Azerbaijan Determines Place for Construction of New Industrial Town

Business Materials 7 February 2008 14:11 (UTC +04:00)

Azerbaijan, Baku, 7 February / Trend corr. I.Khalilova / The Azerbaijani Government has specified the position for the construction of the first industrial town in the country. The town will be constructed in Sumgayit, Heydar Babayev, the Economic Development Minister, said.

Implementing the pilot construction of industrial town project was planned in Khizi and Absheron. About AZN 8mln was allocated from the budget for its implementation. The project to construct the first Yeni Yashma industrial town is to be supported by the Turkish Cooperation and Development Agency (CDA).

"During the Soviet period Sumgayit was the main industrial enterprises and currently some enterprises are not operating, however, Sumgayit is still the best position for founding a new town," the Minister said.

The town, according to the Minister, will be constructed on a territory that contains unused enterprises. The Minister did not detail the names of the enterprises.

According to the Minister, constructing the industrial town in Sumgayit will allow the economy of funds, as well as playing a positive role in the development of enterprises. Funds were invested to the State Investment Program for 2008 for the construction of the town. There is a need for commerce financing for the further development of the town and the State is holding currently negotiations with the International Finance Corporation and other financial institutions.

In 2007 South Korea recommended that Azerbaijan involve Korean companies for the construction of the town. This issue was discussed during the meeting of the Azerbaijani Export and Investment Promoting Company (AZPROMO) with Korean Technical Assistance Organization KOYKO.

Small and middle entrepreneurs may operate in the territory of the town excluding trade enterprises. The main priority for these enterprises is that they may use the infrastructure created by the Government. The town will play a business-incubator role and will help integrate and establish business relations.