Khagani Guluzade
Has been heading Akkord Corporation since August 2010. From 1996 to 2010 he held various management positions (Head of the Committee for Assets and Liability Management, First Deputy Chairman of Board and Chairman of the Board of Directors) at leading Azerbaijani banks. He was also in charge of the working group that carried out the successful placement of “euro-bonds” and gained broad experience in cooperation with international financial institutions, investment funds and leading global banks.
He is a graduate of the Azerbaijan State Economic University with a Master’s degree in “Finance” and the Faculty of Law at the Baku State University, both with honors. He holds Ph.D. in Economics, defended a dissertation: “Priorities of the state investment policy in the process of development of national economy.”
He was given a “top-manager of the year” award by the Europe Business Assembly in Oxford, UK in 2011 and in 2013, in London, UK.
Married. Has three children.
Caspian Energy (CE): Mr. Guluzade, what role does Akkord Corporation play in the economic development of Azerbaijan?
Khagani Guluzade, Chairman of the Board of Directors and General Director, Akkord Industry Construction Investment Corporation OJSC: Azerbaijan’s economy is fully based on the market economy principles. The priority given by President of Azerbaijan İlham Aliyev to the development of private sector ensured that it accounts for 83% of GDP and resulted in general economic development of the country. Azerbaijan’s rating keeps growing whereas the credit ratings of certain European countries are declining. Besides, the Davos World Economic forum has found the Azerbaijani economy to be the most competitive among CIS countries for the fourth year in a row. So today, Azerbaijan’s economy holds the 46th position in the world on its competitiveness.
According to the tasks assigned by President Ilham Aliyev, Akkord Corporation makes strong contribution to the development of the non-oil sector and the whole private sector.
Up to now, Akkord Corporation has completed infrastructure projects with total worth of $1.7 bln. Total value of current infrastructure projects is $1.9 bln.
I would like to note that the activity of Akkord Corporation covers not only the construction but also production and investment. Akkord Corporation’s aim is expanding beyond Azerbaijan and becoming an internationally competitive transnational corporation. Accordingly, we make our contribution to the economic development of Azerbaijan and promote export potential of the country.
CE: To what extent did the Corporation manage to succeed in implementation of import-substituting projects and manufacturing of export-oriented products?
Khagani Guluzade: The important thing in this direction has been the implementation of the initiative “on meeting country’s demand for construction materials to the account of domestic capacity” announced at the conference, dedicated to the outcome of the 4th year of execution of the “State Program for Social and Economic Development of the Regions of the Republic of Azerbaijan for 2009-2013”. The mentioned conference was held in February 2013 under the chairmanship of President Ilham Aliyev.
During the conference the head of the state touched on the matter about meeting country’s demand for construction materials by means of internal resources. He emphasized that the internal demand for construction materials should be met fully by internal capacities. President Ilham Aliyev also spoke about expansion of opportunities for the entry of national business into the foreign markets as well as promotion of production of competitive products. He noted that the growth of the export potential of the country through the non-oil sector had been one of the priority tasks of the state in the field of entrepreneurship development.
It is noteworthy that Akkord is finalizing the installation of the first production line of its new cement plant in Gazakh region of Azerbaijan. Deloitte and Touche worked out the feasibility study of the plant. The plant, having prospective production capacity of 3 mln tons of cement per year, will considerably meet the demand of the local market and ensure export to the neighboring markets.
The plant construction covers two stages. The first stage envisaging annual production of 1 mln tons of cement will be commissioned in mid of 2013. The second stage will enable to produce additional 2 million tons of cement per year. The development of the Gazakh Cement Plant for Akkord is carried out by CBMI, a subsidiary of the world-renowned SINOMA. Dry cement production method will be applied at the plant. Besides, advanced environmentally friendly technologies will also be used during the production process. Great part of the work has already been done at the plant. The launch of the plant will enable to cover up to 75% of domestic demand. It is noteworthy that President Ilham Aliyev visited the plant for getting familiarized with the construction work on April 12, 2012. He gave his high evaluation of the project and stressed the importance of continuous strengthening of the national non-oil production capacity drawing on the example of Gazakh Cement Plant.
The commissioning of the first stage of the plant is expected in summer of current year. The number of employees engaged in mining, transport and other activities, will reach 1000 people after the launch of the first stage. 75% of employees will be recruited from the Gazakh and neighbor districts in order to raise the employment rate of the local population.
Concerning the domestic cement production I would like to note that nowadays it meets 44% of the local demand. The launch of the cement plants under construction in Azerbaijan will ensure meeting 100% of domestic demand and its export in coming years.
CE: During the governmental session held on April 14 and dedicated to the outcomes of the social-economic development for the first quarter of 2013, and the forth coming tasks, President of Azerbaijan Ilham Aliyev announced that our policy aimed at application of the most advanced technologies and experience in any sphere of our country. What work has the Corporation implemented in this direction?
Khagani Guluzade: I would like to emphasize the application of advanced technologies in projects implemented by Akkord Corporation. It is of great importance to use such technologies while implementing projects and those scheduled for future. In this regard, Akkord Corporation does its best for attracting leading technologies to Azerbaijan by investing seriously in this sphere. In particular, we have established close business relationships with well-known German and Austrian producers of high technology products, such as Herenknecht, Liebherr and Ammann. It particularly has an effect on implementation of infrastructure projects that are an integral part of the State program.
CE: Could you please tell about achievements gained in implementation of infrastructure projects both in Azerbaijan and beyond it?
Khagani Guluzade: Akkord Corporation has been actively engaged in projects of construction and renovation of highways and city roads, portable water supply and reconstruction of sewerage systems. Cost of 11 projects that are currently being implemented by the Corporation on reconstruction of water supply and sewerage systems in Agstafa, Tovuz, Shamkir, Sabirabad and Jalilabad regions, reaches in total $500 mln.
As it is known, the “Long-term Conceptual Development Scheme of Baku Metro” and the “State program for Development of Baku metro system in 2011-2015” were approved by President’s Decree of March 18, 2011. According to the program, over 50 new metro stations and tunnels with the length of 165 km are planned to be built in Baku in coming 20 years.
In order to get this project implemented, Akkord Corporation, together with one of the global construction leaders – French company Bouygues Travaux Publics, established the Akkord-Bouygues Joint Venture. All of this once again demonstartes the ranges of cooperation established between the Corporation and foreign companies as well as its large capacity in construction sector.
Today, Akkord Corporation operates in the markets of several foreign countries including Georgia, Turkey, Kazakhstan, Uzbekistan and Ukraine. The Corporation has subsidiaries, branches and implements projects in all these countries. Besides, in 2012 Akkord Corporation opened its representative office in Frankfurt, Germany.
Involvement in different projects that are realized in foreign countries strengthens our experience, establishes a solid professional background, and intensifies our business contacts with foreign partners among which we can name companies like Salini, Todini, and the subsidiaries of Vinci Group – Freyssinet and Freysas. Importantly, in international markets we give priority to projects funded by international financial institutions like the World Bank (WB), the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ABD), and the Islamic Development Bank (IDB). In future, we plan to enter into the Russian construction market to join significant infrastructure projects related to preparations for the upcoming 2018 FIFA World Cup.
СЕ: It is noteworthy that Akkord Corporation has been actively engaged in the social-political life of the country. Could you tell us about the event dedicated to the 90th anniversary of All-National Leader Heydar Aliyev and arranged the other day at the initiative of the primary organization of the New Azerbaijan Party functioning within Akkord Corporation?
Khagani Guluzade: Paying tribute to All-National Leader Heydar Aliyev, Akkord Corporation could not certainly stay aside from commemorating the solemn date of his 90th jubilee.
All-National Leader Heydar Aliyev, a distinguished figure, played a key role in the modern history of Azerbaijani people. He takes his rightful place alongside with the most outstanding public figures of the world. Azerbaijan’s internal and external policy principles determined by Heydar Aliyev and successfully implemented by the country President Ilham Aliyev, predetermined the vector of dynamic development of the whole society and the private sector which we are representing. Stages of establishment, strengthening and development of Akkord Corporation, representing this sector, are an illustrative example of successful implementation of this policy.
Heydar Aliyev’s path leads to sustainable prosperity and development of independent Azerbaijan.
