CENN – APRIL 16, 2004 REGIONAL DAILY DIGEST
Table of Contents:
1. Announcements
1.1. Youth Volunteer Day in Georgia: Capital Renovation of Heroes Square
Underground Complex
1.2. Call for Papers — REC Caucasus
1.3. Integrated Regional Development Center (IRDC) Announces Tender for
Hydro geological Works
2. Georgia
2.1 BTC Co. Gets $1.6 bln Baku-Tbilisi-Ceyhan Project Loan Tranche
2.2 For Examination BTC Worker’s in Georgia
2.3 Georgia’s Forest Await Aid
3. Azerbaijan
3.1. SOCAR Announces Tender for Second May Oil Consignment
3.2. Shah Deniz Expenditure $341 mln in Q1
4. Armenia
4.1. Armenian President Received World Bank Armenian Office Head Rodger
Robinson
4.2. Armenia Trade Deficit Grows 13.5% in Q1
4.3. Armenia to sell copper mine by End 2004
1. ANNOUNCEMENTS
1.1. YOUTH VOLUNTEER DAY IN GEORGIA: CAPITAL RENOVATION OF HEROES SQUARE
UNDERGROUND COMPLEX
A group of NGO’s representing local youth organizations, including the
American Councils for International Education, Tbilisi YMCA, project
Harmony, New Generation for Georgia (NGG), and the Georgian Scouts
Movement will gather over 15,000 young people to work on remodeling the
underground complex at Heroes Square over a 14-day period from April
4-18.
On Sunday, April 18, the initiators of this work will organize an
official presentation and opening of the underground.
The aim of this presentation is to promote the idea of volunteerism and
to present the clean, decorated, and newly remodeled subway complex.
After the presentation, different entertainment activities will be
carried out, such as Children’s Picture and Photo Exhibition, theatre
performances, various games, speeches, informational announcements,
Street musicians, etc.
JOIN TO CELEBRATE THIS MOST IMPORTANT DAY WITH US!
For additional information please contact:
Keti Botchorishvili 877-461619
Berdia Natsvlishvili 893-333282
Tengo Gogotishvili 899-421209
Check the Advocacy.Ge for a press release and invitation in English and
Georgian:
1.2. CALL FOR PAPERS — REC CAUCASUS
REC Caucasus IV Annual International Conference
“Environmental security of South Caucasus Region”
Beginning of September, 2004
Tbilisi, Georgia
About Conference
IV International Conference of REC Caucasus tackles problems and
perspectives of Environmental Security of South Caucasus. Overall
objective of the Conference is to promote exchange of information and
experience within and beyond the region in the field of Environmental
Security among governments, parliaments, nongovernmental organizations,
scientists and international organizations in Armenia, Azerbaijan and
Georgia.
Conference aims to:
§ Be a forum of all stakeholders from Armenia, Azerbaijan, and Georgia
working on Environmental Security
§ Promote exchange of information and experience within and beyond the
region in the field of Environmental Security among governments,
parliaments, nongovernmental organizations, scientists and international
organizations of Armenia, Azerbaijan and Georgia
§ Promote exchange of information and experience within and beyond the
region
§ Support awareness rising of target groups
§ Try to find common definition of Environmental Security for the South
Caucasus Region
§ Facilitate development of concept of Environmental Security for the
South Caucasus Region
Working languages: Russian and English.
Submission of papers
Papers are solicited in the following areas:
§ Legal background of environmental Security in South Caucasus
§ Natural disasters and environmental security
§ Environmental and economical consequences of natural disasters
§ Respond systems on natural and industrial disasters in the South
Caucasus
§ Environmental security of transboundary projects in the Region
§ Nuclear safety of the Region
§ Environmental security of water resources of the South Caucasus
§ Biosefaty of the Region:
§ Genetically modified organisms (GMOs) in agriculture
§ GMOs in food products
§ National legislation and Cartakhena Protocol
§ Environmental safety and health
§ Education and public participation in Environmental security process
§ Information and awareness raising on environmental security
Reports may cover any of these themes, merging or separation of topics
is not restricted.
Reports should be developed specifically for the Conference, and should
not be presented earlier on any other conference or printed in any
publication.
Reports should be provided in electronic form to the address bellow in
English or Russian, Word template, in Times New Roman, font
size-12 and include following:
1. Title of the report
2. .Name of the author
3. Contents
4. Summary (450-500 words in Russian and English)
5. Report (4-5 pages, A4, margins: Top and Bottom 2.5 cm, left and right
2.2cm)
6. List of publications used
Papers should be sent to [email protected]
Deadline for submission is May 19, 2004
The best reports will be published in conference proceedings.
Authors of selected reports shall be invited to participate in the
Conference. Organizers will cover accommodation and transportation
(train or the bus) costs. REC Caucasus shall cover expenses of one
author per report.
For more information please visit or contact
Mrs. Keti Esakia
Administrative Department
REC Caucasus
74, Chavchavadze Ave., office 901
0162 Tbilisi, Georgia
Tel/Fax: +99532 253649 / 253648
E-Mail: [email protected]
* * * * * * * *
CALL FOR PAPERS FOR STUDENTS
III Annual Conference Youth Conference shall be organized
“Environmental Security – Youth Vision”
Beginning of September, 2004
Tbilisi, Georgia
REC Caucasus announces call for paper summaries for the first -fourth
year students of highest education institutions of the Caucasus, for its
III International Conference, dedicated to the environmental security.
Summaries are solicited in the following areas:
§ Legal background of environmental security in the South Caucasus
§ Natural disasters and environmental security
§ Environmental and economical consequences of natural disasters
§ Nuclear safety of the Region
§ Environmental security of water resources of the South Caucasus
§ Biosefaty of the Region
§ Environmental safety and health
§ Education and public participation in Environmental security process
§ Information and awareness raising on environmental security
Summaries may cover any of these themes, merging or separation of topics
is not restricted.
Summaries should be provided in electronic form to the address bellow in
English or Russian, Word template, in Times New Roman, font size-12 and
include following:
1. Title of the report
2. Name of the author
3. Contents
4. Summary (450-500 words in Russian and English)
5. Papers should be sent to [email protected]
Deadline for submission is May 19, 2004
The best two students from each country shall be invited to participate
in the Conference. Organizers will cover accommodation and
transportation (train or the bus) costs.
For more information please visit or contact
Mrs. Keti Esakia
Administrative Department
REC Caucasus
74, Chavchavadze Ave., office 901
0162 Tbilisi, Georgia
Tel/Fax: +99532 253649 / 253648
E-Mail: [email protected]
1.3. INTEGRATED REGIONAL DEVELOPMENT CENTER (IRDC) ANNOUNCES TENDER FOR
HYDRO GEOLOGICAL WORKS
Duty Station: Tbilisi
Integrated Regional Development Center (IRDC) announces tender for hydro
geological works.
Description of works:
Drilling and cleaning of the drinking water wells; installation of the
water pipes in Tirdznisi sakrebulo of Gori district.
** Number of wells: 2 (two)
** Approximate depth: 70 m.
** Pipe diameter: 216 mm.
Deadline for submission of proposals is April 26, 2004. For detailed
information and submission of proposals interested parties may apply at
the following address:
15a Tamarashvili str., 3rd floor, Tbilisi
Tel: 25 09 01
E-mail: [email protected]
Contact person: David Labadze.
2. GEORGIA
2.1. BTC CO. GETS $1.6 BLN BAKU-TBILISI-CEYHAN PROJECT LOAN TRANCHE
Source: Interfax, April 15, 2004
Operator for the building and use of the Baku-Tbilisi-Ceyhan pipeline
BTC Co. has received from international financial organizations the
first tranche of a construction credit in the amount of $1.6 billion.
On April 14, 2004 President of the company BP-Azerbaijan David Woodward
said at the press conference in Baku that the funds were received in
late March, and that $1 billion of it was returned to the BTC
shareholders for financing the construction work until the credit monies
were received.
The remaining $600 million will be used on work done until September
2004, he said. The second tranche is expected that month in the amount
of $400-$600 million, the next in the first quarter of 2004 in an
amount that will round out the overall credit size of $2.6 billion.
The initial loan funds were supposed to have been received in mid- 2003,
the project participants using their own money to finance the building
work until that time. However, talks with financial institutions were
drawn out and the BTC shareholder-companies continued to put money into
the project, spending an additional $1 billion in the period from
mid-2003 to March of 2004.
Woodward noted that a little under $2 billion has already been spent,
60% of the work has been done and 766 kilometers of pipeline have been
laid over three countries-44% of its overall length.
First-quarter spending this year came to $424 million against the
planned $1.371 billion for the year. Woodward said that additional
people and equipment would be found to make up for lost time in Georgia
and Turkey. Additional work is being down in the two countries, and the
issue of whether the spending will go against subcontractors or BTC Co.,
he said, but in any case the project cost will not go up, as additional
unforeseen spending funds have been built in.
The first tanker is scheduled to be filled with Azerbaijani oil in late
June 2005. This based on the first oil from the Azeri deposit being
extracted in the beginning of that year, so changes are possible.
The Baku-Tbilisi-Ceyhan project will cost $3.6 billion. The future
pipeline will stretch 1,767 kilometers (443 km through Azerbaijan, 248
km through Georgia and 1,076 km through Turkey) and will have throughput
capacity of 50 million tonnes of oil per annum.
Of the project price tag, $1 billion will come from the shareholders’
own pockets, $2.6 billion from credits. The European Bank for
Reconstruction and Development (EBRD) and International Finance
Corporation (IFC) are lending $250, fifteen commercial banks $936
million, Japan Bank for International Cooperation $480 million, and four
company-participants-BP, Statoil, ConocoPhillips and Total-another $923
million.
The commercial banks are extending loans under guarantees from the EBRD,
IFC and seven import-export and insurance agencies at an average rate of
Libor+3.5% for 10-12 years. Pay-back begins at the end of 2006 and will
run until 2015. Participants in the BTC project are: British Petroleum
(30.1%), SOCAR (25%), Unocal (8.9%), Statoil (8.71%), TPAO (6.53%), ENI
(5%), Itochu (3.4%), ConocoPhillips (2.5%), Inpex (2.5%), TotalFinaElf
(5%), and Amerada Hess (2.36%).
2.2. FOR EXAMINATION BTC WORK’S IN GEORGIA
Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
April 15, 2004
Natiq Aliyev, the president SOCAR (The State Oil Company of Azerbaijan)
and David Woodward the president of BP Azerbaijan have paid joint visit
to Georgia.
The two oil chiefs have examined the construction work in the Georgian
sector of Baku- Tbilisi-Ceyhan (BTC) pipeline.
Mr. Aliyev and Mr. Woodward have met with Georgian Prime Minister Zurab
Zhvania and the president of Georgian International Oil Corporation
Giorgi Chanturia in Tbilisi.
Mr. Woodward has told reporters he was satisfied with the BTC’s
construction pace. Woodward said, he was confident that the BTC pipeline
would be ready for exploitation in the first part of 2005.
2.3. GEORGIA’S FOREST AWAIT AID
Source: The Messenger, April 16, 2004
The Forest Development Project of the World Bank will begin drafting
national policy on the forestry sector this April. With the financial
help of the Food and Agriculture Organization and active public
participation, the analysts working on the project hope that as a result
the country will have an actual plan for utilizing forest resources and
fighting deforestation.
Mike Garforth, who works in Georgia on improving Georgian legislation on
forests, believes the government can find solutions to the problem of
illegal logging and deforestation, only “if there is political will.”
Given this political will, Mr. Garforth has a list of necessary steps
that must be taken. “People in the sector should get adequate salaries,
and also there should be investments to modernize business plans and
develop successful management and accounting policies,” he advises. The
elimination of corruption and development of the energy sector are other
conditions affecting forestry, he adds.
According to Giorgi Gachechiladze, the leader of Georgian Green Party,
Georgia’s best timber is all going for export leaving Georgian’s with a
lower quality to work with. “70 percent of trees in Georgia are old and
plus the variety of forest types is falling rapidly as a result of
illegal logging,” he, says. Mr. Gachechiladze explains the most affected
forests are near populated areas (cities, villages). According to
official statistics, forests occupy 45 percent of the territory of
Georgia. Of the 400 different flora species in Georgian forests, 61 are
native to Georgia and another 43 are found only in the Caucasus region.
Still, there is no verified data regarding the volume of forest products
cut and how much timber and other forest products are exported from
Georgia. For example, according to the Forestry Department, officially
400,000 cubic meters of timber are cut with permission each year, while
the Custom Department claims up to 2 million cubic meters was exported
in 2002. According to the World Bank data, “total timber harvest in
Georgia is composed of legal and illegal harvest and equals nearly, 1.2
million cubic meters.” Mr. Gachechiladze claims all official data should
be at least multiplied by 2 to arrived at the real numbers.
The Forestry Department usually points out that often illegal harvesting
is carried out by local populations who rely on the forest products for
fuel or other needs. But, according to the Georgian Environmental NGO
Network — CENN, there are no statistics showing how much timber is
being cut by locals for their private needs. Mr. Gachechiladze and his
party estimate that a Georgian family annually uses 6-10 cubic meters of
forest products. Environmentalist from Green Alternative and CEE
Bankwatch, Network Manana Kochladze, says that the poverty and energy
crisis forced people to turn to forest resources as a fuel. Although,
“the main reason of the deforestation is the illegal commercial
logging,” she adds. “It should also be underlined that while timber
export is free, the import is taxed by 34. 76 percent which creates
economic incentives for export,” reads a report compiled by Green
Alternative and CENN.
Mr. Gachechiladze thinks that legalization of the illegal logging cat be
a solution. “Let them pay at least some money for this into the budget,”
he says. Ms. Kochladze agrees, “This will increase our revenues.”
Environmental NGOs ask for reduction of import tax on timber products
and imposing a tax on timber export. In this case, they argue, the
Georgian budget will benefit from the exploitation of natural resources.
“We are not exporting timber just to Australia,” jokes Mr.
Gachechiladze, saying the list of export countries includes four
continents and identified China and India and Iran as well as European
countries as some of the largest importers of Georgian forestry
products. Meanwhile, during the Soviet period Georgia did not even use
its own domestic resources for industries that produced finished wood
products, rather it imported timber from Russia.
Ms. Kochladze agrees with Mike Garforth that the government should
properly finance the sector. The Green Party claims the central budget
transferred only 6 tetri on each hectare of the state owned forests last
year. The analysts working for the Forest Development Project laugh that
forests did not receive even half of this tiny sum. “How can one
forester protect dozens of hectares of forests from people who want it
for fuel or for export? They are so poor that they do not even have
shoes to wear,” says Mr. Gachechiladze.
On December 3,2002 an agreement was reached between Government of
Georgia and IDA (World Bank group), on implementation of the Forestry
Development project. The project should be implemented from 2003 to
2008.
Five districts (Oni, Ambrolauri, Lentekhi, Tsageri and Mestia) have been
selected as target areas for the project.
The World Bank project will work not only on developing the national
policy but also on improvements in legislation governing sector. In
1997, the Georgian Parliament passed a law putting a moratorium on
timber export for seven years, but the former president Eduard
Shevardnadze vetoed the law. The next law did not envisage either a
moratorium on timber exports or any taxation for exported forest
products. In 2001 the Parliament introduced a one-year ban on timber
export, which it opted not to prolong a year later
The government also created two commissions to address the forestry
sector in 2002 however the public was not presented with the findings
and recommendations of these commissions. MS. Kochladze says the public
should be closely involved in discussing the problems in the sector and
decision-making. According to Mr. Garforth it will take 5-10 years for
Georgia to learn to maintain its forests well.
3. AZERBAIJAN
3.1. SOCAR ANNOUNCES TENDER FOR SECOND MAY OIL CONSIGNMENT
Source: Interfax, April 15, 2004
The State Oil Company of the Azerbaijani Republic (SOCAR) has announced
a tender for the second May consignment of Azerbaijani Urals oil
exported via the Baku-Novorossiisk pipeline..
This consignment will amount to 140,000 tones and should be shipped on
May 26-27, the source said.
The companies Total and Glencore bought the January consignments, Sonol
and Vitol Broking bought the February consignments , Vitol and Lukoil
bought the March consignments, Litasco bought the April consignment and
Arcadia – the first May consignment. SOCAR plans to export 2.5 million
tonnes of oil in 2004, the same as in 2003.
3.2. SHAH DENIZ EXPENDITURE $341 MLN IN Q1
Source: Interfax, April 15, 2004
Spending on the development of the Shah Deniz gas field in Azerbaijan in
the first quarter 2004 amounted to $341 million, David Woodward,
president of the project’s operator BP Azerbaijan, said at a press
conference in Baku on April 14, 2004.
He said that the company is continuing pre-drilling a third well and
will complete it in the third quarter this year. He also said that
construction of the upper module of the TPG-500 platform is continuing
in Singapore and has been 60% completed. Woodward said that in total the
company would spend $1.081 billion on the project in 2004.
In turn, BP Azerbaijan Vice President Rob Kelly said that 30% of the
work in Phase-1 has been completed. He said that the company plans to
start gas production on October 1,2006. He said that the third pre-
drilled well is a reserve and it will be used if there is a problem with
the other two.
Kelly said that construction of the Baku-Tbilisi-Erzurum pipeline would
begin in the third quarter 2004. Pipe supplies are already underway, he
said.
The contract for the Shah Deniz field was signed in June 1996.
Shareholders in the project include also SOCAR – 10%, British Petroleum
– 25.5%, Norway’s Statoil – 25.5%, NICO – 10%, Total -10% and TPAO – 9%.
Recoverable reserves at Shah Deniz amount to 625 billion cubic meters of
gas and 101 million tones of gas condensate.
Phase-1 of the development of the field involves production of 178 bcm
of gas and 34 million tones of condensate. During the period of maximum
production in Phase-1 the field will produce 8.4 bcm of gas per annum
and 2 million tones of condensate. Gas will be produced from the TPG-500
platform at 15 wells, with water depth of 105 meters.
In total, at further stages of development it is planned to produce
about 16 bcm of gas per annum.
Phase-1 also includes the construction of the Baku-Tbilisi-Erzurum
pipeline. The future pipeline will stretch 1,767 kilometers (443 km
through Azerbaijan, 248 km through Georgia and 1,076 km through Turkey).
The cost of Phase-1 is $3.2 billion, of which $2.3 billion will be spent
on the development of the Shah Deniz field and $900 million – on the
Baku-Tbilisi-Erzurum gas pipeline.
4. ARMENIA
4.1. ARMENIAN PRESIDENT RECEIVED WORLD BANK ARMENIAN OFFICE HEAD RODGER
ROBINSON
Source: Armenpress, April 15, 2004
On April 15, 2004 Armenian President Robert Kocharian received the
Resident Representative of World Bank Rodger Robinson. The two men
discussed World Bank projects in Armenia and prospects for their
development.
They also spoke about including new fields in these projects,
particularly social and industrial infrastructures. Both sides expressed
their satisfaction with the current level of cooperation and noted that
WB has played a major role in the reform processes in Armenia.
4.2. ARMENIA TRADE DEFICIT GROWS 13.5% IN Q1
Source: Interfax, April 14, 2004
Armenia’s trade deficit grew 13.5% year-on-year in the first quarter of
2004 to $140.7 million.
Foreign trade amounted to $445.9 million, up 14.5%, First Deputy Trade
and Economic Development Minister Ashot Shakhnazarian said at a press
conference Tuesday. Exports increased 9.6% to $152.6 million and imports
rose 9.1% to $293.3 million.
4.3. ARMENIA TO SELL COPPER MINE BY END 2004
Source: Interfax, April 15, 2004
Armenia plans to sell the Zangezur Copper-Molybdenum Combine by the end
of this year, stated Ashot Shakhnazarian, a first deputy trade and
economic development minister.
A tender called in March has drawn interest from leading international
companies such as Rio Tinto, BHP and Glencore Interm, and Russia’s RusAl
and Norilsk Nickel.
Ashot Shakhnazarian said the deadline for submitting bids would be in
September. Although Armenia is offering up to 75% of the Zangezur
plant’s shares at the tender, the government will agree to sell all of
the stock to an investor that makes the right offer, he said.
The Zangezur combine is profitable, Shakhnazarian said. Last year, its
net profits topped $7 million.
The government expects to raise at least $130 million from the sale of
the shares and licenses to the Kadjaran field, which contains the FSUTs
biggest molybdenum reserves. Shakhnazarian said he did not consider the
price to betoo high in view of current metal prices.
The government will require the Zangezur plantTs new owner to triple or
even quintuple output to 30 million-40 million tones of ore per year and
to implement new, more environmentally friendly mining technology.
Zangezur obtained 6,300 tones of molybdenum concentrate and 11,000 tones
of copper in copper concentrate from 8.1 million tones of ore in 2003.
—
*******************************************
CENN INFO
Caucasus Environmental NGO Network (CENN)
Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
URL: