Azerbaijan signs $300 mln investment deal with China, wants to expand renewable energy partnership - Aliyev

BAKU. April 28 (Interfax) - Azerbaijan signed an investment agreement worth more than $300 million with Chinese companies at the Azerbaijan-China business forum in Beijing last week, and is interested in working more closely with China in green energy and investment projects in various areas, Azerbaijani President Ilham Aliyev said in an interview with China Global Television Network (CGTN).

"For us it's a good number. But I think it can be bigger," he said.

He said that Azerbaijan was aiming for investment deals worth billions of U.S. dollars. "I think this is absolutely realistic. Now our target is renewables, transportation and manufacturing [...] Doing business in Azerbaijan from the perspective of taxes and different legal requirements is very easy - a lot of incentives," Aliyev said.

"For the time being, Chinese companies are working as contractors with the companies investing in green energy of Azerbaijan. So far, the contracts we have signed, and which are now in the phase of implementation, will give us 6,500 MW of renewable energy by 2030. Just for comparison, the total installed capacity of Azerbaijan is 8,000 MW. So, in five years, we will almost double today's electric energy capacity," he said.

Aliyev said that solar and wind energy would provide 6,000 MW and hydroelectric energy 500 MW.

"That will be crucial for us, because we will largely stop using natural gas to produce electricity. We will have electricity from renewables, and we will export natural gas to international markets, and, of course, make a lot of profit. At the same time, we will save energy for domestic needs," he said.

Aliyev also said that Azerbaijan was expanding cooperation with China in the production and import of electric buses.

"We have already purchased 160 electric buses, which are already operating on the streets. Everybody is happy about that. We contracted 200 more. And most importantly, this year, hopefully, we will start joint manufacturing of BYD electric buses in Azerbaijan with a capacity of 500 buses a year. So our plan is to convert Baku public transportation completely to green, and after that, all the other cities of Azerbaijan. So, we have a really unique opportunity to work on a bilateral track with respect to renewables because it is in line with our strategy and your agenda," the president said.

He said Azerbaijan was interested in expanding economic ties with China.

"China is really number one partner in imports and number four partner in trade turnover. We've opened six Azerbaijani trade houses in China. We have already started exporting wine to China. We want to have more share in your market. With respect to the Belt and Road, for us, this initiative is not only a kind of a transit route. We want to build businesses along the route, because our geographical location is advantageous. We are situated along the East-West and North-South transportation corridors. With respect to connectivity, we have already built all infrastructure: railroads, seaports, highways, eight international airports. We have one of the biggest air cargo companies on global scale. Our target is to build businesses along the route. Of course, we count on Chinese companies," he said.