Barmek meets investment commitments for Baku and Sumgayit power networks at 10.8% - Tax Ministry
Barmek Azerbaijan, operator of Baku and Sumgayit power distribution networks, met its investment commitments on custody transfer agreement at 10.8%, reportedly said Nurali Mamedov, chief of preliminary tax investigations, Ministry of Tax. He said this event had been revealed in the course of the company activity investigation performed based on the Republican Prosecutors Office decision.
Since 2002, Barmek agreed to invest $27.7mln in power networks development upon the agreement concluded with the Ministry of Economic Development. From this amount $23.1mln were supposed to invest in Bakielektrikshebeke and $4.6mln in Sumgayitelektrikshebeke. However, only $3mln in total have been invested to date.
During its activity, Barmek took credits from IBA fro purchase of transformers and other equipment, but these credits were used improperly as well, Mamedov said. Investigations showed that the credits were repaid from power consumption fees.
At the moment the Ministry is establishing a workgroup to check Barmeks operation for meeting contractual commitments.