On May 21, 2019 the Extractive Industries Transparency Commission (EITC), composed of newly appointed members under the decree of the president of the Republic of Azerbaijan dated May 3, 2019, held its first meeting at the State Oil Fund of the Republic of Azerbaijan (SOFAZ) with the participation of representatives of civil society, extractive companies operating in Azerbaijan and international organizations, Trend reports referring to SOFAZ website.
During the meeting, discussions on issues as disclosure of Production Sharing Agreements (PSAs), EIT Commission’s Activity Plan for 2019, scope of EIT Reports for 2018 and reporting period, list of reporting extractive companies, activities executed under the project on the Roadmap for the Beneficial Ownership Disclosure by consultants were held and relevant decisions were made.
In addition, the decision was made on establishing Working Group (composed of representatives from EITC, civil society and local and foreign extractive companies operating in Azerbaijan) for the preparation of EIT report 2018, as well as, reporting templates and Terms of Reference for the selection of Independent Auditor to prepare EIT 2018 Report were discussed and approved.
The State Oil Fund of Azerbaijan was established in 1999, and its assets at that time amounted to $271 million.
According to the regulations on SOFAZ, its funds can be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important problems.
The main objectives of SOFAZ consist of accumulating funds and allocating the Fund’s assets abroad for minimizing the negative impact on the economy, preventing the ‘Dutch disease’ to some extent, ensuring the accumulation of funds for future generations and maintaining current socio-economic processes in the country.
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