The fate of the EBDR credit for AzGRES to be defined before April 10

Business Materials 7 April 2006 16:08 (UTC +04:00)

The government disagrees with the European Bank for Development and Reconstruction (EBDR) suggestion to create an independent Tariff Council. Every country has its own policy and Azerbaijan has made its choice, the head of the financial, tariff policy department, Oktay Ahverdiyev told Trend . Moreover, the proposed Tariff Council will be an independent body uncontrolled neither by the ministry nor by the Cabinet of ministers. And it will have the decision making powers , which previously belonged only to the Cabinet.

Some countries already have the similar Tariff Councils; Russia, Kazakhstan. However, Azerbaijan now is not in the position to follow all the EBDR advices.

Among the other EBDR rules- increasing energy prices will also be regarded from the position of local markets. Thus, the suggestion brought forward by the EBDR head

in Baku, Raymond Convey about increasing the energy rates by 2010 will not be accepted by the government.

The fate of EBDR other projects, including the AzGRES credits will be defined by the April 10 i.e. by the date of the EBDR president, Jean Lumiere arrival to Baku, as they will most likely be on the agenda of the discussions. Azerbaijani side has also rejected the 3 step credit resources.

The total cost of project is evaluated in $180m, $150m of them will be provided by the EuroBank.