Baku, Fineko/abc.az. The State Oil Fund of Azerbaijan (SOFAZ) is still optimistic about further co-operation with the US Trade & Development Agency (USTDA).

At today’s news conference in Baku SOFAZ executive director Shahmar Movsumov informed that the change of US administration delayed confirmation of a new cooperation project with USTDA a little.

“Currently the US administration analyses and assesses the project. We hope for the positive result in the near future,” Movsumov said.

SOFAZ and USTDA are conducting preparing of the third project for Fund development. SOFAZ is awaiting Agency’s reaction to the submitted draft of its programme. Format of financing for the project evaluated at up to $700,000-800,000 is expected to change. It should be realized on the conditions of co-financing as since 2007 the US and Azerbaijan switched to co-financing of technical projects.

The new project will also be aimed at institutional development of SOFAZ. In particular, it includes assistance in choice of managers for SOFAZ assets management and training of management for activity, creation of a permanent training center for SOFAZ staff.

The first grant agreement on $1.091 million of technical assistance for SOFAZ was signed in Baku on May 19, 2004. The project of SOFAZ institutional development included placement of Fund’s finances and assessment of certain risks, definition of criteria of foreign managers on SOFAZ assets administration and monitoring of their work, definition of requirements for purchase of software on registration of assets and their accounting system, consultations for SOFAZ on co-operation with other software systems used by the Fund, in particular in the process of accounting transactions.

On January 18, 2005 SOFAZ signed a contract with Overture Financial Services for realization of this stage. The latter was to make proposals for staff reshuffles and SOFAZ structural branches’ mutual settlements conforming to international standards, and legal consultations for SOFAZ on acquisition of separate assets.

On February 7, 2007 SOFAZ and USTDA signed a $885,000 grant agreement on the 2nd stage of SOFAZ institutional development. The one-year grant programme includes Fund’s technical development – supply of the latest modern software on investment accounting and risk performance.

In this connection on June 22 SOFAZ signed two six-month contracts with Thomson Financial Ltd for supply of software for master ledger for $182,675 and for portfolio management software supply for $692,927.

SOFAZ was established in accordance with the presidential decree issued December 29, 1999 and is out-budget state institution under the auspices of the President’s Office. The Fund accumulates revenues from realization of oil contracts, in particular from sale of country’s profit oil, tariffs for oil and gas transit, state property lease, etc. Currently its assets exceed $11.2 bn.

27.04.2009 17:29