Azerbaijan, Baku, 17 April /corr. Trend I.Khalilova / Due to the increase of oil prices in the world markets, the State Oil Fund of Azerbaijan (SOFAZ) expects that the income will increase up to AZN 10bln against AZN 3.6bln forecasted earlier, in 2008, the SOFAZ Executive Director, Shahmar Movsumov, said to a press-conference dedicated to results of first quarter of 2008 on 17 April.
"Due to the increase of oil export, these incomes will come from its sale," the Head of the Fund stated.
As a result the assets of the Oil Fund may reach AZN 9-10bln, against AZN 2.775bln ($3.336bln) as of 1 April.
The 2008 budget of the Fund determined incomes at AZN 3.609bln and expenses - AZN 1.680bln.
According to Movsumov, within corrections to the 2008 Public budget, currently the forecasts of the SOFAZ are also being re-considered.
Due to the growth of Fund's revenues, head of the Fund did not exclude the expansion of Fund's expenditures. It may affect the gross amount of transfers totaling AZN 1.1bln from the Oil Fund to the Public budget. Of them, 580mln will be directed towards realization of the projects and it will remain unchanged.
According to him, currently the dividends from Baku-Tbilisi-Ceyhan pipeline are also taken into consideration.
"We have already received incomes from the operation of the pipeline in 2007, but accounts are being held for the incomes being expected as a result of 2008, which can also be included in the revenue part of Fund's budget," Mosvumov said.
Most part of SOFAZ's incomes (over 90%) is expected to be received from the sale of profit oil. The incomes received from oil contracts are forecasted at AZN 3.473bln, including 13.423mln from dividends on Baku-Tbilisi-Ceyhan pipeline: AZN 121.928mln from passing assets to management: AZN 900.000 - other profits.
SOFAZ has allocated AZN 145mln for the arrangements on improvement of the social state of refugees and internally displaced persons. SOFAR financed the projects on reconstruction of the Samur-Absheron irrigation system (AZN 120.6mln) and placing of a water pipeline connecting the Oguz-Gagbala region with Baku (AZN 211.820mln). AZN 88.682mln was allocated for the construction of Baku-Tbilisi-Kars railway and AZN 5mln for State Program on Education of Azerbaijani Youth Abroad.