CASPIAN INTEGRATION BUSINESS CLUB (CIBC) - 2004
CIBC GANGED OF BRANCH CLUBS
Advantage to faciliate of investments to oil sector and development of minor and moderate business is the main priority of Caspian Integration Business (petroleum and service) Club (CIBC) in elapsed of 2004. Intensive information supporting of different measure projects, regional integration and active constructive role of entrepreneurship is the perspective works of Caspian Integration Business (petroleum and service) Club.
One of the most important events of departing year, by the opinion of major business men in Azerbaijan is historically meeting on February 2, 2004 of the president of Azerbaijan Ilham Aliyev with the members of the board of entrepreneurs of the republic and business men serving in Azerbaijan market. At the meeting that is carried out only resultative character took part almost all of the companies - participants of CIBC and there appeared the impulse for the further development of Club's work as well as determinated directions of business activity in the country. During the ceremony of the openning of Baku business - center in last year the president of Azerbaijan I. Aliyev said again the necessity of more intensive development of an oil sector, creation of new work places and the major supporting by the representatives of state of the entrepreneurs' initiatives. The president in his action emphasized the necessity in creation of the most prosperous conditions for work of the companies with minor and moderate in the republic.
By the balance of the meeting in Baku business-center, was held the meeting of the Executive Commity of CIBC and accepted the decision in creation of the necessity quantity of branch clubs with the representatives of the state structures and chiefs of the largest companies interested in the development of the current fields. The creation of trade clubs appealed for solving of the matter given by the president. By CIBC, there was organized the tens of businessmen meetings and conferences with the representatives of business elite and states officials last year. Within the active information changes were initiated new projects and established new contacts.
In 2004 there was found the number of Club's substructure fields, some of them will be organized in the nearest year - Caspian Energy PGS (Petroleum, Gas and Service) Club, Caspian ITC (IT and Communication) Club, Caspian Construction and Furniture Club, Caspian Finance, Banking and Insurance Club, Caspian Transport Club, Caspian Auto Club, Caspian Tourism Club, Caspian Agriculture Club, Caspian Metallurgy and Machine-Building Club etc.
REFERENCE
Caspian Integration Business (petroleum and service) Club (CIBC) is the largest and dynamic developing organisation, joining the interests of approximately 100 companies and organizations from 30 countries of the world are fulfilled their activity on the territory of Azerbaijan, Russia, Kazakhstan and other countries of Caspian - Black Sea region.
CIBC was found on June 2002 under supporting of the biggest oil and gas and services companies of the International Publishing House "CASPIAN ENERGY".
The main purpose of CIBC is advancement on the information level projects that have the major meaning for the economic development of the country of Caspian - Black Sea region. CIBC also aim at creation of facility for supporting of dialoge between states structure and private sectors, including the sterling dialoge between the largest transnational companies and representatives of minor and moderate business.
Measures of 2004
On February 24, 2004 there was held the first session of CIBC members in the current year in Baku, that continued the title of "Ecological aspects activity in industry, the development and transportation of power resources in the countries of the Caspian region", which was actively discussed within the bounds of CIBC in 2003. The minister of Ecology and Natural Resources of the Republic of Azerbaijan Husseyngulu Bagirov during meeting mentioned the matters of Caspian pollution by the vessels' dead weight water. He said, that 85 % of Caspian pollution regard to Volga. He has also said about conducting of monitoring researches. Concerning the ecological insurance the minister noted that in this field should be done serious changes in the principles of regarding to this sphere of activity. Bagirov emphasized that nobody wants to pay the surcharges, including the largest oil and gas companies. If there is rendered a damage to ecological environment than someone should provide by the expenses, - Bagirov noted. In the second half of session the Minister of Ecology and Natural Resources of the Republic of Azerbaijan Husseyngulu Bagirov replied to all interesting questions of the businessmen, of the companies' chiefs and journalists which participated at this meeting.
On March 4, 2004 there was held the next meeting of CIBC members devoted to the meaning of BP company in development of minor and moderate business in Azerbaijan and creation of conditions for their participation in tenders. As noted the director of the Business - Centre of Azerbaijan Azer Zeynalov, company BP Azerbaijan carried out the analysis of spent the facilities in Azerbaijan per 2003. The purpose of the analysis consisted in revealing of facilities volume given to BP by the local companies.
According to this material, the company by all realized projects in Azerbaijan in 2003 invested of $ 4 bn. and 100 mln. From the total sum of charges the $ 3 bn. and 900 mln. were spent by the companies selling to company BP Azerbaijan of the various works and services.
Acting at the same session CIBC director of commercial - economic department of Israeli embassy Rafael Abbasov said about the importance of the Israeli companies and investors in development of non-oil sector of Azerbaijan (tourism, telecommunications, infrastructure). At the end of the statement R. Abbasov represented the list of the Israeli companies with the whole package of the concrete offers about the cooperation with Azerbaijan colleagues.
On March 10, 2004 director of Baku representation of the World Bank (WB) Akhmed Jahani received CIBC members. There were discussed the prospects of activity of the World Bank in sphere of non-oil sector development, in particular of minor and moderate business, bank sector, economy. As A. Jahani emphasized, 10 years later WB began to work in Azerbaijan from not big projects regarding the reconstruction both assistance to refugees and compelled immigrants. Subsequently WB has begun the realization of the projects in separate sectors of economy, for instance, in the field of education, agriculture, water supply, public health services. According to Mr. A. Jahani there will be rendered to the government of Azerbaijan the assistance in the following areas of economy in the nearest 3-4 years. The first area is the assistant to government in development of non-oil sector of the national economy. There is planned the opening of new workplaces, as their basic part will be created in non-oil sector. The second is the creation of more transparent and responsible control system. As the elements of this innovation are possible to consider the acceptance of the law on struggle with corruption, new law about business accounting, etc. The third sphere is improvement of social services quality.
On March 17, 2004 the meeting with Azerbaijan businessmen - CIBC members was carried out by the special representative of the president of Russian Federation on the Caspian region, deputy Minister of Foreign Affairs of Russia Victor Kalujniy. In the course of rather long and frank conversation with the businessmen, which have had an opportunity to introduce with the course of negotiation under the Caspian status and signing of the pentalateral Convention basically were mentioned the matters of ecology, international law and struggle with terrorism. CIBC president Telman Aliyev noted the importance of the bilateral economic development relations between the countries within the bounds of CIBC. During the meeting there also was held the press conference where Victor Kalujniy mutually with the special representatives of the president of Azerbaijan on Caspian Khalaf Khalafov and Office of the President of Azerbaijan Rustam Mammadov replied to the numerous questions of the journalists.
On April 22, 2004 within the bounds of CIBC was held the meeting of Azerbaijan and foreign businessmen with deputy of the secretary on Europe in Commercial Department of the International Trade Administration of the USA Eric Stuart. He expressed the reliance that Azerbaijan will reach the success in the development of business. E. Stuart emphasized that the aim of his visit to Azerbaijan is the search of ways of rendering assistance on behalf of the USA administration in solving of these matters. In particular, it concerns the ways of continuation process of the privatization in spheres of telecommunications, cargo shipments and bank profile. In Azerbaijan were discussed the matters on struggle with corruption too. At result of meeting E. Stuart had an impression that in most cases the interests of Azerbaijan and USA coincide in many areas.
On April 28, 2004 there was held the meeting of CIBC members with the extraordinary and plenipotentiary ambassador of Germany in Azerbaijan Clause Grevlikh. C. Grevlikh informed the entrepreneurs about the work are carried out in connection with expansion of Azerbaijan-German relations, said about the importance of mutual cooperation between the countries, and noted that the German companies prefer the participation in the economic life of Azerbaijan. The ambassador emphasized that in the bilateral relations of Azerbaijan and Germany the special place borrows the cooperation in the field of an industry.
Also at the current meeting was occurred the discussion of plans by creation within the bounds of CIBC - Caspian Auto Club. The president of CIBC Telman Aliyev expressed the hope in support of Germany government in this undertaking. As he said, the distinctive feature of Caspian Auto Club is the opportunity of participation in this project not only of Azerbaijan dealers, but also the countries of Caspian-Black Sea region. Invited to session dealers and distributors noted that they greeted of Club creation. Strategies of Caspian Auto Club creation are solving of problems of the automobile dealers and distributors. Within the bounds of Club is planned the realization of a number of meetings promoting the solving of matters which by opinion of the auto dealers are most urgent.
On April 29, 2004 there was held the meeting of CIBC members with director of economic management on Eurasia and East Europe of the Ministry of Foreign Affairs of Israel Shmuel Ravel. The title of this meeting was devoted to Azerbaijan-Israeli cooperation. Acting at the session, Sh. Ravel noted that "if to connect the efforts, we will reach the integration of power sector of Azerbaijan both high technologies and agriculture of Israel". "Israel is interested in the development of non-oil sector of the Azerbaijan economy, and turnover at $ 150 mln., formed basically due to oil import of Israel is not the limit for development of mutually advantageous relations", - said Sh. Ravel. According to Israeli diplomat Azerbaijan has huge economic potential, and though the share of oil and gas sector in the development of the republic is still great, in the nearest years is necessary the development of other spheres of economy and, first of all, industries and agriculture.
On May 15, 2004 within the bounds of CIBC was held the first constitutive session of Caspian IT and Communications Club. The idea of creation of this Club appeared after long discussions with the companies working in the field of IT-technologies and communications. The basic purpose of Club is the assistance in the solving of various problems of the companies engaged in sphere of IT-technologies and communications, representation of offers and companies wishes to state authorities and other essential matters. The president of the company AZEL Igor Yakovenko, being as the president of Caspian IT and Communications Club, told about the purposes of Club, its tasks and spheres of profile. As he said, the Club will work within the bounds of CIBC that successfully operates during many years and became integrating community of the businessmen working in the Caspian region. According to his opinion due to course of new Club will turn into influential organization, within the bounds of will be discussed, and to be solved the important questions in the field of IT-technologies and communications. The major task of Club consists from "becoming of the place, where people who engaged the information technologies, communications, vehicle for communication could monthly meet", - said I. Yakovenko. Within the bounds of Club will be developed the offers for improvement of this situation, and to be discussed the important matters by their process of occurrence.
On May 20, 2004 during the traditional exhibition Trans Caspian 2004, organized by the company Iteca Caspian (ITE Group) within the bounds of CIBC was held the first constitutive session of Caspian Transport and Logistics Club. The transport sector of the Caspian-Black Sea region actively develops, indissoluble connected to oil and gas fields, and has the large prospects of development. All of the companies working on the Caspian-Black Sea region are attracted to this new Club. There is planned that the Club will actively participate with the stand at all exhibitions, which are organized by the company ITE in all region. The negotiation by this matter will begin with ITE Group company in the nearest times. On the base of the decision of CIBC executive committee the executive secretary of intergovernmental commission of TRACECA Zviad Kvatchantiradze was elected by the president of the Caspian Transport and Logistics Club.
On May 31, 2004 was held the meeting of CIBC members with the following officials: director of the United States Department of Defense Mr. Daniel Bloom, Trade representative, Manager of United States Commercial Department Mr. Chang Suh, Regional manager of (Turkey, Russia and Central Asia), United States Department of Defense Mr. Sam Newman and representative of the United States Commercial Department Mr. Bakhtiyar Mammadov. There were discussed the opportunities of Azerbaijan-American business expansion cooperation in the field of development of minor and moderate business, the visitors have also answered to all interesting questions of CIBC members.
Daniel Bloom said, that during his visit in Baku were discussed the matters of development of the American business in Azerbaijan. As he said, the United States Commercial Department renders support to the American companies all over the world, including in Azerbaijan. D. Bloom emphasized that in his work the Department tries to determine the important partners for further developing of relations with them. As the Caspian region plays the large role, "we came to a conclusion, that in the countries of Central Asia we should develop such kind of relations", - he continued.
"Our purpose is to attract the American investors to Azerbaijan. The second purpose is to adjust the trade with Azerbaijan", - Chang Suh expressed laconically.
On September 17, 2004 there was held CIBC celebratory measure in the Europe Hotel devoted to 10's anniversary signing of Contract of the Century. The certificates were entrusted to new members of Clubs by a management of Clubs' fields, organized and functions the Council Government of Club. CIBC president T. Aliyev expressed reliance, that in the process of fields' development will be developed CIBC too.
The president of the Caspian IT and Communications Club I. Yakovenko noted, that his wishes as the president of Caspian IT and Communications Club is that Azerbaijan was known in the world not only as the oil country, but also as country with high IT-technologies development.
The vice-president of the Caspian Oil and Gas Service Club, simultaneously chief manager of the company Consolidated Contractors International Company Juan Bullas noted, that "we were very pleased by work conducting within the bounds of Club. At first, we did not trust on its profile, but by the measures of Club we exchanged the information and I have made a conclusion for myself, that the realization of sessions within the bounds of CIBC - is necessary, as it meet to the interests of working in Azerbaijan businessmen".
Some years are headed by Banks Association of Azerbaijan Zakir Nuriyev, and Insurance Association of Azerbaijan - Khayal Mammadkhanli, which became co-presidents of the Caspian Finance, Banking and Insurance Club. According to Kh. Mammadkhanli, "Bank and Insurance Sector are driving force of financial sector, directly insurance is not necessary for the companies or state, it is necessary first of all for ourselves. Z. Nuriyev emphasized that Azerbaijan is the leader of the financial market both in Caucasian and Caspian region. "We hope, that in the nearest years Azerbaijan becomes the centre of demonstrating leading importance of Azerbaijan in financial sector of region", - he emphasized.
The president of CIBC T. Aliyev provided by the information of participants that Caspian Integration Business Club (CIBC) and the International Publishing House Caspian Energy begins to realization of new project connected with opening of new workplaces - will be created the information base, for wishing finding job, and companies wishing to receive qualified experts. More detailed information will be submitted by CIBC members. The second project is the publishing of Business Class journal. This journal will have broad opportunities, and there will be related about business and businessmen, sphere of distribution - Azerbaijan, Ukraine, Russia, Kazakhstan, EU area.
On October 15, 2004 there was held the session of Caspian IT and Communications Club organized within the bounds of CIBC. The president of Caspian IT and Communications Club I. Yakovenko mentioned a question of participation of the IT-companies at the exhibition BakuTel, which differed with a high level of organization and quantity of the participants. Taking part at the assembly the representatives of the Ministries of Communications and Information Technologies, economic development, the number of establishments, state and non state organizations, and also the members of club spoke about the development of communication being important sphere of economy within the year. At this meeting were discussed the matters of obstacles elimination on the ways of technological development of a communication facility in Azerbaijan, experience exchange and adjustment of the contacts between the businessmen in the sphere of IT-technologies and communications on the Caspian-Black Sea region.
Technical matters adviser of the Ministry of Communications and Information Technologies of Azerbaijan Iltimas Mammadov acted with the report during the meeting with CIBC members and expressed the assurance that with the realization of state program by development of communication and IT-technologies field of Azerbaijan, it really becomes the leader in the field of communication and IT-technologies on the Caspian.
Chief department of business development of the Ministry of Economic Development of Azerbaijan Alihussein Shaliyev said at the same session, that 74 % of Azerbaijan economy belongs to private sector, 70 % of citizens provided by job are engaged in private sector and 40 % of transferred to state budget is fulfilled due to private sector of the country. According to A. Shaliyev, today Azerbaijan economy experiences a new stage of development, which basis consists in expansion of qualitative services and development of regions. Last stated fact assumes the large-scale use of its resources. A. Shaliyev noted, that the Ministry of Economic Development of Azerbaijan is ready to render necessary support to businessmen within the bounds of CIBC.
On November 11, 2004 there was held the first session of Caspian Finance, Banking and Insurance Club with participation of Heydar Babayev, chairman of the State Committee on securities (SCS) under the president of Azerbaijan. At session were discussed the prospects of the development of equity market in Azerbaijan. The subject for discussion was chosen not casually, noted Zakir Nuriyev, the president of Caspian Finance, Banking and Insurance Club and chairman of the supervisory Council of "Rabitabank", today, first of all, the companies are interested in equity market and prospects of its development.
The purpose of the current Club is the discussion of various matters of financial character behind a round table, in particular to promote the elimination of problems in development both bank, insurance sector, and adjustment of the relations between the companies working in the financial market too. Thinks Khayal Mammadkhanli co-president of the Caspian Finance, Banking and Insurance Club, and chairman of the supervisory council of the International Insurance Company.
G. Babayev wished the successes to Caspian Finance, Banking and Insurance Club and emphasized, that there was no a day when it doesn't work for 10 years history of equity market (EM) formation. However the number of essential lacks in the EM results that it lags from the general development of economy. G. Babayev thinks that EM is insufficiently transparent. Besides in the market there are state short-term bonds (SSTB) and notes, to bond by the National Bank. Both of these have the yields of 4 % per a year. The private banks bonds too, but it is not quite enough. "Our market is not interesting to foreign companies, so as its volume is quite small", - G. Babayev. At the end of the acting he answered to questions of CIBC members and journalists.