BUSINESS/FINANCE

“Business-incubator” to develop the local manufacturer

Michail SERGEEV

ALMATY, June 3

(THE GLOBE)

“To support businessmen and to develop local producers we are creating a mini-industrial zone — “Business-incubator”,” the director of the department of small business of the Almaty Akimat announced.

According to Serik Turzhanov, this project was initiated by the Akim of the city and is being conducted according to the program on development of the industrial zones in Almaty.

“High tariffs and rent charges, and the saturation of the market with cheap imported goods negatively influence our businessman,” he stated.

Hence, the main task of the city “Business-incubator” was to create optimal conditions required for the stable development of enterprises of small and medium-size business, Mr. Turzhanov emphasised.

“These enterprises are the strategic reserve and the key economic factor of the country. Seventy percent of the economy of many countries are based on small and middle-size business,” Mr. Turzhanov said to THE GLOBE.

New manufacturing enterprises will create new working places. This is supposed to reduce social tension. Moreover, enterprises of the “Business-incubator” will also allow the import-substituting production to develop, the realisation of social programs, and the creation of potential clients and partners for local large businesses.

To realise these tasks, Mr. Khrapunov, the Almaty Akim allotted 9000 m2 of manufacturing space to the “Business-incubator”. At this moment, businessmen from the southern capital have submitted applications for 13000 m2, and 7000 m2 has alreadt been used.

“The businessmen will receive here the required areas, maximum tax privileges and preferences provided by the legislation of RK, as well as marketing, consulting, office, etc. services. Moreover, in the nearest future the businessmen will not pay any office rent,” he assured.

Having touched upon the conditions of acceptance of businessmen to the “Business-incubator”, Serik Turzhanov said, the main selection criteria would be availability of the initial capital, work experience and the desire to work. To select claimants, A special commission has been created. According to Mr. Turzhanov, the work of this commission is supposed to be transparent, as information will be presented in the different mass media.

“We are interested in using every square metre of these areas. We invite businessmen interested in entering the “Business-incubator”,” he added.


“Oil and Gas of the Caspian Sea” Exhibition and Conference

BAKU, June 4

(THE GLOBE)

Tomorrow will be the last day of “Oil and Gas of the Caspian Sea” exhibition and conference. Several events and figures indicate the today’s condition of oil in the Caspian region.

For the first time for the last 6 years, the interest of the world oil community to such an event reduced. Such a sensitive barometer as a number of companies presented their expositions at the exhibition, showed at least a worsening climate conditions. In 1994 there were 150 companies at the first exhibition, and after a stable growth, in 1998 the number of companies was maximum (431 participants), while in this year only 300 companies took part in the exhibition.

There are a number of negative factors caused this decrease:

- The fall of the oil prices broke investors’ trust. Oil companies are still merging (at present the possible merge of Texaco and Chevron is actively discussed). One of the first results of this process is reduction of the joint budgets, first of all in such high-hazardous regions as the Caspian regions.

- Negative drilling results in several oil-fields in the Azerbaijan shelf (including in the Komsomolsky gulf in Kazakhstan) make geologists of the largest oil companies to reconsider their expectances reducing the latter. Unregulated juridical status of the Caspian Sea does a double harm: political stability of the region is doubtful, at the same time some most promising objects (especially near the supposed border between Azerbaijan and Turkmenistan, as well as in the border between these countries and Iran) are just closed for works.

- Total uncertainty results in reduced investments to the infrastructural projects. The new oil pipelines from the Caspian regions are practically not discussed at all. The second infrastructural project important for Azerbaijan, is the complete reconstruction (actually establishment) of the gas industry is also facing contract and financial problems.

- Concrete and delicate moments of the internal political life of Azerbaijan. For the first time the president Geidar Aliev was not present at the opening of the exhibition. He is still resting and examined by doctors in Turkey after heart operation performed in USA. Moreover, his son Ilgam Aliev, the Vice-president of the National Oil Company was also absent at the opening being with his father in Turkey. For the first time the tradition of signing new contract at the exhibition was not observed.

Though it should be mentioned, that in Azerbaijan there are 20 projects (16 of them have been ratified by the Medzhilis and have the force of independent laws) based on Agreements for Distribution of Products (there are only 2 similar Agreements in Kazakhstan). These Agreements have come into force and will be realised. In case of 20 to 30% of success coefficient, the agreements will once bring Azerbaijan several big deposits.

Tim Eggar, one of the heads of “Monument” company, which takes part in the project in both Azerbaijan and Turkmenistan, expressed mood of the western investors. Actually, he just repeated his 2-years-ago speech at the London conference:

- During first years after the break of the USSR, evaluation of the oil reserves in the Caspian region was overestimated at least 10 times.

- Real volume of oil reserves in this region may be compared with the Northern Sea, but not with the Persian Gulf.

- Both foreign investors and the countries in the Caspian region should estimate the situation in a real way. Only in this case these countries will have a chance to take their moderate but honourable place in the world oil community.

If two years ago these thoughts were refuted with desperation as pessimistic ones, today the audience perceived them as a positive and encouraging moment.

Kazakhstan was presented by the announcement of “KazakhOil” read by U. Karabalin. In general this speech was unnoticed. it seems that Kazakhstan has not determine its strategy.    


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