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Economic Development ministry and Barmek Made Up Network Acceptance Protocol

Business Materials 4 August 2006 19:18 (UTC +04:00)

The Ministry of Economic Development of Azerbaijan Republic and the energy-distributing company Barmek made up a protocol on acceptance of Baku and sumgayit electricity supply network, Trend reports. Barmek believes the Ministry will carry out acceptance of network. However, no starting date has not been fixed up to now.

Most likely that it will start after the companys investments are evaluated. The auditor to be chosen as a result of it. The company pointed out that the Ministry came to an agreement with Barmek that just Ernst & Young from among four candidates could already start evaluation after it makes a contract with the Ministry.

The evaluation of Barmek`s investments is urgent, since the company registered a claim against the Ministry of Economic Development of Azerbaijan to the International Court on Investments in Washington. The claim includes Barmek`s investments at the rate of $291 m into the Baku Electricity supply network. As it was pointed out at the company the claim has already registered, but neither the date of considering of the writ in the International Court on Investments in Washington nor Barmek`s claim against the Ministry to the local courts. Theare are thoughts expressed in the Ministry of Economic Development that the real Barmek`s implemented investments in Azerbaijan much less than Barmek suggests.

The agreement between Barmek Holding and the Ministry of economic Development on handling over of Bakielektrikshabaka for a long-term management was signed in 2001, and on handling over of Sumgayitelektrikshabaka (It includes electric supply networks of Sumgayit and other northern regions of the country) in October 2002.

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