Speech by Ilham Aliyev at the opening of electric power substation No 204 commissioned in the Nizami district of Baku

- I congratulate you on the opening of the substation! I have repeatedly participated in the opening ceremonies of new substations in recent years. Seeing these innovations every time, I certainly feel just as happy as you. The power engineering system of Baku is being upgraded and modernized.

Investment made in this industry in recent years is manifested through the construction of substations. Both you and I remember too well that the electricity system of Baku was once transferred into management of a foreign company. As a result, the facilities that were available were practically destroyed. There were many hours of power outages in Baku.

Power supply was at a very low level, which led to legitimate resentment of the population.

A few years ago, the electricity system of Baku was returned to the state on my instruction. Management was transferred back to the state and a new period of development set in. Employees of the network have demonstrated professionalism. At the same time, funds are envisaged in the state budget each year for major investment in the network development. As a result of development of these two areas, the power engineering equipment in Baku is at the highest level today. We have the most sophisticated equipment and apply the most effective technologies. It is gratifying that most of the equipment installed here is made in Azerbaijan. In other words, the investment made by the state has also given an impetus to the development of the private sector. Thus, the business environment takes advantage of these opportunities. As you know, all the goods consumed in Azerbaijan should be produced in the country in the coming years – food, construction materials and advanced equipment.

The work carried out in this direction makes all of us very happy, of course. Over the past 10 years, around 2,800 megawatts of generating capacity has been created and 14 power plants built in Azerbaijan. We can say that 50 per cent of our energy potential has been created in the last 10 years.

Under such circumstances, of course, the development of networks both in Baku and in the regions is of particular importance. We have sufficient energy capacity and power stations now. None of our power stations works in the old way. Equivalent fuel consumption is also very low. We have thus resolved the main issues associated with the upgrade of this network in Baku. Now I am told that there is a need for repairing another 12 substations, including those in the regions.

I often visit the regions. We have places where networks are not in the best condition. “AzerEnergy” was instructed today to bring regional networks to a normal level, so there are no interruptions. In fact, there should be no interruptions, as we have enough energy capacity. Interruptions occur due to the fact that some of the networks and transmission lines are in disrepair. There are still those old wooden supports in some places. They will be gradually removed. In Baku, high-voltage lines will be placed underground, as I was shown here.

Therefore, we are optimistic about the future. I am sure that the infrastructure in the possession of the Baku electricity network will be at the highest level, at this level in the coming years.

When we consider that our country and Baku are developing, we have to stay ahead of demand, of course. The Olympic Stadium, the Gymnastic Center, the office of the State Oil Company, the Office of the State Oil Fund and other office buildings and industrial facilities under construction in this part of the city require our energy capacity to consistently exceed the needs. We will go along this road. I am sure that there will be a need for the construction of new substations in the future because the development of Azerbaijan is so rapid that the current capacity will be insufficient in 5-10 years.

I am very pleased that the Baku electricity network operates successfully. At the same time, I should note that the decision I made earlier on returning the network to the state is yielding fruit. You, people working in the system, know that and can see the difference. You can see that when a strategic site in the hands of the state, there will be control, investment and development in it.

Now we live in a market economy. The private sector accounts for 85 per cent of our economy. We could say that the bulk of our economy is formed in the private sector. But strategic assets must certainly be at the disposal of the state. These facilities serve the people. The funds invested in them are not of commercial nature. When it was in the hands of "Barmek", the network was only viewed as a source of income. It was looked upon only from the standpoint of what else could be stolen. But public investment in these facilities is purely social in nature.

Therefore, strategic facilities should be at the disposal of the state. I believe that Azerbaijan's experience has paid off among all post-Soviet republics. All of our strategic assets are in the hands of the state. By preserving these facilities, the state develops them and provides services to the people.

I congratulate you on this wonderful event again!