VZCZCXRO5759
RR RUEHLN RUEHVK RUEHYG
DE RUEHKB #0083/01 0310650
ZNR UUUUU ZZH
R 310650Z JAN 08
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC 4675
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2604
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS SECTION 01 OF 03 BAKU 000083 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/CARC 
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER 
ANKARA FOR FCS 
COMMERCE FOR 4231 ITA/MAC/ORUE FOR DSTARKS 
COMMERCE FOR 3004 ITA/FCS/ ADVOCACY FOR ACHAMS-EDDINE 
 
E.O.  12958: N/A 
TAGS: ECON EINV ETRD ENRG EFIN AJ
SUBJECT: AZERBAIJAN COMMERCIAL UPDATE, December 15 2007 - January 
15, 2008 
 
¶1. 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 SUMMARY. 
 
- ONE-STOP-SHOP 
- LAW ON INSURANCE WAS ADOPTED IN AZERBAIJAN 
- WBG TO DISCUSS A USD-673-MILLION RAILROAD PROJECT 
- HIGHWAY PROJECTS 
- LAFARGE TALKS ON NEW CEMENT FACTORY 
- EGYPT AND AZERBAIJAN PLAN PHARMACEUTICAL PRODUCTION 
- AZERBAIJAN MORTGAGE FUND TENDER 
- PUBLIC TV AND RADIO TENDER 
- BAKU INTERNATIONAL AIRPORT TENDER 
- BAKU INTERNATIONAL AIRPORT TENDER 
- ENVIRONMENTAL MINISTRY TENDER 
- MINISTRY OF HEALTH TENDER 
- MINISTRY OF HEALTH TENDER 
- GUSAR REGIONAL EXECUTIVE POWER TENDER 
- MINISTRY OF HEALTH TENDERS 
- SHEKI EXECUTIVE POWER TENDER 
- EQUIPMENT TENDER FOR AIRPORT 
- MINISTRY OF HEALTH TENDER 
- AZERFON TENDER FOR TELECOMMUNICATIONS TOWERS 
 
¶2.  "ONE-STOP-SHOP" 
------------------ 
 
The Presidential signed a decree on December 18 to implement the 
"one-stop-shop" principle of business registration at the Ministry 
of Taxation.  According to the decree, the Ministry of Taxes is 
responsible for registration of all commercial entities within three 
days of application. Public organizations and funds will continue to 
be registered by the Ministry of Justice. According to the decree, 
the Ministry of Taxes shall register businesses staring from January 
1, 2008, through its main and regional offices and has to make 
e-registration available in the near future.  The single-window 
principle is set to foster entrepreneurship and to improve the 
business environment. 
 
¶3. LAW ON INSURANCE WAS ADOPTED IN AZERBAIJAN 
--------------------------------------------- 
 
Azerbaijan's Parliament adopted a new law on insurance that allows 
representative offices of foreign insurance companies.  It allows 
for the creation of foreign companies, limiting foreign capital to 
49 percent of total capital of all companies. 
 
¶4. WBG TO DISCUSS A USD-673-MILLION RAILROAD PROJECT 
--------------------------------------------- ------ 
 
The World Bank Group (WBG) and the Azerbaijani Government will 
launch official negotiations on a rail trade and transport 
facilitation project in late January.  The project is estimated at 
USD 673 million with USD 450 million funded by WBG.  Project costs 
include renewal of critical assets (track, locomotives, signaling 
and power supply), implementation of international financial 
reporting standards and technical services to support incorporation. 
 
 
¶5. HIGHWAY PROJECTS 
------------------ 
 
The Government of Azerbaijan and the World Bank are completing 
preparation of the Third Highway Project in Azerbaijan.  The French 
BNP Paribas is in talks with the Ministry of Finance to finance a 
project of expansion of the Baku - Georgia highway.  BNP Paribas has 
already increased the cost estimate of the expansion of the Yevlakh 
- Georgia highway up to $400 million. 
 
¶6. LAFARGE TALKS ON NEW CEMENT FACTORY 
-------------------------------------- 
 
The Azerbaijan Investment Company (AIC) and Lafarge are still in 
talks on the location of a new cement factory.  The French company 
will send in another mission in January 2008 to continue 
negotiations with the Government. Lafarge declined to place a cement 
factory near Tovuz, as suggested by the Azerbaijan counterpart, 
instead wanting to build the factory near Baku. The factory's 
planned capacity can reach 1-1.5 million tons, which would make 
 
BAKU 00000083  002 OF 003 
 
 
40-50 percent of the Azerbaijani cement market. Lafarge, Ministry of 
Economic Development and AIC signed the Memorandum of Understanding 
for the project on December 28, 2006. 
 
¶7.  EGYPT AND AZERBAIJAN PLAN PHARMACEUTICAL PRODUCTION 
--------------------------------------------- ---------- 
 
Azerbaijan and Egypt are exploring a joint a pharmaceutical factory. 
 The Minister of International Cooperation of Egypt Faiza Aboulnaga 
estimated the project valued at USD 3 billion. 
 
¶8.  AZERBAIJAN MORTGAGE FUND TENDER 
---------------------------------- 
 
The Azerbaijan Mortgage Fund under the National Bank has announced a 
tender to select an auditor of the 2007, 2008 and 2009 fiscal years. 
Deadline: February 7, 2008. Address: AMF administrative building, 8, 
¶G. Guliyev Street. For more information call 441-24-23 (111). 
Contact person: Sabina Babayeva. 
 
¶9.  PUBLIC TV AND RADIO TENDER 
------------------------------ 
 
Public TV and Radio Broadcasting Company announced a tender to 
install centralized air-conditioning in its 3-storey administrative 
building. Deadline: February 6, 2008. Address: Baku, 241, 
Sharifzadeh Street. Contact phone: 430-13-16. Contact person: A. 
Alakparov. 
 
¶10.  BAKU INTERNATIONAL AIRPORT TENDER 
------------------------------------- 
 
Baku International Airport has announced an open tender for 
varnish-and-paint products. Deadline: January 29, 2008. Address: 
International Airport n.a. Heydar Aliyev, Baku. For more information 
call (99412) 497-26-46. Contact person: Faig Ismayilov. 
 
¶11.  BAKU INTERNATIONAL AIRPORT TENDER 
------------------------------------- 
 
Baku International Airport has announced an open tender for spare 
parts for automobiles, trucks and tractors.  Deadline: February 15, 
¶2008. Address: Baku International Airport n.a. Heydar Aliyev, Baku. 
For more information call (99412) 497-26-46. Contact person: Faig 
Ismaylov. 
 
¶12.  ENVIRONMENTAL MINISTRY TENDER 
--------------------------------- 
 
The Survey & Forestry Expedition of the Ministry of Environment & 
Natural Resources has announced a tender to purchase trees for a 
highway belt and install irrigation systems for the subject trees. 
Deadline: February 21, 2008. Address: 1, 3rd Settlement Street, 
Ahmadli Settl., Baku. For more information call 470-96-94. Contact 
person: Zeydulla Abdullayev. 
 
¶13.  MINISTRY OF HEALTH TENDER 
----------------------------- 
 
The Ministry of Health has announced a tender for pharmaceuticals 
and bandages for the Ismailli central district hospital for 2008. 
Deadline: January 23, 2008. Address: 65, Akhundov Street, Ismailli 
region. For more information call 5049-83. Contact person: Agadostu 
Vezirova. 
 
¶14.  MINISTRY OF HEALTH TENDER 
----------------------------- 
 
Ministry of Health of Azerbaijan announced a tender for medicines 
and bandages for Khanlar Central Regional Hospital for 2008. 
Deadline: January 31, 2008. Address: Khanlar, 38, H.Aliyev Avenue. 
Contact phone: 5-21-14. Contact person: Gulara Mammadova. 
 
¶15.  GUSAR REGIONAL EXECUTIVE POWER TENDER 
----------------------------------------- 
 
Gusar Regional Executive Power has announced a tender for 
refurbishment of city buildings, reconstruction of roads and 
pavements. Deadline: February 13, 2007. Address: 140, Heydar Aliyev 
Street, Gusar. For more information call 5-31-83. Contact person: 
 
BAKU 00000083  003 OF 003 
 
 
Ikram Tumarkhanov. 
 
¶16.  MINISTRY OF HEALTH TENDERS 
------------------------------ 
 
Ministry of Health of Azerbaijan has announced tenders to purchase 
medicines and bandages for Sumgait Child's City Hospital and to 
carry out repair and construction works at the National Oncological 
Center in 2008. 
For the Sumgayit hospital: deadline - February 4, 2008, address - 
Sumgait, 10th Yard, Medical Town, contact phone: 645-73-80, and 
contact person - Kamala Maharramova. For the National Oncological 
Center: deadline - February 6, 2008, address - Baku, Yasamal 
district, 10, Sharifzadeh Street, contact phone: 432-39-41, and 
contact person: Yusif Babayev. 
 
¶17.  SHEKI EXECUTIVE POWER TENDER 
-------------------------------- 
 
Sheki Region Executive Power announced a tender for restoration 
works in the city. Tender commission informed that the tender was 
announced for 4 lots: restoration works in the city, major repairs 
of roads, available housing, and administrative structures. 
Deadline: February 11, 2008. Address: Sheki Region Executive Power. 
Contact phone: 4-28-70. Contact person: Yusif Abdurakhmanov. 
 
¶18.  EQUIPMENT TENDER FOR AIRPORT 
-------------------------------- 
 
Baku International Airport named after Heydar Aliyev announced open 
tender for office and computer equipment. Deadline: February 6, 2008 
Address: Baku, International Airport named after H.Aliyev. Contact 
phone: (99412) 497-26-46. Contact person: Faik Ismailov. 
 
¶19.  MINISTRY OF HEALTH TENDER 
----------------------------- 
 
The Ministry of Health of Azerbaijan has announced a tender for 
pharmaceuticals and bandages for Sumgait city emergency hospital for 
¶2008. Deadline: February 8, 2008. Address: 11, M.Huseynzadeh Street, 
Sumgait. For more information call 645-87-82. Contact person: 
Bakhira Mirzoyeva. 
 
¶20.  AZERFON TENDER FOR TELECOMMUNICATIONS TOWERS 
--------------------------------------------- --- 
 
Mobile operator Azerfon LLC announced tender to select a contractor 
to install telecommunications towers for Company's GSM sites. 
Deadline: January 17, 2008, 6 pm. The main requirements to 
participants are: experience in installation of telecommunications 
towers for GSM operators. Proposals can be submitted by e-mail 
dfosty@afon.az or to: Baku, AZ1102, 2, Alatava, Azerfon LLC. Contact 
person: Dmitriy Fostin. For more information call (994 12) 444 07 
¶30. 
 
DERSE