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CENN Daily Digest - December 9, 2004

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  • CENN Daily Digest - December 9, 2004

    CENN - DECEMBER 9, 2004 DAILY DIGEST
    Table of Contents:
    1. BTC Construction Preserves
    2. Eurasia Foundation Pledges $2 Million in Grants for 2005
    3. Authorities Vow To Dismantle Another 15 Illegal Petrol Stations
    4. Nuclear and Radiation Safety Armenia's State Priority
    5. Gas alternative guarantees independence
    6. Agreement on Sale of Zangezur Plant to be Signed After December 13
    7. Gyulkassyan's Group Implements USDA-CARES -ICAR-CAC Project
    8. European regional meeting is being held in Yerevan
    9. Award Announced for Young Ec-Heros



    1. BTC CONSTRUCTION PRESERVES

    Source: The Messenger, December 8, 2004

    The construction of the Georgian segment of the BTC pipeline is
    scheduled to be finished by March 2005 and despite two recent
    business setbacks for the overall pipeline construction in Georgia is
    progressing.

    After the completion of the Georgian section the pipeline in Turkey must
    also be completed and then filled with oil. As soon as BTC
    begins operating, construction will begin on the parallel Shah-Deniz
    natural gas pipeline project. The implementation of the both
    projects is of vital political and energy security spheres.

    Although the pipeline is nearing completion - Natik Aliev, head of the
    State Oil Company of the Azerbaijan Republic (SOCAR), told
    reports in late November, `We expect the Azerbaijani section to be
    launched in January and the Georgian section in March,'
    problems have also surfaced in the overall business plan.

    At the same press conference, Aliev announced that construction costs
    have increased over preliminary estimates. He noted, 'Turkey
    assures us that its section will be ready by the end of March, although
    BTC shareholders are a little pessimistic.' Also in November, a
    British parliamentary committee held a hearing relating to the
    pipeline's safety standards, though little new revelations or
    accusations
    were made.

    More serious business issues are that last week one of the largest
    Italian banks - Banca Intesa announced it was selling its share in the
    financing of the pipeline. The Financial Times reported that the bank
    was selling hits stake at a loss from the original loan amount.
    Another setback came when ExxonMobile announced it was signing contracts
    to ship crude oil by rail over next five years. thus
    skirting the BTC. UK's Sunday Times described the move as `American
    penny pinching' that `is as much a political embarrassment
    as a financial blow to BP.'

    But despite these setbacks, they cannot hinder the successful completion
    of the pipe. A solid core of investors - and governments -
    are keenly interested in its operation and price increases can be easily
    defrayed thanks to the high price of crude in the world market.

    In Georgia, the president of GIOC (Georgian International Oil
    Corporation) Nika Vashakidze tells the paper Rezonansi that BTC
    construction has played an important role in developing the Georgian
    economy. Most of the investments have already been made in
    connection to the project he states; adding that new jobs were created
    and a variety of Georgian companies were involved in its
    construction.

    The operation of BTC will also deliver budgetary revenues and increased
    global importance of Georgia. Once the sister pipeline
    Shah-Deniz starts pumping natural gas to Turkey via Georgia, the country
    will significantly strengthen the security of its natural gas
    supply system. According to current calculation Azeri natural gas could
    reach Georgia by the end of 2006, thus giving Georgia a viable
    alternative to Russian Gazprom supplies.


    2. EURASIA FOUNDATION PLEDGES $2 MILLION IN GRANTS FOR 2005

    Source: ArmenPress, December 6, 2004

    The director of the Eurasia Foundation Armenia office, Ara Nazinian,
    told at the news conference last Friday that the Foundation
    plans to provide Armenian non-governmental organizations with around $2
    million grants next year. Since its inception in Armenia in
    1995 the Foundation has made available some 600 grants totaling $20
    million.

    The bulk of that money came from the USAID, other major donors were
    well-known Armenian Diaspora financial
    organizations-Lincy Foundation, Kafesjian and Izmirlian Foundations, as
    well as the Open Society Institute.

    In the outgoing year the Eurasia Foundation has funded 70 projects with
    a total budget of $1.5 million and has approved another 25
    new projects worth some $600,000. Almost two third of funding goes to
    NGOs working in Armenia's regions. Ara Nazinian said the
    policy of the Foundation is to shift the work and investments from the
    capital Yerevan to regions.

    He said the main focus of next year's projects would be on projects of
    regional importance, which will cover improvement of business
    environment, development of local self-management bodies, improvement of
    conditions of local mass media and introduction of high
    technology in higher educational system.

    Along with that the Eurasia Foundation will fund all other projects that
    contain innovations and tend to strengthen of democratic
    society.


    3. AUTHORITIES VOW TO DISMANTLE ANOTHER 15 ILLEGAL PETROL STATIONS

    Source: ArmenPress, December 6, 2004

    Yerevan authorities have vowed to dismantle another 15 petrol-filling
    stations by the end of the year, which were built in violation of
    rules. A municipality official said the authorities started drawing the
    overall inventory last spring and have so far closed or dismantled
    100 such stations, kiosks, car washing points and other outlets. He said
    after a thorough study some other petrol filling stations would
    be pulled down.

    He said the goal of the inventory is to identify illegally operating
    outlets, to dismantle those that were built in violation of the accepted

    standards.


    4. NUCLEAR AND RADIATION SAFETY ARMENIA'S STATE PRIORITY

    Source: ITAR-TASS News Agency, December 6, 2004

    Yerevan, December 6 -- The nuclear and radiation safety is now among
    Armenia's state priorities. This is defined by amendments to
    the republic's law On Safe Peaceful Uses of Nuclear Energy that was
    passed by Armenian parliament and was signed by President
    Robert Kocharyan on Monday, Itar-Tass learned from the Armenian
    president's press service.

    The Armenian legislation is amended to bring it in accordance with the
    safety standards of the International Atomic Energy Agency
    (IAEA).

    Under the law, only the republic's citizens can assume the posts that
    entail responsibility for the safe functioning of nuclear facilities.
    The law requires the tightening of control over nuclear materials and
    protection of nuclear power plants. The law on insolvency
    (bankruptcy) does not apply to the Armenian nuclear power plant.

    The nuclear power plant that went into operation in 1979 was shut down
    in 1989, several months after the devastative earthquake.
    The plant was reactivated with the participation of Russian specialists
    in 1996, and industrial operation of the second reactor was
    resumed.

    Electricity generated by the nuclear power plant now accounts for 38
    percent of Armenia's energy balance. The European Union
    demands that Armenia shut down the plant. The Armenian authorities
    believe this could be possible only if there were alternative
    sources of energy.

    >From last year, the management of the financial and economic activity of
    the nuclear power plant went to InterRAO UES, the
    subsidiary of RAO UES, the Unified Energy Systems of Russia.


    5. GAS ALTERNATIVE GUARANTEES INDEPENDENCE

    Source: Yerkir/arm, December 3, 2004

    Start of construction of Iran-Armenia gas pipe is now a reality. The
    negotiations that started back in 1992 are now in the history and
    the 141 km long pipe will now raise the energetic independence of our
    country.

    The Iran-Armenia gas pipe will be an alternative source in situations,
    when our country runs into blind alleys, which was the case in
    1992-94. Note that gas provides energy to 35-40 per cent of Armenian
    production. Naturally, explosions of the only gas pipelines
    cause emergencies, which will be avoided due to the new pipe.

    In addition, the new pipe will spur competition with the Russian gas
    pipe that will get a grip on the prices. Another way for cheap gas
    can be the Turkmenistan gas coming through this new pipe. By 2007
    Armenia will import from Iran a quantity of gas equal to what it
    now imports from Russia. And the quantity is supposed to double it by
    2019.

    The expenditures will be 220 million dollars, out of which Armenia will
    need to pay 30 million (via a credit from Iranian bank).
    Later on, it will be necessary to construct a pipe through
    Kajaran-Sisian-Jermuk-Ararat-Yerevan will cost 90 million dollars.
    Possible
    sponsors are now being negotiated.

    Another planned project is construction of a hydro power station on
    Araks river, which will also be probably sponsored through
    Iranian bank loans.

    In addition, it is likely that not only factories will be consuming the
    gas from Iran but also the regular population, 70 per cent of which
    is now deprived of such facilities.


    6. AGREEMENT ON SALE OF ZANGEZUR PLANT TO BE SIGNED AFTER DECEMBER 13

    Source: ArmenPress, December 7, 2004

    Armenian trade and economic development ministry said the agreement with
    Germany's Cronimet on purchase of 75% of shares in
    Armenia's Zangezur copper and molybdenum plant will be signed after
    December 13, 2004. Earlier minister Karen Chshmaritian said
    it would be signed by December 5. The ministry said the agreement is
    being now finalized. Under the deal the German company will
    pay $132 million for 75% of the stock.

    Half of the remaining stock (12.5%) will be transferred to Armenian
    Molybdenum Production (AMP), set up last year in Yerevan to
    process molybdenum; the other 12.5% will go to management company
    Zangezur Mining, created recently by the plant's workforce
    and administration.

    Cronimet has said it is ready to credit AMP and Zangezur Mining to
    enable them to acquire their portion of stock. Cronimet owns
    48% of the stock in Yerevan's Pure Iron, which processes molybdenum
    concentrate produced by Zangezur plant.


    7. GYULKASSYAN'S GROUP IMPLEMENTS USDA-CARES -ICAR-CAC PROJECT

    Source: ArmenPress, December 7, 2004

    In May 2004, the Laboratory of Plant Genetic Resources at the Armenian
    Agricultural Academy (AAA) was provided with a grant
    from USDA CSREES International Cooperation for Agricultural Research
    (ICAR) in Central Asia and the Caucasus (CAC) Project
    (http://www.ip.wsu.edu/projects_partners/icar/icar.html) to implement
    its research proposal on "Conservation and utilization in
    breeding of wild relatives of cereals in Armenia".

    According to Michael Gyulkhasyan, head of the group, the main goal of
    the project is to conserve genetic resources of wild cereal
    relatives and save the unique plant gene pool in Armenia. Wild wheat
    samples were collected during the expeditions in Ararat and
    Vayots Dzor marzes, and Erebuni reservation in Yerevan. Usage of these
    wild cereal species as initial breeding materials and crossing
    them with cultivated varieties will create new hybrids with economically
    important features, such as resistance to diseases, pests, and
    drought.

    The AAA group collaborates with Kansas State University within the
    project. According to Dr. Gyulkhasyan, USDA CSREES ICAR
    provides an excellent opportunity for Armenian agrarian research
    institutions to achieve breeding improvements and introduce these
    achievements into breeding practice. Professor Gyulkhasyan's project was
    one of the three winners from the 125 project proposals.
    The project started with a visit by USDA CSREES ICAR, Washington State
    University and CYMMIT representatives. It's a
    two-year project and will continue next year.


    8. EUROPEAN REGIONAL MEETING IS BEING HELD IN YEREVAN

    Source: Azg/arm, December 8, 2004

    The convention signed in Iranian Ramsar city in 1971 is the only one
    that is directed to preservation of concrete eco-systems, in the
    given case, the preservation of wet territories, the dwelling places of
    water birds. Armenia joined this convention in 1993, representing
    the Lake of Sevan and the Arpi Lake with its neighboring swamps in the
    list of preservation and restoration. In the course of the
    membership the fund of the convention financed 4 Armenian projects.

    A new project was elaborated for the Javakhk areas of special
    preservation. KFW bank will allocate $2,2 million for the
    implementation of the project.

    European regional meeting is being held in Yerevan on December 4-8. 70
    foreign ecology experts are participating in the meeting. The
    participants of the conference will visit the national part of Sevan,
    Ayrivank and Sevan Hydro.


    9. AWARD ANNOUNCED FOR YOUNG ECO-HEROES

    Are you a Young Eco-Hero? Do you know a Young Eco-Hero?

    Action for Nature (AFN) is seeking applications from students from
    around the world 8 to 16 years old for its 2005 International
    Young Eco-Hero Awards Program. This program recognizes the individual
    accomplishments of young people who have carried out
    environmental action projects. Projects must concern environmental
    action, advocacy, environmental health, research, or protection of
    the natural world.

    For a printable version of a flyer about Young Eco-Hero Awards Program
    click:
    http://www.actionfornature.org/eco-hero/ecoheroawards.html

    Cash prizes up to $500 will be awarded. Applications must be postmarked
    by February 28, 2005.

    Click on http://www.actionfornature.org/eco-hero/index.html for
    guidelines and an application form. There you can also find
    information about the 2003 and 2004 award winners.

    The 2004 award winners include Janine Licare (14), who helps to save
    endangered animals in Costa Rica; Christina Faust (16) of
    Georgia, who studies the vegetation around streams to better understand
    how plants contribute to the streams ecosystem; and Salaar
    Khan (11) of Pakistan, who influences his neighbors to use cloth bags
    and eliminate the toxins created when plastic bags are burned.

    Action for Nature is an environmental, education and advocacy non-profit
    that encourages young people to take personal action to
    better the environment, and to foster love and respect for nature.
    Based in San Francisco, California, the board and staff of Action for
    Nature believe that the long-term health of our planet requires that
    young people learn the importance of understanding and caring for
    the natural world.

    Contact information: (post cards & flyers available from)
    Action For Nature, 2269 Chestnut Street, #263, San Francisco, CA 94123,
    USA
    E-mail: [email protected]
    Visit us at www.actionfornature.org



    --
    *******************************************
    CENN INFO
    Caucasus Environmental NGO Network (CENN)

    Tel: ++995 32 92 39 46
    Fax: ++995 32 92 39 47
    E-mail: [email protected]
    URL: www.cenn.org
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