TIKA Project to Create First Industrial Town in Azerbaijan Requires Adjustment

Business Materials 24 April 2008 16:01 (UTC +04:00)

Azerbaijan, Baku, 24 April / Trend corr. I.Khalilova/ " Azerbaijan's Economic Development Ministry developed a conception on the creation of an industrial town in the country which will be constructed in Sumgayit," Samir Valiyev, head of Ministry's administration, said on 24 April. The venue of the town to be constructed and the required funds are currently being specified. The Government will be responsible for the expenditure.

Implementing the pilot construction of the 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 (TIKA). Due to change of the place for the town, TIKA project requires adjustment, because Sumgayit has enterprises, unlike the previously planned place, Yeni Yashma.

The town will be constructed on a territory that contains disused enterprises. The Government agreed to this and a draft decree has been developed.

Construction of 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 currently holding negotiations with the International Finance Corporation and other financial institutions.

In 2007 South Korea recommended that Azerbaijan involve Korean companies to construct 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.

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