Alibayramlielectricshebeke & Ganjaelectricshebeke

Cancelled

The government of Azerbaijan, through a Presidential decree, awarded a 25 year concession for regional energy networks Alibayramlielectricshebeke and Ganjaelectricshebeke to JSC Baku Yuksak Garginlik Electric Avadanligi. The concession was awarded in October of 2002, following a competitive tender. Three other companies submitted bids: Ar Electric Ticarat AS, Improtext, and Woovford. In May 2002 it was estimated by a special government commission that some $200 million in investment would be needed to rehabilitate the networks. For the first five years JSC Baku Yuksak Garginlik Electric Avadanligi had promised to invest $28.8 million in Alibayramlielectricshebeke and 33.7 million in Ganjaelectricshebeke. It was expected that a good share of the money would come from loans, but no clear financing arrangements were known by the end of 2004. In October 2005, Bayva electric power supplier said it will give up management of the electricity distribution networks of Ganja, the country’s second largest city, and the southeast town of Ali-Bayramli due to the apparent failure to fulfill its obligations. The company said that in September it officially appealed to the Cabinet of Ministers requesting to repeal the contract authorizing it to manage the networks. Bayva cited the poor plight of the network and the fact 80% of consumers were paying fees with low tariffs, which lowered profitability. As another reason for the move, it indicated that considerable investments were needed to renovate the existing system. Management agreement between Azerbaijani Government and Bayva was finally terminated in December, 2005. Sent an e-mail to: office@economy.gov.az See: http://msp.gov.az/html/eng/tender3a.html and: http://economy.gov.az/HTML/Ministry/address.htm None