Baku, Azerbaijan, March 1
By Emin Aliyev - Trend:
Azerbaijan has made some progress in structural reforms, according to the European Bank for Reconstruction and Development (EBRD) draft strategy for Azerbaijan.
The strategy is designed for three years and covers a period from 2014 to 2017.
"The government has made some improvement in tax administration with a view to both reducing tax compliance costs for businesses and increasing the tax collection rate. The new Customs Code, which came into effect in January 2012, includes strengthened provisions in various areas that are expected to bring regulations into line with international standards (including verification of the country of origin, valuation methods, single window principle in customs administration, customs audit, and electronic submission of information on goods to the customs authorities)," according to the document.
However, the reform process has had limited impact on corruption and should be intensified, EBRD analysts believe.
"The government has also continued to improve infrastructure and diversify routes for hydrocarbon exports. The central bank took steps to strengthen the financial system," according to EBRD. "The North-South rail corridor, linking Azerbaijan with Russia and Iran, as well as country's main East-West railway transport corridor, are being upgraded with the support of World Bank and other international financial institutions (IFIs)".
EBRD also noted the recent launch of construction of the international port, the largest in Caspian region.
"The port should help strengthen the country's role as a trade link between Europe and Asia," EBRD said.
EBRD draft strategy also notes the country's success in diversification of energy export routes.
"In June 2013, the Shah Deniz consortium chose the TAP pipeline as a potential export route to Europe. Also, Azerbaijan signed an intergovernmental agreement with Turkey on the construction of the TANAP pipeline, which will carry gas to Europe and Turkey," according to EBRD draft strategy. "In December 2013, Azerbaijan signed a memorandum of understanding on future gas supplies to Albania, Croatia and Montenegro. The new route should diversify Azerbaijan's export routes to international markets and Europe's access to energy imports".
As of late November 2013 the EBRD has signed a total of 138 projects with cumulative investment value of 1,577 million euros since initiating its operations in Azerbaijan in 1991.
The total value of these projects was 6.6 billion euros. Some 35 percent of the bank's cumulative investments were made in the energy sector, 33 percent in the financial institutions sector, 21 percent in the infrastructure sector and 11 percent in the corporate sector.