Каспинфо
июнь 2002

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Название: МФИ в Каспийском регионе на англ. языке
Главные Пункты:
* Пресс-релиз сети Bankwatch относительно трубопроводов Баку-Джейхан и Баку-Эрзерум, в котором изложены требования НПО к реализации этих проектов в связи с участием в них международных финансовых институтов МФИ): - предоставление общественности доступа к важнейшим документам по проектам (СРП, Соглашения о транзите и др.); - эффективный и независимый контроль за Нефтяным фондом Азербайджана; - прозрачность аудита Нефтяного фонда; - создание Международного Консультационного Совета по Оценке воздействия на окружающую и социальную среду, куда войдут и НПО, и др.
* Письмо-обращение ряда национальных и международных НПО к общественности с призывом потребовать от МФИ при реализации проектов трубопроводов Баку-Джейхан и Баку-Эрзерум соблюдения следующих условий: - независимая оценка влияния планируемых проектов на безопасность в регионе; - создание Международного Консультационного Совета по Оценке воздействия на окружающую и социальную среду с гарантированным участием НПО; - полное соответствие проектов Конвенции ООН по ОВОС в трансграничном аспекте, и др.
* На сайте www.ebrd.com/ngo размещена Стратегия ЕБРР в Грузии на английском языке.
* 64 НПО из 37 стран мира требуют, чтобы для строительства трубопровода Баку-Джейхан не использовались деньги налогоплательщиков (займы МФИ), т.к. это будет означать, что мировое сообщество финансирует проект, который может привести к милитаризации региона, возобновлению военных конфликтов, загрязнению окружающей среды и т.д.
(17.06.2002)


Полный Текст
МФИ в Каспийском регионе на англ. языке
МФИ в Каспийском регионе на англ. языке

***
PRESS RELEASE

This press release is the last in a series of four, leading up to the
World Bank Extractive Industry Review Eastern Europe and
Central Asia Regional Consultation in Budapest, Hungary on June 19-22, 2002.
At the Consultation, NGOs will raise the issue of the harm which
extractive industry projects have created in Central and Eastern Europe and Central Asia.
Azerbaijan-Georgia-Turkey Pipelines Highlight Ills of Extractive Industry

TBILISI, June 10, 2002 -- The IFC and other international
financial institutions are considering the possibility of financing the
Baku-Tbilisi-Ceyhan Main Export Oil Pipeline (BTC) and Baku-
Tbilisi-Erzrum Gas pipelines. CEE Bankwatch Network and other
NGOs are demanding that they not finance the project until the
project is able to demonstrate real development benefits to the
public in the Caspian region. Also, there must be full access to all
documents related to the project and a proper assessment of the
existing social, economic, and environmental impacts.

Background
Baku-Tbilisi-Ceyhan, the main export oil pipeline, and the Baku-
Tbilisi-Erzrum pipeline represent a new concept of energy
corridor development that would connect the Caspian Sea Coast
to the Turkish Mediterranean, to provide oil and gas for the
European market. The Baku-Tbilisi-Ceyhan (BTC) pipeline (1760
km long) will be a dedicated pipeline system transporting up to one
million barrels per day - 50 million tonnes per annum - of crude
oil from an expanded Sangachal terminal near Baku in Azerbaijan,
through Georgia, to a new marine terminal at Ceyhan in Turkey
on the Mediterranean coast. The BTC project is currently in the
midst of a 12-month, USD 150 million engineering phase led by
British Petroleum. Construction is targeted to begin mid-2002 and
the project is planned to be fully operational by 2004-2005.

The political significance of the project has been recognised by
the US Government, who indeed directly advocates the
continuation and expansion of export routes in its National Energy
Security Policy. The project depends on the political and financial
support from Western Governments and International Financial
Institutions. According to British Petroleum CEO John Browne,
the BTC option makes sense only "if 'free money' was offered by
governments to build the line." Therefore, IFC, EBRD, EIB, US
Ex-Im, US OPIC, and JEXIM are in various stages of
consideration of the project.

Benefits for the region
While there are high expectations regarding budgetary income,
increased employment opportunity and access to energy carriers
from oil and gas pipelines both in Azerbaijan and in Georgia, the
situation already seems to be rather different.

The oil sector itself provides only a restricted amount of
employment and income opportunities, particularly for the poor.
Taking into account the high level of corruption in the region
(Azerbaijan and Georgia are ranked by Transparency
International as being among the most corrupted countries), the
non-transparent budgetary system, the existing burden in oil
revenues management and difficulties even for the IMF to
oversee spending, these concerns are easily understandable. Even
more, according to the head of the Georgian International Oil
Corporation, up to half of all transit fees received by Georgia
could go to finance security for the pipeline, including
compensation to Turkey for military training, electronic
surveillance systems, and arms and ammunition to help Tbilisi
maintain pipeline security.

While the pipeline is being built for the export of natural gas,
communities along the route do not have a gas supply. There is no
contractual commitment from the companies on securing the
possibility of a gas supply to those communities. There are
particularly high concerns regarding health and safety issues (e.g.
crime, prostitution, AIDS and other communicable diseases,
potential conflicts, security, etc.) arising within the local
communities as a result of expatriations from workforces in
construction camps.

Transparency and access to information
The companies and the governments are trying to prevent
meaningful public participation in the project. For example,
Production Sharing Agreements, basic documents according to
which the companies get the right to the oil resources, are not
publicly available, despite the fact that they were ratified by
Azerbaijanian Parliament.

It should not be surprising that the project sponsors are keeping
confidential key documents such as the macro-level impact
studies which address comparative pipeline costs, issues of
redistribution of oil revenues, cumulative environmental, social and
economic project impacts and the economic and political
assessment of regional alternatives.

Democracy and Human Rights
The 1,730 km oil pipeline poses a major security risk, with
international implications. The vulnerability of the region regarding
the existing and potential conflicts between countries, as well as
within the countries, due to ethnic and religion clashes, is one of
the most acute issues. British Petroleum has said that "[t]he
pipelines will of course benefit from the military presence." The
human rights implications of such militarisation has yet to be
assessed, however, as have the implications for exacerbating the
conflict in the region, such as the Armenia and Azerbaijan conflict
over Nagorno-Karabakh. Further, it is of grave concern that the
Turkish section of the route passes through Kurdish areas where
the creation of a `militarised corridor' along the pipeline route
could destabilise the three-year cease fire which recently brought
an end to a 15-year armed conflict between the Kurdistan
Workers' Party (PKK) and the Turkish security forces.

Environmental Issues
The project sponsor has tried to represent environmental impacts
of BTC that technically apply only to construction and
maintenance of pipelines. However, the BTC pipeline is part of
wider offshore oil and gas field development in the region, and
associated upstream and downstream terminals. But the company
is presenting only national EIAs country by country, to reduce
concerns regarding the overall cumulative environmental impacts
of enhanced oil drilling on Caspian's Fragile environment, the
negative influence on the fragile biodiversity of South Caucasus,
not to mention the enormous potential of greenhouse gas emission
and its impact on Climate Change.

The AGT pipelines crosses six main water-crosses and several
groundwater basins, as well as several environmentally sensitive
areas - natural protected areas of various categories, including
the State Gobustani Reserve in Azerbaijan, Ksia Tabaskuri
managed reserve and multiple support zone of Borjomi-Karagauli
National Park, that treated to Borjomi Mineral Water reserves.

NGOs Demands regarding IFC involvement in the Project
We urge the IFC and other International Financial Institutions
which have been approached with regard to supporting the project
to make any project approval conditional on:

*Immediate disclosure of crucial agreements and documents for
the project for independent review
*Host Country Agreements, Production Sharing Agreements
(PSAs) and Transit Sharing Agreements (TSAs)
*Macro-Level Assessments including:
*Environmental and Social Impact Assessment (ESIA)
*Regional Overview, including an assessment of
geopolitical issues
*Macro-Economic Assessment
*Effective and independent oversight of the Azeri Oil Fund
including:
*Independent oversight over the Azeri Oil Fund should be exerted,
including civil society representatives on the oversight committees;
*Transparency in the auditing of the Oil Fund. At a minimum,
quarterly reports on the income and expenditure of the Oil Fund
should be made public;
*Projects funded through the Fund are demonstrably geared to
relieving poverty and improving social, environmental and public
health conditions.
*Independent verification that the contracts for the project were
not obtained corruptly and publication of the investigation's
findings;
*Mandatory implementation of social programmes and actions to
give local communities access to energy resources;
*Thorough and independent assessment of security issues
affecting the BTC pipeline system and the impacts that a strong
military presence along the pipeline corridor might have on
existing conflicts and tensions in the region;
*The establishment of an International Advisory Group on ESIA,
that would include NGOs;
*Involvement of the Dutch Commission for Environmental Impact
Assessment in the independent review of the ESIAs for both
pipelines;
*Full application of the UN ECE Convention on Environmental
Impact Assessment in a Transboundary Context;
*Full Compliance with the World Bank's Safeguard policies, in
particular OD 4.20 (Indigenous Peoples) and OP 4.12 and BP
4.12 (Involuntary Resettlement); and
*Full assessment of the long-term climate impacts of the project
and its related oil and gas development programmes in the region.

Finally, we would urge the IFC and other IFIs to screen the
proposed BTC pipeline and its associated oil and gas
infrastructure projects for its social and development impact. We
believe that the use of "free public money" cannot be justifiable
unless the project is able to clearly demonstrate positive local and
regional development impacts associated with the project over the
next 30 years - which is the planned lifetime of the pipeline,
according to oil companies.

For further information about the Baku-Tbilisi-Ceyhan pipeline,
please contact:
Manana Kochladze
phone: +99 532 22 38 74
email: manana@wanex.net

For further information about the EIR Consultation, please contact:
Petr Hlobil
phone: +420 2 7478 2208
email: petr.hlobil@ecn.cz

***
May, 2002

Dear Sirs,

Baku-T'blisi-CehyanMain Export Oil Pipeline Project - MDB and ECA involvement

We are writing to you about the possible involvement of several International Financial
Institutions (namely, the IFC, MIGA, EBRD, EIB and US Eximbank and OPIC, Japan
Eximbank) in the financing of the Baku-T'blisi-Ceyhan Main Export Oil Pipeline Project
(BTC) and to urge your institutions to impose a number of conditions on loan
approval at the earliest possible stage of project appraisal.

As national, regional and international NGOs, we have been monitoring both the BTC
project and wider oil and gas development in the Caspian region. From our research,
we understand that the companies in the consortium are in a position to finance only
30% of the projected project costs out of their own budgets: the rest of the required $3.3
billion is being sought from public lending institutions. Indeed, John Browne, chief executive
of BP, which is leading the BTC Sponsor Group, is on record as saying the BTC project would
not be possible unless " 'free public money' was offered by government to build the line." As we
understand it, BP is likely to seek several hundreds of millions of dollars of such "free public
money" from the EBRD, EIB and World Bank Group, as well as from Export Credit Agencies.

Although the BTC Sponsor Group has as yet to make a formal application for support
from these IFIs, we understand that BP has had preliminary discussions with IFI staff and
that applications for support will be submitted later this year. Significantly, Mr Woicke of
the IFC recently informed NGOs at a meeting on 19th April 2002 that a preliminary
assessment of possible project impacts is already being undertaken by three IFC
experts in the region.

As you will know, the BTC pipeline is only a part of a much wider oil and gas
development programme in the region, which includes the parallel Baku-Tbilisi-Erzerum
gas pipeline to be laid in the same energy corridor; the off-shore oil and gas fields being
developed in the Caspian Sea; and associated upstream and downstream terminals. In
our view, the impacts of the BTC cannot be assessed in isolation from these wider
developments.

We believe that the long-term developmental benefits of current oil and gas development
in the region are questionable. We are therefore writing to express our grave concerns
about the social, developmental, human rights, environmental and security impacts
of regional oil and gas development in general and of the BTC pipeline in particular.
These concerns are summarised below and amplified further in the accompanying
Memorandum. They include:

* The failure to make available key documents, such as relevant production sharing
and transit agreements, readily accessible to the public and to disclose studies that
have been undertaken on the macro-level implications of the BTC project;

* The skewed distributional impacts of current oil and gas development in the region;

* The failure to produce a resettlement action plan, despite acknowledgments by BP
that, in Georgia at least, some people will lose their entire livelihood to the BTC
project;

* The failure to undertake a full and comprehensive assessment of the BTC project's
impacts on ethnic minorities along the pipeline route;

* The lack of independent and effective oversight of the Azeri Oil fund;

* Concerns over corruption;

* Concerns over militarisation in the pipeline corridor and the potential of the BTC project
to exacerbate conflict ion the region; and

* The failure to assess the long-term climate implications of the BTC project.

We urge the International Financial Institutions that you leading to facilitate the immediate
disclosure of the project related PSAs and TSAs for each of the three countries
through which the BTC pipeline will pass. Furthermore, we urge the International Financial
Institutions (IFIs) which have been approached with regard to support for the
project to make any project approval conditional on:

* Disclosure of the macro-level impact studies undertaken by the project sponsors and
their submission to a full and timely consultation exercise with interested parties;

* Compliance with the World Bank's Safeguard policies, in particular OD 4.20
(Indigenous Peoples) and OP 4.12 and BP 4.12 (Involuntary Resettlement);

* Independent oversight of the Azeri Oil Fund, including civil society representation;

* Independent verification that the contracts for the project were not obtained corruptly
and the publication of the investigation's findings;

* Mandatory implementation of social programmes to supply local communities with
sustainable and affordable sources of energy;

* Independent assessment of the security implications of the proposed pipeline and
compliance with the World Bank's guidelines on projects in areas of conflict;

* The setting up of an International Advisory Group with guaranteed NGO representation
on a self-elected basis;

* Full assessment of the long-term climate impacts of the project and its related oil and
gas development programmes in the region;

* Full application of the UN ECE Convention on Environmental Impact Assessment in a
Transboundary Context;

* Involvement of the Dutch Commission for Environmental Impact Assessment in the
independent review of the ESIAs for the BTC project and the associated Baku-Tbilisi-
Erzerum gas pipeline.

Finally, we would urge the IFIs to screen the proposed BTC pipeline and its associated oil
and gas infrastructure projects for its social and development impact. We believe that the
use of "free public money" cannot be justifiable unless the project is able to
clearly demonstrate positive local and regional development impacts associated with the
project over the next 30 years - which is the planned lifetime of the pipeline according to
oil companies. One possibilities would be a screening of the project under the IFC's
new Sustainability Initiative.

Presidents, we believe that an early public commitment by the IFIs to imposing
clear conditions on project approval, as outlined above, would lay the ground for a
credible and transparent assessment by the IFIs of all project impacts and alternatives in the
long-term, including the "no-project" option. In our view, the lack of such a commitment would
clearly signal an uncritical bias by the IFIs in favour of the project and a failure to have
due regard to its undeniable long-term controversial development impacts.

We look forward to your prompt reply and remain sincerely yours.

Manana Kochladze
Green Alternatives, Georgia

Antonio Tricarico
Campaign to reform the World Bank, Italy

Kerim Yildiz
Kurdish Human Rights Project

Doug Norlen
Pacific Environment, US

Kate Hampton
Friends of the Earth - International

Petr Hlobil
CEE Bankwatch Network

Nicholas Hildyard
The Corner House, UK

Yury Urbansky
National Ecological Centre of Ukraine

Carol Welch
Friends of the Earth - US

James Marriott
Platform

Petr Hlobil
International Oil and Climate Coordinator
CEE Bankwatch Network
Kratka 26, Praha 10, 100 00, Czech Republic
Tel.+fax: 420-2-7481 65 71
http://www.bankwatch.org

***
The European Bank for Reconstruction and Development' Strategy for Georgia is posted
at the www.ebrd.com/ngo in English.

***
Hot News*

Bankwatch Press Release: BP Should Not Get "Free Public Money" to Build
Controversial Pipeline, Say International NGOs

================================================
BP Should Not Get "Free Public Money" to Build Controversial Pipeline,
Say International NGOs
================================================
26 June 2002
joint NGOs press release

Sixty-four non-governmental organisations from over 37 countries have
written to the World Bank and major national export credit agencies
strongly opposing plans by BP, the world's third largest oil company,
to use "free public money" (1) to build a controversial oil pipeline
from the Caspian to the Mediterranean.

The proposed Baku-Tbilisi-Ceyhan oil pipeline (2) will run through
Azerbaijan, Georgia and Turkey. 70 per cent of the required $3.3 billion
is being sought from taxpayers primarily in Europe, Japan and the US
through public lending institutions, such as the World Bank and export
credit agencies. (3) None of the most important project agreements have
been released. Nonetheless, an application for financial support has
already been made to the US ExIm Bank, even though most of the
environmental and social studies have yet to be finalised.

NGOs are concerned that the pipeline will bring few benefits to poorer
people and could exacerbate tensions in the region which is only just
recovering from a number of major conflicts. (4) The project is also
criticised for its potential to fuel damaging climate change.

"The long-term developmental benefits of current oil and gas development
in the Caspian region are questionable", said Manana Kochladze from
Green Alternatives in Georgia. "The use of 'free public money' cannot be
justifiable unless the project is able to clearly demonstrate positive
local and regional
development impacts associated with the project over the next 30 years -
which is the planned lifetime of the pipeline according to oil
companies".

"Some people will lose their entire livelihood because of the project
and it is likely that companies' promises to bring jobs and local
development will not be met", said Petr Hlobil of CEE Bankwatch. "Local
people lack basic energy supplies. But the oil and gas from the Caspian
will be piped straight to western markets. Local communities will be
bypassed completely."

"This pipeline would militarise a corridor running from the Caspian to
the Mediterranean", says Kerim Yildiz of the Kurdish Human Rights
Project. "This could threaten the fragile cease fire in the Kurdish
region through which the pipeline will pass."

"The pipeline would have a major effect on climate change ", says Kate
Hampton of Friends of the Earth International. "The oil transported
along the pipeline, once burned, will contribute 185 million tonnes of
carbon dioxide to the atmosphere every year. This is equivalent to
nearly one-third of the UK's total CO2
emissions for 2000. If public money is used for this pipeline, we will
all be subsiding dirty energy, both here and, worse, in the US, where
emissions are still growing and where the Bush Administration has
reneged on the Kyoto climate treaty."

The NGOs are demanding that no public money be made available to the
consortium seeking to build the pipeline unless stringent human rights,
development and environment conditions are met.

For more information, please contact: Kate Hampton, Friends of the Earth
International, 02075661723

You can find NGO Proposal and NGO Letter to IFIs together with endorsed
NGOs on the Bankwatch website - http://www.bankwatch.org/

Notes:

1) John Browne, chief executive of BP, which is leading the BTC Sponsor
Group, told the Financial Times in November 1998 that the BTC project
would not be possible unless " 'free public money' was offered by
government to build the line."

2) The Baku-T'bilisi-Ceyhan (BTC) Main Export Oil Pipeline Project is
only a part of a much wider oil and gas development programme in the
region, which includes the parallel Baku-Tbilisi- Erzerum gas pipeline
to be laid in the same energy corridor; the off-shore oil and gas fields
being developed in the Caspian Sea; and associated upstream and
downstream terminals. The oil and gas pipelines are together referred to
as the Azerbaijan- Georgia-Turkey (AGT) project.

3) Such institutions, all of which rely on public money, include: the
World's Bank's private sector arms (IFC and MIGA), the European Bank
for reconstruction and Development (EBRD), the European Investment Bank
(EIB) and the US Overseas Private Investment Corporation and the Japan
Bank for International Cooperation.

4) For example, the pipeline passes through several Kurdish areas in
Turkey and threatens to destabilise the fragile three-year guerrilla
ceasefire which recently brought an end to the 15-year armed conflict
between the Kurdistan Workers' Party (PKK) and the Turkish security
forces which took a devastating toll on the civilian population. The
pipeline also passes close to Nagorno-Karabakh, an area fought over in
the early 1990s by Azerbaijan and Armenia.

INFO CENN
Caucasus Environmental NGO Network (CENN)