Azerbaijan, Baku, 9 October / Trend corr. U.Ismayilova/ їInternational Financial Corporation (IFC) plans to select two pilot companies by the end of 2008 within the 2nd phase of the program on technical assistance to application of up-to-date corporate governance standards in Azerbaijan (ACGP),ї IFC representative in Azerbaijan Aliya Azimova said on 7 October.
The purpose of the project is to improve the corporate governance practice in joint stock companies, including commercial banks. Pilot organizations will be selected in conformity with investment potential and financial prospects of companies and banks, their disposition to reforms. Selected companies and banks will be able to take part in a large program envisaging estimation of their corporate governance practice, consultations to improve the mutual relations amongst structures and councils, management and stockholders. Moreover, assistance will be rendered to bring corporate documents in conformity with best practices, to develop more transparent and open financial reports.
Participation in the pilot program of the second phase, unlike the first, will require payment. The payment will depend on the volume of work. The change is required to provide loyalty to participation of local companies and banks in ACGP.
Swiss State Secretariat for Economic Affairs (Seco) undertook financing of the second phase of the project and allocated over $4mln for implementation.
Maximum 10 companies will be selected within the second phase, for one of the priorities will be not only quality but also quantity, in conformity with large number of companies an essential results can be achieved. Six banks and companies were selected in the first phase.
Corporative governance project assists to introduce corporative governance standards in conformity with the Economic Cooperation and Development Organization norms.
An official project opening, initiated by the IFC and financed by Seco, was held on 26 January 2005. Projectїs first phase implementation was envisaged for three years and with total budget in $2.1mln.
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