Chairman of the Board of the State Housing Development Agency Samir Nuriyev made a speech at the Cabinet of Ministers meeting10/04/2018

On April 9, a meeting of the Cabinet of Ministers dedicated to the results of the socio-economic development of the first quarter of 2018 and challenges ahead was held under the chairmanship of the President of the Republic of Azerbaijan Mr. Ilham Aliyev.

Chairman of the Board of the State Housing Development Agency Samir Nuriyev made a speech at the meeting:

Dear Mr. President,

Dear participants of the meeting,

Today, the modern Azerbaijan Republic is experiencing the highest stage of its development, and is taking decisive steps to ensure the security, high level of well-being and comfortable living of its citizens. Successful implementation of the sustainable development strategy established by the great leader Heydar Aliyev, under your leadership, dear Mr. President, ensures the establishment of an internationally competitive economic system in our country, accelerating the growth of the living standards of the population to the global standards. As a citizen of Azerbaijan stands on the basis of the far-sighted state policy you are implementing, solution of social issues is always in the spotlight of your Excellency. The social orientation of the state budget, improvement of the welfare of the population and strengthening of social protection remain a priority in 2018 as in previous years.

Projects implemented under the initiative of the First Vice President of Azerbaijan Mrs. Mehriban Aliyeva also make significant contributions to the development of the social sphere in our country. The implementation of various programs and projects aimed at ensuring decent living standards and improvement of housing conditions under the leadership of Mehriban Aliyeva is another indication of her humanist mission and ever-strengthening of the social policy of the state of Azerbaijan.

The share of the construction sector in the dynamic growth of the economy is quite high. Moreover, the development of this sector of the economy plays an important role in solving social issues, creating new jobs, increasing competition, booming the building materials market and affordability of apartments built with modern technological solutions.

The main purpose of the State Housing Development Agency set up in 2016 within the framework of large-scale economic reforms initiated by the President of the Republic of Azerbaijan to adapt to new challenges of the processes taking place in the world, is the construction of multistoried residential buildings and creating opportunities for the acquisition of affordable apartments for low-income, young families from different social strata and the improvement of their housing and living conditions. In order to properly perform these tasks, above all, a staff consisted of the Agency's highly qualified specialists has been formed, the necessary administrative issues have been resolved. The Agency has learned the international practice in the construction of affordable apartments, analyzed the structure and working principles of the relevant agencies of Turkey, Singapore, Germany, Russia and many other countries involved in this field. Taking into consideration this practice, the organization of social housing construction in Azerbaijan has begun.

In parallel with this, pursuant to the instructions of Your Excellency, the Agency was allocated 11.6 hectares of land in Yasamal district and 20 hectares of land in Hovsan settlement of Surakhani district of Baku city in order to ensure the implementation of the first projects in a short time. The foundation of Yasamal Residential Complex, the first project of the Agency, was laid on December 24, 2016, and Hovsan Residential Complex on December 24, 2017.

Dear Mr. President, your and First Vice President Mrs. Mehriban Aliyeva’s participation at both of the groundbreaking ceremonies is not only a great honor for us, but also a clear manifestation of your great sensitivity and careful attitude to the solution of housing problems of low-income families. At the same time, the high level of your confidence in the Agency inspires us and increases our responsibility for fulfilling the tasks you have already entrusted to us.

It is planned to provide 1843 families with apartments in the Yasamal Residential Complex, which consists of 29 multi-story residential buildings. This means the solution of the problem of housing more than 6 thousand people. At present, construction works are continuing at a rapid pace in the Complex. Construction and masonry works have been completed in 19 buildings and repair works have been started. In June of the current year, the first apartments will be delivered fully repaired, furnished with kitchen furniture. Also, a 960-seat secondary school and a 240-seat kindergarten are being built in the Complex.

Dear Mr. President, pursuant to your instructions, all necessary conditions for comfortable living of residents are created at the affordable housing complexes. Deployment of secondary school, kindergarten, trade, household and public catering facilities is planned along with the residential buildings in each project. International practice shows that the integration of social housing projects into a well-thought-out road-transport infrastructure makes them successful. The construction of a new four-lane road linking Baku Ring Road and Sharifzadeh Street on Your Excellency's initiative will play a crucial role for the future residents of Yasamal Residential Complex. This road will facilitate access to transportation in all directions of the capital and ensure optimization of public transport routes.

Dear Mr. President, one of the key targets set by "Strategic Roadmap for the Development of Affordable Housing Provision", one of the main guidelines by which we are governed, is to ensure financial sustainability of affordable housing system. To do this, 3 investment competitions were held within the Yasamal Residential Complex Project in order to minimize the dependence on the state budget. About 18 million manats of private investments were attracted within the public and private sector partnership with companies that won the competition. These funds will be used for the construction of three residential buildings, establishment of telecommunications infrastructure in the area, as well as the construction of shopping center. Completion of all works at Yasamal Residential Complex is scheduled for 2019.

The second project of the Agency - Hovsan Residential Complex, which will consist of nearly 3 thousand apartments, a 1920-seat secondary school, two kindergartens each with a capacity of 260 seats, a hospital and other public facilities, will be built and put into use. More than 10,000 people are expected to live here. The first apartments are planned to be fully handed over in the summer of 2019, while the residential area in 2020.

In parallel with the construction of these residential complexes, the Agency takes the necessary steps to implement the next projects. Taking into account the high demand for affordable apartments in Yasamal district, the Agency was allocated 15.4 hectares of additional adjacent land to the Yasamal Residential Complex in accordance with the order of the President of the Republic of Azerbaijan. At present, design and estimate documentation is being prepared for the expansion of the Complex. In addition, the land area for social housing construction was determined in Sumgayit city. The Cabinet of Ministers is expected to allocate that land area in the near future. The Agency continues to work to identify land plots for its further projects.

Dear Mr. President, one of the goals you set for us was to create a transparent electronic system that will allow real-time registration of applications of citizens entitled to affordable houses at the disposal of the Agency and their sale on concessional terms. For this purpose, "Affordable Housing" system has been established on the "E-Government" portal and the registration of applications has started since May 30, 2017.

Over the past period, about 8,200 citizens have been granted the right to housing and the establishment of a separate e-Cabinet for these individuals has been provided. All citizens who have an electronic cabinet have the same rights to their choice of apartments regardless of the date of their registration and their number.

Also, our staff members provide services at ASAN service centers to provide convenience for citizens, answer questions about using the "Affordable Housing" electronic system, as well as assist in the creation of an electronic cabinet.

A few days ago, the Agency placed an announcement on the sale of the first 260 apartments in the media. Pursuant to the approved rules, the sale of apartments on preferential terms will begin one month after the publication of the announcement through the "Affordable Housing" electronic system. Sales will be based on the principle of "early applicant, early service" which is widely used in the international practice. It means, the first person who enters the system and selects an apartment at the moment of commencement of sales process will get an opportunity to buy it.

The affordable apartments to be offered for sale are not only offered at a lower than the existing market prices in the area where it is located, but also they are available for sale through taking out an up to 30-year long-term soft loan from Azerbaijan Mortgage and Credit Guarantee Fund. Relevant agreements have been reached and contracts signed with Azerbaijan Mortgage and Credit Guarantee Fund, as well as the selected agent banks for a short-term and comfortable process of getting mortgage loans.

Dear Mr. President, we express our deep gratitude to you on behalf of our team for your continued support and attention to the solution of housing problems of the citizens of the country and the activities of the State Housing Development Agency. We once again assure you that we will mobilize all our efforts and powers to properly fulfill the tasks you have entrusted to us.

Thank you for your attention.

State Housing Development Agency of the Republic of Azerbaijan

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