Last week review (July 11-15)

Analysis Materials 18 July 2016 16:15 (UTC +04:00)

July 11

Black Sea Trade & Development Bank provides additional funds for Azerbaijan’s AccessBank

The Black Sea Trade and Development Bank (BSTDB) is providing additional funds to Azerbaijan’s AccessBank with a $17-million loan for expanding the lending to small and medium enterprises (SMEs) in the country, BSTDB said in a message.

The proceeds of the three-year loan will facilitate access to finance for industrial, agricultural and service-related SMEs and will contribute to the increase of non-oil sector business in the country, according to the message.

July 12

ADB approves $750M loan facility to lift power reliability in Azerbaijan

The Asian Development Bank (ADB) has approved a $750 million multitranche program loan facility to upgrade power distribution networks in Azerbaijan, said the ADB on its website.

Azerbaijan currently generates enough electricity to meet domestic needs. But electricity supply outside Baku remains unreliable with distribution network equipment at the end of its life.

“This ADB program will help address the bottleneck in electricity supply and provide round-the-clock and reliable electricity to households and entities in secondary cities and rural areas in Azerbaijan,” said Sean M. O’Sullivan, director general in ADB’s Central and West Asia Department. “It will also help promote inclusive economic growth, foster new business opportunities for small- and medium-sized enterprises, and reduce urban-rural income disparities.”

According to the draft investment program, in three tranches ADB will allocate $750 million (by $ 250 million each), the remaining $ 250 million will be allocated by the Azerbaijani government.

July 13

Azerbaijani delegation reaches important agreements with leading aircraft manufacturers within Farnborough Airshow - 2016

An Azerbaijani delegation headed by President of CJSC Azerbaijan Airlines (AZAL), Jahangir Asgarov attended "Farnborough International Airshow - 2016" in Great Britain.

As part of the event, the Azerbaijani side has held negotiations with major aircraft manufacturers as Boeing, Ilyushin, Antonov and others.

At a meeting with Boeing Senior Vice-President Martin Benrott and Sales Director of the Corporation, Serdar Gurz, the possibility of supply of 10 Boeing 737 MAX aircrafts in 2018-2020 was discussed. At the same time the issue of the project financing was discussed at the meeting.

On the same day, the third round of negotiations were held with Mikhail Gvozdev, head of the Board of the Corporation "Ukrainian Aircraft Manufacturing Company" and President of "Antonov" state enterprise, Alexander Kotsuba on the project of organization of manufacture and maintenance of An-178 transport aircrafts on the territory of Azerbaijan.

Also, negotiations were held between President of CJSC Azerbaijan Airlines Jahangir Asgarov and Director General of JSC Ilyushin Finance Co., Alexander Rubtsov on leasing of MC-21 aircrafts. At the meeting a contract was also signed for financial lease of the world's largest serial cargo aircraft An-124-100 (Ruslan).

July 14

Azerbaijani, Ukrainian presidents hold meeting

Azerbaijani President Ilham Aliyev and Ukrainian President Petro Poroshenko held a meeting. The sides discussed prospects for bilateral relations in political, economic, energy, transportation and humanitarian spheres.

Azerbaijan, Ukraine sign several documents in Baku

Azerbaijan and Ukraine have signed several documents in Baku.

The “Protocol of the 5h meeting of the Council of Azerbaijani and Ukrainian presidents” was inked by Azerbaijan’s President Ilham Aliyev and Ukraine’s President Petro Poroshenko.

The “Protocol on cooperation in fighting customs violations in air transportation of goods between Azerbaijan’s State Customs Committee and State Fiscal Service of Ukraine” was signed by head of the State Customs Committee Aydin Aliyev and head of the State Fiscal Service Roman Nasirov.

New tariffs for electricity to take effect in Azerbaijan

New tariffs for electricity will take effect in Azerbaijan, read a message issued by Azerbaijan’s Tariff (price) Council. From July 15 the wholesale price for one kilowatt hours of electricity will be 0.043 manats, while the retail price will stand at 0.07 manats for one kilowatt hours, according to the decision. Currently, the wholesale price for one kilowatt hours of electricity is 0.045 manats for the electricity generated at wind farms, 0.025 manats – at private small hydro power plants and 0.041 manats for the electricity generated by Azerenergy JSC. The retail price for electricity is 0.06 manats for one kilowatt hours. These tariffs were set in 2007.

July 15

President Aliyev receives delegation of Swiss Confederation

President of the Republic of Azerbaijan Ilham Aliyev received a delegation led by head of the Swiss Federal Department of Finance, Federal Councillor Ueli Maurer.