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Reference ID	Created	Released	Classification	Origin
08BAKU234	2008-03-12 08:41	2011-08-26 00:00	UNCLASSIFIED	Embassy Baku

VZCZCXRO2390
RR RUEHLN RUEHVK RUEHYG
DE RUEHKB #0234/01 0720841
ZNR UUUUU ZZH
R 120841Z MAR 08
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC 4939
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2698
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS SECTION 01 OF 02 BAKU 000234 
 
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, February 15 - 29, 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. 
 
¶2. RAILWAY DEVELOPMENT PROGRAM 
------------------------------ 
 
The Government of Azerbaijan has finalized the draft of the Railway 
Development Program for 2008 - 2011 and submitted it to the 
President for approval.  The program includes a comprehensive 
development and upgrading of the railways system, infrastructure 
modernization, procurement of new locomotives, railcars and 
increasing the handling capacity.  The project is valued at USD 1 
billion, 40 percent of which will be provided by the World Bank. 
 
¶3. AIC INVESTMENT IN WAREHOUSE PARK 
----------------------------------- 
 
The Azerbaijan Investment Company (AIC) plans to research plans to 
develop a large modern park of warehouses and refrigerators in Baku. 
 AIC will partner with ASNAF Corporation to design and build the 
park, which is expected to cover 3000 square meters.  AIC expects 
the joint company to spend USD 300 - 400 million to buy 
energy-efficient equipment from international manufacturers. 
 
¶4. WASTE-TO-ENERGY PLANT TO BE LAUNCHED 
---------------------------------------- 
 
According to Mikayil Jabbarov, Deputy Minister of Economic 
Development, four companies have submitted their proposals to build 
a waste-to-energy plant near Baku.  The Government, with advice from 
Currie&Brown, expects to select a winner soon and start construction 
this year. The Government is expected to fully finance construction 
of the plant. 
 
¶5. PERMMETAL TO BUILD A FACTORY------------------------------- 
 
Russian "PermMetal" plans to build a steel factory in Azerbaijan. 
The company expects to build a USD 2 million factory together with 
other investors and ultimately plans to take 35 percent of the 
domestic steel products market. 
 
¶6. BAKU SUBWAY TO EXPAND TO 70 STATIONS 
---------------------------------------- 
 
The Government expects to expand the Baku subway network to 70 
stations by 2040.  Presently construction works are carried out in 
the northern direction, but more expansion and constructions works 
are under way.  Pending Presidential approval, the Government 
expects the expansion project to help the subway network to conform 
to modern international standards. 
 
¶7. PUBLIC TENDER FOR SEWERAGE 
------------------------------ 
 
Azerbaijan's state water utility AzerSu has announced a public 
tender for sewerage in Baku. The application deadline is April 8. 
Potential bidders have to submit their offers by April 14. The bid 
opening will be held on April 14. The contact number is (+994 12) 
431-47-68. 
 
¶8. TENDER FOR PENSION REFORMS 
----------------------------- 
 
The State Social Protection Fund (SSPF) will soon announce a tender 
to review individual pension account systems in various countries 
and design a national system for Azerbaijan. Currently, SSPF is 
transitioning from a pay-as-you-go pension structure to 
individually-insured, state-funded pension accounts. 
 
¶9. INTERIOR MINISTRY AUTO SPARE PARTS 
------------------------------------- 
 
The Procurement Department of Azerbaijan's Interior Ministry has 
announced a procurement notice for auto spare parts for 2008.  The 
deadline is April 14.  The bid opening will be held on April 15. 
The contact number is (+994 12) 590-98-91; 562-48-12. 
 
¶10. MEDICAL UNIVERSITY OVERHAUL 
------------------------------- 
 
BAKU 00000234  002 OF 002 
 
 
 
Azerbaijan Medical University has announced a public tender for 
procurement of equipment and supplies and overhaul of its building. 
The application deadline is April 4.  Potential bidders have to 
submit their offers by April 14.  The bid opening will be held on 
April 15.  For more information, please call number is (+994 12) 
495-43-21. 
 
¶11. SARMATIA FEASIBILITY STUDY 
------------------------------ 
 
The Management Board of the International Pipeline Consortium 
Sarmatia has announced a tender for the feasibility study of the 
Eurasian Oil Transportation Corridor Project.  The project is 
considered crucial for the diversification, safety and security of 
crude oil supplies.  The deadline is March 18, 2008. Additional 
information is available at www.sarmatia.com.pl. SOCAR (Azerbaijan), 
Georgian Oil and Gas Corporation (Georgia) and Klaipedos Nafta 
(Lithuania) also are shareholders of Ukraine-Poland Sarmatia 
Consortium. Azerbaijan's, Poland's, Ukraine's and Georgia's national 
oil companies take 24.75% stake each, leaving 1% to Lithuania. 
 
¶12. NATIONAL BANK PROCUREMENT NOTICE 
------------------------------------ 
 
The National Bank of Azerbaijan has announced a procurement notice 
for installation of auto fire-extinguisher system, UPS, stabilizer, 
generators and electricity equipment in server vaults at the Reserve 
Center. The application deadline is March 11 and potential bidders 
have to submit their offers by March 27. The bid opening will be 
held on March 27. The contact number is (+994 12) 493-11-22. 
 
¶13. WATER AND SANITATION PROCUREMENT 
----------------------------------------- 
 
The Government of Azerbaijan has received loans from the Asian 
Development Bank (ADB) in the amount of US$ 30 million toward the 
cost of the Urban Water Supply and Sanitation Project, and it 
intends to use the proceeds of the loans to payments for goods, 
works, related services and consulting services to be procured under 
this project.  Bidding for contracts will be governed by the 
Procurement Guidelines of the Asian Development Bank. 
 
¶14. CASPIAN SEA OIL FLEET TENDER 
--------------------------------- 
 
Caspian Sea Oil Fleet (SOCAR) announced an open tender to purchase 
spare parts to repair the Gurban Abbasov vessel. The tender 
commission stipulates that all necessary materials are to be 
delivered during three months after selection and agreement, payment 
will be transferred partly during a year after equipment and spares 
are delivered. Deadline: April 10, 2008. Address: Baku, 13, Khojali 
Avenue. Work schedule, tender proposals and bank guarantee will be 
submitted till April 17, 2008, 11 am. The tender procedure will take 
place on April 18, 2008, at 11 am. Contact phone: 490-20-26. 
 
DERSE

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Viewing cable 08BAKU234, AZERBAIJAN COMMERCIAL UPDATE, February 15 - 29, 2008