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WEEKLY ECONOMIC REVIEW

Analysis Materials 23 February 2006 12:02 (UTC +04:00)

A conference dedicated to the second year of implementation of the State Program on social and economic development of regions in 2004-2008 was held in Baku last week.

In his opening remarks Azerbaijan president Ilham Aliyev stated the significant successes achieved throughout the country over two years of implementation of the program. The head of the state noted, 340,000 new jobs have been opened in this period in Azerbaijan, which enabled to reduce the share of poor people from 49% to 29%.

Significance of the tasks set before the program on development of regions grows in relation to strengthening of social and economic development of the country, Heydar Babayev, the Azerbaijani Economic Development Minister, said. The Minister noted that in 2005 GDP increased by 24.6%. Thus, GDP comprises $1,518 per capita. Azerbaijan implemented projects on construction of the H.Aliyev Vaykhir Reservoir in Nakhchivan and Astara-Gazimmad gas pipeline, reconstruction of the Ganja airport and Masally-Yardimly highway within these funds.

New enterprises were opened in all regions of the country. 160 of them are refinery plants, over 300 construction, 200 agriculture and 900 enterprises in trade and service. The total number of new jobs is 346,000, including 173,000 permanent.

The key objective of the program is to develop communal services in the regions. 155km electricity transmission lines, 64 new substations, over 600 transformers, module station in Astara were built in 2005. Such stations will also be constructed in Nakhchivan, Shaki, Khachmaz in 2006. The first stage of the project on gas supply of the Nakhchivan Autonomous Republic (AR) was completed in 2005. Around 500,000 running meters of new gas pipelines were laid. Regions Lerik and Yardimly will be supplied with gas in 2006, Beylagan and Aghjabadi - 2007. Thus, all regions of the country will be provided with gas.

In 2005 Azerbaijan laid 75km new water lines and 19.6km sewerage lines, constructed 4 boiler-houses and repaired 10. The work continues within assistance to entrepreneurship. 90% of the 200bn manats, set in the Fund for Assistance of Entrepreneurship, was allocated for regional projects. The Funds money, envisaged for crediting, will grow twice and comprise 400bn manats. Besides, granting of credit will be simplified. The proposals on the issue are prepared by the Economic Development Ministry and will be submit for approval.

Aliyev called on the entrepreneurs to finance the development of regions to carry out the major tasks by 2008. Lets hope the problems set in the conference under the state program to fund their full resolution by 2008.

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