Barmek not helping MED's commision Minister of Economic Development

Politics Materials 8 June 2006 13:30
Barmek not helping MED's commision  Minister of Economic Development

Barmek Azerbaijan is not helping the state commission established at the Ministry of Economic Development to review the companys contractual assumptions, Trend reports quoting Heydar Babayev, Minister of Economic Development. He said only 4 out of 40 issues have been solved to date.

В"The companys greatest concern is the assumption stating that starting 2006 Barmek shall pay the full price for power purchased from AzenerjiВ", - said Mikail Jabbarov, head of commission and deputy Minister of Economic Development.

Under the contract, during the first year of Bakielektrikshebeke operation the company should have paid 50% of power price, in second 55%, in third 60%, fourth 75% and fifth 100%.

According to the companys report, during 1Q2006 it purchased power at 44.7mln manat, but collected from consumers only 22.8mln manat. This is an evidence of incorrect work organization, Jabbarov said. Alongside, Alongside, Barmek files two actions, for increase of power fee and the governmental reimbursement of first category consumers debts (strategic facilities). В"We assumed nothing for fees rising, whatever Barmek says. Stating claims on first category consumers, Barmek wants to evade paying its debtsВ", - Jabbarov said.

Jabbarov also commented on the statement by Barmeks president Huseyn Arabul regarding suspension of all activities to June 30 in case eh government fails to meet its obligations and applying to Arbitrary Court. The company is going to require reimbursement of A$291mln investments.

Babayev said such statements by Barmek only imply its anxiety. Besides, Minister did not confirm the company-announced investments amount, the company already applied to Arbitrary Court. В"The contract envisages the possibility of canceling it ex parte. Azeri government is ready to defend its interests and take relevant measures В", - Jabbarov said.