Dear candidate!

It is not a secret for anyone that Azerbaijan’s dynamic development and citizens’ welfare, transparency in oil revenues and their effective use, as well as public participation in this process should be the primary concerns of the national development strategy. Therefore taking into account the importance to provide public control over the obtained revenues and their expenditure we address to you on behalf of National Budget Group and “Improving Transparency in Extractive Industry” Coalition of civil society institutions regarding the presidential elections to be held on October, 15 in Azerbaijan.

Honorable candidate, you are kindly asked to be aware of that the forthcoming presidential elections you have joined falls under the most glorious and responsible period of Azerbaijan’s independence history. Programs and election platforms to be presented to citizens can be successful only if they reflect urgent problems of modern life as well as issues having special importance for the society. At present among others one of the most urgent and significant issues is transparent and effective management of oil revenues. In your program it is necessary to show your personal attitude to the mentioned direction whish is of great public interest as well as to tell voters about your corresponding activity in case of your victory in presidential elections. You will succeed in attracting public attention to your program by contribution to transparent and effective management of oil revenues to be obtained.

According to official statistical data to September 1, 2008 assets of State Oil Fund passed 10 bln. 484 mln.AZN. It is well-known that flow of large oil dollars to Azerbaijan has positive as well as enough negative features. In this regard one of the crucial problems is related to expenditure of oil dollars: to what purposes and how oil dollars will be spent? Whether this money will be spent only for current projects or they will be remained for future generations? Such questions and many others have been disturbing our citizens for a long time. To the contrast Azerbaijani government stands far from this disturbance and continues generously financing current projects. During a short period the volume of state budget investment expenses has been increased in 100 times and reached 1.9 bln.AZN in 2007 (30.4% of budget expenses). In 2008 4.3 bln. AZN or 40 % out of total budget expenses will be directed to investment purposes. At the same time state investment expenses to be spent over all sources will be about 20% of GDP.

If to  take into consideration that infrastructure and social projects compose about 70% of state investment expenses, then it will be seen great necessity in increasing citizens’ participation opportunities, in providing transparency as well as effectiveness in preparation and implementation of above projects. Being NBG and “Improving Transparency in Extractive Industries” Coalition of civil society institutions we declare our readiness to cooperate in the field of transparent and effective management of oil revenues with each candidate to presidency regardless his national, religious or political affiliation. At the same time we would like to bring to your attention the fact that wide place given to transparent and effective management of oil revenues in your platform will coincide with the interest of more than 100 civil society institutions from Coalition, of 10 prominent experts from NBG and with the interest of society as a whole.

Thereby we suggest you to put following issues into your platform, use them in your speeches, bring the problem to the center of public interest and by this way eventually increase voters’ interest for you future activity:

- To provide parliamentary control over State Oil Fund’s reserves by accepting Law on State Oil Fund of Azerbaijan Republic;

- To transfer to individual accountability local and foreign companies operating in Azerbaijan that joined the International Transparency Initiative in Extractive Industry;

- To enhance public control in Observation Council of State Oil Fund of Azerbaijan Republic through the achievement of representation of public organizations in accordance with the provisions of the Fund;

- To accelerate classification issues on the basis of state budget programs of Azerbaijan Republic;

- To establish legal and institutional basis for providing public participation in the implementation of investment projects.

We strongly appeal to you to cooperate with us for Azerbaijan’s brilliant future.

Board of Directors of National Budget Group
Council of Coalition of civil society institutions
“Improving Transparency in Extractive Industry”
Baku, September 12, 2008

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Last correction date of the file: 22/10/2008 - 14:16:56