AZERBAIJAN COMMERCIAL UPDATE, February 15 - 29, 2008

					  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


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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


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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


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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

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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


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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


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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


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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


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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


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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


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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


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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


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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


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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