2006 revenues and expenditures of SOFAZ (excluding the Fund’s operating expenses) were approved as part of consolidated state budget by Milli Majlis (Parliament of the Republic of Azerbaijan) at its plenary sitting on October 21, 2005. According to the “Budget Systems Law”, the Fund’s revenues and expenditures expected for 2006 had been included to the draft consolidated state budget and submitted for Parliamentary hearings together with the state budget.

The Fund’s total revenues in 2006 are expected to be AYM (new Azerbaijan manat) 807.8 mln, including revenues from sales of profit oil in the amount of AYM 684 mln, transit fees in the amount of AYM 13.5 mln, bonus payments and acreage payments will make up AYM 67.5mln. and AYM 7.4 mln respectively. Revenues from managing assets of the Fund for the reporting period are targeted to be AYM 35.3 mln, while other revenues are drafted as AYM 0.1 mln.

Expenditures of the Fund for 2006 were approved in the amount of AYM 950.3 mln. In 2006 SOFAZ will make transfers to the state budget amounting to AYM 585 mln and allocate AYM 110.3 mln to finance building of housing and improvement of socio-economic condition of refugees and internally displaced persons victims of the Armenian aggression against Azerbaijan. AYM 38 mln shall be directed to finance government’s share of participation in the Heydar Aliyev Baku-Tbilisi-Ceyhan pipeline project, AYM 90 mln - to finance construction of the Oguz-Qabala-Baku water supply system and AYM 37 mln - to reconstruct the Samur-Absheron irrigation system. AYM 90 mln shall be contributed to the statutory capital a state investment company (fund) to be established by end 2005.

The Fund's 2006 operating expenses ( drafted in the amount of AYM 3.9 mln ( not a subject to Parliamentary approval) will be submitted for approval to the President of the Republic of Azerbaijan once the SOFAZ Supervisory Board provides its comments in respect of the draft.