Tweet
CENN -NOVEMBER 18, 2004 DAILY DIGEST
Table of Contents:
1. Azeri-Turkish Pipeline Costs to Eexceed Project Budget, Oil Boss Says
2. Cracked Joints Found in BP's Georgia Pipeline
3. Government Faces Legal Action Over New BP Pipeline
4. New Programme Launch -Save the Children Assists NGOs Along the SCP
and BTC Pipeline Routes in Georgia
5. Rustavi Secondary School is Actively Involved in Implementation of BP
Projects
6. Ministers Dismiss Claims that Telasi's Import Agreement Corrupt
7. Armenian-Iranian Pipeline Project Put Back to Year-end
8. Georgia Advocates Abolishment of Road Duty for Armenian Cargo
Transporters
9. Italian Commercial Office in Yerevan Set to Open Later This Month
10. Ingeocom CJSC to Start Construction of New Building for Armenian
Defense Ministry Soon
11. Armenia's Millennium Challenge Aid Eligibility Renewed
12. Iran Says Nuclear Suspension May Last only a few months
1. AZERI-TURKISH PIPELINE COSTS TO EXCEED PROJECT BUDGET, OIL BOSS SAYS
Source: BBC Monitoring Service - United Kingdom; November 15, 2004
Baku, 15 November: The construction costs of the Baku-Tbilisi-Ceyhan
(BTC) oil pipeline will exceed the project budget, Trend quoted the
SOCAR [State Oil Company of the Azerbaijani Republic] president, Natiq
Aliyev, as telling journalists.
He said more than 3bn dollars had been spent on the project so far. It
was earlier believed that the BTC construction would require 2.95bn
dollars (the total value of the project is 3.6bn dollars, including in
accrued credit interest and expenses on filling the pipeline).
"The project will be more expensive than originally planned because
there were major delays in the construction in Georgia and Turkey,'
Aliyev said. He added that in Turkey the delays were caused by the
failure to fulfill some tasks on time, especially the logistical one.
"Due to the fact that the Turkish section of the pipeline is
complicated, all material and equipment should have been ordered and
workforce figures calculated beforehand. But all this was done with
serious delays as the project did not receive the go-ahead on time
because of the BTC opponents who are trying to hamper its construction
even now," the head of SOCAR said.
He said the appreciation of the project, which "may make up 5-7 per
cent", is not taking place through the fault of its sponsors or
contractors.
"The BTC pipeline has very strong adversaries who are using all possible
and impossible tricks in an attempt to hamper its implementation. As a
result of this and not because someone hasn't worked well enough, we
have lost a lot of time which is causing the appreciation of the
project," he stressed.
Aliyev also said the construction of the pipeline is in its final stage
- 98 per cent of the entire work has been done. In Azerbaijan, the
construction work is almost over. Several crossings over railway lines
and the Kura River remain to be built and pumping and compressor
stations to undergo trials and be tested. In Georgia, a 3-km section of
the pipe remains to be welded. In Turkey, the work is progressing at a
good pace and, according to the Turkish side, is expected to finish in
March 2005.
However, Aliyev said that the work on pumping and compressor stations in
Turkey would not be fully completed by the time the pipeline
construction is over, therefore, a temporary scheme is being prepared
according to which the pumps and compressors will first be installed to
receive early oil, and the work will be continued later on. The SOCAR
president hopes that the first tanker carrying Azerbaijani oil will be
dispatched from the Ceyhan terminal in June 2005.
Aliyev also said that a meeting of the BTC Co. steering committee would
be held in London on 15-16 December, when shareholders will summarize
the results of 2004 and approve the programme and project budget for
2005.
The BTC project partners are: BP (30.1 per cent), SOCAR (25.00 per
cent), UNOCAL (8.90 per cent), Statoil (8.71 per cent), TPAO (6.53 per
cent), ENI (5.00 per cent), Itochu (3.40 per cent), ConocoPhillips (2.50
per cent), INPEX (2.50 per cent), Total (5.00 per cent) and Amerada Hess
(2.36 per cent).
2. CRACKED JOINTS FOUND IN BP'S GEORGIA PIPELINE
Source: The Guardian - United Kingdom; November 17, 2004
A vital $3bn (pounds 1.6bn) pipeline designed by BP to help meet
Britain's oil needs well into the next decade has been riddled with
corrosion, it emerged yesterday.
Documents submitted to a Trade and Industry select committee reveal that
1,260 joints in one section alone had been found to be defective,
according to a study by WorleyParsons.
The US consultancy was asked to investigate the Baku-Tbilisi-Ceyhan
(BTC) link by lenders following speculation at the beginning of this
year that BP and its partners had run into trouble.
The report - made public for the first time yesterday - showed that 26%
of pipeline joints in Georgia had problems with cracking due to
difficulties with the coatings used.
A further 300 joints on the Azerbaijan section of the pipe had similar
problems and WorleyParsons criticized the "inaction" by the BTC
management team, which had "allowed the problems to become greater than
necessary".
An even more damaging note to the committee came from another former
consultant to BP, Derek Mortimore, who described decisions taken with
regard to pipeline coating technology as "appalling".
He argued that the UK oil company issued an innovative specification for
protecting the 1,760-kilometer pipeline that was inappropriate and
underdeveloped.
"The best you can say is that their fundamental decision to use the
unproven system was a guess," Mr. Mortimore claims. The select committee
members published the documents as they quizzed senior staff from the
Export Credit Guarantee Department about the pipeline, which has
received pounds 81m of public money through the organization.
Martin O'Neill, the committee chairman, expressed "disappointment" at
the ECGD's lack of transparency over the BTC pipeline, which has also
attracted criticism from human rights and environ mental activists. The
arm of the Department of Trade and Industry had only provided some
information a day ago, months after it was originally requested.
John Weiss, deputy chief executive of the ECGD, insisted that it had
been hampered by having to consult so many other parties, some of which
had stressed the "sensitivity" of the information.
BP last night dismissed the criticism, saying that it had investigated
all the allegations and had put them all right.
3. GOVERNMENT FACES LEGAL ACTION OVER NEW BP PIPELINE
Source: The Independent - United Kingdom; November 17, 2004
Opponents of a controversial oil pipeline being built by BP through
central Asia warned yesterday that the Government would face legal
action if it caused an environmental disaster.
Protest groups accused the Export Credit Guarantee Department of failing
to make proper checks before agreeing to underwrite a pounds 60m loan to
the BTC project being built by a BP-led consortium. But the deputy head
of the ECGD issued a robust defense of the decision, saying it carried
out "due diligence" before agreeing to provide cover.
Nick Hildyard, from The Corner House, an environmental pressure group,
said the ECGD had never reviewed BP's decision to use an "experimental"
process to coat the pipe to prevent it from corrosion. It has since
emerged that the pipe has suffered from cracks although the damage has
now been repaired. He said: "If these things are not addressed then
there will be leaks, people will be harmed and the environment will be
harmed and there is a paper trail showing that BP was warned about this.
If there's a leak then those responsible should be dragged into court
and that includes people in ECGD."
But John Weiss, ECGD's deputy chief executive, told a committee of MPs
that the department had carried out due diligence of the project. He
said WorleyParsons, an engineer it commissioned to review the project,
concluded in October 2004 it was content with the way the pipeline was
being monitored.
David Allwood, the head of ECGD's business principles unit, told MPs the
department was aware this was the first time the coating had been used
to coat a plastic-covered pipe. But he added: "They have a monitoring
system so that if it got to stage where there was potential for a
rupture they will intervene." He also told the Trade and Industry Select
Committee the ECGD should have consulted businesses before putting in
place tough new anti-bribery controls.
4. NEW PROGRAMME LAUNCH -SAVE THE CHILDREN ASSISTS NGOS ALONG THE SCP
AND BTC PIPELINE ROUTES IN GEORGIA
PRESS RELEASE
Tbilisi, November 18, 2004
On November 18, 2004, Save the Children will hold an official launch
event for EIP's Small Grants Programme for NGO Capacity Building along
the SCP and BTC Pipeline Routes. The launch event will take place at
16:00 hours at the Courtyard by Marriott on 4 Freedom Squire in Tbilisi.
The two and half-year programme is launched under the Environmental
Investment Programme (EIP) initiated and funded by BP and its partners
in the Baku-Tbilisi-Ceyhan Pipeline Company (BTC) and the South Caucasus
Pipeline Company (SCP).
The programme will be implemented by Save the Children (SC) together
with its local partner organization, Noah's Ark Center for Recovery of
Endangered Species (NACRES). The goal of the programme is to develop the
capacities of local NGOs operating in the districts crossed by BTC and
SCP pipeline routes to engage citizens in environmental awareness,
public education and social development. This will be accomplished
through the provision of small grants to promote sound environmental
practices and enhance knowledge. A key priority for the programme is
developing local capacities through training to ensure sustainability.
The target regions for the programme are Kvemo Kartli and
Samtskhe-Javakheti, specifically the seven districts of Gardabani,
Marneuli, Tsalka, Tetri Tskaro, Akhaltsikhe, Borjomi and Adigeni.
The event will be attended by representatives from the Georgian
government, other diplomatic missions, international organizations, UN
agencies, Georgian NGOs, and the business community.
For further information please contact Save the Children:
Natia Deisadze
Programme Manager
Tel: (995 32) 996400; 995454
Fax: (995 32) 99843
E-mail: [email protected]
GvantsaAsatiani
InformationOfficer
Tel: (995 32) 996400; 995454
Fax:(995 32) 998943
E-mail:[email protected]
5. RUSTAVI SECONDARY SCHOOL IS ACTIVELY INVOLVED IN IMPLEMENTATION OF BP
PROJECTS
Source: The Messenger, November 17, 2004
Projects by BP and its partners in the Baku- Tbilisi- Ceyhan / South
Caucasus Pipeline (BTC/SCP) are continuing to support and assist the
communities along the pipeline route. In summer 2004 Mercy Corps
implemented a new initiative, Improved Schools Project, also funded by
BP and its partners in BTC / SCP. The program will be implemented in 42
schools of Rustavi, Marneuli, Tetri-Tskaro and Gardabani and will work
on school rehabilitation as well as social and professional development
of teachers, pupils and their parents.
Rustavi Secondary School #10 is one of the selected communities where
Mercy Corps and its partners have held an Action Planning Meeting where
teachers, parents and pupils together selected priorities and identified
problems they want to address during the lifetime of the program.
The school was established in 1990 as school of intensive study of
French. With support of the French Embassy in Georgia, the school has
enjoyed a successfully implemented Teachers Exchange Program; during
recent years several educators from France have conducted lesions and
workshops for teachers and pupils. In the exchange, teachers attended
advanced training courses in one of the Pari's lyceums.
But school staff members and pupils lack basic conditions for a normal
and protected educational process. On rainy days water leaks into the
classrooms and during the winter it is impossible to heat classrooms.
`This building needs major repairs,' explains school Director, Guram
Kobiashvili. `First we have to change the roof. Imagine, we aren't able
to conduct lessons during bad weather.'
Mr. Kobiashvili adds that school staff ad parents are actively involved
in the project implementation proves. `And I would like to express
gratitude to the American NGO Mercy Corps for the rehabilitation of our
school, initiated and funded by BP and its partners. We will start
repair works in a few days.'
He also has praise for the work process that includes locally led
quality control. `Working bridges are already formed and community
initiative group members are going to monitor the work process and the
quality of the work,' he says, adding that the school has included the
community's most needy in he project: `It is noteworthy that community
members independently developed project proposals and in accordance with
their decision we will involve venerable community members in the
project implemtaion.'
6. MINISTERS DISMISS CLAIMS THAT TELASI'S IMPORT AGREEMENT CORRUPT
Source: The Messenger, November 16, 2004
Imports of electricity from Armenia will not be stopped, as had
previously been suggested, while imports from Russia will begin in the
next few days, Minister of Energy Nika Gilauri said on Monday November
25, 2004.
On Friday November 12, 2004 TELASI returned the license it received just
two weeks ago from the National Energy Regulation Commission (GNERC)
after accusations against the company's import contracts
Director General of TELASI Dangiras Mikalajunas explained the company's
decision to return the license relates to a recent letter sent by the
Energy Ombudsman David Ebralidze to the General Prosecutor of Georgia.
Ebralidze together with the MP Gia Natsvlishvili blamed TELASI for
signing one-sided agreements on imports from Armenia and Russia which
were profitable for Armenia and Russia but not for the Georgian
government. The letter claimed that the price of one imported
kilowatt/hour had been increased by 0.15 U.S. cents.
On Friday Mikalajunas said the Georgian government must evaluate this
letter and then decide over the future of electricity imports from
Armenia.
As a result, on Monday Minister Gilauri met with Minister of Security
Vano Merabishvili, General Prosecutor Gia Adeishvili and Director
General of Telasi Dangiras Mikalajunas to discuss the situation over
TELASI and electricity imports.
After the meeting, Gilauri stated that the imports from Armenia would
continue, while Merabishvili stated that TELASI received a full
guarantee from the government at the meeting that "there would be no
problem with importing electricity into the country."
"There are forces in Georgia who do not want Tbilisi to have a 24-hour
electricity supply," Merabishvili said, adding however that law
enforcers "are currently studying the statements" made in
Ebralidze's letter.
Telasi's press officer told The Messenger on Monday the government
expressed its support to TELASI, saying, "There was no corrupt deal
behind the electricity imports from Armenia."
Telasi said that while it was true that the price of imports has
increased comparing with last year, this is "a worldwide matter."
The company, which distributes electricity to Tbilisi, claims however,
that there is no item in the agreement which prohibits TELASI from
raising the price of imported energy.
TELASI also confirmed that imports from Russia will begin in a few days,
leading Deputy Minister of Energy Aleko Khetaguri to state at a press
conference on Friday that Tbilisi will receive electricity without
limitations.
Last Wednesday, November 10, Prime Minister Zurab Zhvania threatened
minister Gilauri by saying that unless problems in the sector were
resolved in two weeks, the minister would face dismissal.
Minister Gilauri responded that the ministry has formulated a plan for
improved payment collection, as well as a schedule for electricity
distribution, whereby the regions will receive eight hours per day,
large cities 18 hours, and the capital 24 hours of electricity.
"Such schedules will be formulated monthly and will be published in
regional newspapers and also will be announced by television and on the
internet. In this way the population will be able to check the schedule
of their region or city," stated Gilauri.
7. ARMENIAN-IRANIAN PIPELINE PROJECT PUT BACK TO YEAR-END
Source: Interfax, Russia, November 16, 2004
Construction of the Armenian stretch of the Iran - Armenia gas pipeline
will not now begin until December this year, the Armenian Energy
Ministry told Interfax.
Work on the Armenian stretch of the pipeline was due to start late
October, but was delayed because preparations were not complete.
The ministry said dignitaries from Iran and Armenia would attend a
ceremony to mark the beginning of the project in December close to the
Armenian city of Meghri. It is expected that the first two kilometers of
the Meghri - Kajaran pipeline will be built. Iran's Sanir will lay the
pipeline.
An official at Gazprom said last week that the Russian gas giant was
considering a role in the construction of a gas pipeline from Iran to
Armenia. But the Armenian ministry said this was unlikely as the project
does not promise high returns.
Iran signed a deal to supply Armenia with 36 billion cubic meters (bcm)
of gas per year over 20 years with the possibility of extending this by
five years and gas supplies to 47 bcm in May this year.
Work on Iran's 100-km stretch began in June. The Iranian Export and
Development Bank set aside $30 million to finance the Armenian stretch.
It will cost a total of $210 million-$220 million to build the new
pipeline and renovate the existing Kajaran - Yerevan pipeline.
Iranian gas should start reaching Armenia by January 2007. All of the
gas will be used by power stations to generate electricity, some of
which will be exported to Iran and some of which will be consumed in
Armenia itself.
8. GEORGIA ADVOCATES ABOLISHMENT OF ROAD DUTY FOR ARMENIAN CARGO
TRANSPORTERS
Source: Arminfo, November 16, 2004
Georgia advocates abolishment of the road duty for Armenian cargo
transporters, says deputy economic development minister of Georgia Gena
Muradyan.
The road duty is the key problem for cars crossing the Armenian-Georgian
border. Muradyan says that the Georgian Government is liberalizing the
entire border crossing procedures. The road duty is $240 for one 20-ton
container. The chief of the automobile transport administration of
Georgia Alexander Chikvadze says that the Georgian Government has
drafted a new transport code envisaging lifting all road duties for
Armenia.
Manukyan says that in 1994 Armenia and Georgia agreed to mutually
abolish all road duties but point 4 was not clearly formulated and the
sides have to date been levying the duties from each other. The issue of
their abolishment was raised during Pres. Kocharyan's last year visit to
Georgia and was welcomed by the Georgian side.
9. ITALIAN COMMERCIAL OFFICE IN YEREVAN SET TO OPEN LATER THIS MONTH
Source: ArmenPress, November 16, 2004
Italy's ambassador to Armenia, Marco Clemente, told Armenpress the
Italian Commercial Office will be fully functional in a few week time,
possibly during the November 20-23 visit to Armenia of deputy foreign
minister Margherit Boniver.
The main function of the Office will be to provide information about the
Armenian economy and business opportunities to the Italian entrepreneurs
as well as to support those Armenian businessmen who want to expand
their activities in Italy in cooperation with and under the coordination
of the Italian Embassy in Yerevan, with the headquarter of the Italian
Trade Commission in Moscow.
"I am confident that with this extra tool the Italian Embassy will be
able to provide extra help to the business community in Armenia in its
strive to strengthen commercial bilateral ties between our two countries
and our two peoples," the ambassador said, adding the Trade Commission
is planning to organize in Italy, at the beginning of next year, a
"Country Presentation" on Armenia that will most certainly attract much
attention by the Italian businessmen on Armenian economic and trade
opportunities.
10. INGEOCOM CJSC TO START CONSTRUCTION OF NEW BUILDING FOR ARMENIAN
DEFENSE MINISTRY SOON
Source: ARKA, November 16, 2004
INGEOCOM CJSC will start construction of new building for Armenian
Defense Ministry soon, as the CEO of the company Mikhail Rudyak during
his meeting with the Armenian President, as Armenian president Press
Service reports. Also, in his words, INGEOCOM plans to participate in
construction within Yerevan.
He also added that the company wishes unfold fundamental activity in
Armenia and looks at the perspectives of the cooperation with optimism,
as `Armenia has big quality potential of professionals in area of
construction'.
In his turn Kocharian said that he is satisfied with readiness of the
Union INGEOCOM to start its activity in the country stressing that
Armenia has serious constructional potential in implementation of which
the country is ready to cooperate with experienced partner.
To remind as earlier stated by the Russian mass media one of the largest
investment companies CJSC Union INGEOCOM expressed readiness to invest
in Armenia around USD 150 mln. In the first turn it is planned to
reconstruct the central part of Yerevan and construction of an important
state object with the surface more than 60 thou. sq. m. for the Armenian
Government. During three years there will be constructed around 300
thou. sq. m. of surface of housing, multifunctional complexes, offices
and hotels. INGEOCIM-Yerevan was established for the implementation of
this project. As per calculations of the company Armenia will create
more than 2 thousand jobs.
11. ARMENIA'S MILLENNIUM CHALLENGE AID ELIGIBILITY RENEWED
Sources: http://www.mcc.gov; Armenia This Week 5-7, 9-20; Noyan Tapan
11-15
The U.S. Millennium Challenge Corporation (MCC) last week renewed
Armenia's eligibility to receive Fiscal Year (FY) 2005 funds under the
performance-based foreign assistance program. Armenia and Georgia remain
the only former Soviet countries eligible and their governments' reform
efforts are considered sufficiently advanced to qualify under MCC rules.
None of the $1 billion slated for FY 2004 have been disbursed since
Armenia and fourteen other countries were first selected last May.
Armenia's Finance Ministry submitted a draft of its proposal to the MCC
last month and is currently updating it with input from non-government
experts. MCC's Stephen Groff, who was in Yerevan this Monday, said the
Corporation urges all eligible countries to take their time and prepare
quality proposals.
12. IRAN SAYS NUCLEAR SUSPENSION MAY LAST ONLY A FEW MONTHS
Source: The Messenger, November 18, 2004
A senior Iranian official said on Wednesday November 17, 2004 that
Teheran was only likely to suspend sensitive nuclear activities
surrounding the enrichment of uranium for a few months. `We will give
the nuclear experts of both sides three months. If the work groups reach
an agreement, suspension will not make any sense anymore, diplomat and
nuclear negotiator Hussein Moussavian told state television. `Within
three to four months at the most, we should reach a stage where we have
an overall conclusion. If they come to no conclusion or say the only
visible guarantee would be to halt enrichment altogether, Iran will not
accept this,' he added.
Ina accord with Britain, France and Germany, the Islamic republic has
agreed to suspend enrichment activities during negotiations on a
longer-term solution to the nuclear stand off.
--
*******************************************
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
Table of Contents:
1. Azeri-Turkish Pipeline Costs to Eexceed Project Budget, Oil Boss Says
2. Cracked Joints Found in BP's Georgia Pipeline
3. Government Faces Legal Action Over New BP Pipeline
4. New Programme Launch -Save the Children Assists NGOs Along the SCP
and BTC Pipeline Routes in Georgia
5. Rustavi Secondary School is Actively Involved in Implementation of BP
Projects
6. Ministers Dismiss Claims that Telasi's Import Agreement Corrupt
7. Armenian-Iranian Pipeline Project Put Back to Year-end
8. Georgia Advocates Abolishment of Road Duty for Armenian Cargo
Transporters
9. Italian Commercial Office in Yerevan Set to Open Later This Month
10. Ingeocom CJSC to Start Construction of New Building for Armenian
Defense Ministry Soon
11. Armenia's Millennium Challenge Aid Eligibility Renewed
12. Iran Says Nuclear Suspension May Last only a few months
1. AZERI-TURKISH PIPELINE COSTS TO EXCEED PROJECT BUDGET, OIL BOSS SAYS
Source: BBC Monitoring Service - United Kingdom; November 15, 2004
Baku, 15 November: The construction costs of the Baku-Tbilisi-Ceyhan
(BTC) oil pipeline will exceed the project budget, Trend quoted the
SOCAR [State Oil Company of the Azerbaijani Republic] president, Natiq
Aliyev, as telling journalists.
He said more than 3bn dollars had been spent on the project so far. It
was earlier believed that the BTC construction would require 2.95bn
dollars (the total value of the project is 3.6bn dollars, including in
accrued credit interest and expenses on filling the pipeline).
"The project will be more expensive than originally planned because
there were major delays in the construction in Georgia and Turkey,'
Aliyev said. He added that in Turkey the delays were caused by the
failure to fulfill some tasks on time, especially the logistical one.
"Due to the fact that the Turkish section of the pipeline is
complicated, all material and equipment should have been ordered and
workforce figures calculated beforehand. But all this was done with
serious delays as the project did not receive the go-ahead on time
because of the BTC opponents who are trying to hamper its construction
even now," the head of SOCAR said.
He said the appreciation of the project, which "may make up 5-7 per
cent", is not taking place through the fault of its sponsors or
contractors.
"The BTC pipeline has very strong adversaries who are using all possible
and impossible tricks in an attempt to hamper its implementation. As a
result of this and not because someone hasn't worked well enough, we
have lost a lot of time which is causing the appreciation of the
project," he stressed.
Aliyev also said the construction of the pipeline is in its final stage
- 98 per cent of the entire work has been done. In Azerbaijan, the
construction work is almost over. Several crossings over railway lines
and the Kura River remain to be built and pumping and compressor
stations to undergo trials and be tested. In Georgia, a 3-km section of
the pipe remains to be welded. In Turkey, the work is progressing at a
good pace and, according to the Turkish side, is expected to finish in
March 2005.
However, Aliyev said that the work on pumping and compressor stations in
Turkey would not be fully completed by the time the pipeline
construction is over, therefore, a temporary scheme is being prepared
according to which the pumps and compressors will first be installed to
receive early oil, and the work will be continued later on. The SOCAR
president hopes that the first tanker carrying Azerbaijani oil will be
dispatched from the Ceyhan terminal in June 2005.
Aliyev also said that a meeting of the BTC Co. steering committee would
be held in London on 15-16 December, when shareholders will summarize
the results of 2004 and approve the programme and project budget for
2005.
The BTC project partners are: BP (30.1 per cent), SOCAR (25.00 per
cent), UNOCAL (8.90 per cent), Statoil (8.71 per cent), TPAO (6.53 per
cent), ENI (5.00 per cent), Itochu (3.40 per cent), ConocoPhillips (2.50
per cent), INPEX (2.50 per cent), Total (5.00 per cent) and Amerada Hess
(2.36 per cent).
2. CRACKED JOINTS FOUND IN BP'S GEORGIA PIPELINE
Source: The Guardian - United Kingdom; November 17, 2004
A vital $3bn (pounds 1.6bn) pipeline designed by BP to help meet
Britain's oil needs well into the next decade has been riddled with
corrosion, it emerged yesterday.
Documents submitted to a Trade and Industry select committee reveal that
1,260 joints in one section alone had been found to be defective,
according to a study by WorleyParsons.
The US consultancy was asked to investigate the Baku-Tbilisi-Ceyhan
(BTC) link by lenders following speculation at the beginning of this
year that BP and its partners had run into trouble.
The report - made public for the first time yesterday - showed that 26%
of pipeline joints in Georgia had problems with cracking due to
difficulties with the coatings used.
A further 300 joints on the Azerbaijan section of the pipe had similar
problems and WorleyParsons criticized the "inaction" by the BTC
management team, which had "allowed the problems to become greater than
necessary".
An even more damaging note to the committee came from another former
consultant to BP, Derek Mortimore, who described decisions taken with
regard to pipeline coating technology as "appalling".
He argued that the UK oil company issued an innovative specification for
protecting the 1,760-kilometer pipeline that was inappropriate and
underdeveloped.
"The best you can say is that their fundamental decision to use the
unproven system was a guess," Mr. Mortimore claims. The select committee
members published the documents as they quizzed senior staff from the
Export Credit Guarantee Department about the pipeline, which has
received pounds 81m of public money through the organization.
Martin O'Neill, the committee chairman, expressed "disappointment" at
the ECGD's lack of transparency over the BTC pipeline, which has also
attracted criticism from human rights and environ mental activists. The
arm of the Department of Trade and Industry had only provided some
information a day ago, months after it was originally requested.
John Weiss, deputy chief executive of the ECGD, insisted that it had
been hampered by having to consult so many other parties, some of which
had stressed the "sensitivity" of the information.
BP last night dismissed the criticism, saying that it had investigated
all the allegations and had put them all right.
3. GOVERNMENT FACES LEGAL ACTION OVER NEW BP PIPELINE
Source: The Independent - United Kingdom; November 17, 2004
Opponents of a controversial oil pipeline being built by BP through
central Asia warned yesterday that the Government would face legal
action if it caused an environmental disaster.
Protest groups accused the Export Credit Guarantee Department of failing
to make proper checks before agreeing to underwrite a pounds 60m loan to
the BTC project being built by a BP-led consortium. But the deputy head
of the ECGD issued a robust defense of the decision, saying it carried
out "due diligence" before agreeing to provide cover.
Nick Hildyard, from The Corner House, an environmental pressure group,
said the ECGD had never reviewed BP's decision to use an "experimental"
process to coat the pipe to prevent it from corrosion. It has since
emerged that the pipe has suffered from cracks although the damage has
now been repaired. He said: "If these things are not addressed then
there will be leaks, people will be harmed and the environment will be
harmed and there is a paper trail showing that BP was warned about this.
If there's a leak then those responsible should be dragged into court
and that includes people in ECGD."
But John Weiss, ECGD's deputy chief executive, told a committee of MPs
that the department had carried out due diligence of the project. He
said WorleyParsons, an engineer it commissioned to review the project,
concluded in October 2004 it was content with the way the pipeline was
being monitored.
David Allwood, the head of ECGD's business principles unit, told MPs the
department was aware this was the first time the coating had been used
to coat a plastic-covered pipe. But he added: "They have a monitoring
system so that if it got to stage where there was potential for a
rupture they will intervene." He also told the Trade and Industry Select
Committee the ECGD should have consulted businesses before putting in
place tough new anti-bribery controls.
4. NEW PROGRAMME LAUNCH -SAVE THE CHILDREN ASSISTS NGOS ALONG THE SCP
AND BTC PIPELINE ROUTES IN GEORGIA
PRESS RELEASE
Tbilisi, November 18, 2004
On November 18, 2004, Save the Children will hold an official launch
event for EIP's Small Grants Programme for NGO Capacity Building along
the SCP and BTC Pipeline Routes. The launch event will take place at
16:00 hours at the Courtyard by Marriott on 4 Freedom Squire in Tbilisi.
The two and half-year programme is launched under the Environmental
Investment Programme (EIP) initiated and funded by BP and its partners
in the Baku-Tbilisi-Ceyhan Pipeline Company (BTC) and the South Caucasus
Pipeline Company (SCP).
The programme will be implemented by Save the Children (SC) together
with its local partner organization, Noah's Ark Center for Recovery of
Endangered Species (NACRES). The goal of the programme is to develop the
capacities of local NGOs operating in the districts crossed by BTC and
SCP pipeline routes to engage citizens in environmental awareness,
public education and social development. This will be accomplished
through the provision of small grants to promote sound environmental
practices and enhance knowledge. A key priority for the programme is
developing local capacities through training to ensure sustainability.
The target regions for the programme are Kvemo Kartli and
Samtskhe-Javakheti, specifically the seven districts of Gardabani,
Marneuli, Tsalka, Tetri Tskaro, Akhaltsikhe, Borjomi and Adigeni.
The event will be attended by representatives from the Georgian
government, other diplomatic missions, international organizations, UN
agencies, Georgian NGOs, and the business community.
For further information please contact Save the Children:
Natia Deisadze
Programme Manager
Tel: (995 32) 996400; 995454
Fax: (995 32) 99843
E-mail: [email protected]
GvantsaAsatiani
InformationOfficer
Tel: (995 32) 996400; 995454
Fax:(995 32) 998943
E-mail:[email protected]
5. RUSTAVI SECONDARY SCHOOL IS ACTIVELY INVOLVED IN IMPLEMENTATION OF BP
PROJECTS
Source: The Messenger, November 17, 2004
Projects by BP and its partners in the Baku- Tbilisi- Ceyhan / South
Caucasus Pipeline (BTC/SCP) are continuing to support and assist the
communities along the pipeline route. In summer 2004 Mercy Corps
implemented a new initiative, Improved Schools Project, also funded by
BP and its partners in BTC / SCP. The program will be implemented in 42
schools of Rustavi, Marneuli, Tetri-Tskaro and Gardabani and will work
on school rehabilitation as well as social and professional development
of teachers, pupils and their parents.
Rustavi Secondary School #10 is one of the selected communities where
Mercy Corps and its partners have held an Action Planning Meeting where
teachers, parents and pupils together selected priorities and identified
problems they want to address during the lifetime of the program.
The school was established in 1990 as school of intensive study of
French. With support of the French Embassy in Georgia, the school has
enjoyed a successfully implemented Teachers Exchange Program; during
recent years several educators from France have conducted lesions and
workshops for teachers and pupils. In the exchange, teachers attended
advanced training courses in one of the Pari's lyceums.
But school staff members and pupils lack basic conditions for a normal
and protected educational process. On rainy days water leaks into the
classrooms and during the winter it is impossible to heat classrooms.
`This building needs major repairs,' explains school Director, Guram
Kobiashvili. `First we have to change the roof. Imagine, we aren't able
to conduct lessons during bad weather.'
Mr. Kobiashvili adds that school staff ad parents are actively involved
in the project implementation proves. `And I would like to express
gratitude to the American NGO Mercy Corps for the rehabilitation of our
school, initiated and funded by BP and its partners. We will start
repair works in a few days.'
He also has praise for the work process that includes locally led
quality control. `Working bridges are already formed and community
initiative group members are going to monitor the work process and the
quality of the work,' he says, adding that the school has included the
community's most needy in he project: `It is noteworthy that community
members independently developed project proposals and in accordance with
their decision we will involve venerable community members in the
project implemtaion.'
6. MINISTERS DISMISS CLAIMS THAT TELASI'S IMPORT AGREEMENT CORRUPT
Source: The Messenger, November 16, 2004
Imports of electricity from Armenia will not be stopped, as had
previously been suggested, while imports from Russia will begin in the
next few days, Minister of Energy Nika Gilauri said on Monday November
25, 2004.
On Friday November 12, 2004 TELASI returned the license it received just
two weeks ago from the National Energy Regulation Commission (GNERC)
after accusations against the company's import contracts
Director General of TELASI Dangiras Mikalajunas explained the company's
decision to return the license relates to a recent letter sent by the
Energy Ombudsman David Ebralidze to the General Prosecutor of Georgia.
Ebralidze together with the MP Gia Natsvlishvili blamed TELASI for
signing one-sided agreements on imports from Armenia and Russia which
were profitable for Armenia and Russia but not for the Georgian
government. The letter claimed that the price of one imported
kilowatt/hour had been increased by 0.15 U.S. cents.
On Friday Mikalajunas said the Georgian government must evaluate this
letter and then decide over the future of electricity imports from
Armenia.
As a result, on Monday Minister Gilauri met with Minister of Security
Vano Merabishvili, General Prosecutor Gia Adeishvili and Director
General of Telasi Dangiras Mikalajunas to discuss the situation over
TELASI and electricity imports.
After the meeting, Gilauri stated that the imports from Armenia would
continue, while Merabishvili stated that TELASI received a full
guarantee from the government at the meeting that "there would be no
problem with importing electricity into the country."
"There are forces in Georgia who do not want Tbilisi to have a 24-hour
electricity supply," Merabishvili said, adding however that law
enforcers "are currently studying the statements" made in
Ebralidze's letter.
Telasi's press officer told The Messenger on Monday the government
expressed its support to TELASI, saying, "There was no corrupt deal
behind the electricity imports from Armenia."
Telasi said that while it was true that the price of imports has
increased comparing with last year, this is "a worldwide matter."
The company, which distributes electricity to Tbilisi, claims however,
that there is no item in the agreement which prohibits TELASI from
raising the price of imported energy.
TELASI also confirmed that imports from Russia will begin in a few days,
leading Deputy Minister of Energy Aleko Khetaguri to state at a press
conference on Friday that Tbilisi will receive electricity without
limitations.
Last Wednesday, November 10, Prime Minister Zurab Zhvania threatened
minister Gilauri by saying that unless problems in the sector were
resolved in two weeks, the minister would face dismissal.
Minister Gilauri responded that the ministry has formulated a plan for
improved payment collection, as well as a schedule for electricity
distribution, whereby the regions will receive eight hours per day,
large cities 18 hours, and the capital 24 hours of electricity.
"Such schedules will be formulated monthly and will be published in
regional newspapers and also will be announced by television and on the
internet. In this way the population will be able to check the schedule
of their region or city," stated Gilauri.
7. ARMENIAN-IRANIAN PIPELINE PROJECT PUT BACK TO YEAR-END
Source: Interfax, Russia, November 16, 2004
Construction of the Armenian stretch of the Iran - Armenia gas pipeline
will not now begin until December this year, the Armenian Energy
Ministry told Interfax.
Work on the Armenian stretch of the pipeline was due to start late
October, but was delayed because preparations were not complete.
The ministry said dignitaries from Iran and Armenia would attend a
ceremony to mark the beginning of the project in December close to the
Armenian city of Meghri. It is expected that the first two kilometers of
the Meghri - Kajaran pipeline will be built. Iran's Sanir will lay the
pipeline.
An official at Gazprom said last week that the Russian gas giant was
considering a role in the construction of a gas pipeline from Iran to
Armenia. But the Armenian ministry said this was unlikely as the project
does not promise high returns.
Iran signed a deal to supply Armenia with 36 billion cubic meters (bcm)
of gas per year over 20 years with the possibility of extending this by
five years and gas supplies to 47 bcm in May this year.
Work on Iran's 100-km stretch began in June. The Iranian Export and
Development Bank set aside $30 million to finance the Armenian stretch.
It will cost a total of $210 million-$220 million to build the new
pipeline and renovate the existing Kajaran - Yerevan pipeline.
Iranian gas should start reaching Armenia by January 2007. All of the
gas will be used by power stations to generate electricity, some of
which will be exported to Iran and some of which will be consumed in
Armenia itself.
8. GEORGIA ADVOCATES ABOLISHMENT OF ROAD DUTY FOR ARMENIAN CARGO
TRANSPORTERS
Source: Arminfo, November 16, 2004
Georgia advocates abolishment of the road duty for Armenian cargo
transporters, says deputy economic development minister of Georgia Gena
Muradyan.
The road duty is the key problem for cars crossing the Armenian-Georgian
border. Muradyan says that the Georgian Government is liberalizing the
entire border crossing procedures. The road duty is $240 for one 20-ton
container. The chief of the automobile transport administration of
Georgia Alexander Chikvadze says that the Georgian Government has
drafted a new transport code envisaging lifting all road duties for
Armenia.
Manukyan says that in 1994 Armenia and Georgia agreed to mutually
abolish all road duties but point 4 was not clearly formulated and the
sides have to date been levying the duties from each other. The issue of
their abolishment was raised during Pres. Kocharyan's last year visit to
Georgia and was welcomed by the Georgian side.
9. ITALIAN COMMERCIAL OFFICE IN YEREVAN SET TO OPEN LATER THIS MONTH
Source: ArmenPress, November 16, 2004
Italy's ambassador to Armenia, Marco Clemente, told Armenpress the
Italian Commercial Office will be fully functional in a few week time,
possibly during the November 20-23 visit to Armenia of deputy foreign
minister Margherit Boniver.
The main function of the Office will be to provide information about the
Armenian economy and business opportunities to the Italian entrepreneurs
as well as to support those Armenian businessmen who want to expand
their activities in Italy in cooperation with and under the coordination
of the Italian Embassy in Yerevan, with the headquarter of the Italian
Trade Commission in Moscow.
"I am confident that with this extra tool the Italian Embassy will be
able to provide extra help to the business community in Armenia in its
strive to strengthen commercial bilateral ties between our two countries
and our two peoples," the ambassador said, adding the Trade Commission
is planning to organize in Italy, at the beginning of next year, a
"Country Presentation" on Armenia that will most certainly attract much
attention by the Italian businessmen on Armenian economic and trade
opportunities.
10. INGEOCOM CJSC TO START CONSTRUCTION OF NEW BUILDING FOR ARMENIAN
DEFENSE MINISTRY SOON
Source: ARKA, November 16, 2004
INGEOCOM CJSC will start construction of new building for Armenian
Defense Ministry soon, as the CEO of the company Mikhail Rudyak during
his meeting with the Armenian President, as Armenian president Press
Service reports. Also, in his words, INGEOCOM plans to participate in
construction within Yerevan.
He also added that the company wishes unfold fundamental activity in
Armenia and looks at the perspectives of the cooperation with optimism,
as `Armenia has big quality potential of professionals in area of
construction'.
In his turn Kocharian said that he is satisfied with readiness of the
Union INGEOCOM to start its activity in the country stressing that
Armenia has serious constructional potential in implementation of which
the country is ready to cooperate with experienced partner.
To remind as earlier stated by the Russian mass media one of the largest
investment companies CJSC Union INGEOCOM expressed readiness to invest
in Armenia around USD 150 mln. In the first turn it is planned to
reconstruct the central part of Yerevan and construction of an important
state object with the surface more than 60 thou. sq. m. for the Armenian
Government. During three years there will be constructed around 300
thou. sq. m. of surface of housing, multifunctional complexes, offices
and hotels. INGEOCIM-Yerevan was established for the implementation of
this project. As per calculations of the company Armenia will create
more than 2 thousand jobs.
11. ARMENIA'S MILLENNIUM CHALLENGE AID ELIGIBILITY RENEWED
Sources: http://www.mcc.gov; Armenia This Week 5-7, 9-20; Noyan Tapan
11-15
The U.S. Millennium Challenge Corporation (MCC) last week renewed
Armenia's eligibility to receive Fiscal Year (FY) 2005 funds under the
performance-based foreign assistance program. Armenia and Georgia remain
the only former Soviet countries eligible and their governments' reform
efforts are considered sufficiently advanced to qualify under MCC rules.
None of the $1 billion slated for FY 2004 have been disbursed since
Armenia and fourteen other countries were first selected last May.
Armenia's Finance Ministry submitted a draft of its proposal to the MCC
last month and is currently updating it with input from non-government
experts. MCC's Stephen Groff, who was in Yerevan this Monday, said the
Corporation urges all eligible countries to take their time and prepare
quality proposals.
12. IRAN SAYS NUCLEAR SUSPENSION MAY LAST ONLY A FEW MONTHS
Source: The Messenger, November 18, 2004
A senior Iranian official said on Wednesday November 17, 2004 that
Teheran was only likely to suspend sensitive nuclear activities
surrounding the enrichment of uranium for a few months. `We will give
the nuclear experts of both sides three months. If the work groups reach
an agreement, suspension will not make any sense anymore, diplomat and
nuclear negotiator Hussein Moussavian told state television. `Within
three to four months at the most, we should reach a stage where we have
an overall conclusion. If they come to no conclusion or say the only
visible guarantee would be to halt enrichment altogether, Iran will not
accept this,' he added.
Ina accord with Britain, France and Germany, the Islamic republic has
agreed to suspend enrichment activities during negotiations on a
longer-term solution to the nuclear stand off.
--
*******************************************
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