Road map on utilities to provide GDP growth

By Azernews

By Nigar Abbasova

The Strategic Road Map for the development of utilities, particularly electricity and thermal energy, water and gas supply in Azerbaijan is expected to provide a GDP growth by 832 million manats ($471.06 million) till 2020. Under the document, some 6,650 new jobs will be created in the sphere by that period. 

The strategic goals on the development of the sphere include the provision of sustainability and efficiency, the production of fully-diversified and ecologically clean electricity, the introduction of mechanisms aimed to reach quality standards and high efficiency level, establish effective gas-distributing infrastructure, create high-level water management system, reduce losses in water supply, and create reliable heat supply infrastructure. In post-2025 period the production efficiency is expected to reach the highest level by means of an overall modernization of gas and energy installations, as well as the use of brand-new operation-performing devices.  

Besides, the government will consider the use of additional mechanisms to secure gas meters and provide reducing commercial losses, as well as setting fine penalty for illegal use of gas.

Azerigas Production Union and SOCAR will initially implement overall inspection of the pipeline network and gas distribution systems to determine the regions with the highest level of losses. Further, relevant agencies will prepare a matrix, which will classify regions in accordance with the level of losses and expenditures on modernization. The final stage envisages the development of a general plan on the modernization or creation of gas distribution systems.  

Also, the document reads that certain measures should be implemented to purify gas, which will be further directed to the distribution system.   

Work on the gasification and restoration of gas supply across all districts of the country allowed to reach the level of gasification standing at nearly 90 percent. The gas supply in Sumgayit, Mingachevir, Ganja, Naftalan, Shirvan cities and in Fizuli, Bilasuvar, Balakan, Hajigabul and Absheron districts has been brought to 100 percent as a result of the gasification program implemented in the country.

Some 8.15 billion manats ($ 4.61 billion) will be required to implement measures envisaged in the document, while the funds will be provided from the state budget, banks, international financial organizations, the National Fund of Entrepreneurship Support, foreign investments and other sources.