1. MONITORING OF PROJECTS ON CONSTRUCTION AND REPAIR OF ADMINISTRATIVE BUILDINGS ON CORRUPTION RISKS Zöhrab İsmayılov PAAFE 10 iyun 2009

2. Construction and repair expenditures of administrative buildings In the frames of PAAFE governmental investments expenditure the selection namely of this direction in 2007- 2008 years is connected with the allocated means for state bodies’ administrative buildings’ repair, construction and reconstruction. In 2008 means for construction and repair of 53 central and local executive bodies administrative buildings from the national budget were allocated, and 30 of them are the projects that have begun to work since 2007.

3. The means allocated for administrative buildings’ construction and repair projects Thousand manat

4. Expenditures for administrative buildings according to state bodies State bodies2007Share %2008 Share % Growth rate % Organs of central executive authority 136312,540,5258062,542,989,3 Local organs of executive authority34431,010882,51,8216,1 State organs of defense and safety8550025,414875024,774,0 Law-Court authority law enforcement and Office of Public Prosecutor organs 7553122,413101621,873,5 Milli Məjlis140634,1120001,9-14,7 Other state bodies212406,3395296,586,1 Total336089,510060024010078,6 Thousand manats

5. The structure of allocated means for construction and repair of state bodies(2008)

6. The differences between the projects of administrative bodies and other budget expenditure(2008)  The health expenditures (38502,2 thousand manats) are 55%fewer than expenditure of construction and repair of administrative bodies.  The means allocated for economical activity(326565,7 thousand manats) approximately is the half of expenditure for projects of administrative buildings.  The expenditure for preservation of The Court Authority, law enforcement, and organs of Public Prosecutor Office(589362,2thousand manats) do not also approach the expenditure of repair and construction of administrative buildings.  If in 2007-2008 years generally 28559,0 thousand manats were allocated from the budget investment expenditure of central hospitals” construction, repair and stock equipments of Khanlar, Oghuz, Zagatala, Dashkesan, Shirvan(Ali-Bayramli), Salyan, Sabirabad, Shamakhi, Yardimli, Qakh, Tovuz, Gedebey, Devechi, Aqstafa, Naftalan, Quba, Khachmaz towns and regions, the Presidential Medical Care was allocated 28400,0 thousand manats.

7. Allocated means to President’s Affairs Office expenditure for construction and repair and other important spheres(2008) Thousand manats

8. Ministry of Ecology and Natural Resources Question: In Which instance and criterion was determined the need of construction, repair and re-construction of the Ministry’ administrative buildings Answer: The need of repair, construction and reconstruction works was created from the point of view to adapt the administrative buildings at the B.Agayev street 100A with H.Cavid square general ensemble, and to re-construct the building at H.Aliyev Avenue 50 in accordance with modern standards view. The purpose of Ministry’s administrative buildings re- construction program is not clear.

9. Ministry of Ecology and Natural Resources From the letter of the Ministry: Due to the consent letter of the State Agency for procurement and in accordance with existing legislation, the mentioned companies have been determined as contractors. Result: There was no tender for selection of contractors. As the project value was about of 50 thousand manats, the selection method of MENR is the contradiction between the application from the 29 th January of 2002(#668) on State procurement of Azerbaijan Republic legislation and the second section of the first part of President’s decree.

10. State Statistics Committee  It was impossible to get any information about ‘MIA’LLC company’s contractor of the project. There is no information in the internet resources either.  It was also impossible to get any information of the tender’s member ‘Qaytaranli’ LLC company adjoining with the contractor and internet resources do not nave any information either.  But the third member of the tender-’Lesko LTD’LLC(3 months before) in 2008 February the first was registered. The volume of LLC regulations capital is just 50 manats.

11. The corruption risks for construction and repair projects of administrative buildings Row № Indicators State bodies MENRSSCMLSP 1The aim of the projectNoyesNo 2Project-estimate documentsYes No 3Selection of contractorWithout tender (DSA ilə razılaşdırma) With tenderNo information 4Moves away from the projectWas not Was 5Quality standardsWas not applied 6Report for community (information) No NO 7Access to the information of the project Yes No TotalCorruption risksMiddleLowHigh