World Investment News Top Reports World Investment News Ltd. Top Report on Azerbaijan Top report on Azerbaijan The new generation. Top Report, Top report, Jun 20 th, 2004 Produced by World INvestment NEws Ltd. Produced by World INvestment NEws.. Producer: Pascal Belda Production Supervisor: Corinne Semaille. Associate Director: Xavier Bruneau and Elisa L. Moriarty. Associate Producer: Sandy Journaux and Jaume Sugrañes. Written by World Investment News Web and PDF Edition: Gustavo Dominguez B. Page 2 of 77 Copyright©2004 World Investment News Ltd. World Investment News Ltd. Top Report on Azerbaijan COUNTRY REPORT ..................................................................................................................................4 INTRODUCCION .........................................................................................................................................4 OIL & GAS ................................................................................................................................................7 TOURISM ...................................................................................................................................................9 COMPANY PROFILES.............................................................................................................................12 GRAND HOTEL EUROPE BAKU.......................................................................................................12 INTERVIEW WITH:....................................................................................................................................14 MR.GUNESH INKAYA, GENERAL MANAGER OF GRAND HOTEL EUROPE BAKU ......................................14 GUBA OLYMPIC SPORT COMPLEX ................................................................................................16 HYATT REGENCY BAKU ..................................................................................................................18 INTERVIEW WITH:....................................................................................................................................22 MR. ARIF HASHMI, GENERAL MANAGER OF HYATT REGENCY BAKU ....................................................22 MINISTRY OF COMMUNICATIONS.................................................................................................23 INTERVIEW WITH:....................................................................................................................................27 H.E. MR. NADIR AKHMEDOV, MINISTER OF COMMUNICATIONS ............................................................27 AZERBAIJAN STATE RAILWAY ......................................................................................................29 INTERVIEW WITH:....................................................................................................................................31 MR. RAMEZ NASRI OWNER (EUROPEAN TOBACCO-BAKU) ....................................................................31 V.I.P. INTERVIEWS .................................................................................................................................35 INTERVIEW WITH:....................................................................................................................................35 MR. ASIM MAMEDLI, PRESIDENT OF AB FINANCE. ................................................................................35 INTERVIEW WITH:....................................................................................................................................37 MR. ILHAM RZAEV, CHAIRMAN OF AZERBAIJAN DAIRY CORPORATION.................................................37 INTERVIEW WITH:....................................................................................................................................38 MR.BULENT ILHAN, COUNTRY MANAGER OF CARGOLUX AIRLINES INTERNATIONAL S.A ....................38 INTERVIEW WITH:....................................................................................................................................40 MR.MIKAYIL JABBAROV, PRESIDENT OF AZERBAIJAN INVESTMENTS PROMOTION AND ADVISORY FOUNDATION...........................................................................................................................................40 INTERVIEW WITH:....................................................................................................................................42 H.E. MR. NADIR AKHMEDOV, MINISTER OF COMMUNICATIONS ............................................................42 INTERVIEW WITH:....................................................................................................................................45 H.E. MR. ZIYA MAMEDOV, MINISTER OF TRANSPORT ...........................................................................45 INTERVIEW WITH:....................................................................................................................................48 MR. ELMAN RUSTAMOV, CHAIRMAN OF THE BOARD. NATIONAL BANK OF AZERBAIJAN.......................48 INTERVIEW WITH:....................................................................................................................................51 MR. AMIR ADELI, MANAGING DIRECTOR OF LONDONGATE AZERBAIJAN INSURANCE COMPANY. ........51 INTERVIEW WITH:....................................................................................................................................53 MR. AVAZ ALEKBEROV, MINISTER OF FINANCE OF THE REPUBLIC OF AZERBAIJAN ..............................53 INTERVIEW WITH:....................................................................................................................................55 MR. OIVIND WIGAND, GENERAL MANAGER OF RADISSON SAS PLAZA HOTEL. ....................................55 INTERVIEW WITH:....................................................................................................................................58 MR. HEYDAR BABAYEV, CHAIRMAN OF STATE COMMITTEE FOR SECURITIES........................................58 INTERVIEW WITH:....................................................................................................................................60 MR. AHMED JEHANI, COUNTRY MANAGER OF WORLD BANK.................................................................60 INTERVIEW WITH:....................................................................................................................................62 MR. FAZIL MAMMADOV, MINISTER OF TAXES. THE REPUBLIC OF AZERBAIJAN ....................................62 INTERVIEW WITH:....................................................................................................................................64 MR. ABULFAZ GARAYEV, MINISTER OF YOUTH, SPORTS AND TOURISM................................................64 INTERVIEW WITH:....................................................................................................................................67 MR. VILAYET GULIYEV, MINISTER OF FOREIGN AFFAIRS OF THE AZERBAIJAN REPUBLIC.....................67 LINKS ........................................................................................................................................................70 ANOTHER GENERAL LINKS ABOUT AZERBAIJAN.....................................................................................70 Page 3 of 77 Copyright©2004 World Investment News Ltd. World Investment News Ltd. Top Report on Azerbaijan Country Report Introduccion The New Generation This is a new era, led by a new generation. The Presidential elections held in October 2003 witnessed the election of Ilham Aliyev as new President of Azerbaijan, thereby opening the doors to a new vision and a new generation of leaders in Azerbaijan. This new era will witness major changes and face new realities. Energy Known as "the land of fires", the countryside of Azerbaijan is illuminated by its stocks of oil and gas, burning from the earth, which has given its country a reputation as a strategic oil nation. It has also helped build Azerbaijan's economic development and international influence in a world dominated by the search for renewable energy. Upstream oil field development is harnessed by major investment projects, which will have a geo-political importance for Europe and Asia, positioning Azerbaijan as a key partner for oil and gas trade. The established political stability has also allowed economic reforms to go ahead; in fact, since 1994 Azerbaijan has received billions of investments in the development of its oil and gas resources and the country now hosts the regional offices of multinational companies like BP, Exxon, Shell, as well as many other companies from the USA, UK, Italy, France, Germany, Norway, Russia, Turkey, China and Israel. One of the best-known projects of world value is the construction of the BTC oil and gas pipeline (Baku-Tbilisi-Jeyhan) and the SCP (the Southern- Caucasian gas) pipeline, which will deliver Caspian oil to world markets. Privatization Plans are underway to privatize major state-owned companies in the financial, telecom and industrial sectors, opening the doors to new opportunities for strategic Asian investors. Economic programs of the European Union are helping to move the economy in the right direction, and a major campaign for privatization of state properties is in the works. Shortly on auctions and tenders the enterprises oil and a process industry will be announced. Already, many enterprises