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State Oil Fund of Azerbaijan allocates over $4 billion for implementation of various projects and programs

Oil&Gas Materials 5 August 2012 04:45 (UTC +04:00)
The State Oil Fund of Azerbaijan (SOFAZ) allocated about 3.34 billion manat for the implementation of various infrastructure projects and other needs as of July 1, the official website of the State Oil Fund said on Friday.
State Oil Fund of Azerbaijan allocates over $4 billion for implementation of various projects and programs

Azerbaijan, Baku, Aug.5 /Trend E.Ismayilov/

The State Oil Fund of Azerbaijan (SOFAZ) allocated about 3.34 billion manat for the implementation of various infrastructure projects and other needs as of July 1, the official website of the State Oil Fund said on Friday.

A significant amount of funds directed at improving the welfare of refugees and internally displaced persons, as well as addressing their employment. The State Oil Fund has allocated 1.020.2 billion for these purposes.

Some 779.6 million manat were directed to lay the water pipeline from Oguz-Gabala zone to Baku, 762.5 million manat - the reconstruction of the Samur-Absheron canal.

Some 297.9 million manat has been allocated to finance the equity of Azerbaijan in Baku-Tbilisi-Ceyhan oil pipeline (the construction was completed in 2006), a railway project Baku-Tbilisi-Kars - 259.4 million manat, increasing the authorized capital of the Azerbaijani Investment company - 90 million manat, the regulation of the proportion of State Oil Company of Azerbaijan (SOCAR) in the project development of Azerbaijani oil and gas fields Azeri-Chirag-Guneshli - 87.6 million manat, the funding of the State program on training of Azerbaijani youth abroad - 39.8 million manat.

SOFAZ assets increased by 9.6 percent as of July 1, 2012 compared to the beginning of this year ($29.8 billion), amounting to $32,666 million.

State Oil Fund was established in 1999 and at that time its assets amounted to $271 million.

Based on SOFAZ's regulations, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

In 2001-2009 special attention was drawn to the development of the oil and infrastructure sectors, as well as the non-oil sector of the country. At the moment, a number of important projects in irrigation and transportation are financed at the expense of the funds.

The main purpose of the fund is the accumulation of funds and placement of its assets abroad to minimise the negative impact on the economy, preventing a 'Dutch syndrome' to ensure savings for future generations and maintain the current socio-economic standard in the country.

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