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Azerbaijani Large Electricity Distributing Networks set for Management

Oil&Gas Materials 16 January 2008 19:03 (UTC +04:00)
Azerbaijani Large Electricity Distributing Networks set for Management

Azerbaijan, Baku, 16 January / Trend corr I. Khalilova / The State Committee on State Property Management has put the electricity distributing networks of Sumgayit city (included into Sumgayitelektrikshabaka OJSC) and Sheki Regional Power Distributing Network LLC- in the North-west of the Azerbaijan, for the management of Azerbaijani Xazar Invest company, Karam Hasanov, the head of the Committee said on 16 January.

The enterprises will perform the management for 5 years, not 25, as it was previously. After the term expires, and if the requirements are fulfilled by the investor, the contract may be prolonged for the next five years. The assets of the networks will remain at the disposal of the State, and the investor will only manage them.

Xazar Invest must invest $85mln in Sumgayit Network and $11mln in the Sheki Network.

According to Hasanov, the investor must provide for an uninterrupted supply of energy to the population, decrease losses, increase collection of charges and timely pay for supplied energy to Azerenerji JSC. In case the terms of the contract are not observed, the contract will be cancelled.

Earlier the Sumgayit Network was managed by the Turkish- Barmek company. However, due to the violation of the terms, the contract was annulled. The criminal case was filed against the head of the company -Huseyn Abdulla and several other employees of the company.

Sheki Network was managed by Azerbaijani Bayva. The company cancelled the contract due to lack of funds for the investment.

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