VZCZCXRO3462
RR RUEHLN RUEHVK RUEHYG
DE RUEHKB #0324/01 0951230
ZNR UUUUU ZZH
R 041230Z APR 08
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC 5105
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2755
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS SECTION 01 OF 02 BAKU 000324 
 
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, March 01 - 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. 
 
PLANS FOR FOUR-LANE HIGHWAYS 
SHAMAKHI-GUBA HIGHWAY TO OPEN IN 2011 
URBAN TRANSPORTATION PLANS 
AZENCO TO EXPORT CONSTRUCTION SERVICES 
HYDROELECTRIC POWER 
E-TICKETING TO BE INTRODUCED IN TWO YEARS 
CUSTOMS COMMITTEE TENDER 
A NEW PHONE NETWORK OUTSIDE OF BAKU 
JAPANESE GOVERNMENT SERVICE GRANT 
WATER INFRASTRUCTURE PROJECTS 
SOFAZ PROCUREMENT 
AIRLINES TENDER FOR FILLING MODULES 
AIRPORT TENDER FOR FIRE EXTINGUISHERS 
AZAL PROCUREMENT NOTICE FOR TIRES 
 
¶2. PLANS FOR FOUR-LANE HIGHWAYS 
------------------------------- 
 
Azerbaijan's Ministry of Transport suggests building four-lane 
concrete highways to run along the existing international 
expressways that are being reconstructed. The Minister of Transport 
Ziya Mammadov expects the roads to be financed with public funds and 
international loans. 
 
¶3. SHAMAKHI-GUBA HIGHWAY TO OPEN IN 2011 
---------------------------------------- 
 
Minister of Transport Ziya Mammadov informed that the blueprint of a 
highway that will join the regions of Guba and Shamakhi will be 
ready in a few months.  Mammadov added that the project is slated to 
commence in 2009 and be completed in 2011. 
 
¶4. URBAN TRANSPORTATION PLANS 
----------------------------- 
 
Azerbaijan's Ministry of Transport has proposed the government build 
30 pedestrian subways, 14 overpasses and 7 multistory auto parks 
during 2008-2011. 
 
¶5. AZENCO TO EXPORT CONSTRUCTION SERVICES 
----------------------------------------- 
 
Azenco, a construction company owned by Azerenerji, the state-owned 
energy monopoly of Azerbaijan, plans to build on its success with 
international partners and expand its international construction 
projects. 
 
¶6. HYDROELECTRIC POWER 
---------------------- 
 
The state electricity monopoly Azerenerji is working on developing 
small hydropower stations.  Azerenerji plans to construct 300 small 
hydropower stations with capacity from 0.5 up to 1.5 mega watts. 
The share of hydropower stations in Azerbaijan does not exceed 10 
percent currently, but Azerenerji believes they have a potential to 
be increased up to 15-20 percent. 
 
¶7. E-TICKETING TO BE INTRODUCED IN 2010 
--------------------------------------- 
 
The Azerbaijan State Railways is moving forward with computerization 
of ticket sales in its railway stations.  Beginning in 2010, the 
railroad plans to switch to e-ticketing after completing 
computerization system. 
 
¶8. CUSTOMS COMMITTEE TENDER 
--------------------------- 
 
The State Customs Committee announced a tender to purchase computer 
and office equipment and technical services to improve automation 
process. Deadline: April 24, 2008, 6 pm. Address: Baku, 2, 
Inshaatchilar Avenue. The tender procedure will take place on April 
25, 2008, at 11 am. Contact phone: 497-63-80. Contact person: Mr. 
Tamkin Khalilov. 
 
¶9. A NEW PHONE NETWORK OUTSIDE OF BAKU 
 
BAKU 00000324  002 OF 002 
 
 
-------------------------------------- 
 
Baku Telephone Communication Company of the Ministry of 
Communications & Information Technologies of Azerbaijan has informed 
of plans to lay a new network just outside the capital in connection 
with construction of a new sea port in the Alat settlement outside 
of Baku and move of industrial enterprises and companies to this 
territory. 
 
¶10. JAPANESE GOVERNMENT SERVICE GRANT 
------------------------------------- 
 
The Japanese Government has awarded a USD 2.05 million equipment 
grant to Azerbaijan for Baku emergency call service.  The grant is 
designed for raising functionality of emergency call service systems 
of some of Baku urban clinical hospitals.  The grant covers 400,000 
potential patients. 
 
¶11. WATER INFRASTRUCTURE PRJECTS 
-------------------------------- 
 
Azerbaijan Rural Crediting Agency (under the Ministry of 
Agriculture) has announced civil works to restore irrigative and 
drainage infrastructure within the North-West Development Project of 
the International Fund for Agricultural Development (IFAD). The 
project's total cost is $25.148 million with primary share of 
Azerbaijan of $2.69 million. Bidders should submit the documents 
till April 16, 2008, 5 pm to the address: Baku, 40, U. Hajibeyov 
Street, the House of Government, room No 828. Tender proposals will 
be submitted till April 24, 2008, 5 pm. The proposals will be opened 
on April 25, 2008, at 12 pm. Contact phone: +99412 493-46-93 (fax: 
+99412 498-13-95). e-mail: GHuseynova@office.az. Contact person: 
Gabil Huseynov. 
 
¶12. SOFAZ PROCUREMENT 
--------------------- 
 
The State Oil Fund of Azerbaijan (SOFAZ) announced a tender to 
purchase oil and gas wells drilling equipment.  SOFAZ also intends 
to purchase pumping compressor pipes, connecting pipe, transit 
pipes, electric cables and spare parts.  Those companies wishing to 
participate or get more information can contact Emin Gasimov, SOFAZ, 
telephone: 498-77-53, 498-62-55 (172). 
 
¶13. AIRLINES TENDER FOR FILLING MODULES 
--------------------------------------- 
 
AzalOil, a sub-company of state concern Azerbaijan Airlines (AzAL), 
has announced an open tender for the purchase of filters, equipment 
for filtration and filling modules made in Europe and the United 
States and for fuel supply service on aviation sites.  The documents 
should be submitted by April 30, 2008 to International Airport named 
after Heydar Aliyev, Baku.  The bids will be received till 5:00 pm 
May 6, 2008.  The tender procedure will be held at 11:00 am May 12, 
¶2008. For more information call 497-27-24, 212-96-68. Contact 
person: Valery Setezhev. 
 
¶14. AIRPORT TENDER FOR FIRE EXTINGUISHERS 
----------------------------------------- 
 
International Heydar Aliyev Airport announced a tender to repair and 
purchase fire extinguishers.  Bidders should submit the documents 
till April 15, 2008, 6 pm to the address: Baku, 4, International 
Heydar Aliyev Airport.  Tender proposals will be submitted till 
April 22, 2008, 5 pm. The tender procedure will take place on April 
23, 2008, at 11 am.  Contact phone: 492-90-20. Contact person: 
Ramazan Bagirov. 
 
¶15. AZAL PROCUREMENT NOTICE FOR TIRES 
------------------------------------- 
 
Azerbaijan Airlines Company (AzAL) has announced a procurement 
notices for auto tires for Heydar Aliyev International Airport. 
Potential bidders have to submit their offers by April 28. The bid 
opening will be held on April 29. The contact number is (+994 12) 
492-90-20. 
 
DERSE