Client: AFEZ
Date: May 2020 / February 2023
Location: Azerbaijan

The ALAT Free Economic Zone in Baku, Azerbaijan, at approximately 8,500,000m2, is a massive industrial development designed to encourage trade in the area and foster an entrepreneurial mind-set in future generations.

Azerbaijan’s ongoing development of its non-oil sector is seen as crucial in ensuring future economic growth. The intention of this strategy is to move the economy from its traditional dependence on Oil/Gas and is embedded in the Government’s Vision 2020 document which highlights six main goals or objectives:

  • Diversify the economy
  • Modernise the Oil and Gas Industry
  • Develop and Adopt Innovations
  • Increase Quality of Human Development
  • Protect the Environment
  • Ensure WTO Entry

The Alat Free Economic Zone (AFEZ) – designed to speak to this need for an export focussed industrial zone – is located adjacent to the new Baku Port and is the focal point for the Government of Azerbaijan’s efforts to attract and grow export lead value added and manufacturing activity. The AFEZ has unique government approved legislation which allows it to offer a range of incentives and advantages that are not available to any other location in the country, including exemptions from taxes and customs duties, a one stop shop and self-regulated arbitration process

Description of Actual Services Provided by ARPA staff:

  1. In performing the services use its best endeavour to identify those technical and economic solutions which are most suited to the requirements of the Project.
  2. Carry out the role of the Engineer under Construction Contract with due expedition and without delay.
  3. Review, verify, approve and certify documents prepared by the Contractor such as but not limited to drawings, specifications, calculations and any other relevant documents necessary for the execution and completion of the Project
  4. Advise the Contractor of the permits, licenses, certificates and the like required to be collected by the Contractor from the relevant authorities and departments and monitor the Contractor’s compliance.
  5. Respond to technical queries, clarifications and the like raised by the Contractor, Coordinate with the Design Consultant as required.
  6. Carry out off-site inspections of materials and equipment as necessary.
  7. Review and approve shop drawings, product data, samples, inspection and test reports and other Contractor submittals and approve all materials.
  8. Analyse the advantages, disadvantages and cost implications of the selected alternatives with the technical standards under consideration.
  9. Estimate Project costs for each of the selected alternatives and technical standards.
  10. Review the Performance Bonds and Advance Payment Bonds submitted by the Contractor
  11. Assist in the preparation of Variation Orders including preparing estimates of the cost thereof and preparing and/or amending drawings and specifications, if applicable.
  12. Establish the value of Variation Orders, obtain the approval of the Employer as applicable and achieve agreement with the Contractor.