Tweet
TRANSITIONS ONLINE: AZERBAIJANI GOVERNMENT DIVERTED MONEY ALLOCATED FOR SOCIAL PROJECTS TO ORGANIZE THE EUROVISION SONG CONTEST
Panorama.am
04/05/2012
The biggest problem faced by the people in the village of Kemerli in
the northwest of Azerbaijan is the water. Every day, villagers must
fetch water from an artesian well, one of the few sources of water.
According to a World Bank report, water supply is a problem across
Azerbaijan, much of the country's distribution system is more than 50
years old and reaching the end of its usability, writes the journalist
Shahla Sultanova in her article, published in "Transition Online"
(TOL) journal.
"The water is not drinkable. It's salty. We carry that salty water
in containers for everyday use, mainly for cleaning. It's hard. While
the men are working, women and children have to walk to the well and
carry big containers back. We buy containers of drinking water every
day. It costs a lot of money," said one of the villagers of Kemerli,
Hikmet Hasanov.
According to World Bank report, the subsequent state of many water
pipe networks and the associated problems such as intermittent supplies
and heavy leakages affect the quality and reliability of services and
pose risks to public health. In June 2011, Azerbaijan's government
took action on the issue, earmarking $320 million to renovate water
and sanitation systems in 18 of the country's 64 administrative
regions. However, a few months later, a new cabinet order diverted more
than a fifth of the water allocation to construction of Crystal Hall in
Baku, which will host this year's Eurovision Song Contest later in May.
"Instead of providing people with water, the government reduces
water-supply expenditures and uses them for public relations. It has
access to many resources. Why [take] money from water-supply projects?
There are many regions in the country that suffer from lack of water
in summertime. It's a danger to health," said Azerbaijani economist
and co-founder of Republicanist Alternative Movement Natig Jafarly.
Apparently, water is not the only resource being drained to pay
for the fruits of Azerbaijani singing duo's 2011 Eurovision victory,
which brought the 2012 contest to Baku, the publication writes. Cabinet
order No. 258S reduced by $63.6 million a fund for increasing salaries
and pensions and put that money into concert hall. Orders No.202s
and No.233s shifted $108 million from the country's reserve fund and
other projects for apparently Eurovision-related expenses.
A "Transitions Online" review of spending orders by the president
and cabinet ministers shows that just in terms of money explicitly
allocated for Eurovision, Azerbaijan's hosting of the contest will be
the most expensive in the event's history. Direct orders - those that
specifically mention Eurovision - amount to $75.7 million, of which
$63.6 million for organization of the event, $10.8 million to state
television for financial guarantees to the European Broadcasting Union
and $1.3 million for travel by the national performers in the contest.
But the real cost of Baku's Eurovision could actually be several times
higher than the official estimate. Several government spending orders
worth hundreds of millions of dollars appear to indirectly support the
event's organization - allocating money, for example, for construction
of an athletic and concert complex; beautification of Flag Square,
where Crystal Hall was built; renovation of Baku's Tofig Bahramov
Stadium, etc. TOL's examination of 11 spending orders indicates a total
cost to the state for Eurovision and related items of $721 million,
of which $645 million is in indirect expenses. That does not include
allocated $62 million for organization of international events.
Other cost estimates differ. Gubad Ibadoglu, head of the Economic
Research Center think tank in Baku, calculates the cost at around
$620 million manats but says with all so-called indirect expenditures
factored in, it could end up close to $1,240 billion. "An unbelievable
amount of money is being spent to host the contest," said Ibadoglu,
adding that it's too high. In his turn, economist Nazim Mammadov
said that those numbers are exaggerated in the media, because cabinet
ministers didn't clearly explain the projects and costs.
But Zohrab Ismayil, head of the Public Association for Assistance
to Free Economy, dismisses that argument. "Crystal Hall was built to
host Eurovision. Flag Square is being renovated and work is going on
24 hours a day because Crystal Hall is located there. Baku-Alat road
is taking people from downtown to the hall. Tofig Bahramov Stadium is
'plan B' as required by the European Broadcasting Union. The minister
of sport told local media about 50 buses that they purchased for the
song contest. The expenditures should not be categorized as direct
or indirect. They are all directly related to the organization of
Eurovision," Ismayil said.
From: Emil Lazarian | Ararat NewsPress
Panorama.am
04/05/2012
The biggest problem faced by the people in the village of Kemerli in
the northwest of Azerbaijan is the water. Every day, villagers must
fetch water from an artesian well, one of the few sources of water.
According to a World Bank report, water supply is a problem across
Azerbaijan, much of the country's distribution system is more than 50
years old and reaching the end of its usability, writes the journalist
Shahla Sultanova in her article, published in "Transition Online"
(TOL) journal.
"The water is not drinkable. It's salty. We carry that salty water
in containers for everyday use, mainly for cleaning. It's hard. While
the men are working, women and children have to walk to the well and
carry big containers back. We buy containers of drinking water every
day. It costs a lot of money," said one of the villagers of Kemerli,
Hikmet Hasanov.
According to World Bank report, the subsequent state of many water
pipe networks and the associated problems such as intermittent supplies
and heavy leakages affect the quality and reliability of services and
pose risks to public health. In June 2011, Azerbaijan's government
took action on the issue, earmarking $320 million to renovate water
and sanitation systems in 18 of the country's 64 administrative
regions. However, a few months later, a new cabinet order diverted more
than a fifth of the water allocation to construction of Crystal Hall in
Baku, which will host this year's Eurovision Song Contest later in May.
"Instead of providing people with water, the government reduces
water-supply expenditures and uses them for public relations. It has
access to many resources. Why [take] money from water-supply projects?
There are many regions in the country that suffer from lack of water
in summertime. It's a danger to health," said Azerbaijani economist
and co-founder of Republicanist Alternative Movement Natig Jafarly.
Apparently, water is not the only resource being drained to pay
for the fruits of Azerbaijani singing duo's 2011 Eurovision victory,
which brought the 2012 contest to Baku, the publication writes. Cabinet
order No. 258S reduced by $63.6 million a fund for increasing salaries
and pensions and put that money into concert hall. Orders No.202s
and No.233s shifted $108 million from the country's reserve fund and
other projects for apparently Eurovision-related expenses.
A "Transitions Online" review of spending orders by the president
and cabinet ministers shows that just in terms of money explicitly
allocated for Eurovision, Azerbaijan's hosting of the contest will be
the most expensive in the event's history. Direct orders - those that
specifically mention Eurovision - amount to $75.7 million, of which
$63.6 million for organization of the event, $10.8 million to state
television for financial guarantees to the European Broadcasting Union
and $1.3 million for travel by the national performers in the contest.
But the real cost of Baku's Eurovision could actually be several times
higher than the official estimate. Several government spending orders
worth hundreds of millions of dollars appear to indirectly support the
event's organization - allocating money, for example, for construction
of an athletic and concert complex; beautification of Flag Square,
where Crystal Hall was built; renovation of Baku's Tofig Bahramov
Stadium, etc. TOL's examination of 11 spending orders indicates a total
cost to the state for Eurovision and related items of $721 million,
of which $645 million is in indirect expenses. That does not include
allocated $62 million for organization of international events.
Other cost estimates differ. Gubad Ibadoglu, head of the Economic
Research Center think tank in Baku, calculates the cost at around
$620 million manats but says with all so-called indirect expenditures
factored in, it could end up close to $1,240 billion. "An unbelievable
amount of money is being spent to host the contest," said Ibadoglu,
adding that it's too high. In his turn, economist Nazim Mammadov
said that those numbers are exaggerated in the media, because cabinet
ministers didn't clearly explain the projects and costs.
But Zohrab Ismayil, head of the Public Association for Assistance
to Free Economy, dismisses that argument. "Crystal Hall was built to
host Eurovision. Flag Square is being renovated and work is going on
24 hours a day because Crystal Hall is located there. Baku-Alat road
is taking people from downtown to the hall. Tofig Bahramov Stadium is
'plan B' as required by the European Broadcasting Union. The minister
of sport told local media about 50 buses that they purchased for the
song contest. The expenditures should not be categorized as direct
or indirect. They are all directly related to the organization of
Eurovision," Ismayil said.
From: Emil Lazarian | Ararat NewsPress