EITI IN AZERBAIJAN- KEY EVENTS CHRONOLOGY- 2004 (based on the Coalition information)

On December 20, 2004 – a meeting of the Selection Group established in accordance with the Memorandum of Understanding signed between the governmental Committee on EITI, foreign and local extractive indusry companies (oil and gas) and the NGOs’ Coalition for Increasing Transpareny in Extractive Industries to implement EITI in Azerbaijan was held to select an audit company, which is to analyse and match the reports of foreign and local oil- gas companies on payments to the government and the government on receiptes in connection with extraction of mineral resources in Azerbaijan. Four internationally recognized and operating in the Republic of Azerbaijan audit companies - Ernst &Young, Deloitte & Touche, PriceWaterHouseCoopers and Moore Stephens were invited to bid. Only three of them - Ernst &Young, Deloitte & Touche, PriceWaterHouseCoopers had submitted their proposals.

After studing the financial and technical proposals submitted by the audit companies, the Selection Group has declared for Deloitte & Touche. The winner will carry out the audit of reports for the year 2003 and for the first half of 2004.
On December 03, 2004 - the 4^th General Meeting of the "For Improving Transparency in Extractive Industry" Coalition was held in Baku Business Center. Coalition Council presented the report about its activities during the last 6 months. 12 new members to the Coalition and a new Coalition Council were elected and some changes to the Coalition Regulations were adopted in the Meeting.
On December 01, 2004 a press-conference of Coalition Council was held after the signing of the Memorandum of Understanding by Government Comission on EITI, local and foreign oil- gas companies and NGO Coalition representing the civil society. Members of Coalition Council went into the details of all negotiation and discussion processes occured prior to signing of the Memorandum and revealed their own personal views about the significans of the document. A special Statement of Coalition Council on the Memorandum was distributed in the press- conference.
On November 24, 2004 a mutual Memorandum of Understanding was signed by the representatives of the Azerbaijan Government, local and foreign oil companies and civil society at Hyyat Regency Hotel in Baku. The signing ceremony was attended by representatives of the Azerbaijan Government, almost all local and foreign oil companies active in Azerbaijan, JVs engaged in oil and gas extraction, civil society, mass- media, the ambassadors of foreign countries, heads of WB, EBRD, IMF missions in Azerbaijan and other guests. The head of government Commision Samir Sharifov, President of bp-Azerbaijan David Woodward (on behalf of foreign oil companies), Coordinator of the “For Improving Extractive Industry Transparency” Coalition Council Sabit Bagirov (on behalf of civil society), President of State Oil Company of Azerbaijan Republic Natiq Aliyev, the UK Ambassador in Azerbaijan Laurie Bristow and heads of Azerbaijan missions of WB, EBRD and IMF made speeches at the ceremony.

(the texts of the speeches are available at the adresses below)

- Samir Sharifow’s speech

- David Woodward’s speech

- Sabit Bagirov’s speech

- Laurie Bristow’s speech

The document has been signed by:

- Government Commission on EITI

- local and foreign oil companies

- Coalition of NGOs on EITI

On November 9, 2004 a meeting between DFID and Coalition Council representatives was held at British Embassy in Baku. The trilateral Memorandum of Understanding that is to be signed in near future was talked about. The participants exchanged their views on the implementation of "Extractive Industry Transparency Initiative" (EITI) and its future perspectives worldwide.

On October 21, 2004 the last trilateral joint duscussion of the draft Memorandum of Understanding prepared by the Government Comission was held in SOFAR. The last version of MOU was agreed by the oil companies and Coalition Council representatives to sign and Government Comission was asked to organize signing of the document. Involved in the discussion were: Head of the Government Commission Samir Sharifov, representatives of foreign oil companies and members of the NGO Coalition Council Sabit Bagirov, Inglab Ahmedov, Mirvari Gahramanli and Sevgim Rahmanov.
On October 15, 2004 the 3^rd General Meeting of the Coaltion "For Improving Transparency in Extractive Industry" was held in Baku Biznes Centre. The signing of trilateral Memorandum of Understanding by the Coalition was the main point considered in the meeting. Though there were several reasonable claims towards some points of MOU, the General meeting desided to sign the MOU not to delay the implementation of EITI process in Azerbaijan. 2 persons among the members of the Coalition were elected to the "Election Group" which will elect an audit company to compare reporting forms.
On October 12, 2004 the draft Memorandum of Understanding was discussed once again by the representatives of the oil companies and the Coalition Council in "Landmark" Biznes Centre, Baku.
On October 5, 2004 a trilateral joint duscussions of the draft Memorandum of Understanding prepared by the Government Comission was held in SOFAR. Some suggestions offered by the Coalition Council were accepted. Involved in the discussion were: Head of the Government Commission Samir Sharifov, representatives of foreign oil companies and members of the NGO Coalition Council Sabit Bagirov and Sevgim Rahmanov.
On September 15, 2004 a joint discussion of the draft Memorandum of Understanding prepared by the Government Comission was held in SOFAR. The Coalition Council has to define its position regarding that document. Involved in the discussion were: members of the government commission headed by Samir Sharifov, representatives of Foreign Companies, director of the Baku office of the OSI and members of the NGO Coalition Council.
In the first half of the day on July 16, 2004 issues concerning potential forms of cooperation on EITI among all interested sides are discussed at a meeting at SOFAR attended by the Fund’s director, Samir Sharifov, and members of the Coalition Council.
In the second half of the day on July 8, 2004, the discussion of EITI-related issues continues at a meeting attended by representatives of the Coalition Council Sabit Bagirov and Inqlab Ahmadov, director of the OSI’s Baku office Farda Asadov, DFID representative Shefton Darby, representative of the embassy and the OSI Chris Koch, representative of the World Bank Michael Levitsky.
In the first half of the day on July 8, 2004 issues concerning the SOFAR and the DFID are discussed at a meeting attended by: director of the Fund Samir Sharifov, representatives of the Coalition Council Sabit Bagirov and Inqlab Ahmadov, director of the OSI’s Baku office Farda Asadov, DFID representative Shefton Darby, representative of the embassy and the OSI Chris Koch, representative of the World Bank Michael Levitsky.
On July 6, 2004 the EITI matters are discussed at a roundtable attended by: the Coalition Council (in full), director of the OSI’s Baku office Farda Asadov, DFID representative Shefton Darby, representative of the embassy and the OSI Chris Koch, representative of the World Bank Michael Levitsky. The participants are greeted by the British ambassador.
On June 28, 2004 the Coalition’s coordinator receives an official response from the chairman of the Government Commission concerning the reporting forms.
On June 14, 2004 the Coalition’s coordinator sends the suggestions of the Coalition Council concerning the reporting forms to the chairman of the Government Commission. After some time, copies of the suggestions are sent to oil companies and the DFID.
From May 14, 2004 to June 11, 2004, the Coalition Council holds a number of meetings to discuss and adopt activity plans. The Council also sets up a working group to analyze the financial reporting forms prepared by the Government Commission. The working group prepared its suggestions on the Commission’s reporting forms. On June 11, 2004 the Council approves the working group’s suggestions and decides to submit them to the chairman of the Government Commission, Samir Sharifov, to the DFID and to oil companies.
On May 13, 2004, at the initiative of the Open Society Institute, a roundtable is held at the ISR Plaza hotel and attended by over 30 well-known NGOs. The meeting adopts the decision to set up a Coalition of Azerbaijani NGOs in support of the EITI. The NGOs joining the Coalition “To improve transparency in the extractive industry” signed a Memorandum and adopt the Coalition Regulations. Members of the new Coalition elect a seven-member Coalition Council (Sabit Bagirov, Inqilab Ahmadov, Mais Gulaliyev, Qubad Ibadoglu, Himayat Rizvanqizi, Sevgim Rahmanov and Mirvari Qahramanli).
On April 20, 2004, in a ceremony at the Azerbaijani embassy in London, the chairman of the Government Commission, Samir Sharifov, presents the suggestions on the financial reporting forms to representatives of oil companies and international NGOs.
On April 5, 2004, the chairman of the Government Commission, Samir Sharifov, presents the financial reporting forms prepared by the Commission at a roundtable discussion at the Amirov conference hall of the Hyatt Park hotel. The discussion is attended by oil companies and about 20 well-known NGOs operating in Azerbaijan. The meeting also discusses the issue of who can represent the civil society in the EITI. It is suggested that Azerbaijani NGOs discuss the issue and establish an institute capable of assuming the functions of a third party in the EITI. During the discussion, Samir Sharifov supports the idea.
On March 31, 2004 the chairman of the Government Commission invites a number of NGOs to take part in the discussion of the financial reporting forms prepared by the Commission.

Last correction date of the file: 24/7/2008 - 14:50:54