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Dear friends!

Ladies and gentlemen!

Distinguished guests!

We all witness a historic event in the life of the independent Republic of Azerbaijan today. This event is connected with the start of the construction of a new power block in the place of the power station built decades ago here, in Shuvalan. This Shimal Power Station was built to provide with electric power Azerbaijan in the 1950s and finally in the 1960s. The power station served the Azerbaijani people and economy for decades and still is working today in its possible capacity, though it has become old.

It is one of the first power stations of Azerbaijan. But much has been done to increase the potentials and produce electric power and a number of power stations have been built then. Mingachevir Dam and other dams on the Kura River and a power station with many blocks and big potential have been built.     

We know that the role of the electric power is irreplaceable in our days. If you remember the time which was 60-60 years ago, then there were few people who were using electricity. There were no electricity in many places of Azerbaijan at all. Our industry used electric power as much as possible. People were provided more or less with electricity in Baku. People, who lived outside of Baku, I am saying this again, had no idea what the electric power was or had very little idea about it.

Time flew. Electric power entered the life of, economy, industry, agriculture and people. Science and technology demanded it which were in constant development.

From this point of view, was done in Azerbaijan then. Today, living free in the independent Azerbaijan, we can proudly say that in the years of the soviet rule the Azerbaijani government and state not only were busy to meet the daily demands of the people, but also thought of the future of the nation as well.

I am happy that I directly took part in most of these works and succeeded in building of an independent energy potential in our country, when I headed Azerbaijan in the 1970s-80s. Perhaps there are few people who have a profound knowledge of this, because  people get used to new things quickly, and have no deep knowledge how they have been invented and how do they work. For example, people buy refrigerators for their houses, but they don`t know how they have been made. They don’t know how the refrigerator or other facilities work. It is normal that professionals, state figures know well how important electricity is in the world, in every country and in all spheres in the life of Azerbaijan.   

In those years, the soviet years, there were big power plants in various places of the Soviet Union. Even building of the nuclear power plants started in the 19060s. Electrification was one of the main slogans of the soviet government then. The policy of electrification of the country was conducted rapidly. People planning these issues had no idea where those power plants will be built, because there was only one country. There was a single electric power network. This system supplied to all the country with electricity.

Using those opportunities in those years, we also were thinking that we possibly could have our independent state in future, so, we must have economic potentials to sustain ourselves. Enterprises producing electricity must be created within this economic potentials where most important. That is why, despite objections from Moscow and powerful people who were against our work we began and succeeded in the establishment of power stations in order to achieve independence in power supply and to put an end to our dependence from it. If we would have not done it, as it was said here, our power supply would have been very bad as it is in the Southern Caucasus. A nuclear power station was built in Armenia, and thanks to this they receive some electric power.    

They failed to do this in Georgia then. That is why, there is a power energy crisis in Georgia. But we were farsighted in it and did all and established enough entities producing electric power to provide our economy, people and industry. But some of those are worn out and need repair or modernization. They work on old technology. 

Let’s take this steam-gas device as an example. If this device has been put in use in the early 60s, then having in view 40 years of progress in science and technology it means that it does not meet the modern requirements. For this reason this device may not and cannot work with its whole capacity today. But it is still working and producing some electric power.

The Mingachevir Power Plant and dam, other dams on the Kura River, Ali-Bayramli Power Station, all this created by us have played special role in the supply of Azerbaijan with electric power and still do. But the life is in progress and demand to electric power increases. That is why, we cannot stop there. Everything must be advanced. Electric power system must develop as well.

After the independence of Azerbaijan, we could meet the demand in electricity thanks to the enterprises established when we were within the USSR. But I say it again that some of them are work out and exhausted. It is necessary to develop this sphere. For this it is our priority to realize this important task during the independence of Azerbaijan. That is why we received loans from the World Bank and the European Bank of Reconstruction and Development and established the Yenikend Dam. Namely for this reason, we received loans from Germany and Switzerland and with modern equipment of those countries and set for the exploitation Baku Heating-Electricity Center Number 1. This station produces both electricity and steam for heating the apartments. But sometimes it does not work with its whole capacity, but it will. 

Finally, our biggest project is the construction of a new power station in the place of “Shimal” Power Station. We wanted this, but it was hard to implement this. Thus, we were in search of ways to do this. We found them in Japan. As it was pointed out here, we conducted negotiations with the Japanese government. I visited Japan at the invitation of the Japanese government. Negotiating with different big companies of Japan, received big amount of loans and could reach an agreement on building a new power station to meet modern requirements.  

I can say that the amount of Japanese credit is much more than those we have received from other foreign banks or various countries as an independent nation. We have not received a loan in such amount from any foreign bank or nation. This is normal. This is the demonstration of assistance from economically and scientifically advanced country as Japan to independent Azerbaijan

We conduct negotiations from then on. It is normal that a project must be developed and proper companies are to be busy with this. It was informed about this process here. Finally, we have finished this work and gathered here today to found this modern power block and gas pipeline which has to be laid from Garadagh to provide this statio

We have got 339 $ million loan. It is for 40 years. It is a very convenient loan. It is convenient for us for its long term and privileges. Thus, we have decided to use this. Had the conditions of the loan not been like this, we would have not been able to pay it back in a short term. It is to have in view that electric power is produced in Azerbaijan and people use it not only for various facilities, but to heat their apartments in winter as well, and don’t pay for this.  

It was noted here that 65-67 kwh electric power is produced a day and distributed thoroughout Azerbaijan and ten thousand tons of mazut, ten million cubic metres at gas are spent, it means 50 000 $ per day. People who use electric power, don’t pay even 10 percent of what they use. You see? If after borrowing 339 $ million loans and producing 400 megawatt electric power and not to be paid for this, then how shall we pay this loan back? Thus, you must understand our situation. Let the people know. All house appliances, lamps, refrigerators or vacuum cleaners, washing machines, heating devices, all this work with electric power. But most people don’t pay for it. The state has not enough money or opportunities today. Let’s take not us, but the advanced countries, the Japanese ambassador is here – do you pay for electric power or not? What if you do not? He says that all pay for electric power. Japan is a rich country. It provides its nation with electric power, but it is paid for.

Artur Rasi-zade: If to calculate it with world prices, we pay 1,5 million $ every day for mazut and gas used for producing electric power.

Heydar Aliyev: Thank God that they have calculated this. We spend 1,5 million $ every day for gas and mazut to produce electric power. But we are not paid for this. What about Turkey? Do you provide electric power and receive money for this?

Tayfun Uzunov: We sell every kilowatt of electric power to our people for 8-10 cent. The Turkish people pay four times more than the Azerbaijanis for the electric power.

Heydar Aliyev: What if a citizen doesn’t pay for that? What do you do then?

Tayfun Uzunov: Then the supply is cut.

Heydar Aliyev: So, you see? We have such a situation. So, you could imagine that if we have borrowed this 339 million $ loan and we must pay it back. That is why, we chose this, bcause this is a long term credit and has privileges. But we took this loan, because our people will not live under such conditions, their life will improve and they will be able to pay for the electric power that they use.

Thus, we have started a new stage in the establishment of electric power potential of Azerbaijan. This is, as I said, the Yenikand Dam (hydroelectric station). This is a thermal power center in the district of Khatai and here, today, a new power block is founded in the place of “Shimal” power station.

I think that our people have to appreciate properly what we have done in the transition period, in such hard conditions. I believe that it will.

It was said here, unfortunately, there are not few malicious people in Azerbaijan. They have done no work. How electric power is produced, how a power station is built, what is needed to produce electricity? Those babblers have no idea of all this, think of themselves as an opposition, who render no service to the people of Azerbaijan, search day and night when the electric power is cut and they publish it in the newspapers or report about it to private TV channels. Evening news in private TV channels report on the electric and gas interruptions here and there. Isn’t there anything else in Azerbaijan? This is a job done in Azerbaijan.

Thus, as I said at the beginning of my speech, we all are witnesses of an historic event. We lay the foundation of great work. If to have in view that within two years this block will be constructed and will have the capacity of 400 megawatt, gas provision improved, then you may imagine, how great works we do in the independence of Azerbaijan, under such hard conditions.

I thank the Japanese government for the this loan and ask the Japanaese ambassador to convey my gratitude to his country.

I am very much pleased that the Japanese companies undertook to construct this power block with their own technology. The Turkish companies also take part in it. They are experienced and well-known companies. I believe that they will construct it with high quality. We shall receive a modern high quality power station which we do imagine. We shall be able to meet the demands of our population and economy.

I congratulate you and the people of Azerbaijan on this occasion. I hope that the electric power program which we implement at a new stage, will go on and Azerbaijan will be provided with electric power in all the spheres in the nearest future.

I know that most of the work in this giant construction will be done by the Azerbaijani professionals and workers. This is very important, because new jobs will be created, people will be employed and make money and those who cannot find jobs in other fields, will be employed here. This is very important aspect of the present event.

I congratulate you once more. I wish successes to the companies in this giant construction. Good luck to the foreigners and the Azerbaijani professionals, to all who take part in this construction. Thank you.

“Azerbaijan” newspaper, December 20, 1996

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