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ENERGY DISTRIBUTORS SUGGEST TO CUT THEIR DEBTS, MINISTER OF ECONOMIC DEVELOPMENT SAYS

Politics Materials 12 July 2005 18:45 (UTC +04:00)

"The issue of annulation or reconsideration of the contract with the managing companies might be resolved through mutual agreement between the sides, or through the court. No side should violate the rules,” Farhad Aliyev the Minister for Economic Development told Trend on Tuesday.

He was commenting on possible cancellation of contract with the companies managing the energy networks in the regions and in Baku - Bayva and Barmek Azerbaijan.

Aliyev noted that he was unaware of the relevant appeal by Azerenerji company.

"There are definite rules of transfer of electricity management to other companies. In compliance with the rules, the president adopts a contract on transfer to management. The contract is signed by the Ministry of the Economic Development on the behalf of the government.

The contract undersigned by the Ministry of economic Development is also inked by the Finance Ministry, the Justice Ministry, the Ministry of Taxes, as well as the Vice Premier. The document is also adopted by the President,” Aliyev underlined.

"As to implementation of obligations by the enterprises, I can not the gaps in their activities. We twice held a monitoring in Barmek and one in Bayva, as the company started functioning after Barmek.

We revealed serious drawbacks in the activities of the company and informed them of that. However, they cannot serve as reason to cease the contracts. We should base on real positions, no one should pursue private targets, but only the public ones,” the Minister underlined.

According to the Minister, the payments were not high while the companies undertook the companies for management. "The figure has increased essentially at the moment. Besides, the payments by public enterprises financed from the budget grew, and refugees.

There are also state enterprises, which do not pay to energy distributors. In most cases we ask Barmek and Bayva to make compromises for the poor. The request is, as a rule, made orally and we do not take any obligations before the companies. If the companies do not pay for energy purchased, they still owe for it.

The government will not make compromise, even if they pay by 60% or 40%, they will have to repay the rest debts. The enterprises demand payment of debts to the public enterprises, which do not pay for energy.

They offer to cut the non-payments in the amount of non-payment by the state enterprises. Once we did it, while we have no intention to repeat now. This year Barmek should pay 70%, while Bayva - 40%. However, none of them did it fully,” the minister underlined.

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