New petrochemical complex requires special legal regime

Development of a law on the special temporary legal regime under construction in Azerbaijan of a new complex on oil and gas processing and production of petrochemical products (OGPC) will have a positive impact on the project's implementation, managing partner of OMNI law firm Jeyhun Bayramov said on Wednesday at a forum on creating OGPC.

"Since the project will attract foreign investment, contractors and subcontractors, the creation of a special legal regime is necessary in order to prevent delays in the construction of a new complex. The State Oil Company of Azerbaijan (SOCAR) has appealed to the government on the creation of legislative framework governing the special mode of operation," Bayramov said.

In his view, the formation of a new law is more appropriate than amending the legal framework of the country, which can take quite a long time.

In particular, the creation of a special legal regime involves resolving issues of taxation, customs duties, labor migration, social protection, tariffs and pricing processes.

"In order to ensure efficiency of project implementation in all these areas preferences and privileges need to be applied," said Bayramov.

He noted that early implementation of this project will create conditions for development of the industrial complex of the country, and in particular light and heavy industry, increase in energy security and diversification of the economy.

A striking example of this is such projects as development of Azeri-Chirag-Guneshli block of oil and gas fields, Baku-Tbilisi-Ceyhan oil pipeline, South Caucasus gas pipeline, within which special legal regimes were established.

"These projects will have positive impact on the economic development of the country," said Bayramov.


/Trend/