Today USTDA to determine technical aid for state oil fund of Azerbaijan

Oil&Gas Materials 2 June 2009 17:15 (UTC +04:00)

Azerbaijan, Baku, June 2 / Trend I. Khalilova /

The State Oil Fund of Azerbaijan will continue talks with US Trade and Development Agency concerning financing of the third phase of institutional development project on June 2, the State Oil Fund of Azerbaijan executive director Shahmar Movsumov said on June 2. 

"We will discuss share holding of USTDA in financing of the project. But the fund will take the rest part. Total cost of the third phase will be also discussed during talks," Movsumov said.

The State Oil Fund of Azerbaijan got principal consent about participation of USTDA in this project. But several delays were connected with changes in U.S administration. USTDA laid down a condition about readiness for giving grant for financing of 50-percent cost of the project during the previous talks. It was proved by economic state of Azerbaijan and growing assets of the State Oil Fund of Azerbaijan.

U.S agency suggested co-financing on this regards. Half of expenditures will be paid off owing to funds of the Azerbaijani government and the Oil Fund.

According to preliminary estimations, roughly $700,000-800,000 will be required for realization of the third phase of project.

The third phase of the project includes assistance in choice of managers and their governance, as well as creation of domestic system of training of the fund's employees (it will resemble domestic school that will prepare employees at permanent basis). 

Necessity in further institutional development of the Oil fund is connected with great incomings from oil.

The fund intends to continue preparation work to get great profit. This work was launched two years ago. The work was carried out to introduce modern technologies, software, as well as increasing of professional level of the fund's personnel.

U.S Company Overture Financial Services has assisted to improve accounting system, rendering of consultations in choice of companies/systems for construction of risks estimation system and yield, as well as investment portfolio governance within the second completed phase of technical aid since 2007. Grant of USTDA hit $855,075 to implement these operations.

Overture Managed Solutions was also consultant of the State Oil Fund of Azerbaijan within the first phase. Technical aid TDA was in the amount of $1.091 million within the first stage.

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