The Azerbaijani Government has canceled the contract on the management of Azerboru JSC with Targol Investment of Great Britain. Karim Hassanov, the Chairman of the State Property Committee, informed Trend that the decision was taken as result of the monitoring with the object to the investors fulfilling its obligations on the investment program. Independent auditors were invited to organize and conduct the monitoring. It was these independent auditors who revealed the investors breaching its investment obligations.
According to the terms of the investment program, within three year, Targol was obliged to invest $50 mln. to the Sumgayit Tube Work. For 5 years, the investors directly invested $4,7 mln.
Targol used the Enterprise as a deposit to obtain a credit to the sum of $6,9 mln., that exceed the investments put to Azerboru, said Mr. Hassanov.
Due to the cancellation of the contract, the Enterprise will be returned to the state.
Over this period, measures had been taken to resume the production of pipes. One pipe-rolling line, as well as 5 compressors was put into operation.
The total volume of the production of pipes reached 15,000 tons, which were then exported to Russia. International standards ISO -9001 have been introduced in Azerboru.
The Head of the State Committee did not rule out the possibility to privatize the pipe-rolling plant in the future.