Problems Occurred in Negotiations between Azerbaijan and STX on Shop-Building Plant Construction

Business Materials 15 February 2008 15:18 (UTC +04:00)

Azerbaijan, Baku, 15 February / Trend corr. I.Khalilova / Technical problems have occurred in the negotiations with the South Korean STX company on the construction of the ship-building plant, Riad Gasimov, the executive director of the Azerbaijani Investment Company(AIC), stated.

"We insist on STX to acquire the minimum 35% in the project and to be the operator, but STX proposes establishment of company on implementation of project at participation of 4 shareholders. They are AIC, SOCAR, CASPAR and STX with share holding on 25% each.

The attention is focused on STX to be the operator of the project and attracted most investments from abroad.

The large vessels with 30,000 tons capacity cannot go to the plant as it will be constructed in the closed cistern. Vessels must go to the plant through the Volgodon canal, which is frozen for half a year. Therefore, there is a need to construct vessels with less capacity on the Caspian sea. There are plans that these vessels will be used amongst the four countries. The proposals on construction of additional vessels in the plant may be considered.

STX has been working over T-Bill projects. The company submitted the first variation of the project. However, the Government re-sent it for consideration. Initially, some $400mln is planned to be allocated.

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