010, to total US$10.2bn. Imports expanded by 6.7% over the same period, to US$2.9bn. Higher oil prices compared with 2009 substantially boosted export revenue.
Source: Country Report

Ermənistana çörək verən İran

Ermənistan şirkətləri İrandan taxıl idxalına başlayıb

Rusiya taxıl ixracına qadağa qoyandan sonra Ermənistan şirkətləri İrandan idxala başlayıb. Ermənistanın kənd təsərrüfatı naziri Gerasim Alaverdyan bildirib ki, artıq “Manço-qrup” şirkəti bu günlərdə 10 min ton ərzaq buğdasının alınmasıyla bağlı müqavilə imzalayıb. Taxılın ilk partiyası ölkəyə gətirilib və daşıma iritutumlu avtomobillərlə aparılır. Rəsmi məlumatlara görə, Ermənistan hər il yarım milyon ton buğda idxal edir.

Azərbaycan və Türkiyə ilə sərhədləri bağlı olan Ermənistan iqtisadi əlaqələrini əsasən Gürcüstan üzərindən Rusiya və cənubdan İranla qurub. Bu gün Ermənistanın istehslak mallarına və ərzağa olan tələbatının böyük bir hissəsini İran təmin edir. Rəsmi məlumatlara görə, 2009-cu ildə 2 ölkə arasında ticarət dövriyyəsi 250 milyon dollar təşkil edib. Bu dövrdə İrandan Ermənistana 231 milyon dollarlıq, Ermənistandan İrana isə cəmi 19 milyon dollarlıq mal göndərilib. Artıq 1 ildir ki, Ermənistan cənub rayonlarının qaza olan tələbatını da İrandan idxal hesabına təmin edir. Bu ilin sonuna qədər İran-Ermənistan kəməriylə gündəlik nəql həcmi 4 milyon kub metrə çatdırılacaq.

Öz növbəsində rəsmi İrəvan alınan qazın dəyərini pulla deyil, elektrik enerjisiylə ödəyir. İki ölkə bundan başqa Araz çayı üzərində birgə Su Elektrik Stansiyasının inşası layihəsinə də hazırlaşır. Yaxın günlərdə 350 milyon dollarlıq layihənin təməlinin qoyulacağı gözlənilir. 140 meqavatlıq "Mehri" SES-i İran tərəfinin sərmayəsi hesabına işə salınacaq. Ermənistan həmin vəsaiti də elektrik enerjisiylə qaytaracaq.

Bununla yanaşı İran-Ermənistan dəmir yolunun inşası da gündəlikdədir. Apreldə İran və Ermənistan nəqliyyat nazirlərinin imzaladığı sazişə əsasən, artıq gələn ilin yazında yeni nəqliyyat dəhlizinin inşasına başlanılacaq. İlkin qiymətləndirmələrə görə, İran ərazisində 60, Ermənistanda isə 400 km uzunluğunda yeni yol çəkiləcək. Rəsmi Tehran bu layihədə yalnız öz ərazisində aparılacaq tikinti işlərinə pul ayıracağını bəyan edib.

Ermənistan isə Dünya Bankı və Asiya İnkişaf Bankından kredit cəlb etmək niyyətindədir. Mütəxəssislər yolun 5-6 ilə hazır olacağını proqnozlaşdırır. Onların bəzisi Fars körfəzinə çıxışı təmin edəcək bu yolun Azərbaycanın da iştirakçısı olduğu “Şimal-Cənub” dəhliziylə rəqabət aparacağını deyirlər. Məlumatlar açıqlanmasa da, İran hökumətindən başqa şirkətləri də Ermənistana investisiya yatırırlar.

ANSPRESS

Iranian ppl are ok but govt is just very idiotic

Consortium head: First gas via Nabucco to be supplied from Azerbaijan and Iraq
15.09.2010 16:56


Azerbaijan, Baku, Sept. 15 / Trend, A.Akhundov /

Nabucco Gas Pipeline International expects that the first gas via this pipeline, supported by the EU, will be received in 2015. "We expect that the first gas via the Nabucco will be received in late 2015 from Azerbaijan and Iraq," Reinhard Mitschek, managing director of Nabucco Gas Pipeline International said today in Baku.

According to Mitschek, Open Season on the Nabucco project will be opened in late 2010-in early 2011.

"This process will be synchronized with the progress of talks on "Shah-Deniz-2" field," he said.

During this procedure, the shareholders of the project will receive throughput capacity to 15 billion cubic meters of gas per year (50 per cent of the total transport capacity of the pipeline), the remaining 50 percent will be offered to third parties on an equal footing.

The Nabucco gas pipeline is worth 7.9 billion euro. Participants are the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE. Each participant has an equal 16.67-percent share.

"In 2011, all the issues of financing the project will be addressed," Mitschek said.

Its maximum capacity will hit 31 billion cubic meters per year. The Nabucco Gas Pipeline International will invest 30 percent of the project's total cost. The remaining 70 percent will be paid by loans.

Do you have any feedback? Contact our journalist at capital@trend.az

Appraisal of proved gas resources in Azerbaijan increases to 3.5 trillion cu m

Baku, Fineko/abc.az. The State Oil Company of Azerbaijan (SOCAR) raised appraisals of the proved natural gas resources 1-75-fold in the country.

Today, head of SOCAR gas export department Kamal Abbasov said in Baku at Caspian Gas Infrastructure, proved natural gas reserves in the country are estimated at 3.5 trillion cu m.

“It allows us to forecast growth of annual extraction to 55 bn cu m of gas per year by 2020,” K. Abbasov said.

Earlier, proved reserves were estimated at 2 trillion cu m and gas production made 27 bn cu m last year.

Azerbaijan economy: A farewell to breakneck growth

September 13th 2010
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FROM THE ECONOMIST INTELLIGENCE UNIT

Azerbaijan's GDP growth rate is slowing markedly--it measured 3.5% year on year in January-July, compared with 5.4% in the first quarter. Manufacturing output is growing at a rate of nearly 10% but the oil sector, which has driven the economy for the past five years, has reached a production plateau. GDP growth is forecast to be just 3.5% this year and to stay below 5% annually to 2014; the era of breakneck economic growth is over.

Recent months have seen a progressive deceleration in the pace of GDP growth in Azerbaijan. According to the State Statistics Committee (SSC), real GDP grew by 3.5% year on year in January-July, down from year-on-year expansions of 3.7% in the first half of the year and 5.4% in the first quarter.

The primary reason behind the slowdown in economic activity has been slower growth in the hydrocarbons sector, which has traditionally been a driver of the economy. SSC data reveal that growth in the oil sector (measured as part of GDP rather than on the basis of gross industrial output), which accounted for almost 60% of total GDP, slowed to 2.3% year on year in January-July, whereas the non-oil sector recorded growth of 4.2% year on year. Oil production--which is mainly sourced from the BP-operated offshore ACG field--is reaching a plateau, pending further large investments. In the first seven months of 2010 oil output rose by just 1.8% year on year, to 29.7m tonnes, with oil from the Azerbaijan International Operating Company (AIOC), which manages the ACG project, accounting for 24.8m tonnes.

Oil stalls

Rapid oil output growth had been the main driver of the economy since 2005. The pace of oil production has slowed in recent months, and the government forecasts that annual oil output will increase by 4.2%, to 52.5m tonnes, in 2010. According to data from the SSC, oil production in January-June rose to 25.3m tonnes. The majority of oil production came from ACG, which accounted for over 80% of the total. The deputy industry and energy minister, Natiq Abbasov, said that gas production would reach 28bn-30bn cu metres by year-end, compared with 23bn cu metres in 2009. Gas production has continued to rise. This can partially be attributed to the first phase of the Shah Deniz gasfield development approaching its full capacity of 7.6bn cu metres per year. In January-June gas production increased by 9.9% year on year, to 13.3bn cu metres, although these figures include reinjected gas.

Recovery effects

The non-oil sectors appear to benefiting, to various degrees, from the ongoing improvement in global conditions. Following the global economic recession in 2009, there have been signs of a gradual recovery in the international investment climate and in economic activity in important export markets. Leading domestic indicators point to a recovery in some non-oil sectors.

According to the GDP by production breakdown, manufacturing industry grew by 9.8% year on year in the first seven months, compared with only 2% year-on-year growth in the extractive industries. The output of investment and intermediate goods--including machinery and equipment, refined products, chemicals, and metals--surged during this period. The construction sector posted a 6.4% year-on-year recovery, and the information and communications sector expanded by a substantial 31.3% year on year, although its percentage share of total GDP is small. Agriculture contracted by 10%, partly owing to recent floods.

Private spending has supported GDP growth in 2010. In its monetary policy report for the first half of the year, the Central Bank of the Azerbaijan Republic states that final household consumption rose by 13% year on year in nominal terms, reflecting higher incomes and an increase in borrowing. Investments, including those into the oil sector, rose by 11.2% year on year in January-July, in part owing to credit expansion.

The party's over

The government is considering lowering its official 2010 GDP growth forecast, which currently stands at 6.8%, to 6.2%, with the oil sector forecast to grow by 3.9% and the non-oil sector forecast to expand by 8.4%. The authorities have indicated that their GDP growth forecast for 2011 is likely to be around 3.7%, although this figure has not been officially confirmed. The government is considering a growth forecast of 7.8% for the non-oil-sector in 2011, and a possible 1.1% contraction in the oil sector. Oil production will be much slower over the forecast period, but the production of gas is expected to rise more rapidly.

Azerbaijan has posted very fast GDP growth in recent years: 34.5% in 2006, 25% in 2007, 10.8% in 2008 and 9.3% in 2009. However, the Economist Intelligence Unit forecasts that the economy will grow by just 3.5% this year, and that it will post growth rates in the range of 3.1% to 4.7% in the years 2011-14. If this proves correct, the years of breakneck economic growth for Azerbaijan are over. And that will present a challenge for the president, Ilham Aliyev, whose government since 2005 has been able to throw vast sums of money at every problem it has encountered thanks to fast-rising budget receipts.

The Economist Intelligence Unit

Azerbaijan's strategic reserves reach $26bn
Fri 17 September 2010 13:12 GMT | 17:12 Local Time
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Azerbaijan has strategic currency reserves of $26bn, Economic Development Minister Shahin Mustafayev told an international conference today.
"The reserves are eight times more than the country's imports," Mustafayev told today's conference in Baku, entitled the Model of Azerbaijani Economic Development.
In the first six months of the year, Azerbaijan's strategic reserves grew $20bn to $24.7bn and now stand at $26bn, Mustafayev said.
"In Azerbaijan, the years of reform by late President Heydar Aliyev and current President Ilham Aliyev have created a liberal and independent economy, reliant on its own resources and integrating into the global economy,” Mustafayev told the conference.
He said that Azerbaijan had become the region's economic power house, accounting for 75% of the total gross domestic product (GDP) of the three South Caucasus states.

Azerbaijan's status is reflected in the country's international credit rating and in global assessments on the ease of doing business, Mustafayev said.
"In order to ensure economic growth in the country, macroeconomic stability will be maintained, there will be systemic intervention to strengthen energy, ecological and food security, the country is diversifying more broadly, the business environment is being improved and the development of the agricultural sector supported," the minister said.
Government policy is designed to develop human capital, cut unemployment to a minimum, cut poverty and increase targeted social expenditure level, which will improve the standard of living, he continued

In January to August 2010 Azerbaijan communications sector sales increased almost by 33% and totals $903.9 million

Baku, Fineko/abc.az. In January to August, 2010, communication sector sales in Azerbaijan made $903.9 million in accord with average exchange rate for the reported term.

In January to August, 2010, communications sector rendered services in the amount of AZN 723.1 million that is exceeds by 32.9% the index of similar period of 2009, the State Statistics Committee informs. This August, services reduced by 1.6% versus July and made AZN 103.7 million.

“The population was a major consumer of rendered services – 74.2%. The sector received most part of earnings from mobile communications – 68.4%, where the index increased by 33.1% and amounted to AZN 494.6 million (AZN 70.6 million in July),” it was informed.

By 1st August, there were 8.5 million of mobile communication subscribers and it is expected clientele in this segment will exceed 9 million subscribers by the end of the year. In 2009, Azerbaijani communication sector sales totaled AZN 1 bn.

Azerbaijan Central Bank May End Manat Peg as Economy Improves
By Nariman Gizitdinov - Sep 21, 2010 7:24 AM ET
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North Sea Dated Brent crude, the benchmark for Azerbaijan’s oil, has averaged $77.06 a barrel this year, 37 percent more than in the same period last year. Photographer: Jeyhun Abdulla/Bloomberg

Azerbaijan, the third-largest energy producer among former Soviet republics, may move to a managed floating exchange rate for the manat as the economy improves, according to central bank Chairman Elman Rustamov.

The manat was pegged to the dollar in March 2009 to protect the nation’s financial stability as demand for U.S. currency increased during the global credit crisis, according to the central bank. The bank aims to keep the manat stable at 0.803 manats per dollar this year, Rustamov, 58, said.

“If macroeconomic conditions allow, we are ready to move to a managed floating exchange rate,” he said Sept. 16 in an interview in Baku. “But first there needs to be an assessment of the current account balance, the government’s fiscal situation and the real economy.”

Azerbaijan’s economy may expand between 4 percent and 5 percent this year, compared with a 14 percent slump in 2009, after world oil prices rebounded, Rustamov said. North Sea Dated Brent crude, the benchmark for Azerbaijan’s oil, has averaged $77.06 a barrel this year, 37 percent more than in the same period last year.

Higher prices for oil, which makes up 93 percent of the Caspian Sea nation’s exports, will also boost the country’s current account surplus after it fell by 38 percent to $10.2 billion last year. The current account is the broadest measure of international trade and money flows.

“We are considering these issues, but there is no doubt that a stable exchange rate must be supported as an important factor for financial stability,” said Rustamov, who has been chairman of the central bank since 1995.

Stable Exchange Rate

The central bank will maintain the peg this year because there is pressure for the manat to appreciate and a stronger currency would put too much strain on the non-oil economy as the country recovers from recession, Rustamov said. He declined to comment when asked whether the central bank might move toward a managed float in 2011.

The manat has gained 12.5 percent against the dollar since Azerbaijan redenominated its currency in January 2006 at a rate of 1 new manat for every 5,000 old manats.

The government plans to gradually increase spending next year as oil production stabilizes at around 50 million tons annually, according to Rustamov. Oil production rose to 50.4 million metric tons last year from 44.5 million tons in 2008, according to the Azeri State Statistical Committee. Gas output was little changed at 16.33 billion cubic meters.

Azerbaijan’s international reserves will probably rise to $6.5 billion in 2010 and $8 billion in 2011, after dropping as low as $4.9 billion in July 2009, he said.

Annual inflation will accelerate to as much as 10 percent this year before slowing to between 7 percent and 8 percent in 2011, Rustamov said. The central bank plans to control inflation by maintaining a stable exchange rate and increasing debt sales to remove excess liquidity from the economy, he said.

“Inflation is at a satisfactory level for us,” Rustamov said.

To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net

Budget package for 2011 submitted for consideration of Azerbaijani President

Baku, Fineko/abc.az. The Azerbaijani Cabinet Ministers has finished work on Draft Law on State Budget 2011 and a package of related documents.

According to the Cabinet, the Law on State Budget and the Concept of Socio-Economic Development for 2011 and three following years were submitted for consideration of the President of Azerbaijan Ilham Aliyev.

Presentation of the budget package was carried out on the basis of Cabinet’s Decision #165 signed by prime minister Artur Rasi-zadeh on 22 August," the Cabinet informed.

State Budget 2011 was proposed with revenues of AZN 12.05 bn and expenditures of AZN 12.748 bn, while consolidated budget with AZN 15.557 bn of revenues and AZN 15.129 bn of expenditures.

Thus, in 2011 State Budget deficit is planned in AZN 697 million with consolidated budget surplus in AZN 428.2 million.

GDP is forecasted at the level of AZN 40.2 bn with growth of 3.8%. At that, growth of non-oil sector is expected to be 7.2%. The budget and the forecast were calculated on the basis of average export price of oil at $60 per barrel.

Clearing dollar exchange rate is AZN 0.8 to the US dollar.

Iran to boost trade ties with Azerbaijan
(MENAFN) Azerbaijan's ambassador in Tehran has underlined Baku's willingness to boost economic ties with Iran and increase annual trade to $10 billion, Reuters reported.

The diplomat said that the large volume of trade would take hard work, but that construction of the Rasht-Astara railway would help achieve the goal.

Iran's northern provinces enjoy abundant economic capacities but despite large populations and economic possibilities the existing potential has not yet been utilized to serve the interests of the two countries and nations, the envoy said.

Iran and Azerbaijan have sought to expand ties, especially trade and economic links, and signed several cooperation agreements earlier this year.

Iranian Interior Minister Mostafa Mohammad-Najjar, heading a high-ranking delegation, visited Baku in May 2010 and signed several Memorandums of Understanding (MoUs).http://www.menafn.com/qn_news_story_s.asp?StoryId=1093367287

ADB reviews Azerbaijan’s GDP forecast for 2010-2011
Tue 28 September 2010 12:10 GMT | 8:10 Local Time
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Asian Development Bank
ADB predicts growth of GDP for Azerbaijan on the level of 3.5% for 2011, while earlier the forecast was 9.7%.
Asian Development Bank predicts the growth in Azerbaijan’s GDP by 3.8% for 2010, according to Asian Development Outlook 2010 Update report, published on the website of the bank.

As reported earlier, the bank predicted the growth of GDP to be 9.5% for 2010.

ADB predicts growth of GDP for Azerbaijan on the level of 3.5% for 2011, while earlier the forecast was 9.7%.

On the whole, GDP is predicted to be 5.1% by results of 2010 in Caucasus and Central Asia and 5.7% in 2011.

According to the ABD forecast, inflation rate in Azerbaijan will make up 5% this year and 4% next year. Under the preliminary forecast (April-IF) of the bank, inflation rate in Azerbaijan was expected to be 5.8% in 2010 and 6% in 2011 in Azerbaijan.

On the whole, inflation rate in Caucasus and Central Asia will make up 6.6% this year and 6.4% next year.

As was reported earlier, for 2010 the Azerbaijani government predicts GDP growth to be 6.2%, for 2011-3.8%, the forecast on inflation is 5% this and next year.

Azerbaijan has been the ADB member since 1999. The credit portfolio of the bank makes up $660.4m on 14 projects in Azerbaijan as of early 2010. In addition, in period of cooperation, ADB allocated grants to the government of Azerbaijan and local companies in the amount of $13.122m.

Azerbaijan seeks a place for own ’Houston’ or ‘Star City’

Azerbaijan carries on creating ground space infrastructure, including the mission control center for national communications satellites.

The Ministry of Communications and Information Technologies of Azerbaijan informs that now they are seeking a site for the construction of the central control system of national telecom satellite.

"The Ministry is negotiating with the State Committee on Land and Cartography and the Baku City Executive Power on the occasion of the most suitable place for location of the central satellite control system. In parallel consultations are being held with telecom experts to determine the position of the ground control center corresponding to the future position of the satellite in space," a source emphasized.

The work is carried out within the general agreement signed by the MCIT with the U.S’ Orbital Sciences Corporation on production of the first national satellite.

Within the project the construction of main and auxiliary control systems was allocated $16 million and overall project cost is over $300 million, including approximately $90 million for satellite production, $40 million for purchase of missile carrier, and $18 million for insurance service.

Azerbaijan’s national telecom satellite will be placed into orbit in 2012.

Time position of the national satellite is located 46 degrees east longitude, leased from Malaysia’s satellite operator Measat. After completion of 7-year process of coordination of positions with 30 countries, neighboring with Azerbaijan’s satellite, the national satellite will be orbited to its own positions 43.2, 58.5 and 96 degrees east longitude.

It should be noted that Azerbaijan intends to use only 20% of satellite capacity and rent the rest. For example, Malaysia has been offered 40% of capacity of the Azerbaijani satellite. The national satellite will cover Europe (except Scandinavia) and half of Asia with larger part of Kazakhstan. The satellite will have transmission to TV and radio broadcasting and Internet.

Support to Azerbaijan in this project is given by program Silk Sat, developed on the initiative of Russian academician Roald Sagdeev living in the U.S. The program stipulates creation of single satellite system due to raising of resources the United States and Russia.

The satellite project is realized in Azerbaijan in accordance with the relevant order of the country’s president on creation of space industry and placing the telecom satellite into orbit.

Azerbaijan’s Delta Telecom provides Internet traffic transit between Russia and Iraq

Baku, Fineko/abc.az. Azerbaijan’s primary Internet provider Delta Telecom provides Internet traffic transit between Russia and Iraq.

Russian telecommunications operator Rostelecom informs that in compliance with an agreement signed with Iraqi company IQ Networks they launched test service of Internet access in Iraq.

In case of successful realization of pilot connection Rostelecom plans in the future increase substantially volume of transferred Internet traffic.

Under the contract, Rostelecom will render Internet access service using a fully-terrestrial communications infrastructure of Rostelecom. Rostelecom’s partners in this project are Iran’s administering infrastructure company Telecommunication Infrastructure Company (TIC) and Azerbaijan’s primary Internet provider Delta Telecom to provide transit part of the channel between Russia and Iraq.

IQ Networks will render services in Iraq under its own brand.

"This route is used by Iraq’s operators for the first time for connection to resources of global network Internet," the press service added.

Today the Company is co-operating with 400 international operators and companies.

Previously, Rostelecom has already appeared with service of Internet access in Turkmenistan, Azerbaijan and Iran.

Delta Telecom is a leading telecom operator in the Caucasus. It owns the largest Internet Backbone network in the region. The platform of Backbone network bases on modern technologies and offers professional IP Backbone services to all Internet providers in Azerbaijan and more than 78% of providers in Georgia. The Company renders more than 87% of local Backhauling services for mobile communications operators, providers, banks and more commercial organizations, and provides DWDM / SDH infrastructure.

Infrastructure network of Carrier Ethernet and Metro Ethernet is able to accommodate corporate networks, data services, and professional services IP/MPLS. This network infrastructure is IP basic solution on Backbone transmission services for local ISPs. Over 3,000 VSAT stations ensure high-speed Internet, data and telephony services in areas inaccessible to ground-based infrastructure. The Company introduces new technologies and implementation of PreWiMAX, and 802.16d in the region is also a result of Delta Telecom’s activity. One of the Delta Telecom’s achievements is use of mobile WiMAX and IMS technologies for the first time in the region.

Всего 18,8% населения страны работают официально:ohno:

оличество лиц, зарегистрированных в системе индивидуального социально-страхового учета, в начале октября этого года увеличилось на 7,4% по сравнению с началом этого года. Как отмечается в сообщении Государственного фонда социальной защиты (ГФСЗ), по данным на начало октября этого года, за девять месяцев текущего года фонд дополнительно открыл 122,082 тыс. счетов для лиц, прошедших регистрацию в системе социального страхования. В результате количество плательщиков социального страхования в стране составило 1762,011 тыс. лиц. Среди них большинство, а именно 974 922 лиц - мужчины, остальные - 787089 являются представительницами слабого пола. Таким образом, только 18,8% населения страны предоставлены социально-страховые карты. Это говорит о том, что легализация рабочих мест в стране доведена до 18,8%.

Как отметил "Эхо" председатель Лиги защиты трудовых прав граждан Сахиб Мамедов, согласно официальной статистике, количество занятого населения страны, то есть число лиц, зарегистрированных в системе индивидуального страхового учета, достаточно мало. "В заявлениях официальных структур часто говорится о том, что уровень безработицы в стране составляет 6-7%. Поэтому сведения ГФСЗ не совпадают с другими данными, а это говорит о том, что уровень "скрытой" занятости в стране все еще высок". С.Мамедов добавил что согласно итогам исследований лиги, "скрытым" ("теневым") является почти половина рынка труда в стране.

IMF predicts a rise in current account surplus in Azerbaijan this year

Baku, Fineko/abc.az. The IMF has published an updated forecast of global economic development for 2010 (World Economic Outlook - WEO 2010) with revised forecast on surplus ratio of current account of the balance of payments in Azerbaijan to the country’s GDP.

According to the updated WEO 2010, the 2010 current account surplus will be 24.1% of GDP against 23.6% in 2009. In 2011, the surplus is expected to reach 22.2% of GDP.

Fund’s forecast says that GDP growth will be 4.3% in 2010, 1.8% in 2011 and 0.9% in 2015.

Azerbaijan to approach upper level of middle-developed countries in regard to income per capita in 2011

On October 12, the most important statements were made concerning Azerbaijani economic policy during discussion of the Bill on the State Budget in the parliament.

According to Economic Development Minister Shahin Mustafayev, in 2011 income per capita will make $5,540 and the country will approach upper level of middle-developed states.

"In 2011, Gross Domestic Product (GDP) of the country will total AZN 40.2 bn ($50 bn) with growth by 3.8%. Inflation will not exceed 5% for the year,” S. Mustafayev said.

According to Ministry’s prognoses, Azerbaijan will get rid of oil dependence.

“In 2014, only 38% of GDP will fall on oil sector,” S. Mustafayev said. In 2011, its share will make more than 47% of GDP.

Baku, Fineko/abc.az
12.10.2010

Central Bank of Azerbaijan: summarizing results of year country’s currency reserves to exceed $30 billion

The Central Bank of Azerbaijan (CBA) supposes the accelerated growth of currency reserves of the country following the results of 2010.

On October 12, CEO of CBA Elman Rustamov said in the parliament, Azerbaijan exchange reserves have already exceeded $27 bn.

"Following the results of the year they can amount to $30 billion that will be more than 3-fold higher than the country’s the consolidated foreign debt,” E. Rustamov said.

12.10.2010
Baku, Fineko/abc.az

Non-oil sector to ensure 62% of Azerbaijan’s budget revenues in 2011

At today’s plenary session Azerbaijan parliament has started consideration of Draft Law on State Budget 2011.
At the session opening Milli Majlis speaker Oqtay Asadov has stated next year domestic non-oil sector will ensure up to 62% of State Budget revenues expected to reach 12.1 billion manats.

In his turn, Ziyad Samedzadeh, the chairman of the Parliamentary Committee on Economic Policy, emphasized that the Ministry of Taxes will provide up to 80% of budget revenues without taking into account transfer from the State Oil Fund (SOFAZ). The latter is expected to transfer 6.48 billion manats to State Budget.

12.10.2010
Baku, Fineko/abc.az

Azerbaijan to increase gold production 6-fold

Azerbaijan is prepared for using profitable pricing environment at the world market of gold, extraction of which has been begun since July, 2009.

On October 12, Azerbaijani Economic Development Minister Shahin Mustafaev said in the parliament, in 2014 gold production will increase 6-fold in the country as compared with 2010.

For the time being, gold mining is carried out in Azerbaijan only in compliance with one of two concluded contracts of PSA type.

12.10.2010
Baku, Fineko/abc.az

Azerbaijan’s real GDP growth to be up to 6% following 2010

Baku, Fineko/abc.az. The Azerbaijani parliamentarians have started considering Draft Law on State Budget 2011 at today’s plenary session.

At the opening of the session parliament speaker Oqtay Asadov has claimed that following 2010 country’s real GDP growth will be up to 6% and growth in non-oil sector will be 3-fold higher than growth in oil sector.

"This is confirmation of rightness of oil strategy of Azerbaijan,” Asadov said. He also pointed out that the global crisis had shown stability of Azerbaijani economy that is displayed in high rates of economic growth.

"This enables us to plan expansion of budget revenues for 2011 up to 5%. At that, budget revenues from non-oil sector will grow by 8%,” the speaker said.

Azerbaijani MPs call upon to prepare domestic agriculture for country’s membership to WTO

Baku, Fineko/abc.az. The World Trade Organization (WTO) has interfered into the process of discussion of the Bill on State Budget of Azerbaijan for 2011.

At today’s session of Milli Majlis Eldar Ibrahimov, the chair of the Parliamentary Agrarian Policy Committee, has said that the country is preparing to join the WTO and should use remaining time to prepare agriculture for activity under new conditions - to raise its technological level and competitiveness.

"In this regard it is encouraging that in 2011 governmental expenditures on agriculture will rise up to 246 million manats or by 20%,” Ibrahimov said.

Azerbaijan is trying to get developing country status from the WTO in order to maintain the level of agricultural subsidies at the level of 10% of market value of production against current 14-18%.

AXA приобрела 51% в азербайджанской страховой компании MBASK

http://img.photobucket.com/albums/v302/ganjaganja/axa-group.gif

Сегодня в Баку было объявлено о приобретении AXA Seguros Generales, De Seguros Y Reaseguros (Испания), 100-процентной дочки французской AXA Group, 51% акций в азербайджанской страховой компании MBASK.

Как заявил Fineko/abc.az председатель совета директор MBASK Эльдар Гарибов, сделка была полностью завершена сегодня.

«Подготовительные мероприятия были начаты 3 месяца назад с подписания предварительного соглашения. За этот период мы, в частности, получили все необходимые разрешения от антимонопольной службы Азербайджана и Министерства финансов», - сказал Э.Гарибов.

В рамках сделки AXA Group через свою испанскую дочку приобрела 51% участия – 30% акций у Европейского банка реконструкции и развития (EBRD) и 21% акций у Эльдара Гарибова. Новая структура предполагает 51% у AXA Group и 49% у Э.Гарибова.

«Сделка совершена с премией, но извлечение финансовой прибыли не было нашей первоочередной задачей – важнее было привлечь в Азербайджан такую крупную страховую группу, как AXA Group. Для нас также привлекательной оказалась специализация AXA Group на страховании жизни и автомобильном страховании, а последнее направление было специализацией MBASK», - сказал Э.Гарибов.

В операционном плане руководить деятельностью азербайджанской компании AXA Group будет через свой турецкий офис.

«Вопрос изменения названия компании ещё будет обсуждаться акционерами. На мой взгляд, MBASK является известным брендом на азербайджанском рынке, и какое-то время компания могла бы действовать под названием AXA MBASK», - сказал Э.Гарибов.

По итогам 2009 года премии AXA Group составляли 90,124 млрд. евро, а прибыль – 3,606 млрд. евро. До 28% премии она собирала во Франции, 26% в Северной, Центральной и Восточной Европе.

Fineko/ abc.az
14.10.2010

AXA Group: объём страхового рынка Азербайджана может достичь 2-3% ВВП страны

AXA Group, которая, благодаря приобретению её 100-процентной дочкой AXA Seguros Generales, De Seguros Y Reaseguros (Испания) 51% акций в азербайджанской страховой компании MBASK, стала игроком страхового рынка Азербайджана, ожидает расширения рынка в 6 раз.

Как заявил Fineko/abc.az директор AXA по развитию новых рынков в Средиземноморье и Латинской Америке Фредерик Флежю, мы изучали местный рынок в течение года.

«Сегодня объём собираемых премий в стране эквивалентен 0,5 ВВП ($200 млн.), но, по нашим оценкам, имеется потенциал для роста сборов до 2-3 ВВП», - сказал Ф.Флежю.

Компания также отмечает слабость страхования жизни в стране. AXA принимала решение о выходе на рынок страны, в связи с привлекательностью самого рынка позитивным изменениям законодательства и привлекательностью партнёрства с MBASK.

Fineko/ abc.az
14.10.2010

Azerbaijani ICT sector growth rate to hit 18.5 percent in 2011

Oct 13, 2010 (Trend News Agency - McClatchy-Tribune Information Services via COMTEX) -- The growth rate of the information and communication technologies (ICT) in Azerbaijan will be 18.5 percent in 2011, the Economic Development Minister Shahin Mustafayev said while discussing the draft 2011-state budget at a plenary session of the parliament.

He said the forecasted annual growth rate of the ICT sector in Azerbaijan in the next three years will hit 17.4 percent.

In general, due to implementation of measures for the development of the ICT infrastructure the services based on modern technologies become available to consumers and entrepreneurs engaged in this sphere began to expand their business outside the country.



According to the Communications Ministry's statistics, the share of ICT in the country's non-oil sector increased from 4.2 percent in 2008 to the current 4.4 percent. If the ICT income share in the country's GDP was 1.6 percent in 2008, the figure reached two percent in 2009.

According to the Ministry, the ICT sector's income share in GDP in the first half amounted to three percent. The total amount of income received from the ICT sector increased in 4.4 times over the past six years.

Do you have any feedback? Contact our journalist at capital@trend.az To see more of the Trend News Agency, or to subscribe to the newspaper, go to http://en.trend.az/. Copyright (c) 2010, Trend News Agency, Baku, Azerbaijan Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544)

Ilham Aliyev attended the opening ceremony of the seed-growing factory in Yevlakh

While touring the facility, President Ilham Aliyev was informed that 7 hectares of land had been allocated for construction of “Azertokhum” LLC seed-growing company. The facility, construction of which had started in June of 2009, consists of 12 warehouses with a capacity of 1000, 1500 and 2000 tons, a seed laboratory, a repair shop, a gas station, and houses. 80 people have been employed full-time at the facility.

The President pressed the button starting the work of the facility and viewed the production process and the exhibition of produced goods.

14 October 2010
President.az


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Azerbaijan has 'market economy with strong state control'
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Azerbaijani President Ilham Aliyev and his wife Mehriban Aliyeva connected a housing estate in Mingachevir to the gas supply yesterday.

In a speech to local residents, the president outlined the government's priorities in improving utilities and meeting domestic demand for energy.

He ended his speech by describing the Azerbaijani economy as "a pure market economy with strong state control".

Ilham Aliyev began his speech with congratulations, according to the president's website:

“The Guneshli housing estate has been connected to the gas supply. This is a great event. I congratulate you on this occasion. This was the only housing estate left in Mingachevir that was not connected to the gas supply. There has never been gas here before, but we've done it today. I've been told that gas will be supplied to 2,000 customers - 2,000 families, 2,000 households. I congratulate you on this wonderful event.

"This proves that our gas supply policy is effective. We have sufficient gas reserves and natural resources. Today we export gas to other countries as well.

"This potential should be enjoyed primarily by Azerbaijani citizens. The objective is to supply gas to 90% of enterprises and settlements in Azerbaijan. This is a very high figure. Azerbaijan has remote villages, where it may not be very cost effective to lay gas pipelines. We tackle energy problems in these places in different ways, but we ensure the gas supply to the main settlements - cities, districts and villages.

"The State Oil Company has recently been working to connect both Baku and the regions. It is possible to say that gas is supplied to a new settlement every month. Old pipelines are replaced with new ones, pressure is normalized. This work shows that Azerbaijan is conducting a very strong social policy.

"I have noted that we export natural gas to other countries and the export price is at least twice as high as the internal price. But this is a social matter for us. We must do everything to provide Azerbaijani citizens with gas, electricity and water. The electricity problem was solved in Azerbaijan long ago. The greater part of the gas supply issue has been solved, but problems with fresh water and sewerage still stand. These are urgent problems for us this year and in the years to come. We will try to supply fresh water to all cities and regions of Azerbaijan and to build sewerage lines. There used to be no sewerage in most of our regions. These issues require huge funds, but the Azerbaijani state will continue to improve the living conditions of our citizens every year."

Price control

"Gas is a very cheap type of energy," the president said. "You know that all these prices in Azerbaijan are regulated by the state. We will not allow these prices to be raised artificially. The state is controlling this. We must ensure that people can afford to pay for them. Compared to our neighbouring countries, electricity and gas are very cheap here. Therefore, the use of gas is economical for people.

"I would like to congratulate you once again. I can see here specialists from the state oil company [SOCAR]. At the ground breaking ceremony for the company's new administrative building two days ago, I said that after Azerigaz had been transferred to the control of the oil company, work had increased. The projects presented here again openly show all our plans.

"Azerbaijan has met and will meet its internal demand and enter foreign markets with confidence. We export gas to our neighbours. Though in some countries gas production is several times higher than here, we still export gas, oil, oil products and energy. This proves that Azerbaijan’s economy is built on the right basis. This is a pure market economy with strong state control. This is how we approach this issue."
http://www.news.az/articles/society/24646

“Nabucco”nun ilk hissəsi açıldı

Macarıstan və Rumıniya qaz kəmərinin 47 kilometrlik hissəsinin açılışını ebidlər

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Macarıstan və Rumıniya “Nabucco” qaz kəmərinin Arad-Seqed marşrutu üzrə keçən 47 kilometrlik hissəsinin açılışını ebidlər. Bu, Macarıstan və Rumıniyanın qazpaylayıcı sistemlərini birləşdirən hissədir. Bu barədə qaz kəmərinin tikintisində iştirak edən Macarıstanın “MOL” neft şirkəti tərəfindən yayılan məlumatda deyilir.

Qaz kəmərinin böyük bir hissəsi Macarıstan ərazisindən keçir. Bundan əvvəl isə Rumıniya ərazisində qaz kəmərinin 60 km-lik hissəsi açılıb. Həmin hissəni isə Rumıniyanın “Transgaz” şirkəti tikib.

Qeyd edək ki, Xəzər regionundan Türkiyə və Balkan yarımadası vasitəsilə Mərkəzi Avropaya təbii qazın ixracı üçün nəzərdə tutulan “Nabucco” kəmərinin inşası məqsədilə yaradılan “Nabucco Gas Pipeline İnternational GmbH” konsorsiumuna OMV (Avstriya), MOL (Macarıstan), “Transgaz” (Rumıniya), “Bulgargaz” (Bolqarıstan), “BOTAŞ” (Türkiyə) və RWE (Almaniya) şirkətləri qoşulub. Hər bir tərəfdaş şirkətin konsorsiumda payı 16,67 faiz təşkil edir. Layihənin xərclərinin 1/3-i səhmdarlar tərəfindən, qalan hissəsi isə maliyyə-kredit təşkilatları tərəfindən maliyyələşdiriləcək. Qaz kəmərinin ötürücülük qabiliyyəti illik 31 milyard kummetrdir və 2015 ildə işə salınması planlaşdırılır.

ANSPRESS

interesting news but I think chances of this pipeline is still low

Azerbaijan to develop non-oil sector
By Messenger Staff
Monday, October 18
According to Azerbaijani statistical information, the average income per capita in Azerbaijan for 2011 will be USD $5,540.00. With this figure the country will reach the upper level of medium developed countries – Azeri Economic Development Minister, Shahin Mustapaev reported on October 12.

The minister stated that by 2011 Azerbaijani GDP will be more than USD 50 Billion, with economic growth of 3.8% and an annual inflation rate of less than 5%. The minister added that the country plans to diversify its economy, changing its dependence on oil. If today the oil sector represents more than 47% of the Azerbaijani economy, by 2012 it is expected to be reduced to 39%. In 2011 investment in the non-oil sector will exceed investment in the oil sector, reaching more than USD 9 billion. It is anticipated that in 2011 the country will receive around USD 5 billion in foreign investments.

Up to 15,000 computers to be sold in Azerbaijan by late 2010 within National Computer Project

Baku, Fineko/abc.az. Azerbaijan has sold more than 9,200 computers within the framework of National Computer Project.

Isfyandiyar Aliyev, the director of the Department of Information Society Development of the Ministry of Communications & Information Technologies, says that on average 200 or 300 computers are sold monthly within the project.

"In the summer months there was observed a relative decline in sales of computers within National Computer Project, but since the beginning of the school year the pace of sales returned to previous regime, and before the end of the year we can forecast sales of 13,000-15,000 of computers,” Aliyev said.

The MCIT department director emphasizes that at the next stage of the project they plan to ensure an opportunity for public servants and employees of the health sector to acquire computers on a preferential basis.

"Today, computers can be bought on concessional terms by teachers and students of both secondary schools and universities, but we’re constantly working to enhance the project coverage as it affects the level of computerization of the population that meets Ministry’s interests. We’re also considering a possibility to offer low-cost computers of local manufacturers, but the quality of HP computers justifies its cost,” he added.

In comparison with early 2010 the number of computers sold within the project has increased 3-fold.

Capacity of computers is 3 GB at the price of 500 up to 700 manats, depending on configuration.

This year the project was acceded by Symantec offering within the project antivirus software Norton on concessional terms (35 gapiks a month), and local company Kur offering ADSL-modems with 1 and 4 ports for 2.8 and 3.5 manats a month respectively, and Azercell Telekom offering data-cards for connection to mobile Internet on concessional terms.

The main objective of the project is to create conditions for purchase of computers and licensed software by various social categories of the population, reduce digital inequality by active introduction of ICT in regions, and support of Azerbaijani government’s activity aimed at developing the information society and e-government.

All equipment is given in interest-free credit for 12 months. The total cost of computers and licensed software package within National Computer Project is below the market price by 25-40%. Those who will buy computers within the project will be provided with materials about computers, Internet, corresponding electronic teaching materials by the Ministry of Education.

Azerpocht, national postal operator, has undertaken delivery of computers and acceptance of monthly payments, while BestComp Group and Ultra (the local partners of HP and Microsoft) are dealing with supply of computers and licensed software

non-oil sector sounds good but what? tourism or high-tech?

Azerbaijani ICT sector growth rate to hit 18.5 percent in 2011
19.10.2010 13:10


Azerbaijan, Baku, Oct.13 / Trend H. Veliyev /

The growth rate of the information and communication technologies (ICT) in Azerbaijan will be 18.5 percent in 2011, the Economic Development Minister Shahin Mustafayev said while discussing the draft 2011-state budget at a plenary session of the parliament.

He said the forecasted annual growth rate of the ICT sector in Azerbaijan in the next three years will hit 17.4 percent.

In general, due to implementation of measures for the development of the ICT infrastructure the services based on modern technologies become available to consumers and entrepreneurs engaged in this sphere began to expand their business outside the country.


According to the Communications Ministry's statistics, the share of ICT in the country's non-oil sector increased from 4.2 percent in 2008 to the current 4.4 percent. If the ICT income share in the country's GDP was 1.6 percent in 2008, the figure reached two percent in 2009.


According to the Ministry, the ICT sector's income share in GDP in the first half amounted to three percent. The total amount of income received from the ICT sector increased in 4.4 times over the past six years.

GDP growth tops 4% in nine months - Ilham Aliyev
Wed 20 October 2010 09:58 GMT | 5:58 Local Time
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Ilham Aliyev
Azerbaijan's GDP grew 4.1% in January-September, President Ilham Aliyev told an expanded sitting of the Cabinet today.
This is signficantly higher than the 2.7% GDP growth reported by the State Statistical Committee in January to August.
President Aliyev told the meeting that GDP in the non-oil sector had grown 5.2% in the first nine months of the year.
Part of the meeting, which is reviewing socioeconomic development in the reporting period, has been broadcast by AzTV.
The head of state said that industrial production had grown 3.1%, while nominal money incomes had grown 11%, more than twice the level of inflation.
He said that 56,000 new jobs had been created during the reporting period and over 900,000 new jobs since October 2003, of which 70% were in the private sector.

"Azerbaijan's strategic monetary reserves topped $28bn in early October. The presence of such reserves will help ensure the rapid development of Azerbaijan in the coming decades. This will also help to tackle economic and social problems," Aliyev said.

He said that Azerbaijan would produce more than 50m tonnes of oil and over 28bn cubic metres in 2010 as a whole. "Azerbaijan is an independent and reliable player in the energy sector."

non-oil sector sounds good but what? tourism or high-tech?

Great question and a very important one. Most energy rich countries like Azerbaijan have failed to diversify their economies and will be in shambles when they run out (most Persian Gulf countries and Russia are perfect examples), because often times the need for reform and change, is too costly politically and most countries fail to do so. Azerbaijan is trying to invest in ICT that seems to be the sector along with tourism , will they be successful, time will tell. If there is a silver lining, the oil and gas reserves in Azerbaijan are small compared to a lot of these nations, so the needed reforms will occur in Azerbaijan much quicker than some of these countries.

Azerbaijan telecoms: Updating

February 10th 2009
Printer version


FROM THE ECONOMIST INTELLIGENCE UNIT

Azerbaijan's government wants the ICT industry to generate as much profit as the energy sector by 2020.

Its image as a creaky ex-Soviet Republic has faded fast. After reporting the highest level of economic growth in the world in 2006 (with GDP up 34.5% over the previous year), Azerbaijan has grown into a major investment hub boosted by a steady flow of petro-dollars. That money is now being funneled into the ICT sector, as the government tries to make the economy less dependent on oil. By 2020, it wants ICT to generate as much profit as oil and gas. But there is still a long way to go before Azerbaijan can truly describe itself as a hi-tech society.

For a start, the country lacks professional know-how and critical infrastructure, while the gap between rural and urban areas – the so-called 'digital divide' – is enormous. The government claims the number of mobile-phone users has grown dramatically over the last few years to cover about 65% of the population. But only 12% of households have computers, and the overwhelming majority of internet users are concentrated in Baku, the capital city.

One problem is the state's involvement in the sector, which has hampered the development of fair competition. If that is to change then political leaders need to establish more effective and transparent administrative bodies and encourage decentralisation. High telecoms tariffs are another obstacle to the usage of ICT that could be lifted by competition-creating regulation.

Indeed, the need to establish an independent regulatory body is paramount if Azerbaijan's ICT sector is to attract more interest. According to the American Chamber of Commerce in Azerbaijan, “that regulatory body must be completely independent of any governmental body which participates in the ICT sector on a commercial basis and competes with other ICT market participants”.

Making the right moves

Over the past few years, the government has taken a series of steps in the right direction. As far back as 2003 it launched a national ICT strategy for the development of the sector. Just a year later it had established the Ministry of Communications and IT, which quickly took charge of that strategy. And in 2006, during a visit to the US, President Ilham Aliyev singled out the ICT industry as the biggest priority for Azerbaijan after oil. "The future does not depend on oil and gas, but rather on technological development," he later said during an interview with Azerbaijan's CNBS TV. "Oil-and-gas reserves will run out sooner or later, and technological knowledge will always dominate development. The world's leading countries are those that invest in ICT and possess advanced technological capabilities."

Azerbaijan is now preparing for the launch of a new communications satellite, and it is also building a state-of-the-art backbone network called AzDatacom, which will provide high-speed connectivity throughout the country. That network should become available in March this year, but internet subscriber fees have already been reduced, together with the cost of leased copper lines. The government is also working to create a Regional Innovation Zone, including “techno parks” and “virtual innovation zones” as well as an international data transit centre. All of this should help to boost investment.

Evidence of an improvement in the country's use of ICT can be found in the World Economic Forum's Global Information Technology Report for 2007/8. Azerbaijan rose from 95th to 67th place on the Network Readiness Index, leaving behind Ukraine (at 70th), Georgia (91st) and Armenia (106th). This is a significant step. According to the Ministry of Communications and IT, Azerbaijan aims to be regarded as one of the top ten reformers in years to come.

Even so, Azerbaijan's goal of generating as much profit from ICT as from oil and gas by 2020 looks ambitious, given the expectation that energy revenues will total US$200bn by 2024. The government will have to keep its reform agenda on track, and intensify its efforts to boost competition, if Azerbaijan is to come close to hitting that target.

Great question and a very important one. Most energy rich countries like Azerbaijan have failed to diversify their economies and will be in shambles when they run out (most Persian Gulf countries and Russia are perfect examples), because often times the need for reform and change, is too costly politically and most countries fail to do so. Azerbaijan is trying to invest in ICT that seems to be the sector along with tourism , will they be successful, time will tell. If there is a silver lining, the oil and gas reserves in Azerbaijan are small compared to a lot of these nations, so the needed reforms will occur in Azerbaijan much quicker than some of these countries.
Economic reforms are badly needed and unfortunately, I don't see any good optimist future under these commands.

Economic reforms are badly needed and unfortunately, I don't see any good optimist future under these commands.

These reforms will come eventually. Azerbaijan is making tremendous progress. Some huge obstacles still remain but better days are ahead.

Economic reforms are badly needed and unfortunately, I don't see any good optimist future under these commands.

Azerbaijani GDP will grow 5pct to 9pct per year in 2012 to 2014
Monday, 18 Oct 2010
Interfax reported that Azerbaijan Economy Ministry projects GDP growth of 5% to 9% per year in 2012 to 2014.

The country is expected to post GDP growth of 5.8% this year and 3.8% in 2011.

The government representative said "For 2012 the Economic Development Ministry is forecasting GDP growth of 6.4% for 2013 5.4% and for 2014 9.2%."

The ministry reckons GDP growth in the oil sector will be 3.6% in 2012, 2.2% in 2013 and 12% in 2014. For the non-oil sector 8.5%, 7.7% and 7.6% respectively.

The source said "Nominal GDP volume in 2012 is projected at AZM 43.861 billion, in 2013 AZM 47.567 billion and for 2014 AZM 53.148 billion."

Per capita GDP is forecast at USD 5,275 this year, USD 5,537 next year, USD 5,976 in 2012, USD 6,412 in 2013 and USD 7,091 in 2014.

(Sourced from Interfax)