On December 28, 2010 with the participation of the President of the Republic of Azerbaijan Mr. Ilham Aliyev, Oguz-Gabala-Baku water pipeline was put into operation. According to the 2011 budget of the State Oil Fund of the Republic of Azerbaijan 33 446.0 thousand manats are planned to allocate for financing of the Oguz-Gabala-Baku water pipeline construction project.

 

The project is designed to use underground water sources located in Oguz-Gabala region and to transport this water to Baku city by gravity feed at the flow rate of 5 cubic meters per second, provide people with high quality, 24-hour uninterrupted water supply. As a result a well field facility consisting of 75 wells ­­­­­­at a depth of 150 meters and with diameter of 350 mm was built.

 

In compliance with the Ordinance of the Cabinet of Ministers of the Republic of Azerbaijan No. 42 s, dated February 24, 2006 management and executing functions of the project of "Constructing a water pipeline from Oguz-Gabala region to Baku city" are entrusted to "Azersu" JSC.

 

Under the contracts total amount of allocations for financing of this project from SOFAZ were 757.5mln. manats for, including 10.5mln. manats for the 9 month of 2011.

Execution of this project is being implemented within the framework of the following contracts according to the orders of "Azersu" JSC:

 

1.                Project's feasibility study and consulting services

 

1.1. Project's feasibility study. The contract on development of the Oguz-Qabala-Baku water pipeline project's technical feasibility study amounted to Euro 2.1 mln. was signed between "Azersu" JSC and CES Consulting Engineers, Germany on January 6, 2006 and this amount was completely used.

 

1.2. Consulting services. In the result of open tender carried out by "Azersu" JSC on consulting services for project management and engineering supervision the contract dated November 24, 2006 amounted to Euro 12 mln. was signed with CES Consulting Engineers, Germany. Amendment No.1 to the contract was signed on March 02, 2009 and the contract amount was increased and determined as Euro 19.9 mln. Under this contract total 21.8 mln. manats were used. However, later on the contract got terminated due to the unsatisfactory activity of "CES Consulting Engineers " and after the investigation of specialized companies, for the continuation of the mentioned works, contract amounted to 420 000 manats was signed with the Caspian Management Consulting LLC on June 9, 2011.

 

2. GRP pipes and pipe materials supply

 

2.1. GRP pipes and pipe materials supply. In the result of open tender "Azersu" JSC and Azkompozit signed a contract on Procurement of GRP pipes, 266 km length and pipe materials amounted to 229.4 mln. manats. In case of need to substitute steel pipes for GRP pipes on some parts of the pipeline, in the result of excluding of GRP pipes, 53.2 km length and pipe materials the cost of the contract was reduced to 188.8 mln. manats. Besides, in accordance with the increase of the energy prices the contract amount was increased by 42.3 mln. manats.  18.9 mln. manats were allocated by the amendment № 2 on November 11, 2008 and 23.4 mln. manats by the amendment № 4 on March 16, 2010 to the total price of contract. Total amount of this contract is 230.6 mln. manats. Total allocations under this contract 229.8 mln. manats were used.

 

2.2. Glass-fibre pipe and pipe materials supply for well fields. In accordance with the Procurement procedures on production of GRP pipes, bend and tees for well field facility the contract amounted to 15.8 mln. manats was signed with Azkompozit on August 05, 2009. Subsequently in the necessity of making amendments to the volume of contract work, the Amendment № 1 to the contract was signed on July 08, 2010, stating that the amount of contract increased to 22.2 mln. manats. Under this contract total 21.0 mln. manats were used

 

3. Designing, construction and steel pipe supply

 

3.1. Designing, construction and steel pipe supply. In accordance with the Procurement procedures on Designing and construction of water pipeline the contract amounted to USD 167.7 mln. was signed with Turkish "Turan Hazinadaroglu Inshaat and Ticaret" Anonym Company. In case of need to substitute steel pipes for GRP pipes on some parts of the pipeline, steel pipe supply, 20.2 km length by "Turan Hazinadaroglu Inshaat and Ticaret" Anonym Company and construction of steel pipes, total length 47.7 km included to the cost of the contract and contract amount increased and determined as USD 264.9 mln. Besides this, in accordance with the increase of the energy carriers prices and for the amendments in the volume of contract works the contract amount was increased and determined as USD 291.4 mln and USD 362.1 mln. Under this contract total 279.0mln. manats were used.

3.2. Steel pipe and pipe materials supply. In the result of open tender carried out on steel pipes supply with the length of 28 km the contract amounted to USD 91.9 mln. was signed with Han. Teknolojik İmalat Montaj Taahhut San. Ve Tic." Anonym Company. Besides, as contract was signed in USD 91.9 mln., 0.4 mln. manats as extra charges related to the revaluation of foreign exchange accrued for bank commission expenses and custom registration fees were used

 

4. Drilling and building wells.

In the result of open tender carried out on drilling and building wells within the framework of Oguz-Gabala-Baku water pipeline project the contract amounted to USD 44.9 mln. was signed with "Arsan Aritma" Company. Under this contract total 24.3 mln. manats were used. Since the termination of this contract, drilling and building wells are realized by three new contractors.

 

4.1. Procurement procedures carried out according to the legislation and contract amounted to 10.6 mln. manats was signed with "Transvell Naxçıvan" MMC on June 25, 2010. According to the amendment to the contract, the contract cost was decreased to 3.7 mln. manats. Under this contract total 3.2 mln. manats were used.

 

4.2. In accordance with the Procurement procedures the contract amounted to 7.6 mln. manats was signed with "Qalf Drillinq Saplay Fze" company on June 25, 2010. According to the amendment to the contract, the contract cost was increased to 9.2 mln. manats. Under this contract total 8.6 mln. manats were used including 1.7mln. manats in the 9 month of 2011.

 

4.3. In accordance with the Procurement procedures the contract amounted to 1.3 mln. manat was signed with "A+B Oil Services" MMC on December 17, 2010. Under this contract 1.2mln. manats were used in the 9 month of 2011.

 

5. Electricity.

 

5.1. Construction of electricity. In accordance with the Procurement procedures on construction of electricity for the project the contract amounted to 22.2 mln. manats was signed with "Sumgayit Electro Completion" Joint-Stock Company of Open Tupe on July 15, 2009. Subsequently in the necessity of making amendments to the volume of contract work the Procurement procedures carried out and Amendment № 1 to the contract was signed on May 18, 2010. Total amount of this contract is 23.2 mln. manats. Under this contract total 22.1 mln. manats were allocated.

 

5.2. Installation of connection cells. In accordance with the Procurement procedures on installation of 3 new connection cells for the project the contract amounted to 1.8 mln. manats was signed with "Azenko" JSC on June 14, 2010. Under this contract total 1.7 mln. manats were used.

 

6. Construction of well field infrastructure.

In accordance with the Procurement procedures on construction of well field infrastructure for the project the contract amounted to 68 mln. manats was signed with "T.T.Sh." LLC on August 05, 2009. All works under the contract were completed and all assets allocated for contract were fully paid.