Azerbaijan, Baku, Aug.4 / Trend N. Ismayilova /
The International Finance Cooperation has determined the third pilot company under the second phase of program on technical assistance to application of cotemporary standards of the Azerbaijan Corporate Governance Project (ACGP), IFC project head Caroline Bright said on Aug.4.
The third pilot company will be publicized in September, Bright said.
This company does not belong to the country's banking sector, Bright added.
The Azerbaijan Corporate Governance Project works to improve corporate governance practices of companies, including commercial banks. The choice of pilot organizations is carried out in accordance with the investment potential and financial prospects of companies and banks, their inclination for reforms. Selected companies and banks will be able to participate in a broad program providing estimation of their corporate governance practices, consultations on improvement of relations between authorities and boards, as well as between management and shareholders.
Participation in the pilot program of the second phase will be paid, unlike the first. Payment will depend on the volume of work. This change was made to ensure loyalty to the participation of private companies and banks in the ACGP program.
The Swiss State Secretariat for Economic Affairs SECO undertook financing the second phase, allotting more than $4 million to implement the program.
The project on corporate governance helps in applying standards of corporate governance in accordance with the rules of the Organization for Economic Cooperation and Development (OECD).
Official opening of the first phase of the project, initiated by IFC and funded by SECO were held on Jan. 26, 2005. This phase with total budget of $2.1 million will take three years to complete.
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