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Azeri Economic Development Ministry Intends to Fulfill Barmek's Obligations through Court Azeri Deputy Minister

Politics Materials 6 December 2006 14:22 (UTC +04:00)
Azeri Economic Development Ministry Intends to Fulfill Barmek's Obligations through Court  Azeri Deputy Minister

One question has remained unsettled between the Azerbaijani Government and Barmek Holding in the process of takeover of the assets of Baku and Sumgait Electric Networks from Barmek Holding, Trend reports.

This question is linked with the non-collection and non-payment of the debts for the use of the electric power by the subscribers, the Azerbaijani Deputy Economic Development Minister, Mikail Jabbarov, stated on 6 December.

Our positions differ greatly. Barmek considers that Open Joint-Stock Companies Baku Electric Network and Sumgait Electric Network created by the State should assume the responsibility for non-collected debts, Deputy Minister said. According to Jabbarov, such a position does not correspond with the contract or business relations, because the key activity of the Company is to carry out the collection of debts and payment for the electric power.

Work on the remaining takeover documents has concluded efficiently. This is the only remaining question, in relation to which a special document will be prepared, reflecting the positions of the Government and Barmek.

The Court will define who is correct in this dispute. This is our proposal and we want to complete the court process soon. We have already expressed our position to the company that the court process is delayed due to such questions and we do not want to delay this process, Deputy Minister underlined.

He refused to highlight the amount of the debts to Azerenerji, noting that it is a very huge amount.

According to him, Barmek has two kinds of debts to Azerenerji. The matter is that according to the management contract, in the first stage of the activities, Barmek had the opportunity not to fully pay off the used electric power: in the first year 50%, later 55%, 60%, 75% and fifth year (from 2006) 100%.

We have repeatedly stated that the financial problems of Barmek began exactly from 2006 because it has inaccurately established its activities and allocated unsatisfactory investments to the electric networks. Paying 50-60% of the finances does not mean that the State made the remaining finances as a gift to Barmek. The contract specifies that after the completion of the defined period, Barmek should pay off the debts through collected finances, Jabbarov said.

The first debt to Azerenerji emerged due to the non-payment of the finance for the purchase of electric power from this year, and the second, collection of debts for the previous years 50%, 45%, 40% and 25%).

Therefore, it is a huge amount, and these facts are supported by the documents which will be submitted during the court investigation, Deputy Minister concluded.

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