Azerbaijan, Baku, Feb. 3 / Trend E. Ismayilov /
The Production Association Azerigas under SOCAR will sign a memorandum within the reconstruction and modernization project of the gas distribution system of Baku and the Absheron Peninsula, Akbar Hajiyev, the head of Azerigas, said at a press-conference.
"RWE and E. ON companies made proposals within this project. At present, their representatives are in Baku. The memorandum will be signed with one of these companies. It envisages the establishment of a joint venture. We are working to prepare the memorandum," Hajiyev said.
He said that the established joint venture will work to prepare the plan, to conduct construction operations and to attract foreign investments. In total, roughly 800-900 million euros can be spent for this project.
The project will be designed for 10 years.
The gas system of Baku and Absheron peninsula is the largest in the country. It covers about 650,000 subscribers. Roughly 90 percent of the existing infrastructure must be renovated for its reconstruction and modernization.