Azerbaijan, Baku / Trend corr I. Khalilova / The Supervisory Board of Bakielektrikshabaka (Baku electricity network) and Sumgayitelektrikshabaka (Sumgayit electricity networks) JSCs have proceeded to estimate the income and expenses, as well as the investment programs of the companies, the Azerbaijan Deputy Economic Development Minister, the Chairman of the Supervisory Board, Mikail Jabbarov, reported on 27 August.
"Once all the recommendations and suggestions are considered, the budgets and programs of the JSCs will be approved at the Supervisory Council," he said. Investment programs should rest on the development strategy and policy as they cover long periods up to 2010.
The deputy minister did not speak of the amounts of investments required for the development of Baku and Sumgayit electricity networks, as the issue is still under discussion.
The investment program of the electricity networks mainly envisages the construction of new substations and infrastructure providing for continuous operation of the networks.
The financial source is the own funds of the companies and the funds put to the authorized capital of the networks by the State. The preliminary amount of the investments intended for Baku electricity network was defined at $150mln.
The arrangements are held in compliance with the presidential order on the arrangements intended to increase the efficiency of Bakielektrikshabaka and Sumgayitelktrikshabaka dating to 10 August 2006.
In August 2006, the Economic Development Ministry denounced the agreement on transmission of both electricity networks to Turkish Barmek company. In January 2002 Barmek undertook the management of Baku electricity network for 25 years, and in October 2002, the Sumgayit electricity network.