OREANDA-NEWS. October 22, 2010. The Ministry of Communications & Informaion Technologies of Azerbaijan is preparing for presentation of the first regional innovation zone (RIZ).

Isfandiyar Aliyev, the head of the MCIT Department of Information Society Development, informs that aproval of the proposals for the project submitted to the country’s government is expected soon.

“Currently the project is being accorded with relevant governmental agencies and after that the project will be launched,” he emphasized.

A few options of subsidized tax regime to be introduced in RIZ have been developed and submitted for consideration. The proposals include both cuts in customs duties and their bringing to zero level.

Creation of such zones will promote to development of intellectual resources in Azerbaijan. ICT sector earnings are expected to reach the level of oil sector income due to RIZ until 2018-20.

In compliance with the plan of the Ministry-prepared project, it will give its favorable effect in the next 5 up to 10 years.

The RIZ idea is regarded differently throughout the world. Some analysts call RIZ a scheme for money laundering and others say of positive impact of such zones in the process of national economy growth. International experts, stressing non-conformity of RIZ to open competition principles, inform that in case of failure to observe generally accepted norms in these zones, it can lead to state budget losses. Besides, the World Trade Organization strives to creation of conditions of basic economy without subsidies in all its member states and is against RIZ creation.

The Azerbaijani government, in a way of creation of special economic zone in ICT sector, intends to turn the country into regional IT centre, expand export potential of the country and attract foreign companies to the internal market.

Within the framework of RIZ project Azerbaijan, having analyzed positive and negative experience of different countries (Israel, Belarus, etc) has prepared its own project.

At Bakutel-2010 exhibition the MCIT is going to present an innovation centre which is not large by its scale.