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BAKU: President Ilham Aliyev Holds Meeting With Cabinet Of Ministers

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  • BAKU: President Ilham Aliyev Holds Meeting With Cabinet Of Ministers

    PRESIDENT ILHAM ALIYEV HOLDS MEETING WITH CABINET OF MINISTERS TO SUM UP SOCIO-ECONOMIC RESULTS FOR 9 MONTHS OF 2006

    AzerTag, Azerbaijan
    Oct 22 2006

    On October 21, President of Azerbaijan Ilham Aliyev presided over
    a meeting with the Cabinet of Ministers to sum up socio-economic
    results for 9 months of 2006.

    The President opened the meeting with the following remarks:

    "Today's meeting of the Cabinet of Ministers is going to deal with
    the results of the socio-economic development for the 9 months of 2006.

    In all, 2006 has been very successful for the economy of Azerbaijan.

    Our economy keeps growing rapidly. All the predictions have come
    true. All of our programs are being implemented successfully, and
    I appreciate the work done for 9 months of 2006. It is proved by
    statistics: Azerbaijan's economy has grown 234% over the 9 months.

    The fact that last year Azerbaijan's GDP grew 34% makes me sure this
    pace will remain at the same level through this year. Azerbaijan's
    economy has grown 60% over two years. If the pace is the same through
    2008 - I hope so - then Azerbaijan's GDP will double in the next
    three years. This index has no analogues in the world. Azerbaijan
    now leads the world by this index. Of course, this achievement is a
    matter of our pride.

    It is gratifying that industrial sector is rapidly developing too.

    There has been a 40% growth for 9 months. Our industrial potential is
    getting stronger. But the industrial sector, in particular, non-oil
    sector, needs harder work to be developed.

    Over the past 9 months, some $5 billion have been invested in the
    country's economy. It proves that Azerbaijan remains very attractive
    in terms of making investments in its economy. Even though investments
    have been made in Azerbaijan - largely in oil and gas sector - for
    many years, the country is still very attractive for both foreign
    and local investors. We are very pleased with this fact, which proves
    that Azerbaijan has a very positive investment environment.

    As a result of the implementation of the State Program of
    Socio-economic Development of Regions, over 120 thousand workplaces
    have been opened for the past 9 months. The total number of new jobs
    opened in Azerbaijan from October of 2003 until now is 470 thousand.

    This is what has a positive impact on both all-round development of
    the country and its people's living standards.

    Our private sector is developing, as well. The private sector's
    share in GDP is 75 percent. It is a very high index proving that
    private sector is developing rapidly in Azerbaijan. Entrepreneurship
    is developing with both moral and material support rendered from
    the government.

    Our budget spending is growing. Azerbaijan's budget is going to
    exceed $6 billion next year. It is going to be around $6 billion
    300 million. This rapid growth, of course, will enable Azerbaijan
    to solve its main economic and social problems. The Azerbaijan's
    budget has grown 4-fold over the past 3 or 4 years. Let us look at
    the statistics: which country can represent such rapid growth? I
    am sure, none. Of course, there are a variety of reasons for that:
    strengthening of financial order; strict government's control over
    all of the economic sectors; our successful investment projects, the
    Heydar Aliyev-initiated Azerbaijan oil strategy; inflow of foreign
    capital in Azerbaijan; establishment of the principles of market
    economy in Azerbaijan; pursuing liberal economic policy and support
    of private business.

    There are many reasons for that. Among them, socio-political stability
    is playing a particular role. I mean that all these factors are
    playing a direct role in the economic development of Azerbaijan.

    Today, the entire international community sees it, recognizes it, and
    confirms that Azerbaijan is a successfully developing country. It is
    a country strengthening its economic and political positions in the
    world, having high international prestige; it is a reliable partner,
    a state open for cooperation, and a leader in the region. At the same
    time, it is the country which safeguards and strengthens its adherence
    to principle, and pursuing independent policy. It is the country,
    which has been building its policy on the base of the interests of
    the Azerbaijani people.

    As the President, I am proud of Azerbaijan's turning into a very rich
    country with its increasingly enhancing international image.

    Economic factor is playing a major role in overall development
    of Azerbaijan - it increases our possibilities. With increase in
    material possibilities, we carry out our independent policy with
    more confidence. Over $3 billion accumulated so far in Azerbaijan -
    in both the Oil Fund and the National Bank - give us extra power. They
    give us hope that all the tasks we have set ourselves will be solved.

    Given that oil sector plays a key role in forming of currency reserves,
    and that our large oil projects are now on the initial stage, one can
    say that Azerbaijan will receive huge amount of currency to in the
    years to come. Management and effective use of this huge sum should
    certainly be a focus of attention. The currency reserves amounting
    to $3 billion is a high index, which is playing a positive role in
    the economic development of Azerbaijan.

    This year, or rather, in the third quarter of the year, the
    Baku-Tbilisi-Ceyhan oil pipeline began operating. It was a historical
    milestone. It is the event having considerable impact on the processes
    taking place in both Azerbaijan and the entire region. It is the
    triumph of the oil strategy of Azerbaijan, oil strategy of Heydar
    Aliyev. In all, it is a factor ensuring for many years, decades and
    centuries the existence of Azerbaijan as an independent country;
    it is a triumph of the independent policy of Azerbaijan.

    This event is of "multi-vector" significance, influence. The people
    of Azerbaijan already can see it. The daily bettering situation:
    improvement works in cities, laying of new roads, rise in salaries and
    pensions, solving social problems, construction of schools, hospitals
    and power stations - all this is based on the economic power. We all
    are aware and should not forget that it is the oil strategy that gives
    us the economic power. It is the major factor, which by itself brings
    revenues and creates material values by itself. At the same time, the
    oil factor seriously influences the other sectors of economy. Services
    sector, tourism sector begin to develop. Infrastructure projects are
    being implemented. In other words, it is an axiom, the event having
    no analogues in terms of historical importance for Azerbaijan, which
    has been living as an independent country over 15 years.

    It is expected that the Baku-Tbilisi-Erzurum gas pipeline will start
    operating by the end of this year. This project is also very important
    as in recent times the "energy security" applies, above all, to the gas
    factor. Azerbaijan should use every possibility to provide oneself with
    gas. Had not the contract on Shah Deniz field been signed in 1996 -
    despite, unfortunately, there were opponents of this contract within
    the country too - it is not difficult to image what kind of problems
    Azerbaijan would face today.

    As you know, prices are constantly on the rise. Europe and CIS
    countries are planning to import natural gas mainly from Russia -
    there is no other source. Russian gas prices rise rapidly. Whereas 2
    years ago 1000 cubic meters cost $50, this year's price is already
    $110. Next year this figure will even higher. Although we are
    increasing gas production, it is not yet sufficient. The Shah Deniz
    field will be put into operation by the end of this year. Therefore,
    these two projects will do strengthen both long-term, sustainable
    economic potential of Azerbaijan and its energy security.

    Deliberate concrete programs are being implemented already in all
    spheres. These programs are being realized successfully, and their
    provisions are reflected in the budget. It is nearly three years
    since the Program of socio-economic development of regions has been
    implemented. We specially analyze this program every year, so there
    is no need to analyze it now. I mentioned that implementation of
    this program has led to opening of 470 thousand jobs. The regions
    are experiencing intensive development.

    A special program designed for Baku suburbs was adopted, and is
    currently being realized. Under this program, infrastructure is being
    renewed here, electricity, gas and water services are being installed,
    and new schools and hospitals are being built.

    New world-class trunk, inter-city and country roads are being
    constructed throughout Azerbaijan. Modern roads are being laid to the
    most remote villages. In Baku, new bridges and overpasses, which will
    help in road traffic regulation, are under construction. There will be
    9 bridges and overpasses, which, I am sure, will improve city services.

    Supply of regions with natural gas is going on intensively in
    Azerbaijan. After the 13-year break, we have managed to achieve supply
    of natural gas to Nakhchivan. It is an important fact. Gas came to the
    regions, which had never had it, even in the Soviet times. Very soon,
    gas supply to Lerik and Yardymly districts will be ensured. This will
    also be a great event of economic, social and political importance.

    Gas has never been supplied to these districts. Today, we are realizing
    it, even though it needs huge funds. The gas pipeline passes along
    the high mountains; there is very complex topography there. We, do
    that nevertheless because there is a necessity for doing that. People
    living there need it; it is needed to improve their living standard,
    and promote overall development of Azerbaijan.

    It proves once again that we face no the unsolvable problems. We are
    able to solve any problem.

    Recently, environmental program has been adopted. I am sure it will be
    implemented successfully. The oil polluted areas of Absheron peninsula
    and the Baku bay will be completely cleaned up, and other necessary
    measured will be undertaken.

    As you know, a huge project is being implemented to provide Baku with
    drinking water. The water pipe which will be laid in the Oguz-Qabala
    region, will entirely provide Baku with high quality drinking water.

    The project's completion is scheduled for 2008.

    We are doing a big work to better living conditions for the refugees
    and internally displaced persons. Today we'll be widely informed about
    this. Refugee camps are being eliminated, and refugees and internally
    displaced persons are being provided with normal conditions. I've
    already touched upon the subject of energy security.

    Also I want to note that power plants, which are under construction,
    create favorable conditions for all-round development of the country.

    The Astara and Shaki module-type power plants have already been put
    into operation. The power plants are being constructed in Khachmaz,
    Baku and Nakhchivan. A huge 500 megawatt-power plant is under
    construction in Sumqayit.

    Together with the European Bank of Reconstruction and Development we
    plan to reconstruct the Mingachevir power plant.

    It is planned to construct 400 megawatt-"Shimal 2" power plant
    in Baku. In other words, we are creating a huge energy potential,
    first of all, in order to meet growing demands of Azerbaijan and
    its economy. New plants and enterprises are being established,
    our population is growing, house-building works are underway -
    and all this requires electric power. On the other hand, in future,
    Azerbaijan can turn into an electricity exporting country.

    We have natural resources, oil, gas and black oil. If power stations
    have enough capacity, it will be possible to export electricity in
    future. It is more profitable than oil export, and we are moving
    towards this. Repair and restoration works are underway in historic
    buildings of Baku. It may not directly lead to economic growth, but
    we should make our beautiful city more beautiful. I gave instructions
    to Baku city administration to clean and illuminate the beautiful
    historic buildings, to carry out repair and restoration works in
    those buildings which have been in poor state for many years. We
    should modernize them in order to make our city more beautiful.

    Funds are allocated for these purposes, and I think is very
    important. I have set the following task: each new building should
    meet highest standards. I have banned construction of ugly buildings
    in Baku and all other cities. Each new building should differ in
    its architecture, it should be very accurately constructed, and its
    exterior should be beautiful. Only in this case construction will be
    allowed. We are implementing this program because earlier constructed
    ugly buildings spoiled the overall sight of our city. We also pay
    great attention to our cultural heritage.

    A special program is adopted, and it must be reflected in next year's
    budget. Reconstruction and restoration of museums and theatres must
    be carried out at the highest levels. In 2007-2008 all theatres
    and museums in Baku should be repaired at the highest levels, and
    meet the highest word standards. Sports complexes are constructed in
    Azerbaijan for many years. It is planned to construct new complexes
    in this and following years. Over 600 schools have been constructed
    in Azerbaijan over the last two years. The Minister of Education will
    speak of this today. New, modern hospitals are being constructed in
    provinces to solve the people's major health problems. Diagnostic and
    medical centers, which meet modern standards, are being constructed
    today in all provinces. The first such center was opened in Lankaran,
    and I attended its foundation stone-laying ceremony and opening.

    Everything has been done accurately there. All the newly constructed
    hospitals will have special kidney wards equipped with "artificial
    kidney" devices, as many people in Azerbaijan suffer from kidney
    diseases.

    Imagine, that some people have to travel 300 or 400 kilometers a week
    from southern or western regions to Baku and backward.

    The people suffer from this disease, but because of lack of such
    devices in the provinces, they suffer ten times more.

    This requires additional expenses. Such road, of course, has its
    negative impact on their state of health. This is why I have given
    instructions, and we are doing this work. First of all, modern
    complexes are being constructed in each province to be located no
    more than 100 or 150 kilometers from sick people's residence.

    Such hospitals will be constructed in each province in future.

    Great attention is being paid to military construction. Our military
    budget will exceed one million dollars next year. I set this task two
    years ago. Our military budget was $150 million then. I foresaw this
    figure. May be, it was not worth announcement, but I knew towards
    what we were moving. I knew that economic development of our country
    and budget growth would let us equal Azerbaijan's military budget
    with the whole budget of Armenia. I'm very pleased than in short
    period of time, about over two years and a half, we have reached
    this. Our military budget will equal with Armenia's whole budget,
    and will noticeably surpass it in the following years.

    It will, of course, play a key and irreplaceable role in finding fair
    solution of the Armenia-Azerbaijan conflict over Nagorno-Karabakh. In
    other words, we carry out our work in all spheres according to the
    programs. And there are so many events, that sometimes we forget abut
    what we have done, despite it was done just two or three years ago.

    So much has been done, that it will take several hours to enumerate
    this. But we should nor forget this, because this is our achievement.

    At the same time, we cannot stop.

    Our country is facing a number of economic and social problems,
    which must be solved. The main thing is that we know how to solve them.

    Practice shows that the steps we took have been successful".

    Afterwards, Deputy Prime Minister, Chairman of the State Committee for
    Refugees and IDPs Ali Hasanov, Minister of Finance Samir Sharifov,
    Minister of Economic Development Heydar Babayev and Minister of
    Education Misir Mardanov delivered their reports on the work done in
    nine months of this year.

    The meeting ended with President Ilham Aliyev's concluding remarks.
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