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  • CENN: - February 21, 2005 Daily Digest

    CENN - FEBRUARY 21, 2005 Daily Digest Table of Contents:

    1. Announcement -- The Caspian Development Advisory Panel

    2. BTC Hoped to Alleviate Dependence on Arabia, Russia

    3. Georgia: Black Gold, Hard Times?

    4. Japan's Shimizu To Launch Warming Gas Emission Rights Business
    in Armenia

    5. annual Awards for Reporting on the Environment

    6. Annual Awards for Reporting on the Environment

    7. SoS, Help, We are Being Assassinated

    8. EIA Reports







    1. Announcement -- The Caspian Development Advisory Panel



    The Caspian Development Advisory Panel (CDAP) invites you to attend a
    dial-in briefing on Wednesday, March 23 concerning its 2004 Report to BP
    on the BTC pipeline and related BP-led investments in the Caspian
    region. The Panel's 2004 Report and BP's Response were both released
    earlier this week and are available on CDAP's website, together with
    copies of earlier CDAP reports and communications (www.caspsea.com).
    The dial-in briefing will begin at 9:30 a.m. (Washington/Eastern
    Standard Time); 14:30 (London); 17:30 (Tbilisi); 18:30 (Baku) on March
    23.



    As you may be aware, BP established CDAP at the beginning of 2003 as an
    independent external panel focusing on the social, environmental and
    economic impacts of the BTC pipeline project as well as BP's related
    activities in Azerbaijan, Georgia and Turkey. The Panel visited all
    three BTC countries in late October 2004, and its latest report to Lord
    Browne, chief executive officer of BP, summarizes its findings and
    recommendations. The Panel has benefited greatly from its extensive
    interactions with interested NGOs and representatives of the SRI
    community, and the Panel looks forward to a substantive discussion on
    March 23.



    If you are interested in participating in the March 23
    briefing/discussion, please respond to this email and dial-in
    instructions will be circulated. Interested parties are also invited to
    attend the briefing in person at the Washington, D.C. offices of the
    CDAP Secretariat, 1201 Pennsylvania Avenue, NW (11th Floor). Please also
    RSVP if you plan to attend in person.



    Please feel free to pass on this invitation to other groups or parties
    with an interest in BP's Caspian investments.



    Thank you.



    Caspian Development Advisory Panel Secretariat

    c/o Covington & Burling

    1201 Pennsylvania Avenue, NW

    Washington, DC 20004

    [email protected]

    www.caspsea.com





    2. BTC Hoped to Alleviate Dependence on Arabia, Russia



    Source: The Messenger, February 18, 2005



    One of the greatest hopes had been the former Soviet Union that now
    produces more oil than Saudi Arabia, and especially it's Caspian Basin,
    whose fields are located in Azerbaijan, Kazakhstan and Turkmenistan. The
    pipeline through Turkey starts in Baku and carries oil from Azeri
    fields.



    When the pipeline was being developed in 2001, "there was a lot of
    excitement that non Middle Eastern oil, especially from the Soviet
    Union, would be an alternative source of oil," said Bulent Aliriza, an
    analysts with the Washington based Center for Strategic and
    International Studies. "The hype at the time was that the oil of the
    Caspian would rival that of the Middle East."



    Oil Companies looked for a way of bringing the oil to Western markets
    and US officials insisted that for political reasons a pipeline should
    be built through Turkey, by passing the Middle East and Russia.



    But many Caspian estimates proved to be unrealistic, at least in the
    short term. Experts now say the Caspian should in coming years pump some
    four million to five million barrels per day, on par with Iran.





    3. GEORGIA: BLACK GOLD, HARD TIMES?



    Source: Eurasianet, February 18, 2005



    The Baku-Tbilisi-Ceyhan pipeline could prove a vital source of revenue
    for cash-strapped Georgia, pumping an estimated $50 million per year
    into government coffers. Yet as construction on Georgia's portion of the
    1,760-kilometer-long pipeline winds down, residents affected by
    construction are wondering whether the benefits of the project will
    outweigh the costs to them.



    "Look, we're not against this pipeline. The only thing we would like to
    know is the status of our compensation money," said Zura, one of about a
    dozen protestors taking part in a November 2004 picket at one of the
    pipeline's construction sites near the village of Agtakla in
    southwestern Georgia.



    With a completion date slotted for the second half of 2005, the litany
    of complaints shows no sign of decreasing. Orchards have been damaged
    and grazing meadows for cattle and sheep blocked by construction work,
    Zura said. "The sums we were allotted by the local government and
    British Petroleum [a leading member of the pipeline consortium] are a
    joke, really," he said. Compensation for landowners ranges from $1,500
    to $5,000 - a hefty sum in a country where annual per capita income
    hovers around $2,300. At the same time, many compensation recipients
    remain frustrated.



    Much of that frustration comes down to misguided expectations, said
    Manana Kochladze, who leads the Tbilisi-based non-governmental
    organization Green Alternative Georgia. With some 60 percent of the
    population grappling with poverty, jobs in Georgia, whether for casual
    laborers or university graduates, can be hard to come by. When local
    authorities initially announced plans for the Baku-Tbilisi-Ceyhan (BTC)
    pipeline, Kochladze said, "they made a big deal about employment, and
    soon you had these rumors about up to 100,000 jobs that were going to be
    created. Britsh Petroleum is not fully to blame for that."



    The rumors are in keeping with the project's economic weight. Only 245
    of the pipeline's total 1,760 kilometers will pass through Georgia, but
    related construction still accounted for most of the country's 8.4
    percent economic growth rate in 2004, according to the Georgian Economic
    Trends, a quarterly report issued by the Tbilisi-based Georgian-European
    Policy and Legal Advice Centre. Once the pipeline is complete, the
    Georgian government will receive an estimated $50 million per year in
    transit fees, about one percent of its gross national income for 2003.



    Recently, the project, long dogged by controversy over its environmental
    impact, cost and technical shortcomings, has made efforts to show that
    it is giving more than transit fees back to Georgia's economy. [For
    background see the Eurasia Insight archive]. In late 2004, the BTC
    consortium signed two protocols with the Georgian government that
    envisage grant programs totaling more than $46 million to fund social
    and economic projects in the pipeline area. British Petroleum has also
    announced that it will invest $10 million in Georgia in a range of
    projects, including education, healthcare, cultural heritage, energy
    sector revitalization and the promotion of business and civil society
    links between Georgia and the European Union. On February 1, the
    Georgian government received the first $9 million of the BTC grant.



    But in the Akhaltsikhe-Vale sector, the last Georgian portion of the
    pipeline before it crosses into Turkey, little benefit is expected from
    the BTC project once construction ends. In this impoverished, relatively
    remote border area the pipeline has become a magnet for job seekers, who
    otherwise depend on small-scale agriculture, animal husbandry,
    remittances from migrant workers and limited border trade for their
    cash. "Well, of course I'm glad to have this job. There's not an
    overload of alternatives around here," said 23-year-old construction
    worker Sergei, one of an estimated 250 locally hired temporary employees
    on the project. "Our part of the job will soon be done, however. I have
    no idea yet what will come for us after that."



    An employee of one international organization who asked not to be named
    agreed that the pipeline "has not brought much sustainable employment"
    to the region. The income derived from renting apartments and houses to
    non-Georgian pipeline construction staff evaporated when the project
    decided to relocate their staff to a trailer camp on the edge of town,
    commented one Akhaltsikhe-based businessman who gave his name as Samuel.
    At the same time, he said, the fact that fewer jobs were created than
    expected - locals cite an initial figure of 1,000 - have caused many
    residents to feel shortchanged.



    The presence of about 300 foreign workers, mainly of South Asian origin,
    in the Akhalkitskhe-Vale sector provide further cause for
    dissatisfaction. Residents claim that the imported laborers performs
    tasks that Georgians could do just as well. The BTC project's Public
    Affairs Office in Tbilisi did not respond to requests for comment about
    hiring practices in Georgia, but, according to British Petroleum, a
    total of 5,308 people worked on the pipeline in Georgia as of mid-2004.
    About one-third of these workers were locally recruited, mainly as
    manual workers, welders, machine operators, drivers, night watchmen and
    cleaners. Once construction is completed, maintenance and operation of
    the pipeline and related installations will require only 200 local
    staff.



    Potentially positive changes, however, have resulted from the project,
    the international organization employee added. When the
    Baku-Tbilisi-Ezurum natural gas pipeline comes online in 2006, local
    residents hope to benefit from cheap natural gas for heating - an
    environmentally friendly alternative to the firewood currently used.
    British Petroleum has also repaired bridges and roads, and the amounts
    landowners have received as compensation for property loss could be put
    to good use as investment in local agriculture, observers say.



    Samuel, the businessman, agreed. "[A] couple of hundred people hired is
    not that bad, really. If they manage to save some money and invest it
    well that will be good for the area. However, there's no guarantee that
    that is going to happen on a large scale. "



    "I'm indeed worried about what's going to happen once we're gone," said
    one foreign, Akhaltsikhe-based British Petroleum engineer who asked to
    remain anonymous. "Once the pipeline is ready and operational, the
    number of sustainable jobs will remain even more limited than they are
    now. I can imagine that it will lead to more frustration."



    Editor's Note: Bruno De Cordier is a research assistant at the
    University of Ghent's Conflict Research Group in Ghent, Belgium.





    4. JAPAN'S SHIMIZU TO LAUNCH WARMING GAS EMISSION RIGHTS
    BUSINESS IN ARMENIA

    Source: Asia Pulse, February 16, 2005 Shimizu Corp. (TSE:1803) intends
    to team up with Mitsui & Co. (TSE:8031) and Hokkaido Electric Power Co.
    (TSE:9509) to start greenhouse gas emission rights business in Armenia.
    The major construction company is hoping the joint operation will be
    approved as a clean-development-mechanism (CDM) business, which allows
    companies to gain emission rights in exchange for cooperating in efforts
    to reduce emissions in developing countries. CDM is featured in the
    Kyoto Protocol, which takes effect Wednesday. If the project is approved
    as a CDM business, it will be the first such operation in Armenia. The
    company expects to gain approval by the middle of this year. Under the
    plan, Shimizu will build a power generation plant to produce electricity
    from methane gas piped in from a waste material disposal site. The firm
    intends to spend about 800 million yen on the project. Shimizu expects
    the facility to eliminate about 135,000 tons of carbon dioxide a year,
    which will enable the company to acquire emission rights.




    5. PRESENTATION OF TAVUSH AND GEGHARKUNIK MARZES DEVELOPMENT PROGRAMS
    TO BE HELD IN YEREVAN ON FEBRUARY 21

    Source: ARKA, February 18, 2005 Presentation of Tavush and Gegharkunik
    Marzes development programs will be held in Yerevan on February 21.
    According to the Public Relations and Press Department of RA Government,
    the main objective of the programs is the assistance to administrations
    of the regions and implementation of RA Government strategic poverty
    reduction program. This event will be a final opportunity to discuss the
    Regional Development Plans before they are submitted to the Cabinet for
    approval. This should take place next month. The meeting will mark the
    completion of the first phase of the Armenia Regional Development
    Programme, funded by the Department for International Development (DFID)
    and implemented by the British consultants Oxford Policy Management.
    Hovik Abrahamyan, the Minister for Territorial Administration, and
    Thorda Abbott-Watt, the British Ambassador, as well as RA NA Deputies,
    representatives of RA President's staff and central and regional
    government agencies, the donor community, embassies, NGOs, contractors
    and other potential development partners will take part. DFID provided
    the funding to draw up the Regional Development Plans and has also set
    aside ?2 million for their implementation in Tavush and Gegharkunik
    regions of Armenia (?1 million for each). The main goal of the program
    is to render assistance to the administrations of the regions,
    development and implementation of the strategic program of the RA
    government on poverty reduction. The program will last for 54 months, 18
    of which will be spent on the development of the program. DFID has been
    operating in Armenia since 1996. The main goal of DFID is to contribute
    to the government of the republic in the issue of poverty reduction.

    6. annual Awards for Reporting on the Environment



    The US based Society of Environmental Journalists (SEJ) is now accepting
    submissions for its annual Awards for Reporting on the Environment. The
    awards recognize the best environmental journalism in newspapers,
    magazines, newsletters, television, radio and online. SEJ accepts
    entries from anywhere in the world, as long as they include a complete
    and accurate English translation.



    The entry deadline is April 1. Each entry should be a story
    predominantly on an environmental subject. The story must have been
    published or broadcast between March 1, 2004, and February 28, 2005.



    SEJ will hand out US$1,000 awards in nine categories. The organizers
    emphasize that interested participants should choose the submission
    category carefully, as only one may be selected per entry.



    Entry form and details: http://www.sej.org/contest/index.htm.





    7. SoS, Help, We are Being Assassinated



    Dear CENN Readers,



    Norway has a new form to tourism; this is assassinate babies seals to
    blow. Canada kills them too.



    Is this a sport?



    Please see the attached file.





    8. EIA Reports



    Source: "Sakartvelos Respublica" ("Republic of Georgia"), February 19,
    2005



    In accordance with the Georgian legislation, "Martoili" Ltd. submitted
    EIA report to the Ministry of Environment of Georgia to obtain an
    environmental permit for the activity of first category -Oil and Oil
    Products Processing Mini Factory in Gardabani Region, Village Martkopi.



    In accordance with the Georgian legislation, "Kapira" Ltd. submitted EIA
    report to the Ministry of Environment of Georgia to obtain an
    environmental permit for the activity of second category -Development
    and Management of the Hunting Farm "Kapiar" in Ambrolauri Region.



    In accordance with the Georgian legislation, "Mamuli MPT" Ltd. submitted
    EIA report to the Ministry of Environment of Georgia to obtain an
    environmental permit for the activity of first category -Oil Processing
    Mini Enterprise of Periodical Activity in Senaki.



    EIA reports are available at the Service of Environmental Permits and
    Licensing of the Ministry of Environment of Georgia (15 A, Tamarashvili
    Str., Tel: 39 91 81). Interested stakeholders can analyze the document
    and present their comments and considerations until April 5, 2005.



    Public hearing will be held on April 5, 2005 at 12:00, at the conference
    hall of the Ministry of Environment. 68 A, Kostava str., VI Floor.



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

    Tel: ++995 32 75 19 03/04
    Fax: ++995 32 75 19 05
    E-mail: [email protected]
    URL: www.cenn.org
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