CINTECH CASPIAN FIRST STEPS IN AZERBAIJAN
"Cintech Caspian" is the official representative of "CINTECH" (Distributed Information-Analytical Center For Intelligent Technologies) in the Caspian region, which successfully applies experience of Russian colleagues in our republic. CINTECH was founded in 1999. Basic fields of its activity are development of Informational Technologies for control systems, experienced systems of evaluation, intelligence systems, decision support systems and establishment of distributive informational-analytical centers.
Services
• Development of information-analytical systems
• Enterprise certification
• Information resource supply
• Environmental protection information systems
• Production quality control
Enterprise certification
Software support of CINTECH is directed to formation and development of quality management systems in enterprises, conduction of all kinds of inner audit (quality, staff, ecological, energy and financial), etc. As a result a set of documents was created for presentation to enterprise certification in accordance with ISO 9001, ISO 14001 and branch versions of these standards. This allows saving time, labor and financial resources of the enterprise directed to getting the specified certificates.
"Cintech Caspian" is presently preparing for certification in accordance with ISO 9001, ISO 14001 standards and afterwards plans to run enterprise certifications in accordance with the given standards.
Bayesian integrated systems for FEC environmental protection
The purpose of this system is to establish information technology by "momentary" method with condition of great information uncertainty. These systems are the instrument for control, analysis and decision support systems for fuel-energy complex enterprises. Such systems are introduced and used by such companies as "Gazprom", "Rosneftegazstroy" and others for oil and gas resource prospecting, their transportation and distribution.
"Eco Analyst" decision-making support system
"Eco Analyst" is a new type instrument for rapid development of control and decision-making support systems where quality, risk and management are stably provided.
"Eco Analyst" has been applied for distributed information and creation of analytic system for various districts (regions) in Russia and abroad (Baikal Lake, Caspian Sea, Middle Asia regions and so on).
Intelligent geoinformation systems
Basic peculiarities of Intelligent Geoinformation systems are ability of producing new types of analytic maps, risk maps for various applications on the basis of Bayesian Intelligent Technologies providing GIS quality decision management. Application of intelligent GIS, technologies applied for industrial estimation of pollution, environmental protection, fuel and energy complex enterprise monitoring, integrated territory development.
Personnel management system
Employees of the enterprise get necessary information to fulfill their functions and best work opportunities.
Personnel at the HR department may concentrate on control and planning of labor resources for their effective use together with other resources of the enterprise.
Project-oriented document circulation
Software support of the project-oriented electronic document circulation provides full consideration of project management specifics. The document circulation itself is already project-oriented document circulation functioning in integrated software environment of decision-making support and interacts with project management components, HR management, investment management etc. Presently the given system is being developed for "Rosneftegazstroy-Azerbaijan" LLC.
"Cintech-Caspian" activities
One of the basic directions of "Cintech Caspian" is participation in ecological projects run within the territory of Azerbaijan Republic.
The work on ecological clearance of territories polluted with oil wastes is interesting and rather perspective.
"Cintech Caspian" has concluded preliminary agreements and contracts with a number of local companies, which have experience and necessary equipment and mechanisms and also patented technologies for running such operations. Agreement on strategic cooperation is concluded with one of the Russian companies - "Salute-Technologies West" allowing to run a complex of measures against results of oil products spillage, beach and coast clearance from petroleum patches, industrial waste utilization containing oil products, oil barge, tanker and applicable capacities clean-up. The company has know-how on application of biotechnology methods using own development - biodegrader "Disoil" allowing to fully decompose oil hydrocarbons, create the basis for forming humus microflora in the ground or form ground sludge in reservoirs.
"Cintech Caspian" is also engaged in development of methods, IT technologies and ecosystem monitoring systems and its components, control and auditing of territories and enterprises against international standards of resource and project management.
BTC Project may be considered world model of energy projects
How do You estimate today's level of economic relations between Azerbaijan and Turkey?
I don't think the present level of Turkish-Azerbaijan trade and economic relations is sufficient. Taking into account the historical and cultural unity between the two countries, common language, many peculiarities arising from these factors and close relations between the peoples, the fact that legal base needed for expansion of trade relations is greatly completed, then our relations should have been more advanced.
In the first years right after Azerbaijan got independence, basically small and medium enterprises of Turkey were coming to Azerbaijan and starting to work here. This period was basically "a period of acquaintance". During this time also Agreements making basis of our trade and economic relations were signed. This page has long been turned over. Now we need to bring our trade and economic relations to a level corresponding to our present partnership in the field of politics.
In order to bring our economic and trade relations to more advanced levels within the framework of mutual interest and common profit, we are dealing with Azerbaijan officials in a frank and business-like manner. In this aspect I think we will take important steps in 2004. The year of 2004 will be beginning of a new period from the point of view of our trade and economic relations. This belief and will is present both in Turkey and Azerbaijan.
How much has the goods turnover dynamics between the two countries changed recently, what kind of goods do Turkey and Azerbaijan export?
Volume of goods turnover between the two countries made $215 mln in 2001, $240 mln in 2002 and around $302 in 2003. Increase by one point was observed in our trade turnover in comparison to previous years. In the first 9 months of 2003 our trade volume was about at the same level with the mutual trade volume at the end of 2001.
But this point achieved is not sufficient for us, as all these figures are lagging behind even the trade volume of 1998 at $356 mln. On the other hand, also decrease of Turkey's share in Azerbaijan's total import volume is being observed. In this aspect Turkey is lagging behind the RF and England and occupies the third place. Our share of 6.25% in the Azerbaijan market in 2002 fell to 5.79% in 2003.
The main goods Azerbaijan purchases from Turkey include: electric power, foodstuffs (fruits and vegetables, oil, flour, chocolate, yeast, chickens etc.), chemical substances, soap powders, paper, wood and wooden materials, steel and other metal materials, agriculture and economic machines, electric instruments, automobiles, mobile phones and construction materials.
Basic goods exported from Azerbaijan to Turkey include: petroleum goods, polyethylene, cotton, aluminum mixtures, raw leather, chemical goods, sugar beet, tobacco processing machines and some agricultural substances.
Volume of Turkish investments is one of the highest parameters in non-petroleum sector of Azerbaijan economy. In what spheres of Azerbaijan economy is Turkey planning to invest in future?
Significant steps in non-energy sectors are of great importance for Azerbaijan to keep its balanced and stable position. In this aspect Turkey in its investment activities pays attention to the points Azerbaijan needs for a short or long-term period.
In this framework the first thing that comes in on is basic activities on the projects connected with manufacture and goods trade in agriculture and economy, service sectors as tourism and banking. Formation of economic theses directed to development of agricultural activities, opening of enterprises to produce quality textile goods for inner market and export, establishment of partnership using Turkey's experience in tourism that is a significant means of income and recognition, projects on maintaining the mechanism of agriculture may be considered in this view.
What is the activity of Turkish businessmen in Azerbaijan like today? In which fields do they prevail?
Turkish firms are in the forefront both in number and variety of sectors among the foreign firms working in Azerbaijan. Turkish firms having come to invest in Azerbaijan since 1991 build their activity in many fields, mainly in petroleum, construction, TV communications, banking, insurance, transportation, sale and purchase of foodstuffs, textile, mobile communication, decoration, construction materials, confection, flour products, commercial and legal consulting, machine industry, chancellery, wooden products, tea pack-up, accumulator manufacture and metal processing fields.
According to the latest statistical figures, so far Turkish companies established in Azerbaijan totaling 1.549 include 562 that are by 100% financed by Turkish investments, 765 joint ventures and 191 distributor offices. Turkey occupies the first place in investments to non-petroleum and non-gas sectors with one share of approximately 45%.
Initiatives of Turkish businessmen are also a significant chance in the fields of need of Azerbaijan, that is, in non-petroleum and non-gas sectors. On the other hand, Turkey occupied the third place after EU and England in foreign investments to petroleum and natural gas sectors in 2002. In the banking sector six Turkish banks with 5 of them being partners, in the insurance field two Turkish-Azeri partnerships are functioning. Besides, it is planned that Turkey will invest around 2.2 mln dollars in the oil and gas sector of Azerbaijan within the agreements TPAO has concluded in Azerbaijan. All these figures showing that Turkey's investments in Azerbaijan increase in variety and number as years pass display very active interaction in this field.
Presently, after conducting meetings at the state level with entrepreneurs, is there anything preventing Turkish businessmen to develop their business in Azerbaijan?
Turkish businessmen working in Azerbaijan play a great role in stable and balanced development of trade and economic relations between the two countries. They make important contribution in the Azerbaijan economy by the investments realized by them, taxes they pay and work places they provide and thus support expansion of relations between the two countries. Activity of our businessmen in Azerbaijan employs 30000 Azerbaijan citizens. However, there are some difficulties our businessmen face in Azerbaijan. I think these difficulties are solvable. This will provide opportunities for even more expansion of our trade-economic relations.
The state road tax not imposed on some countries but imposed to us, customs duties on goods again not levied on some countries but Turkish goods at entering to Azerbaijan, some problems confronted at fulfilling court decisions are of difficulties the Turkish businessmen face. Our businessmen are also facing some problems caused by bureaucratic obstacles and rules regulating economic activity. Such kind of difficulties are not promoting what we do for more Turkish businessmen to invest in Azerbaijan.
How do You estimate the role and importance of Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines as parts of the East-West corridor?
The East-West energy corridor providing delivery of the Caucasian and Central Asian power sources to western markets is being realized. The projects of Baku-Tbilisi-Ceyhan (BTC) oil and Baku-Tbilisi-Erzurum (BTE) gas pipelines put the basis of East-West Energy Corridor.
The necessary legal basis for realization of the BTC oil pipeline considered to deliver 50 mln tons of petroleum per year (1 mln barrels a day) was completed at late 2000 and the last stage of the project - "land supply and construction activities" considered to last for 32 months were started on September 10, 2002 after basic and detailed engineering operations. Construction of the pipeline was started in all the three countries since May. First tanker to carry Caspian petroleum is expected to load at the first half of 2005.
BTC Project is a project that may be considered a world model in view of energy issues, appropriateness to top design standards and transparency. All the parties having joined the project have serious liabilities. Finally these days the financial support provided by credit agreements signed in Baku answered the claims put forward concerning economic aspects of the BTC project.
BTE (Shah Deniz) Project is a project as important as BTC. On February 27, 2003 members of the Shah Deniz project consortium adopted decision on executing operations connected with land regulations and construction of the pipeline. Activities in Shah Deniz are also advancing as planned. Intergovernmental Agreement and the Agreement on Sale and Purchase of Natural Gas were signed in Ankara on March 12, 2001 within the project and purchase of Azerbaijan natural gas by Turkey. Under the terms of the agreements gas delivery initially at the volume of 2 bn c.m. in 2006 will be brought to 6.6. bn c.m. further and continue for 15 years. The mentioned pipeline provides more capacities than those marked in the contract and further gas sale is predicted through the pipeline to Europe via Turkey. Thus, Caspian sources will be able to meet natural gas demands of both Turkey and Europe. In this aspect Agreement on Sale and Purchase of natural gas was signed between Turkey and Greece some time ago. On the other hand, BTC and BTE projects will promote also realization of new projects. I also consider necessary to emphasize that deceased President Heydar Aliyev played a significant role in realization of the BTC project. That's why our government decided to name the Ceyhan Terminal after Heydar Aliyev.
What kind of efforts does Turkey put to involve Kazakhstan petroleum to be pumped through the Baku-Tbilisi-Ceyhan pipeline and prevent delays on construction of the oil pipeline in the Turkish field?
Nobody must doubt that BTC pipeline will be completed in due time. As stated our respected Minister of Energy and Natural Resources during his visit to Baku, all the stages have been defined for this. Some time ago a delegation headed by Vice Prime Minister of Azerbaijan Abid Sharifov went to Turkey and conducted meetings with officials of our Ministry of Energy and Natural Resources and the related bodies. At these meeting joined also by BTC. Co officials, necessary activities on the Turkish part of construction operations were discussed and it was once more made sure that construction will be completed in due time. The delay connected with harsh climatic conditions in the area will be mainly prevented by taken measures.
As it is known, petroleum to be received from the Azeri-Chirag-Guneshli fields located in the Azerbaijan sector of the Caspian Sea will constitute the basic petroleum to pass through the BTC pipeline. On the other hand, that Kazakhstan is also going to join the BTC pipeline and transfer it to the state of Actau-Baku-Tbilisi-Ceyhan (ABTC) pipeline project is of great importance for expansion of partnership in the region. Kazakhstan is fulfilling legal requirements on the BTC pipeline and meetings between officials of Azerbaijan and Kazakhstan are continuing. We will be very pleased if these meetings end in a short time and Kazakhstan also uses this project. The fact that companies like ENI, Total, ConocPhillips and Inpex having no investments in the Azerbaijan petroleum fields but being partners to the outstanding discovery of Kazakhstan - Kashagan are participating interests in the BTC pipeline project shows that some part of the Kazakhstan petroleum will be possible to deliver to western markets through the BTC pipeline.
What is Turkey's demand for natural gas and from which sources will this gas be pumped to the country in nearest perspective (if possible in years)? What part of these demands does gas from "Shah-Deniz" deposit "cover"?
The works done show that Turkey needs 60-80 bn c.m. of natural gas to meet the inner demand of the country in medium and long-term periods. The demand for natural gas being presently at the level of 20-25 bn c.m. is supposed to increase to 55 bn c.m. in 2010, to 67 bn c.m. in 2015 and to 80 bn c.m. in 2020 in case the conditions don't change.
Providing the mentioned demands with the help of more than one source is surely the best variant. Turkey is also concluding agreements on supply of natural gas with a number of other countries. Purchasing natural gas from Azerbaijan within the framework of Shah Deniz project to start with 2 bn c.m. in 2006 will be further raised to 6.6. bn c.m. Turkey is also meeting its demands for natural gas by purchasing gas from the RF, Algeria, Nigeria and Iran. Besides, probably purchase of natural gas from the source rich Turkmenistan will also be considered.
What kind of work is the Embassy of Turkey to Azerbaijan doing in the field of expanding cultural and educational programs between the two countries?
Education and Culture are in the forefront of the works to be done to expand historical relations between our countries even more. So far many protocols and agreements have been signed on cooperation in this field.
Baku Turkish Anadolu Lyceum (BTAL) makes the basis of activities we run in Azerbaijan. Turkish Education Center on preschool and high school education is also rendering its services. BTAL has become one of the most important structures in the education sector of Azerbaijan for the quality education it provides. We are very proud of that graduates of this Lyceum show remarkable results at passing the tests to enter universities. Turkish Education Center also does much to provide distribution of knowledge of the Turkey's Turkish. Last year our embassy started study of Turkish language in the repaired classrooms of five schools. Presently the project is two years old and we can plan to expand it to the necessary level.
Besides, there are Turkish schools in Azerbaijan and we are also pleased with the significant results they achieve. On the other hand, we allocate 150 accommodations a year for Azerbaijani teachers to get high qualification in Turkey.
In the cultural field we provide experience exchange between the citizens of the two countries mediating through arrangement of mutual concerts, exhibitions and other activities for the people and arts people of the two countries to get to know each other better. As an example of this I can remind the concert given by our famous flute soloist Shefika Kutluer together with the Uzeyir Hajibeyov Philharmonic Orchestra on February 6, 2004. Together with many other similar activities, we assist in joint celebration of such special holidays as Novruz and April 23, the Day of Children in order to deepen cultural ties even more.