Last week the Supervisory Council of Azerbaijan Investment Company JSC (AIC) made a decision confirming AIC's activities for 2006, budget and p0lan on measures for 2007.
Thus, the Council recognized 2006 activities of the AIC as satisfactory. AIC has been created according to the order of the President of Azerbaijan dated 30 March 2006 to support the investments allocated for the development of the non-oil sector and renew the material and technical base of the enterprises functioning in this sphere. AIC has formed material and technical base and working staff. AIC was registered by the Justice Ministry of Azerbaijan at the beginning of June 2006. A president was appointed to AIC, but the Supervisory Council sustained changes due to the rearrangements in the Government.
As a Company aimed at attracting internal and external investments into non-oil sector, AIC has received many suggestions from various companies functioning in this sphere. Mostly local construction companies appealed to AIC, but they were not of interest for AIC, except ideas to construct large business-complexes and produce construction materials. Amongst the initial priorities, AIC selected the companies functioning in the sphere of food industry.
Presently AIC has a circle of investors and plans to participate in priority projects such as construction of dairy plant (Milk Pro), petrochemical complex, cement plant (Lafarge), oil terminal, insulin plant, creation of shipping company. In March AIC will conclude the first contract on investment. The investments of the Investment Company will be directed towards constructing of new dairy plant in Hovsan.
The key problem facing AIC is the absence of the companies in Azerbaijan, specialized in preparation and assessment of the investment projects. Such situation forces AIC to co-operate with the foreign companies for the preparation and assessment of the investment projects. For this purpose, the Supervisory Council confirmed AIC's entrance to the European Private Equity and Venture Capital Association (EVCA) and Emerging Markets Private Equity Association (EMPEA). However, in the future AIC plans to create or assist in creating several local companies specialized in this sphere.
The confirmed 2007 plan also includes conducting presentations and meetings with the entrepreneurs, as well as activities will be carried out in direction of co-operation with the international organization.
Last week the International Finance Corporation (IFC) and AIC signed Memorandum of Understanding on application of corporative management standards. Within the project of corporative management, trainings will be held for the employees of AIC and consultations will be made. Thereinafter, the key criteria in the assessment of the companies will be the situation of the corporative management. In this case, the companies wishing to receive investments will be interested in improving the situation of the corporative management.
Thus, the review indicate that in such apportionment of the activities of the Company, AIC will have a bright future. As a result of its activities, the Investment Company will be a high-profitable company. The Executive Director of AIC, Anar Akhundov, stated that the Company intends to ensure the dividends to the State. Despite that AIC has a State status, modern investment mechanism will be applied in Azerbaijan at the expense of AIC.