Speech by Ilham Aliyev at the meeting with participants of the 10th anniversary Ministerial Conference of the Central Asia Regional Economic Cooperation Program

Dear guests, let me salute and warmly welcome you all to Azerbaijan.

The fact that 10th anniversary Ministerial Conference of the Central Asia Regional Economic Cooperation Program is held in Azerbaijan is a significant event and a great honor for our country. As you know, Azerbaijan is an active member of this prestigious international organization. Azerbaijan is trying to honor its commitments within the program. I am sure that the successful development of this program will deepen regional cooperation and contribute to peace, stability and prosperity in the region.

The economic reforms under way in Azerbaijan in recent years are producing wonderful results. Azerbaijan is implementing very serious programs on the three main activity directions of CAREC. We are paying great attention to the issues of trade, transport and energy, and our initiatives are contributing to the enhancement of regional cooperation. Over the last eight years economic development in Azerbaijan has been very rapid, our GDP has tripled, i.e. it has increased 300 per cent. Industrial production has grown approximately three times. Tens of billions have been invested in the national economy.

There is a wonderful investment environment in Azerbaijan, our country has made great strides in attracting foreign investment. At present, investments are made not only in the oil and gas sector, but also in the non-oil economy. This is a priority of our current policies. The non-oil sector has also developed fast this year – its growth constitutes 9 per cent. Of course, as a result of the economic reforms our people’s financial situation is improving. Over the last eight years the level of poverty in Azerbaijan has dropped from 49 to 9 per cent. Our foreign trade has increased too. As a result of the work being done by CAREC member-countries and the government of Azerbaijan, our economic relations in the bilateral format have also developed well.

Our initiatives in the transport sector are of international importance. The biggest investment in recent years has been made in this sector. Our favorable geographical location enables us to turn Azerbaijan into an international transport hub. Very important steps have been taken to this end. Over the last seven years five international airports have been commissioned in Azerbaijan. These airports can receive the biggest cargo aircraft.

Reform is under way in the railway transport, new railway lines are under construction. The construction of the Baku-Tbilisi-Kars railway, which will link Europe and Asia, is well under way. I am sure that this project will be completed in early 2013. We will thus restore the Iron Silk Road. This project will be of tremendous importance to all CAREC members because it will both be economically viable and strengthen our regional cooperation.

New aircraft are being purchased. The trans-national companies engaged in cargo transportation in Azerbaijan have already earned a good international reputation.

Additional measures are taken to develop the sea transport. We are purchasing ships, ferries and tankers. Azerbaijan is already playing the transit role for some Central Asian countries. Our role as a transit state will only enhance in the future. I am talking about the transit of natural resources of course, while extra measures are taken to deliver non-energy cargo to the West via Azerbaijani territory as well. The biggest international trading port on the Caspian is currently under construction. A new shipyard is also being built in Baku. Of course, the products of this shipyard will be at the disposal of all Caspian littoral countries. Besides, this shipyard will also be important to non-littoral countries who are implementing their own initiatives.

The energy sector is part of the CAREC program too. We have done a lot in this sector of course. Azerbaijan is an ancient oil country. At present, we are reaffirming ourselves as a gas country. The gas reserves we have discovered in the past year alone constitute around 600-700 billion cubic meters. Thus, we have 2.6 trillion cubic meters of proven gas reserves. I have no doubt that this volume will increase as a result of further exploration and drilling operations.

There are seven oil and gas pipelines linking Azerbaijan with international markets. All of them are operable. We export our oil and gas in all directions. We have met the goal of diversification in this sphere. We are currently in talks with transit states, consumers and potential consumers to ensure that Azerbaijan can make the best of its rich oil and gas potential in the future.

New investment projects are developed, preparations are under way for the development of the second stage of Shah Deniz, one of the world’s biggest gas fields. Shah Deniz alone has gas reserves of 1.2 trillion cubic meters. Of course, we are taking additional measures to ensure energy efficiency. Work is under way to develop alternative and renewable energy. A first pilot project has been implemented. A combined-cycle station is already in operation. Work is ongoing on the production of solar panels. The production of alternative and renewable energy in Azerbaijan will increase in the future. This is a priority issue for us.

As you know, Azerbaijan has done a lot of work as regards the main activity directions of CAREC. It would take hours to recount all of this work. I simply want to say that Azerbaijan will continue to honor its obligations in every sphere. We have great bilateral relations with all members of the program. I am sure that the exchange of opinions that has already been held and will be held in this format will further strengthen our cooperation.

I am very pleased that the 10th anniversary Ministerial Conference of the Central Asia Regional Economic Cooperation Program is held in Baku. I am sure that the program will produce good results and our guests will return to their countries with good impressions. You are welcome again!