Business

170bn AZM allotted from state budget for investment program
A total of 170bn manats out of Reserve Fund of the state budget have been spent for projects implemented under an investment program in the country thus far.
Finance Minister Avaz Alakbarov has told AssA-Irada among them are the projects on rehabilitation of Vayxir water reservoir, accomplishment of the construction of Naxcivan Airport and restoration of Philharmonics.
According to him, 48bn manats out of 115bn manats allocated for the construction of Naxcivan Airport have been spent, while expenses for the rehabilitation of the Philharmonics constituted 60bn manats.       
"It is planned to direct definite part of 170bn manat worth of  resources of the Fund for covering Azerbaijan's stake in some economic projects," the Minister underlined.
Excellent growth forecast
Azerbaijan's economy could grow by 9-10 percent in 2004 compared with this year to approximately 36trln manats, according to Finance Minister Avaz Alakbarov.
The revenues and expenses of the state budget may surge by 12-15 percent, while the budget deficit will make up about 1 percent of GDP, noted the Minister, adding that the 2004 draft budget might assume oil trades at 20 US dollars a barrel.

Sun Tea to manufacture bio-tea
Sun Tea Factory, a member of a group of Azersun companies, will launch the production of bio-tea  soon, representative of the factory, Suat Karaaslan, has told Azernews.
According to him, bio-tea leaves are planted in Astara and Lenkoran Districts without using chemical fertilizers.
Sun Tea is the first tea packing factory in Azerbaijan and CIS operating on advanced technology and with large production capacity. The factory operating since 1996 employs 120 people, as most of them are martyrs' families and internally displaced persons (IDPs). Sun Tea manufactures 5 brand teas of 42 sorts. The factory imports almost 95 percent of raw materials from Sri-Lanka and India, while the rest five percent is brought from Lankaran and Astara Districts. The products packed in 100-, 250- and 500-g packages are labeled with ISO-9000 quality and hygiene certificate. All products undergo analysis at a special laboratory. Apart from covering domestic needs, the products are exported to Syria, Iran, Middle East and CIS countries.

Privatization program for AZAL ready
AZAL in partnership with the Ministry of Economic Development has prepared a five-year development program to privatize enterprises of the concern.
AZAL General Director Cahangir Asgarov has told AssA-Irada first the Grand Helicopter Company, AZAL Catering Company will be put for privatization, He added that state-owned share of the company will be declared open for privatization shortly.
Debt repayment
AZAL State Concern has repaid 70 percent of its total credits borrowed from the international financial institutions for implementing the projects on construction of Bina international airport, purchase of Boeing airliners, urgent aid and Air Flights Control thus far. AZAL General Director Cahangir Asgarov has told AssA-Irada the company is planning to pay off 26m US dollars more out of 120m dollar worth of loans allocated by the World Bank, the European Bank for Reconstruction and Development and other international institutions. The rest 24m US dollars will be cleared in 2004.

Energy conference in Turkey
An energy conference, The Story of Three Seas, opened at the Conrad Hotel of Istanbul, Turkey on June 10. The gathering with participation of 23 countries representing the Black Sea, Caspian and the White Sea coastal states and organized by the Union of Foreign Economic Relations (UFER) opened with a concert of the Tekfen Philharmonic Orchestra.
In his opening remarks, Turkish President Ahmet Necdet Sezer congratulated the participants in the conference, speaking of the importance of "The Story of Three Seas" project. The Turkish President went on saying that Turkey is a transport corridor for joining Central Asian, Caucasus and Western countries. "In a groundbreaking ceremony at Sangachal Terminal in Baku with Azerbaijani and Georgian Presidents in attendance, Azerbaijani President Heydar Aliyev had said: "Legend becomes true, as by joining Kazakhstan in the Baku-Tbilisi-Ceyhan project we got more power. The BTC and the Baku-Tbilisi-Erzurum gas pipeline that is to be constructed by 2006 are the largest projects of the 21st century". But I say Turkey is a territory where three seas join. Therefore, security issues in bays owned by Turkey should be reconsidered. I bless the project," Mr. Sezer wished success to the conference.
Attending the gathering were Turkish Minister for Energy and Natural Resources Hilmi Guler, Syrian Oil Minister Ibrahim Haddat, Us President's special envoy for Caspian issues Steven Mann, member of the UFER's Management Board Nihat Gokyigit, Azerbaijani Minister for Fuel and Energy Macid Karimov, Kazakh Energy Minister Vladimir Shkolnik, President of Statoil-Azerbaijan George Gunderson, spokesman for Iraqi Oil Minister Issam Al-Chalabi, spokesman for Iranian Oil Minister Mohammed Khagani, and chairman of the Board of Directors of the Russian Union of Oil and gas Companies Yuri Shafrannik.
The conference closed on Thursday.

CIS Tax chiefs gather in Baku
The 4th meeting of the Coordination Council (CC) of the CIS tax bodies opened in the Quba Hall of the Hyatt Regency Hotel of Baku on Thursday.
Taking part in the two-day gathering were delegations from the CC member states, Russia, the Ukraine, Moldova, Georgia, Kazakhstan, Kyrgyzstan, and Tajikistan, excluding Armenia and Byelorussia, as well as Latvian and Estonian tax chiefs, including Executive Secretary of the Inter-European Organization of Tax Administrations Rites Averats, adviser to the Economic Cooperation and Development Organization Gregori Wood,  Head of Department of the Eurasia Economic Union Larisa Zheleznyova, and Director of the European Union's Russian-British Center Lord Cromwell.
Opening the event, Azerbaijani Minister for Taxes Fazil Mammadov read the letter of congratulation by President Heydar Aliyev to the participants of the meeting, stressing that the documents to be adopted during the gathering will promote expansion of cooperation among the member states.
The meeting, to continue behind closed doors, will focus on making changes to the CC composition, the implementation of decisions adopted in the 3rd meeting of the Council, discussion of the Model Tax Code in a bid to apply a common tax model in CIS countries, and determining the time and place for the next meeting.
The Coordination Council of the CIS tax chiefs was founded in a summit of CIS Presidents on May 31, 2001. The first two meetings of the Council were held in Moscow, while the last took place in Yalta in September of 2002.

Azeri-Kazakh intergovernmental commission to convene
The next meeting of the Azerbaijani-Kazakh intergovernmental commission on economical cooperation will be held in the second half of 2003. The Kazakh Ambassador to Azerbaijan, Andar Shukputov, told AssA-Irada the exact date of the meeting is still to be decided due to the busy work schedule of the Azerbaijan government. At present, Experts are preparing the agenda of the meeting that will focus on development of intergovernmental relationships.
Debt on agenda
"Payment of $16.9m which Azerbaijan owes Kazakhstan will be discussed at a meeting of the Azerbaijan-Kazakhstan intergovernmental commission," Kazakh Ambassador Andar Shukputov said.
According to him, the question is being processed at the level of financial ministries of the two countries. He went on to say that the Kazakh party has proposed that the Azerbaijani side provide tankers in exchange for repayments.  Azerbaijan's debt to Kazakhstan arose following the purchase of agricultural and industrial products over 1992-1993.

Baku, Tbilisi to encourage female entrepreneurship
The National Confederation of Azerbaijani Entrepreneurial Organizations (AEC) and the Georgian Association of Employers will launch implementing the project on development of woman entrepreneurship shortly. A source from AEC has told AssA-Irada it is planned to collect statistic data on woman entrepreneurship and conduct large-scale propaganda campaign to shape woman entrepreneurial image in the country under the project. Besides, a workshop on the development of woman entrepreneurship will be held in Baku in September. A regional conference dedicated to outcomes of the project will be also arranged.

AZAL's talks with EUROcopter successful 
The negotiations between AZAL State Concern and French EUROcopter Company held in Paris were successful, as the parties agreed to drop the total price of 6 helicopters intended for transportation of offshore oil workers and to be purchased from France from 52,270,000 Euros to 50,720,000 Euros, AZAL General Director Cahangir Asgarov has told AssA-Irada.
According to him, two of the helicopters will be imported in August, while another two will be delivered to Baku this fall. All six helicopters, four with 12 seats and two with 20 seats, will be purchased by 2004.

Gov't asks financial institutions to help with flood damage 
The Azerbaijani government is currently specifying the funding required for the elimination of consequences of floods. Minister for Finance Avaz Alakbarov has told AssA-Irada that a governmental commission is finding out the exact volume of the damage caused in regions. The Minister underlined that necessary capital would be allocated from the state budget, while the government has also made appeals to the World Bank (WB), the European Bank for Reconstruction and Development (EBRD) and other international financial institutions to remove the consequences.
Deputy Prime Minister Abid Sarifov previously stated that the damages caused by floods amounted to 60m US dollars.

MPs ratify 2002 budget implementation report
The parliament heard a report "On Implementation of 2002 State Budget" in its session on Friday, chairman of the parliamentary commission on economic issues Sattar Safarov was speaking to MPs.
According to him, the revenues of the 2002 state budget were reported 4trln 780bn manats instead of estimated 4trln 551.2bn manats or 95.2 percent of the target. The incomes made up 15.4 percent of the Gross Domestic Product (GDP), as 74.4 percent of the budget's revenues occur on the Ministry of Taxes, 20.3 percent on the State Customs Committee, while 0.2 percent on the Ministry of Economic Development.
The rest 4.8 percent or 218.4bn manats were transferred to the state budget by other sources. Mr. Safarov said the expenses constituted 4trln 658.8bn manats instead of estimated 5trln 130bn manats or 90.8 percent of the plan, adding that an agreement on 70m US dollar worth of credit was signed in 2002. According to the commission chief, 210.3bn manats was allocated to cover the budgetary deficit of 107.6bn manats. The parliament approved the report "On implementation of 2002 state budget".

TRACECA railway chiefs to discuss unified tariffs
Rail chiefs of nations involved in the European Union's TRACECA project will meet  in Baku on July 7-10, National Secretary  for Azerbaijan of the TRACECA intergovernmental commission Akif Mustafayev has told AssA-Irada.
According to him, the gathering will discuss unified tariffs policy on railway transportation in countries the TRACECA corridor runs through.
Akif Mustafayev said the conference will be held at a hotel in Baku depending on the number of participants,  the conference hall of the TRACECA national secretariat was originally planned to host the event.
European experts Javier Solana, Chris Patten and European trio, due to visit Baku during the conference, are expected to take part in the gathering.

Shopping-exhibition center to open on seaside
A shopping-exhibition center will open in the Seaside Park shortly.
A source from the Ministry of Economic Development has told AssA-Irada the final stage is underway.
The Center to operate on permanent basis will mostly organize the exhibition of products of local enterprises, with their further sale, the same source said.