WORKING HARD
TBY talks to Faik Rzayev, General Director of Encotec, on the growth of the firm, the construction of the Baku shipyard, and servicing companies outside of the oil and gas sector.
BIOGRAPHY
Faik Rzayev is the General Director of Encotec. He is Azerbaijani educated to the PhD level and has acquired extensive and diverse experience. He worked at a senior level for six years with a leading international engineering contractor before forming Encotec in 2001 with a vision to create a design engineering organization working to international standards.How has Encotec grown and evolved into the company it is today?
Encotec has been in the market for about 15 years, having started with a small team of about five people. We wanted to establish strong engineering standards above all else, and we did not want to grow until that was achieved. Today, we have about 150 employees, but we are limited by the market size of our niche. We expect more demand in the market soon; therefore, we will continue with our system of training. The style of engineering in the Soviet Union was different to what Western markets require; hence, after independence we had to work hard to understand those requirements. We have demanding standards and employees have to pass many exams to work at Encotec. We do this to stay competitive, as our competition, partnership engagements, and alliances include up to tier-one Western engineering companies, such as Fluor and Worley Parsons. Our main client is BP, which is why we aim to serve it to the required standards, both technically and in terms of project controls. We have now completed more than 500 projects, big and small. We have expanded operations with offices in Georgia and Kazakhstan. In Georgia, we target BP. We expect new projects in Kazakhstan in the near future, but for now it is dormant.
What has been your biggest and most challenging project in Azerbaijan?
The construction of the Baku shipyard was one of the biggest and most challenging. It was a huge project in terms of volume and capacity, covering 60ha. We did detail design and project management, and spent overall about 500,000 man-hours. There are perhaps 100,000sqm of shops altogether, with office facilities covering 7,000sqm and eight power substations. The transfer slab is 30,000sqm with a capacity to bear loads of 150,000kg per sqm. We passed all state approvals without fail, completing the project within 22 months. It was fast, efficient, and well organized. We are proud of that project. We worked with a number of construction companies, among them two Turkish contractors with a lot of experience, and it went smoothly.
How has Encotec evolved over its years in operation to offer services to companies outside of the oil and gas sector?
We are doing more works for industrial facilities. The Baku shipyard was an example, and we have also been involved in a fiber cement factory as well. We created the concept and detail designs for the cement factory, although the project's location was then moved. It is hard to find local clients because it is a small market overall and the clients generally prefer Western companies and contractors. However, with oil prices low, they may be opting more for local companies like ours
This year is your 15th anniversary. What is your outlook and what are some of your objectives for the year?
The majority of the large engineering companies are going through a lot of redundancies. All industries are on the down around the world, and also in Azerbaijan. We will continue doing what we are doing, going ahead with our plans for growth and development. We will talk to BP to discuss how we can grow, and what we can do in Azerbaijan. We also have plans to work with SOCAR, seeking to leverage our Western standards and experience. We are looking forward to the year ahead.
WORKING HARD
TABLE OF CONTENTS
Year In Review
Good Times Ahead
<strong></strong><strong>In a year dominated by the overarching theme of low hydrocarbons prices, Azerbaijan showed resilience and verve in putting in place bold measures both to counter the slump in energy prices and put its economy on a surer footing.</strong>
read articleReview: Diplomacy
Operation Outreach
In 2015, Azerbaijan's military budget increased by a notable 27%, to $4.8 billion, or 17.9% of the government's total budget for the year. The first Azerbaijan Defence Exhibition (ADEX 2014), drew over 200 companies from 34 countries, including Russia and the US.
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Rufat Mammadov, President, Azerbaijan Export and Investment Promotion Foundation (AZPROMO)
TBY talks to Rufat Mammadov, President of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), on large-scale events and their ability to attract FDI and the potential Iran may hold.
read articleReview: Banking
More Interest
In a sector faced with relatively flat growth for 2015-16, new opportunities are still there aplenty, led by the nascent Islamic banking sector, e-banking, and microfinance initiatives. Together, these areas should make banking more diversified and less reliant on a buoyant energy sector for its capital inlay.
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Taking Stock
As Azerbaijan grapples with the knock-on effects of low hydrocarbon prices, the Baku Stock Exchange (BSE) finds itself at the center of the country's efforts to stave off a budget deficit this year. In January, the government announced plans to sell $500 million worth of bonds on the BSE.
read articleReview: Industry & Mining
In The Bag
Industry in Azerbaijan is long established, diversified, and, in many areas, fast growing. Together, these qualities make the sector well placed to see through the global slump in commodity prices, while at home, the manufacturing industry continues to find ways to use its hydrocarbons expertise in other fields, including high technologies and research.
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Khanlar Fatiyev, , Chairman of the Supervisory Board, Ganja Automobile Plant Production Association
TBY talks to Khanlar Fatiyev, Chairman of the Supervisory Board of the Ganja Automobile Plant Production Association, on the role of the plant in driving growth in the non-oil sector.
read articleReview: Transport
The New Node
With major new railways linking the region, the opening of the new Baku International Sea Trade Port Complex, the completion of a massive program of road building and upgrading, investment in state-of-the-art fleets ranging from Boeing 787s to rail locomotives, Azerbaijan can rightly claim the title as the Caucasus' transportation hub.
read articleReview: Agriculture
Lots More
Farms across the country are pursuing a policy of increased yields for year-round fruit and in the wheat harvest to stave off an over-reliance on imports. With carefully targeted increases in exports, better routes to port and to market, and greater sophistication of agricultural facilities, farming could soon be the morning star of Azerbaijan's diversified economy.
read articleReview: Health
Under One Umbrella
Life expectancy at birth (2015) is 75 years for women and 70 for men. The median age is 30. For both sexes, longevity increased by six years between 2000 and 2012. Azerbaijan is a relatively youthful country—an important factor in healthcare—with 22% of its populace aged under 15 and just 9% aged over 60.
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Baku to School
Azerbaijan's culture has always harbored a deep respect for educational values. This is embodied in the country's Azerbaijan 2020 mission statement, which seeks to raise standards across the sector and introduce ICT as a standard part of the learning experience at all levels.
read articleInterview
Elkhan Mammadov,, Secretary General, Association of Football Federations of Azerbaijan (AFFA)
TBY talks to Elkhan Mammadov, Secretary General of the Association of Football Federations of Azerbaijan (AFFA), on the experience Azerbaijan is gaining in hosting international events.
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