FY 2009 Fourth Quarter Report: Private Sector Competitiveness Enhancement Program

As of the fourth quarter of fiscal year 2009, the program has made significant progress in enhancing investments, jobs, and sales to non-oil enterprises in Azerbaijan. Key sectors and subsectors benefiting from the program include poultry, fruits and vegetables, cold storage, dairy, aquaculture, information communications technology (ICT), and finance. Access to finance is a critical component of the program, with PSCEP working to enhance the capacity of partner banks to provide short-term working capital finance (STWCF) to small and medium-sized enterprises (SMEs). To institutionalize STWCF best practices, PSCEP is helping to establish STWCF divisions at each bank, including designing document/templates for the banks. As a result, it now takes only three business days for the banks to review and provide feedback on credit applications, compared to several weeks previously. To date, 33 companies have received financing in the amount of 3,725,260 AZN (US$ 4,656,575) from the banks. In the fruits and vegetables sector, PSCEP is working with BDS providers to facilitate the establishment of a cold storage association among three cold storage companies and one fruit producer. The companies are interested in establishing a laboratory to check the quality of fruits to be stored, as well as to gain the benefits of cooperation for market entry. PSCEP consultant Dr. Gleyn Bledsoe provided training on post-harvest techniques and components of pack houses for 11 representatives of 8 cold storage service providers in the Ganja region. The program is also working with greenhouses in Ganja and Zagatala to secure financing for fertilizer imports and to expand current facilities. LBC, PSCEP's BDS provider in Lankaran, worked with Cihazgayirma greenhouse to arrange a purchase of greenhouse structures from Israel, an investment of 1.2 million AZN, as well as to work with Cenub Agro to modernize their heating system, an investment of 450,000 AZN. In addition, PSCEP organized a HACCP certification and food protection/hygiene training for three industry leaders in the North-Western region, preparing them to begin the certification process. In the ICT sector, PSCEP is working to promote innovation in all sectors of the Azerbaijani economy. Initial GDA efforts will be focused in this area, with PSCEP working with BestComp to secure an additional 600,000 AZN financing to expand the People's PC Project. The program has already helped to provide 3500 teachers with affordable computers, allowing them to pay by installment over a 12-month interest-free period.