Azerbaijan - DHA-1/2: 19 August - 1 October 1996

Azerbaijan - DHA-1/2: 19 August - 1 October 1996

  DEPARTMENT OF HUMANITARIAN AFFAIRS
Situation Report from the DHA Coordinator in AZERBAIJAN
 No. 1 and 2
Covering the Period 19 August -  1 October 1996



HIGHLIGHTS 
 
Joint UNDHA/UNHCR high-level mission arrives in Azerbaijan
for discussions on Humanitarian Issues
 
DHA visits Fizuli region and in particular, the town of
Horadiz, the location the Government of Azerbaijan has
selected for the UNDP/WB reconstruction project.  
 
New UNDHA Humanitarian Affairs Officer and UNHCR Head of  
Liaison Office arrive in Baku.
 
Contributions to DHA's Humanitarian Appeal (1995/96) for  
Azerbaijan are only 31.2 percent of the requirements.
 
1. Joint High-Level Mission of UNHCR/DHA: UNHCR Assistant 
High Commissioner, Mr. Sergio De Mello, Mr. John Horekens,
UNHCR Bureau Chief for Europe and CIS, and Mr. Rashid
Khalikov, Chief of Europe and Latin American Sections in  
UHDHA- CED New York arrived in Azerbaijan on 9 September  
for discussions with President Aliyev. The mission pledged
to continue humanitarian support for the displaced and
refugee population and proposed humanitarian assistance in
the agorno-Karabakh within the framework of the OSCE Minsk
Group. The mission also visited the IDP camp in Barda to  
see first hand the situation in the ex-Turkish camp. A copy  
of the DHA mission report is available at UNDHA Office in 
Baku.
 
2. DHA accompanies UNHCR Senior Desk Officer for Europe,  
Mr. Fernando Protti- Alvarado, on a field trip to the
Fizuli region. The purpose of the visit was to observe
UNHCR funded rehabilitation projects in the region as well
as to map out a strategy plan for future UNHCR assistance 
in the area. The team visited the town of Horadiz, which  
the Government has selected for reconstruction activities.
DHA will participate in discussions on inter-agency  
cooperation and strategies concerning the WB/UNDP project 
in the Fizuli area.  
 
3. The reporting period saw the arrival of Jim O'Neill as 
the new UNDHA Humanitarian Affairs Office in Baku as well 
as Ms. Ann Howarth-Wiles as the Head of UNHCR Liaison
Office-Baku. 
 
OVERALL HUMANITARIAN SITUATION
Uncertainty in regards to project funding for the various 
International and National Organisations continues to be  
the most pressing issue faced in the humanitarian sector. 
ECHO has revealed that they will shortly begin phasing out
of emergency funding activities and by April 1997 could be
ready to hand over the task of development project funding
to TASCIS.
 
Funding difficulties are especially pertinent in the 
shelter sector as winter rapidly approaches and only 
minimal winterization projects are presently being carried
out. It is feared that the vulnerable population will once
again suffer a long and difficult winter. The involved
agencies, UNHCR, Relief International (RI), International 
Rescue Committee (IRC), CARE and Hayat are performing
exceptionally well in their construction and rehabilitation  
programmes but more and timely funding will be required in
order to adequately improve the situation.
 
With the previously mentioned funding cutbacks, several
International Agencies will be completing various projects
at the end of October, and presently are unclear on their 
future presence in Azerbaijan. Much anticipation is being 
given to the recent USAID strategy team visit and the
possible funding outcome of their assessments.
 
The issue of the Ex-Turkish camps has also become a  
concern. The deteriorating state of tents as well as the  
overall camp management has resulted in a series of  
requests from the Government of Armenia (GoA) to all 
International Organisations for assistance. DHA made a site  
visit to these two camps on 24 September, and found them to  
be managing reasonably well, albeit, at a reduced level.  
CARE (Agcabedi) and World Vision(Barda) have assumed the  
responsibility of the food distribution and have begun a  
re-registration of the camp residents in order to try and 
eliminate well documented instances of fraud in the  
distribution of humanitarian assistance at both camps. Food  
distributions are scheduled to occur in early October. As 
far as the camps health situation, RI will send their
mobile health clinic, on a bi- monthly basis to the camps.
 
SECTORS
FOOD AID  
Owing to the lack of resources, most agencies will be
scaling down their food assistance programmes in the near 
future, while attempting to target their aid at more 
defined vulnerable groups. WFP has an adequate food supply,  
both in country and in the pipeline, to carry out their
projects and those of their implementing partners until
June 1997. WFP initiated a revised distribution method,
adopted by the relevant agencies , which concentrates on  
"food per person" as opposed to the previous distribution 
of "family parcels". It is felt that by distributing in
this manner, food aid will be more controlled and target  
beneficiaries will be better met as well as saving
considerable amounts of food which may have wound up in the  
market.
 
The GoA, has declared in a decree made in August, 1996 that  
use of the ration card, commonly referred to as form "No. 
9", will no longer be accepted for receiving humanitarian 
assistance. This form was originally used as a replacement
for those citizens who had lost their passports while
fleeing the conflict areas. The government rightfully
feels, that the misuse and duplication of this card has
contributed to the negative international response to the 
needs of Azerbaijan, and is attempting to make the
receiving of humanitarian assistance more controllable. In
its place a "new" and improved form No. 9" will be issued.
The initial "new forms" were made with thin paper. WFP
feels that forms printed on this paper could be easily
duplicated and has offered to provide a thicker,  
cardboard-type paper for its printing. It has been decided
that the cardboard forms would be used uniquely in food
distribution, while the thin-paper forms would be used for
obtaining other types of assistance. One of the major
problems encountered with the form change is that clear and  
concise information concerning the usage has not yet been 
initiated by the Government and relayed to the outlying
areas.
 
WFP continues to emphasize the need for a country-wide
registration of IDPs/refugees in order to support the
computerization of these figures which has already begun in  
some regions.
 
The IFRC has launched a programme that will provide food  
items to 7,000 patients in more than 80 hospitals in 
Azerbaijan.  
 
HEALTH
Several agencies are beginning to become involved in the  
reproductive health field. Most initial activities will be
small scale and at selected regions. They will be geared to  
both IDPs and general populations. Meetings have occurred 
with these agencies in order to share resources and discuss  
future programmes. A WHO consultant visited Azerbaijan in 
September to assist in the establishment of family planning  
and reproductive health programmes in Ganja and Sumgayit. 
The consultant conducted a workshop in these towns to
familiarize gynecologists with modern methods of family
planning. 
 
August saw a major restructuring in the Ministry of Health
(MoH). There was a considerable reduction in MoH staff and
several Departments were integrated, notably the SES and  
the Epidemiological Department merged to form one 
countrywide unit. The MoH stress that these moves are more
related to economical reasons rather a major Health Reform.  
There is a plan for a further reduction, estimated at 30-40  
percent in staff cuts and the closure of up to 70,000
hospital beds.
 
While there are still no private medical institutions in  
Azerbaijan, the MoH has established a system of "payment  
for services" in the hospitals. Full implementation of
these charges has not yet been finalized. 

 Owing to timely intervention by IFRC and MSF-Holland,
 malaria cases have decreased. In August, 839 cases were 
 reported, considerably lower than in June and July. The 
 MoH reports that up to 10,000 cases, mostly in the IDP  
 camps of Imishli, Bilasuvar, and Sabirabad have been
 registered this year.
 Outbreaks of Anthrax, an acute bacterial infection that 
 occurs most frequently in herbivorous animals, have been
 reported in Azerbaijan. Sales of lamb were suspended in 
 several regions, especially in Agcabedi and Imishli, the
 principle areas for sheep production. A campaign to
 vaccinate the most "at risk", was conducted by the MoH. 
 These would include butchers, wool handlers, and others 
 involved in this occupation.
 
 No cases of Polio have been registered this year in
 Azerbaijan, evidence of UNICEF's successful MECACAR
 campaign. In 1993 there were 69 cases, 16 in 1994, and 5
 in 1995.
 
 UNICEF and the MoH will conduct a country wide diphtheria  
 immunization campaign during the month of October. The  
 target group of approximately 4.5 million, will include 
 children and adults.
 
 The findings of a joint UNICEF/WHO investigation revealed  
 an increase of chronic exhaustion in children and the
 elderly as well as a high level, (20 percent), of iodine
 deficiency. As a result, a two year project on the 
 development of health and nutrition systems in Azerbaijan  
 will began in September.
 
 ICRC will continue to operate its orthopaedic centre
 first opened in 1995. Despite an ongoing cease fire, the
 number of mine related incidents are rising in the front
 line areas.
 
 SHELTER/NON-FOOD
 The focus in the shelter sector continues to be on those
 families living in the most extreme conditions, i.e. rail  
 wagons, tents and dugouts. In addition, the arrival of  
 colder weather helps to illustrate the need for 
 improvements and/or winterization of public buildings,  
 although difficulties in project funding have suspended 
 or downsized many projects.
 
 The UNHCR funded, single-dwelling limestone shelter
 construction project continues to operate, but often, due  
 to funding problems, work is delayed. Despite the delays,  
 August saw the completion of 92 dwellings with an  
 additional 171 started, for a cumulative total of 256
 completed dwellings. RI, the main implementing partner  
 for UNHCR in limestone shelter construction, will be
 finishing in October, construction of 150 houses in
 Saatly for railway wagon IDPs. Hayat, a local NGO, has  
 completed 40 limestone units in Saatly designated for
 families living in extremely difficult conditions in the
 dug-outs. IRC has negotiated contracts and procured
 materials for up to 800 mud brick shelters. They will
 build 50 of these for families in the worse conditions at  
 the ex-Turkish camp in Agcabedi following agreements with  
 the camps administer, the Executive Committee of
 Agcabedi. CARE is also on schedule with their mud-brick 
 shelter programme, with 1,100 out of a target number of 
 1,200, dwellings nearing completion.
 
 Public Building Rehabilitation (PBR) is being carried out  
 by several organisations throughout the country. These  
 projects range from rehabilitation of water and sanitary
 systems in medical facilities and children institutions,
 repair of school buildings, construction of partitions in  
 rail way wagons housing IDP families, and the traditional  
 PBR work in large structures housing IDPs. 
 
 The GoA, reluctant initially, to approve PBR projects in
 Baku or Sumgaiyt, have relaxed their position and have  
 begun to back projects in these areas.  
 
 INCOME GENERATION  
 There is a growing interest among the agencies in Income
 Generation projects (IG). Projects as diverse as sheep  
 raising, distribution of small business kits, women
 sewing collectives, small business loans/grants, and
 greenhouses or other small scale agriculture projects are  
 only a few of the areas covered. There is a tendency by 
 some agencies to try and incorporate with shelter  
 programmes, an idea of "community building" via IG 
 projects in their various settlements. One of the more  
 notable IG projects has been the IFRC's IDP "construction  
 team". After gaining experience with construction  
 activities in the camps, several work crews have emerged
 and have obtained building contracts in UNHCR and ECHO  
 shelter projects. Another successful IFRC project has
 been selling vegetables grown by IDPs to the Hyatt 
 Regency Hotel. ICRC has received 900 hectares in the
 Fizuli area project designed to sow and subsequently
 harvest 800-1000 MTs of wheat. Of this total, 400 MTs
 will be returned to the ICRC for distribution to
 vulnerable in the near by front- line region. Next year 
 they intend to also grow vegetables and potatoes.  
 
 TACIS has opened an office in Sabirabad where NGOs and  
 any individuals can obtain advice in the different ways 
 of income generation.
 
 It is anticipated that one of the best ways to bridge the  
 transition process of relief to development will be in  
 the creation of more IG projects. In order to inform the
 population about the various projects and to provide an 
 opportunity to see finished products, the GoA in
 collaboration with NGOs is to hold an exhibition sometime  
 in mid- October.
 
 CONTACTS
 DHA made introductory visits to all of the UN Agencies  
 and most of the International and National Agencies in  
 September. In addition a visits was also made to the
 office of Mr. Izzat Rustamov, Deputy Prime Minister in  
 charge of International Humanitarian Assistance. October
 will bring about additional and more detailed discussions  
 with the organisations, both Baku and field based. 
 
 CONTRIBUTIONS
 As of the end of September, the DHA office in Azerbaijan
 has been informed of contributions of US$ 8,343,841
 representing 31.2 percent of the total requested, US$
 32,966,638, in the 1996/97 Consolidated Appeal. 
 
 ANNEX:  
 RECENT GENERAL DEVELOPMENTS
 
 HUMANITARIAN AID
 A visit from 5 US Congressmen in August stir emotions for  
 increased US assistance in Azerbaijan in 1997. The 
 Congressmen passed an appeal to members of the  
 sub-committee on Foreign Operations in the support for  
 the draft of legislation for the funding for humanitarian  
 assistance to Azerbaijan by NGOs and private volunteer  
 organisations for 1997. 
 
 American Oil Company (AMOCO) and "AMERICARES" have 
 provided medical supplies (Kidney dialysis equipment) to
 the Oilmans hospital in Baku. Previously the same two
 have provided assistance in immunization programmes
 (Nakhchivan) and medical supplies for children in camps.
 
 The Russian oil company, LUKoil, has established a 
 philanthropic society within their organisation. It will
 provide assistance mainly, but not exclusively to Russian  
 citizens residing in Azerbaijan. In addition, assistance
 will be provided to the Orthodox Church, Slav Family, and  
 to the individual needy citizens. They have delivered
 stockings to an elderly home and plan on assisting war  
 invalids in the future. 
 
 The Ministry of Social Welfare has announced that there 
 are 1,200,000 pensioners and 250,000 invalids in
 Azerbaijan.
 
 AGRICULTURE
 60 hectares of sugar beet seed have been planted in 5
 regions of Azerbaijan for the first time. It is estimated  
 that next August harvest will yield 60 MTs, enough to
 cover the current need. Harvesting of sugar beet began in  
 September. It is hoped that the yield will be 40,000 MTs.  
 This will be the fifth harvest of sugar beets in
 Azerbaijan. The crop is growing at a steady rate from the  
 initial season, in 1992 with a net harvest of 16.400 MTs.  

 128,100 MTs of cotton have been picked thus far in 
 Azerbaijan. The state order is for 310,000 MTs. Many IDPS  
 are involved in this harvest earning 300 manats per kilo.  
 
 According to the Ministry of Bread Products, Azerbaijan 
 has purchased 257,000 MTs of grain this year, with 
 179,000 MTs being wheat and 77,000 MTs of barley. This is  
 an increase of 22,000 MTs over last year. The Ministry  
 claims it requires a minimum of 1.1 million MTs of grain
 per year. Preparations for the autumn sowing is 
 continuing, 635,000 hectares (520,000 for wheat and
 115,000 of barley) will be planted.
 
 On 26 August, the price of bread and all bread products 
 increased by 100 Manats. This follows a 20 percent 
 increase in July. In 1996, each month has seen a rise in
 price.  
 
 The projected mixed vegetable harvest this year is 
 150,000 MTs. This includes 45,000 MTs of tomatoes, 5,000
 MTs of cabbage, and 3,650 MTs of onions. Thus far 56,000
 MTs or 37 percent of the projection have been harvested.
 
 The Minister of Agriculture, stated that of the total
 areas of land in the Republic, 8,641,000 hectares, 
 3,864,000 (45 percent) hectares will remain in Government  
 hands, while 2,866,000 (33 percent) hectares will be
 transferred to municipal property and the remaining
 1,911,000 (22 percent) will be privatized. A list of 3.8
 million people who will be eligible to receive these
 private lands has been compiled.
 
 The arid summer has affected the quantity and quality of
 nut production. Mostly grown in the northern regions, an
 area of 16,895 hectares is usually planted. Last years  
 yield was 10,336 MTs and this years it was expected to be  
 close to 11,700 MTs, but the Ministry of Agriculture
 (MoAG) predicts a sharp decrease in the yield owing to  
 the arid summer.
 
 As of mid-September, 48,000 MTs of grapes have been
 harvested. This figure represents 32 percent of the
 planned yield. Azeri scientists have announced they have
 developed a new type of pomegranate. It is more 
 resistant, has a larger yield capacity, and contains 6  
 percent more sugar content than ordinary ones.  
 
 PRIVATIZATION
 A World Bank Mission visited Azerbaijan with the goal of
 speeding up their 20 million Dollar project of  
 establishing five pilot farmer economies, by reorganising  
 the collective and state farms of the Uchar, Barda,
 Lenkoran, Salyan, and Khachmas regions. 
 
 581 livestock farms and 211 sheep and goat farms have
 been privatized. A total of 84,000 heads of cattle and  
 286,000 sheep and goats are kept in these farms.
 According to the Minister of Agriculture, there are 2,016  
 livestock farms in Azerbaijan and the future plans are  
 for only 25 to be maintained by the state for breeding  
 purposes.  
 
 There are 16 private educational institutions functioning  
 in Azerbaijan. They includes 3 colleges, 13 Universities
 and Institutes of higher learning. 
 
 ECONOMY 
 September 1 exchange rates,1 US$= 4,240 AzM  
 September 30  1 US$= 4,215 AzM  
 
 On 1 October, state employees in the education, cultural,  
 mass media, health, sport and social sectors will receive  
 a 40 percent salary increase.
 
 As of 1 January, 1997, there will be an excise mark
 placed on all cigarettes and alcohol sold in Azerbaijan.
 In addition, sales of these items will require the 
 payment of an excise tax. The estimated cost of the
 excise mark is 90 Manat (approximately 1.3 US cents).
 
 On 13 September, the Russian Government lifted the 
 restrictions for rail traffic from Azerbaijan to the
 Russian Federation via Daghestan. The resolution (No. 94)  
 issued in December, 1994 as a result of the conflict in 
 Chechnya. Initially, only cargo traffic will be 
 permitted, but talks in resuming passenger traffic are  
 underway and are expected to be finalized in the near
 future. In addition, Azerbaijan has been offered to join
 the "Bishkek Agreement", which offers visa free crossing
 of borders by citizens of the CIS. Azerbaijan has 2,215 
 kilometers of rail, 30,000 wagons and 800 passenger
 carriages, along with a work force of over 50,000. 
 
 The port of Baku is estimating an increase of cargo
 circulation in 1997 to reach 8 million MTs following a  
 "four sided agreement" with Central Asia countries. Thus
 far this year, cargo traffic, 5232,000 MTs between Baku 
 and Central Asia is 16 percent lower than last year. This  
 has been attributed to the Chechyna conflict.
 
 Arrangements have been finalized for the first stage of 
 container-truck traffic on the route, Poti-Tbilisi-Baku.
 Transcaucasian railways or "TRACECA", an EU funded 
 project. The projects aims is to increase container
 traffic along the rail corridor with an aim to market
 this service to Uzbekistan and Turkmenistan. Set to begin  
 in October, the initial trains will carry 20-30 
 container-trucks per week. Following the visit of  
 President Nazarbayev of Kazakhastan, 19-20 September, a 
 number of bilateral agreements were signed with 
 Azerbaijan. These include: cooperation in the transport 
 sector, oil and gas industries, sport and culture and
 various economic issues, as well as discussing issues
 involved in the sectoral division of the Caspian Sea.
 
 ENERGY  
 It is estimated that within two years Azerbaijan should 
 achieve self sufficiency with natural gas. Between 12-14
 billion cubic meters of gas are required each year. In  
 1995, Azerbaijan produced 6.5 billion cm, but with the  
 ongoing oil exploration as well as the growing interest 
 in this resource. The Republic is estimated to have 214 
 billion cubic meters in both onshore and offshore  
 locations. 
 
 January-August, 1996 oil and gas extraction figures are 
 as follows: Oil- 6,069,9000 MTs (offshore oil-5,032,300 
 MTs, onshore oil-1,037,600 MTs), Gas-4.233 billion cubic
 meters (offshore gas-4.072 billion cm, onshore  
 gas-160,900 million cubic meters. These figures are
 slightly down from 1995 extraction figures for the same 
 period. 
 
 The state gas company, Azerigas, has put aside 200 
 million cm of gas for the winter months. The usual winter  
 requirement for Azerbaijan are 500 million cm. Because of  
 this shortage, the cities of Baku, Sumgait, Ganja and a 
 few selected regions will be supplied with gas. 
 
 The President of Azerbaijan has liquidated the State Fuel  
 Committee (SFC), and has declared that all kerosene sale
 stations and auto filling stations would be handed over 
 to the State Property Committee and will subsequently be
 privatized. The other remaining SFC enterprises would be
 handed to SOCAR (State Oil Company of Azerbaijan
 Republic). 
 
 The President of the AIOC (Azerbaijan of International  
 Operating Company) estimates the cost for repairing the 
 existing pipelines crossing Georgia and Russia to be US$
 70 million while the construction costs for the western 
 pipeline (through Georgia) would be US$ 275 million.
 
 MISCELLANEOUS
 Two major world airlines, KLM and British Airways, began
 service to Baku in September. KLM will fly 
 Amsterdam-Baku-Teheran while BA flies direct London-Baku
 three times a week.
 
 September saw the arrival of new Ambassadors for Turkey 
 and Israel and the opening of the Argentinian Embassy.  
 
 ================================================
 
 United Nations Office in Baku, Azerbaijan  
 Mr. James ONeill
 Tel.:  (0099412) 98 98 88
 Fax:(0099412) 98 32 35
 
 Complex Emergency Division (CED) - New York
 Mr. Kazuhide Kuroda
 Tel.:  (1 212) 963.5713 
 Fax:(1 212) 963.3630 
 
 Inter-Agency Support Branch (IASB) - Geneva
 Mr. Arjun Katoch
 Ms. Katarina Toll  
 Tel.:  (41 22) 788.6381 
 Fax:(41 22) 788.6386 
 
 Press To Contact - (DHA-Geneva) 
 Ms. Madeleine Moulin-Acevedo
 Tel.:  (41 22) 917.2856 
 Fax:(41 22) 917.0023 
 Telex: 414242 DHA CH 
 E-Mail:dhagva at dha.unicc.org