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CENN - July 22, 2005 Daily Digest

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  • CENN - July 22, 2005 Daily Digest

    CENN - JULY 22, 2005 DAILY DIGEST

    Table of Contents:

    1. Second Meeting with the representatives of
    Guesthouses<?xml:namespace prefix = o ns =
    "urn:schemas-microsoft-com:office:office" />
    2. <?xml:namespace prefix = st1 ns =
    "urn:schemas-microsoft-com:office:smarttags" />Azerbaijan,
    Georgia to Sign Agreement on Synchronizing Energy system
    3. Armenia: Answers Demanded on UES Energy Deal
    4. Japanese Tour Operators arrive in Armenia
    5. There is no Organized System of Waste Management
    6. Announcement of Caspian Ecological Program
    7. Second International Conference on Sustainable Planning &
    Development

    1. Second Meeting with the representatives of Guesthouses

    On July 15, 2005 in Public Informational Center of Bakuriani second
    meeting was held between the representatives of Caucasus
    Environmental NGO Network (CENN) and of small and medium guesthouse
    owners of Bakuriani. Participants of this meeting discussed creation
    of the Tourist Informational Center and association of small and
    medium guesthouses. Also was discussed the charter of Bakuriani
    guesthouses and other tangible questions. Among them the letter to
    Gamgebeli of Bakuriani that is about the alienation of the part of
    Bakuriani park.

    Also was discussed the outline of web site and it's content. The
    participants of the meeting were pleased with the represented web
    site.

    The guesthouses owners consider that the main problem in Bakuriani is
    the problem regarding electricity supply. To highlight this and other
    existing problems the visit of journalist is planned to Bakuriani.

    The next meeting is planned on July 22, 2005 in the office of
    Environmental Informational Center of Bakuriani.

    Address:- 2, Agmashenebeli Str, Bakuriani

    Prepared by CENN

    Public Environmental Informational Center of Bakuriani

    2. AZERBAIJAN, GEORGIA TO SIGN AGREEMENT ON SYNCHRONIZING
    ENERGY SYSTEMS

    Source: State telegraph agency of the republic of Azerbaijan,
    Azertag, July 13, 2005

    Georgia and Azerbaijan are planning to sign an agreement for
    synchronizing the two countries' energy systems, Nika Gilauri, the
    Georgian Minister of Fuel and Energy said at a news briefing.

    He said the Georgian government expects the agreement to be signed
    soon. Further work on the details continued during the Azerbaijani
    experts' visit to Tbilisi on July 1. The minister stressed that both
    countries' energy systems are making technical preparations for the
    winter, which will enable them to launch their parallel work.

    During a recent meeting in Baku, both countries admitted that for the
    last five years their collaboration in the power industry has been
    ineffective due to problems stemming from legal obstacles that
    appeared several years ago and have not been settled thus far. At
    present, Gilauri said, a special working group is studying the
    possibility of restoring and improving energy cooperation between
    Georgia and Azerbaijan.

    The parallel mode can be used to deliver Georgian power to
    Azerbaijan, which is possible in the summer, and for Georgia to
    receive energy from Azerbaijan during the winter, the minister said.
    Another issue currently on the agenda is the prospective construction
    of a new 330 kilovolt power transmission line connecting the energy
    systems of Georgia and Armenia. Currently, three power transmission
    lines connect the two energy systems: Ashotsk-Ninotsminda (110kw),
    Lalvari (110kw), and Alaverdi (220kw).

    Gilauri said the Georgian government is allocating between $10
    million and $12 million in order to finance the construction. Funding
    will come partly from the Millennium Challenge Fund, which includes
    essential spending for Georgia's energy field. "This [construction]
    is one of the priorities of the energy field for today," the minister
    said.

    3. ARMENIA: ANSWERS DEMANDED ON UES ENERGY DEAL

    Source: EinNews, July 14, 2005

    Uncertainty surrounds a reported deal with Russia's Unified Energy
    Systems that would grant the company ownership of Armenia's main
    electricity company. After stating several months ago that it had
    purchased the utility, the Russian energy giant on July 13 reversed
    itself, claiming that it had only secured a management contract. The
    transaction, shrouded in secrecy, has already sparked strong
    criticism from one international financial organization, which faults
    the Armenian government for refusing to answer questions on the
    topic.

    On June 30, the Russian energy giant Unified Energy Systems (UES)
    announced that Interenergo, an offshore subsidiary of UES, had
    purchased 100 percent of the shares of Armenian Electricity Network
    (AEN) for $73 million. One of Armenia's most successful companies,
    AEN had been (and may still be) owned by the British-registered firm
    Midland Resources Holding, Ltd. In 2004, AEN ranked as Armenia's
    fourth-largest corporate taxpayer, according to the Armenian-European
    Policy and Legal Advice Center, and earned revenues of some 70.67
    million drams (about $106.6 million).

    If the AEN purchase by UES is confirmed, Russian companies would be
    poised to take full control of Armenia's energy industry following
    more than two years of steady expansion. In 2003, within the
    framework of Armenia's assets-for-debt program with Moscow, the
    Hrazdan thermal power plant, the largest such plant in Armenia, was
    transferred to Russia for $31 million. [For additional information
    see the Eurasia Insight archive]. UES also was named "financial
    manager" of the Armenian nuclear power plant Metsamor. To pay for the
    delivery of nuclear fuel to Metsamor, the Sevan-Hrazdan hydroelectric
    power station cascade was transferred to Russia in 2003. The same
    year, GazProm, the Russian energy conglomerate, became the chief
    supplier of natural gas to Armenia. The company also holds 45 per
    cent of shares of "ArmRusGasProm," which holds a monopoly on
    distribution of natural gas in Armenia.

    Under existing legislation, the sale of one-quarter or more of AEN
    shares requires the approval of the government and the Commission on
    Regulation of Public Services. The Armenian government has declined
    all comment on the issue.

    Controversy over the possible sale continues to build. Radio Free
    Europe/Radio Liberty quoted a UES spokesperson as saying that
    Interenergo was only "the beneficiary of a management contract" that
    would give the Russian energy company day-to-day control of AEN,
    rather than owning the Armenian firm outright. Information in the
    company's annual report that UES had purchased AEN was not correct
    and has been removed from the UES website, the company spokesperson
    said.

    In a July 11 statement, an AEN spokesperson, who requested not to be
    named, told EurasiaNet that the company's shares had not been
    transferred to Interenergo management. The spokesperson denied that a
    sale had occurred, and stated that he was not authorized to release
    information about the size of the deal.

    With no ready explanations from the government, the patience of one
    international financial organization appears to be running thin. In a
    July 8 press conference, Roger Robinson, chief of the World Bank's
    Armenia mission, said that the organization, Armenia's largest
    creditor, is dissatisfied with the government's failure to provide
    information about the deal. "The electricity distribution networks
    are one of the largest and [most] profitable spheres that is of a
    great strategic value for each Armenian, and I consider the regular
    provision of transparent and official information on events
    concerning this sphere as very important," Robinson said. On July 13,
    PanArmenian.Net reported Robinson as saying that he would meet with
    members of the government if the situation was not rectified "within
    several days."

    Reports about AEN's sale first appeared in February 2005, when the
    Yerevan-based newspaper Haykakan Zhamanak reported that a deal had
    been brokered whereby UES would purchase the company for $80 million.
    Midland Resources Holding has held AEN since 2002 when it won a
    privatization tender for the then state-owned utility for $40
    million.

    Reaction to the report was swift. On February 22, UES Chief Executive
    Officer Anatoly Chubais confirmed that an offer had been made, but
    stressed that "[a]ny decision is possible only . . . when it is
    coordinated with the Armenian leadership," the Russian news agency
    RIA Novosti reported. It is not known, however, whether those
    consultations ever occurred and, if so, with whom.

    "It is clear that the situation is not [the] best," Robinson said.
    "The Armenian government and the Commission on Regulation of Public
    Services must explain to the nation and to me what is going on."

    One political analyst believes that the reason for the government's
    silence is political. "In April and May of the current year, the
    leadership of Armenia was seriously concerned about the possibility
    of revolution in the country and saw the only way out in the support
    from the outside. That's why Yerevan was encouraging Vladimir Putin's
    [March 24-25] visit to Armenia," said Stepan Safarian, research
    coordinator at The Armenian Center for National and International
    Studies in Yerevan. The fact that news of RAO UES' interest in
    purchasing AEN immediately followed Putin's visit led Safarian to
    conclude that "[t]he transfer of shares was the price that Armenia
    paid for Putin's visit."

    Chubais, the UES chief, enjoys close ties with the Kremlin and has
    made no secret of his desire for expansion in the South Caucasus and
    Turkish energy markets. [For background see the Eurasia Insight
    archive]. The company also controls Georgia's electrical power grid.
    [For background see the Eurasia Insight archive].

    A representative of the ruling party coalition says that any deal
    with UES would have more to do with economics than politics. "After
    the privatization of the Armenian Electricity Network, some
    conversations about the possible resale of the company have
    periodically [taken place]. Naturally, the state is interested in
    making the possible deal the most profitable for Armenia," said
    Galust Sahakian, leader of the Republican Party parliamentary
    faction, a member of Armenia's ruling coalition. "I'd sound rather
    strict, but we would not like the Electricity Network to be sold to,
    for example, a Turkish company."

    Sahakian also claimed that the AEN deal remains in the negotiations
    stage, with nothing finalized to date. "I am a politician and I would
    have information if the sale of the company took place," he said.

    4. JAPANESE TOUR OPERATORS ARRIVE IN ARMENIA

    Source: ArmenPress, July 19, 2005

    Within the framework of Familiarizion trips to Armenia, five Japanese
    tour operators and one travel writer arrived in Armenia on July 16,
    2005 to discover Armenia's eclectic cultural treasures, ancient
    monasteries and natural wonders, and to become acquainted with
    Armenia's hospitable people.

    For the last four years the Armenian Tourism Development Agency
    (ATDA), in cooperation with the local tourism industry, has organized
    over 12 "familiarization trips" for foreign tour operators, travel
    agents and travel writers with the goal of increasing Armenia's
    tourism awareness globally, and positioning Armenia as a new and
    attractive travel destination. Armenia was presented to the Japanese
    audience for the first time ever in 2002 and again in 2004 at the
    JATA (Japanese Association of Travel Agents) International Tourism
    Exhibition in order to increase the small number of Asian tourists
    visiting Armenia. As a positive outcome of the JATA exhibition, the
    ATDA in cooperation with the Armenian tourism industry, hosted the
    Japanese tourism professionals in Armenia.

    Air travel was provided by "Aeroflot" Russian Airlines and ground
    excursions to the southern and northern regions of Armenia were
    provided by Saberatours Svan, Armentour travel agencies and the
    Armenian Tourism Development Agency. The Familiarization trip is sure
    to secure promising increase in the number of Asian tourists for the
    coming tourist season and promote Armenia as an unrevealed tourism
    destination.

    The Armenian Tourism Development Agency (ATDA) has proactively
    encouraged the development of Armenian tourism, both locally and
    globally since 2001. Today, the Government of the Republic of Armenia
    charters ATDA, with funding from Hovnanian International.

    5. There is no Organized System of Waste Management

    SOURCE: "SAKARTVELOS RESPUBLICA", ("GEORGIAN REPUBLIC"), JULY 21,
    2005

    The seminars cycle on the theme: "How to take care of Waste?" was
    started by Center for Strategic Research and Development of Georgia.

    The reason of the seminar is to seek for the ways of cooperation
    between non-governmental, governmental and business sectors to find
    the way out from the problems existing in waste management.

    Such first seminar has been already held in the guesthouse "Tori".
    Participant non-governmental organizations declared that almost every
    inhabited regions lack the organized system of waste management.
    Because of that population is forced to put garbage in every possible
    place.

    They consider that after the "Rose Revolution" this problem
    aggravated. The head of the NGO "Lobo" Lasha Chkhartishvili calls
    government for approval and activation of the "Law on Waste". Also -
    to prepare first the National Strategy of waste management, and then
    - regional and locals plans.

    He also thinks that the system of hazardous wastes solitarily
    collation and transportation system, also there safe disposals and
    neutralize installations should be considered.

    6. Announcement of Caspian Ecological Program

    Caspian Ecological Program invites volunteers for one month with the
    knowledge of English language and computes skills.

    Contact person: Aiten Shirinova

    MPPA Azerbaijan (UNDP-GEF)

    E-mail: [email protected]

    Room 108, Government Building

    40 Uzeir Gadjibekov Street

    Baku 370016 Azerbaijan

    Phone: 99412 497 17 85, 493 80 03

    Fax: 99412 497 17 86

    E-mail: [email protected]

    www.caspianenvironment.org

    7. Second International Conference on Sustainable Planning &
    Development

    Second International Conference on Sustainable Planning & Development
    will be held on September 12- 14, 2005 in Bologna, Italy. Conference
    is organized by Wessex Institute of Technology, UK and Sponsored by:
    WIT Transactions on Ecology & the Environment

    Following the success of the First International Conference on
    Sustainable Planning and Development held in Skiathos, Greece in
    2003, the decision was made to reconvene the second conference in
    Bologna from 12 to 14 September 2005.

    The Conference will address the subjects of sustainable planning and
    regional development in an integrated way as well as in accordance
    with the principles of sustainability. It has become apparent that
    planners, environmentalists, architects, engineers, policy makers and
    economists have to work together in order to ensure that planning and
    development can meet our present needs without compromising the
    ability of future generations.

    In recent years, there has been in many countries, an increase in
    spatial problems that has lead to planning crises. Planning problems
    are often connected with uneven development, deterioration of the
    quality of urban life and destruction of the environment. The
    increasing urbanisation of the world coupled with the global issues
    of environmental pollution, resources shortage and economic
    restructuring demand that we make our cities places worth living in.

    On the other hand, problems of environmental management and planning
    are not restricted to urban areas. Environments such as rural areas,
    forests, coastal regions and mountains face their own problems that
    require urgent solutions in order to avoid irreversible damages. The
    use of modern technologies in planning, such as geographical
    information systems and remote sensing, give us new potential to
    monitor and prevent environmental degradation.

    Effective strategies for management should consider planning and
    regional development, two closely related disciplines, and emphasise
    the demand to handle these matters in an integrated way. This
    conference provides a common forum for all scientists, specialising
    in the range of subjects included within sustainable planning and
    development.

    For additional information visit the site:
    http://www.wessex.ac.uk/conferences/2005/spd05/index.html

    *******************************************
    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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