SUMMARY: This information is drawn primarily from the Azerbaijani local press, and has not been checked for accuracy. The opinions and policies expressed in this report are those of the authors, not the U.S. Government. END
- NEW BAKU INTERNATIONAL SEAPORT
- AIC EXPANDING PORTFOLIO
- AZERBAIJAN UNAFFECTED BY GLOBAL CREDIT CRISIS
- EBRD - UNIBANK FINANCING WORTH USD 35 MILLION
- EBRD POWER PLANT PROJECT
- AZERBAIJAN GDP TO INCREASE 18.2 PERCENT IN 2008
- EBRD - UNIBANK FINANCING WORTH USD 35 MILLION
- GOAJ EXPECTS 13 PERCENT DROP IN INVESTMENT IN 2008
- AZERBAIJAN MANAT APPRECIATION
- GOAJ CHANGES PROCEDURE OF STATE PROCUREMENT TENDERS
- OIL PRODUCTION TO INCREASE 40 PERCENT
- RUSSIA INTERRUPTED GRAIN SUPPLIES TO AZERBAIJAN
- SOFAZ RECEIVES ZYKH AND GOVSAN BONUS
- AIC ANNOUNCES A TENDER FOR ITS BALANCE-SHEET AUDIT
- TENDER FOR PHARMACEUTICALS, BANDAGE AND MATERIALS
- TENDER FOR REHABILITATION OF IRRIGATION SYSTEM
- DEFENSE MINISTRY TENDER
NEW BAKU INTERNATIONAL SEAPORT
The initial study and assessment for the new Baku International Trade Seaport in the Alat district has been completed. The working group has already started designing a map of the site. The Transport Ministry announced that the feasibility study is expected to be completed by mid-December. South Korea's GS Engineering and Construction sent the final draft of a new port to the Transport Ministry on September 3. Relocation of the port will be implemented in three phases: 2008-2011, 2011-2013 and 2012-2015 and will cost around USD 396 million. There will be 11 berths, of which 6 will be constructed at the first phase. The capacity of the port will be 11.6 million tons of cargo by 2015. There are unofficial reports that GS Engineering and Construction has already been awarded the construction contract for the new port.
AIC EXPANDING PORTFOLIO
Heydar Babayev, Minister of Economic Development has announced the GOAJ's readiness to continue supporting the Azerbaijan Investment Company (AIC) by providing more financial resources to the company. AIC is currently looking into 50 different projects and plans to utilize around AZN 90 million by the end of 2007. AIC is preparing to be a founder of two investment companies with the Islamic Development Bank and Kuwait Financial House.
AZERBAIJAN UNAFFECTED BY GLOBAL CREDIT CRISIS
The National Bank of Azerbaijan (NBA) continues to monitor Azerbaijan's financial stability. The director of the NBA Research & Statistics Department, Emin Huseynov said according to the Bank's Financial Stability Committee, the global credit crisis has had an insignificant effect on Azerbaijan's financial sustainability.
EBRD POWER PLANT PROJECT
The European Bank of Reconstruction and Development (EBRD) and the Government of Azerbaijan have signed an agreement to provide a USD 92 million loan to the Azerbaijan power generation company, Azerenerji, to finance the rehabilitation of the AzDRES thermal power plant, the largest power plant in Azerbaijan with a capacity of 2,400 MW. The loan will be used to finance a recently signed contract between the state-owned power company Azerenerji and China National Electric Equipment Corporation (CNEEC) to improve the plant's reliability, efficiency, health and safety conditions and to reduce carbon dioxide emissions. The financing complements an initial USD 115 million loan by the EBRD signed in November 2006.
AZERBAIJAN GDP TO INCREASE 18.2 PERCENT IN 2008
Heydar Babayev, Minister of Economic Development, has announced that due to the increase in the world oil prices, Azerbaijan's real GDP growth for 2008 will make increase 18.2 percent. Azerbaijan's GDP grew at 36 percent in 2006 and the latest expectation is 29 percent for 2007.
EBRD - UNIBANK FINANCING WORTH USD 35 MILLION
The European Bank for Reconstruction and Development (EBRD) and Azerbaijan's Unibank have signed an agreement for a syndicated loan worth USD 35 million. The syndicate includes Anglo-Romanian Bank Limited, RZB Group, State Bank of India, VTB Bank Europe, Indover Bank, Wachovia Bank, Chinatrust Commercial Bank, Land Bank of Taiwan, Offshore Banking Branch, National City Bank, Banco Efisa, Banque de Commerce et de Placements, DHB Bank, Hipoteku Banka, and Credit Europe Bank (Suisse). This is the third loan the EBRD has organized for Unibank.
GOAJ EXPECTS 13 PERCENT DROP IN INVESTMENT IN 2008
The GOAJ forecasts a 12.9 percent drop in investment next year to USD 7 billion. Domestic investment is forecasted to total USD 5 billion, up 6.1 percent, and foreign investment is forecast to drop to USD 2.1 billion, a decrease of 38.9 percent. Total investment for 2007 is forecast at USD 8.2 billion, up 14.9 percent from 2006.
AZERBAIJAN MANAT APPRECIATION
The Government of Azerbaijan expects the Azerbaijani manat to appreciate of 5 percent per year until 2012. In 2005, the manat appreciated 4.3 percent and in 2006 it appreciated 2006 versus the U.S. dollar. The government expects the manat to gain 5 percent in 2007.
GOAJ CHANGES PROCEDURE OF STATE PROCUREMENT TENDERS
The Azerbaijan State Procurement Agency (ASPA) plans to amend legislation on tender procedures. The initiative is linked with introduction of a pilot computerized procurement system to operate through the ASPA website www.tender.gov.az. The system of e-purchases will make the selection of contractors on goods, works and services more efficient and transparent. Annually, the country conducts about 6,000 state purchases. In 2006, overall amount of the signed contracts for purchases reached USD 2.24 billion.
OIL PRODUCTION TO INCREASE 40 PERCENT BY 2011
GOAJ forecasts oil production in Azerbaijan to total 62.8 million tons in 2011, up 40 percent from 2007 production estimates. Oil production by the State Oil Company of the Azerbaijani Republic (SOCAR) in 2011 is forecasted at 8.6 million tons, down 2.3 percent from 2007. Azerbaijan International Operating Company (AIOC), the operator for the Azeri-Chirag-Gunashli project, will increase production by 55.2 percent to 54.204 million tons in 2011. The government said oil production in 2008 would total 52.131 million tons, 61.011 million tons in 2009, and 63.395 million tons in 2010. AIOC will account for the growth, producing 43.381 million tons in 2008, 52.311 million tons in 2009, and 54.745 million tons in 2010. SOCAR production will begin to drop in 2008 and will total 8.75 million tons, 8.7 million tons in 2009, and 8.65 million tons in 2010.
RUSSIA INTERRUPTED GRAIN SUPPLIES TO AZERBAIJAN
Russian producers have interrupted grain supplies to Azerbaijan, according to Minister of Economic Development Heydar Babayev. This is due to Russia's plans to introduce export dues for grain at the amount of EUR 22 per ton. Azerbaijan currently purchases the bulk of its grain from Kazakhstan.
SOFAZ RECEIVES ZYKH AND GOVSAN BONUS
On November 6 The Azerbaijani State Oil Fund received a bonus payment of USD 2 million from RUSSNEFT Apsheron Investments Limited in accordance with the Agreement signed between Azerbaijan Government and extractive company on the rehabilitation, development and production sharing for the block including the Zykh and Govsany oil fields.
AIC ANNOUNCES A TENDER FOR ITS BALANCE-SHEET AUDIT
The Azerbaijan Investment Company plans to announce a tender for its first financial statement audit. The audit will cover AIC activity from October to December 2006 and entire 2007. The auditor is also to analyze Company's investment portfolio.
TENDER FOR PHARMACEUTICALS, BANDAGE AND MATERIALS
The Center for Innovation and Equipment of the Ministry of Health of Azerbaijan) has announced a tender for the procurement of pharmaceuticals, bandage and materials for medical institutions under the Health Ministry. The tender consists of 12 lots as follows: drugs for patients with kidney problems; medication for hemophilia thalassemia patients; pharmaceuticals for blood donation and blood components; medicines for diabetes patients; drugs and serum for immunoprophylaxis of infectious diseases; chemical agents, nutrients, laboratory and diagnostic appliances, means for disinfection, disinfestations and deratization; drugs for concession group patients; the most required medicines for treatment and preventive treatment; narcotic analgesics for anaesthesia, neuromuscular relaxants, psychotropic drugs; medical oxygen and liquid nitrogen. For additional details see www.tender.gov.az.
TENDER FOR REHABILITATION OF IRRIGATION SYSTEM
The State Melioration and Water Economy Agency of Azerbaijan has announced a tender for the rehabilitation of an irrigation system along Mil-Mughan, one of the major collectors in mid-Azerbaijan, as specified in a credit agreement between the Government of Azerbaijan and the World Bank. The Bank has lent USD 42 million loan for the project, which covers 86,000 hectares of irrigated area along Samur-Absheron canal and 36,500 hectares along Mil-Mugan collector. For additional details see ww.tender.gov.az.
DEFENSE MINISTRY TENDER
Defense Ministry has announced a tender for the design and construction of two eight-story buildings. Applicants must submit their proposals in writing and other required documents. The participation fee is USD 1,200 (1,000 AZN). Deadline for submitting proposals is November 8, 2007, 3 p.m. Address: Baku, Bayil settlement, F. Khoshginabi Street. Work schedule, tender offers, and bank guarantee will be submitted by November 21, 2007, 3 p.m. The selection procedure will take place on November 22, 2007. Contact persons: S.Bakhshiyev, V.Nagiyev (994-12 439-49-43). For additional details see www.tender.gov.az