Azerbaijan, Baku, 25 July/ Trend / It is not secret that majority of the enterprises in Azerbaijan are located (almost 55%) in the capital city. According to the Ministry of Economic Development of Azerbaijan, tens of new organizations are registered a day with an increase in the number of the legal entities by 30% in June. Over 60% of new 3,780 enterprises established in first half year are located in Baku. Hence, the traffic jam and dense public infrastructure.
The establishment of new industrial town in Azerbaijan aimed at rescuing Baku from the all production facilities. However, the shortage of funds made the construction of industrial town in Yeni Yashma settlement impossible.
A year ago, Cooperation and Development Agency of Turkey presented the project of industrial town in Yeni Yashma together the Ministry of Economic Development of Azerbaijan. Some 267ha of land was allotted by the Cabinet of Ministers for the construction of the town, 63 ha which accounts for Absheron region and 204 ha - Khizi region. The presentation was success and it was widely spoken about all over the country. The industrial town was to play a role of business incubator with 72 industrial sections, trade outlets, facilities and storehouse.
All conditions and appropriate legislative base were provided for the town: presidential decrees, the order of the Cabinet of Ministers and go-ahead by the government. According to the decision of the Cabinet of Ministers, three enterprises including Azerelektrosvet, Ulduz and Keshla Machine Works were planned to the moved to the town first.
A total of AZN8mln was allotted from the public budget for the construction of a town while a real amount required exceeded it by 15 times. According to the estimations of the Ministry of Economic Development, the expenditures for only infrastructure exceed the initial estimates of a whole project and almost four times the initial expenditures.
At the early 2008, the Azerbaijani government gave up the plans to establish industrial town in Yashma and selected totally different place. It will be established in Sumgayit in the place of idle enterprises. On one hand, selecting new place for an industrial town in Sumgayit is favorable from the viewpoint of funds and location. There is already appropriate infrastructure in Sumgayit on the base of which it would be possible to construct new facilities. On the other hand, it will not be ideal embodiment of the model of the industrial town as Sumgayit is already industrial town. As a result, it will become 'a town within a town'.
Ellada Khankishiyeva, Director of Analytical center of Trend .
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