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Procurement Policy

Azerbaijan Caspian Shipping Closed Joint-Stock Company

Procurement Policy

According to the Order of the Azerbaijan Caspian Shipping Closed Joint-Stock Company (hereinafter referred to as “Company” or “CJSC”) No. 99 dated June 12, 2014 and internal documents approved by the given Order, the main principles of the Company in the sphere of Procurement are the following: taking into account the quality of work, intended costs, reliability of the supplier (contractor), technical safety, environmental protection and applicable legislation; ensuring cost-effective procurement of goods (works and services) for CJSC. It is significant to reach cost-effectiveness for the Company in all procurement operations. The term “cost-effectiveness” covers not only the costs but also the quality, timeliness and other technical and commercial factors of the work. These factors include:

Capacity, reliability, image and financial strength of the Suppliers (Contractors);

The amount of completed work of the Suppliers (Contractors);

Correspondence and quality of technical innovations, services, materials, and equipment;

Compliance with the requirements of the Company’s Health, Quality, Safety and Environment rules and other relevant internal documents.

By applying the best practice of contemporary local and international companies in procurement operations, organizing procurement in conditions of fair competition, transparency and  publicity, demonstrating equal attitude towards tender participants, ensuring efficient and cost-effective use of funds by attracting suppliers (contractors) in accordance with established rules, and improving the quality of purchased goods (works, services), Procurement policy of the Company facilitates the transformation of the CJSC to the organization of international level. The following are the main aims of Company’s procurement policy:

Provision of a single approach to the procurement operations of the CJSC;

In return for procurement costs, to gain cost-effectiveness for the CJSC and maximize business profitability.

According to the Procurement Arrangement and Management Rules of Azerbaijan Caspian Shipping Closed-Joint Stock Company, taking into account the urgency of demand in goods (works, services) required to be purchased, their availability and conditions, the following types of competitions are used during procurement operations:

Open competition

Selective competition

Electronic inquiry

Open Auction