CENN Electronic Bulletin #72

Caucasus Environmental NGO Network
(CENN)

72 Electronic Bulletin:
Caucasus Environmental News

Caucasus Environmental NGO Network (CENN) and the production of our
electronic bulletin – Caucasus Environmental News have been funded by
the Swiss Agency for Development and Cooperation (SDC).
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VISIT CENN WEB SITE:

TABLE OF CONTENTS
1. Announcements
1.1. IFC launches review of social and environmental safeguards
1.2. EIA report of “Accomplishment and Research of the Inert Materials
of Krtsanisi, Gardabani Region”

2. Job, Internship and Study Opportunities
2.1. FSA contemporary issues fellowship program

3. News from Georgia
3.1. Bite is worse than their bark
3.2. Experimental water metering
3.3. Georgian forestry needs, urgent support
3.4. International organizations, local government and businesses work
together for the benefit of the vulnerable population
3.5. Measures taken to save Lisi lake
3.6. Oil theft from pipeline
3.7. BP complains local residents use access roads
3.8. Sawmills face the axe in Borjomi
3.9. Illegal sawmills out of 200 are closed
3.10. PB — Clean up activities
3.11. Chanturia discharged from GIOC
3.12. Georgia to collaborate with Iran in tourism sector
3.13. One bar of gold, one tone of controversy
3.14. Strong Lari leads to calls for energy rate reductions
3.15. Georgia and Turkey sign forestry coop protocol

4. News from Azerbaijan
4.1. BP President David Woodward puts pressure on the Azerbaijan
Ministry of Environment
4.2. BTC oil pipeline construction goes within schedule
4.3. BTC main pumping station built on Sangachal terminal
4.4. Project on Caspian birds protection implementing
4.5. BTC project spends $4mln daily
4.6. Ecology Ministry and BP negotiate financing of project to
rehabilitate oil-contaminated lands

5. News from Armenia
5.1. Armenian journalist beaten for filming luxury villas
5.2. RA government to strengthen control over biosecurity
5.3. A critical moment for Lake Sevan
5.4. Who is destroying the forests in Tsaghkadzor?
5.5. Armenia, Iran sign $30-mln credit agreement for pipeline
construction
5.6. Armenia to ask for $900m in extra U.S. aid

6. NGO News
6.1. Global demonstration against waste and pollution launched

7. International News
7.1. OSCE Centre, WWF gather young people in Tajikistan to discuss
ecological degradation
7.2. UNEP and Economic Cooperation Organization sign collaboration
agreement
7.3. International Day for the Preservation of the Ozone Layer
7.4. The 54th session of the WHO regional committee for Europe
7.5. World needs more oil capacity – WATCHDOG

8. Calendar (International)
8.1. International Conference – Education for a Sustainable Future

SUBSCRIBING INFORMATION

1. ANNOUNCEMENTS
1.1. IFC LAUNCHES REVIEW OF SOCIAL AND ENVIRONMENTAL SAFEGUARDS

The International Finance Corporation–the World Bank Group’s private
sector lending arm–is launching a complete revision of the
environmental and social policy requirements that govern its lending
operations. Civil society groups have long sought adoption,
implementation, and strengthening of these “safeguard” policies given
significant social and environmental harm caused by many IFC-sponsored
projects.

The IFC’s safeguard policies cover a range of critical issues for civil
society organizations, including environmental assessment and natural
habitats, impacts on indigenous peoples, involuntary resettlement,
community health, and labor standards.

Revision of the IFC’s safeguard policies is a very important process.
The IFC’s safeguard policies do not just affect the obligations of the
IFC and its private sector borrowers. In the past two years, more than
20 commercial banks have adopted a set of environmental and social
standards–known as the “Equator Principles”–that are based on the
IFC’s safeguard policies. These banks provide over 75% of all project
financing by commercial lenders around the world. So as the IFC revises
its own policies, it is in effect undertaking a global standard setting
exercise for environmental and social standards for privately financed
development projects.

The IFC has proposed an ambitious plan for the revision of its safeguard
policies. Unlike past World Bank policy revisions–which involved review
and consultations on safeguard policies one at a time–the IFC proposes
to revise all its safeguard policies at once. Further, the IFC plans to
quickly conduct regional multistakeholder consultations in five
locations: Africa (for representatives from Africa and the Middle East),
Asia, Eastern Europe and Central Asia, Latin America, and the United
States or Northern Europe. These consultations are being planned for
September through December 2004.

A loose coalition of NGOs is forming to work on the IFC’s safeguard
revision process. If you would like to participate in this work, or to
stay informed of developments, please contact Bruce Jenkins at the Bank
Information Center at [email protected].

Manana Kochladze

Regional Coordinator for Caucasus
CEE Bankwatch Network

Visiting address: Rustaveli avenue. 1. Entrance I. Floor 4
Mailing address: Chavchavadze 62, Tbilisi, Georgia, 01062
Tel: 99532 22 38 74, 99 04 72
Fax: 93 24 03
E-mail: [email protected]

1.2. EIA REPORT OF ” ACCOMPLISHMENT AND RESEARCH OF THE INERT MATERIALS
OF KRTSANISI, GARDABANI REGION”

Source: `Sakartvelos Respublica’ (`Republic of Georgia’), August 28,
2004

In accordance with the Georgian legislation, LTD. Evrocement’ submitted
EIA report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of second category – Development
and Processing of the Clay Deposit along the Miriani Poultry
Enterprise.’

EIA report is available at the press-center of the Ministry of
Environment (68, Kostava Str., VI floor) and at the Department of
Environmental Permits and State Ecological Expertise (87, Paliashvili
Str., Tel: 25 02 19). Interested stakeholders can analyze the document
and present their comments and considerations until October 12, 2004.

Public hearing will be held on October 12, 2004 at 12:00, at the
conference hall of the Ministry of Environment.

2. JOB, INTERNSHIP AND STUDY OPPORTUNITIES
2.1. FSA CONTEMPORARY ISSUES FELLOWSHIP PROGRAM

The FSA Contemporary Issues Fellowship Program, a program of the Bureau
of Educational and Cultural Affairs, US Department of State and
administered by IREX (the International Research & Exchanges Board),
provides opportunities for experienced professionals and specialists in
Eurasia to conduct policy-oriented research in the United States for
four months. Fellowships are available to citizens of: Armenia,
Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova,
Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

Program highlights

Eligible Professions:
o Economists
o Government Officials
o Lawyers
o Political Advisors
o Public Health Specialists
o NGO Leaders
o Journalists
o Other Policy Developers

All applications must contain developed and focused research projects
that are policy-driven with practical application in Eurasia. Research
proposals must address one of the following categories:

o Business Administration
o Journalism & Media
o Civic Education
o Law Enforcement
o Educational Policy
o Economics
o NGO Development & Management
o Energy Policy
o Political Science
o Environmental Policy
o Public Administration
o Human Rights
o Public Health Policy
o International Relations
o Rule of Law
o Social Welfare

The fellowship is fully funded and provides:

o Round-trip travel from fellows’ home cities in Eurasia to their US
host institutions;
o Housing and monthly stipend for living expenses in the United States;
o Professional development allowance; and
o Accident and sickness medical coverage.

Contact Information for Ukraine:
IREX-Kyiv Office
01004, Kyiv
vul. Velyka Vasylkivska, 14, suite 19, e-mail: [email protected]
Tel/Fax: (044) 537-06-04

3. NEWS FROM GEORGIA
3.1. BITE IS WORSE THAN THEIR BARK
NGOs and government look for solutions to control animal population

Source: Messenger, August 23, 204

One day the problem of stray dogs in Tbilisi literally jumped up and bit
teacher Guranda Tsanava.

`I received injections,’ Guranda told The Messenger, but still after
being bitten by one of Tbilisi’s thousands of stray dogs, worries
remained. `It seems like I am afraid of dogs more than even bears. Our
government should do something, to solve this problem,’ she said.

She is not alone. According to the Georgian Center for Disease Control,
in 2003 over 75% of the 24, 000 cases of animal related attacks came
from dog bites.

According to a recent report, there are more than 20, 000 stray dogs in
the capital. The Tbilisi city government gives nearly USD 100, 000 a
year to special task force to catch stray dogs but animal rights
advocates complain that the methods used to deal with the stray
population equate to criminal torture.

The NGO Defenders of Animals Rights claim that city’s dogcatchers are
violating article 253 of the Criminal Code that forbids the torture of
animals. `This torture often happens in front of children and it makes
the situation even more stressful and unbearable,’ the NGO states.

In its recent report on the issue, Rustavi-2 claimed that NGOs assure
journalist that the money that is annually given to the brigade for
catching dogs is not used unless there is an emergency.

NGOs state that they have a special model of how to solve the problem of
stray dogs. They say a special building for strays must be built that
will be under the control, not of the Mayor’s Welfare Office, but of the
Veterinarian Department.

But as the head of the City Welfare Office Shalva Beboshvili told The
Messenger, `there is a misunderstanding, since the brigade of
dogcatchers belongs to regional Gamgeoba and note to the City Welfare
Office.’

`But they do not have enough money to solve the problem of stray dogs
themselves. This problem needs too much energy to be solved completely,’
said Beboshvili.

As a result of animal bites, Georgia has an elevated level of rabies and
other infections like Leishmania that are spread through diseased
animals. So far in 2004, eleven people have died from rabies.

But as the head of Defenders of Animal Rights Lasha Chkhartishvili told
journalists, the cities tactics in the battle against dogs only
exacerbates the problem. `The killing of homeless dogs in such a way
makes their population more aggressive and the number of infectious
diseases such as rabies are much higher and it is dangerous for the
human population,’ he said.

`We make a proposal to start the sterilization of stray dogs and to
build a special building where they will be held temporarily for ten
days to confirm they do not have any dangerous diseases,’ said
Chkhartishvili.

Even though they fear stray dogs, many residents hope there can be a
humane way of dealing with the animal population. `The dogs are living
creatures. I feel worried when I kill cockroaches so killing dogs or
cats is a inhuman way is terrible,’ housewife Liza Gogolidze told The
Messenger.

3.2. EXPERIMENTAL WATER METERING

Source: The Messenger, August 24, 2004

In an experimental project to measure the water usage in Tbilisi,
residents in the region of Didi Digomi will soon have meters clocking
how much city water flows through their pipes.

Tbilisi Mayor Zurab Chiaberashvili initiated the project this week, just
over a month after postponing an agreement that would give the
management of the city’s water system, Tbiltskalkanali, to a private
firm. According to the mayor’s office, the current project will give
them a real idea of how much water is consumed.

Present statistics show that the average water usage for one person is
500 cubic meters per year but according to research that was conducted
in 1998, the water usage for one person was as high as 960 cubic meters.

Judging by this data, Tbilisi uses four times much water as a big city
like Paris; there are some countries where the overall figure is as
little as 150 or 200 cubic meters.

As the head of Tbiltskalkanali press center, Gocha Chelia, told The
Messenger, the city chose the Didi Digomi region `because there are new
water pipes there and it would be easier to repair damaged pipes before
starting any experiment. We also have to buy the water meters and that
is why this preparatory period will last more than a month,’ said
Chelia.

According to Mr. Chelia it is not yet known when they will install these
water meters throughout Tbilisi because they are waiting to analyze the
results of the Didi Digomi experiment.

`The population will not have to pay for the repair of these pipes nor
for the water meters because the World Bank is offering credit for the
meters,’ added Chelia.

Mayor Mr. Chiaberashvili told Rustavi-2 that during this experiment the
residents of the Didi Digomi region would not have to pay for the water
used. The city intends to install meters in every house in order to
determine the exact amount of water used for future projects.

`The aim of this experiment is to fix the exact amount of water usage in
an area and it does not matter whether this data is given to a private
company or not as the real importance is to know a definite figure,’
said Mr. Chiaberashvili.

Mr. Chiaberashvili also stated that one water meter will be installed in
the entrance of the Didi Digomi region to measure what amount of water
passes through there. A second meter will be installed in an individual
building and after that another will be chosen and eventually the meters
will be installed in every building.

`With this water measurement we will have the possibility to see exactly
what amount of water is used and also to estimate where there is water
being lost in the pipes: before or in the building itself,’ stated Mr.
Chiaberashvili.

According to Mr. Chiaberashvili, Tbiltskalkanali will stay under the
management of the city.

Keti Matcharashvili, a resident of Didi Dighomi, told the Messenger that
at first this project caused a very bad reaction among Dighomi
residents, `it is strange for us because we are used to using too much
water without any limit.’

`But maybe it would be good on the other hand, as long as we are not
limited too much. The future will future,’ Keti added.

3.3. GEORGIAN FORESTRY NEEDS, URGENT SUPPORT

Source: The Georgian Messenger, August 26, 2004

Georgia is still a country that has a massive overall forest coverage
but recently he situation is undergoing a rather dramatic if not tragic
change. The illegal and unorganized cutting of wood and the selling off
of timber to neighboring Turkey and Armenia has became a source of both
economical and ecological problems for Georgia.

Some analysts think that recent natural calamities including floods and
landslides, mainly in mountainous places like recent disaster in Svaneti
which was a direct result of the unorganized and illegal felling of
forests in various places.

In spite of the declaration of a moratorium on woodcutting in different
regions of Georgia, local residents still continue the illegal cutting
and selling of timber, in particular in the regions where the rural
population is very poor and has no other source for survival. Residents
use the illicit wood as a source of heating in winter and for cooking
year round.

The most dramatic situation is going in southern Georgia in
Samtskhe-Javakheti where neither official restrictions nor police
intervention can do anything about closing down the illegal wood
processing workshops which are estimated to number several dozen.

In a recent interview with the Akhali Versia newspaper, the Head of the
Forestry Department, Bidzina Giorgobiani, explains that the state
program had been developed utilizing the experience of Austria and the
Baltic countries. This reform envisages the creation of a state owned,
Limited Liability Company and a forestry stock exchange.

This state owned company will take care of the organization of the wood
processing system, cutting down, replanting and selling. It would also
oversee long-term leases of up to 0 years to mange forests.

Recently the Minister of Economy Kakha Bendukidze stated that even the
country’s forests had to be privatized and sold off. His statements led
to poplar concern that this could create an even more disastrous result
as the poor administrative system of Georgia would be unable to protect
and manage the woods.

There is an old Georgian saying that says: if you want to consider your
life complete, have a son, build house and plan t a tree. Those old
Georgians knew what they were talking about, but the country is still
waiting to see about the new ones.

3.4. INTERNATIONAL ORGANIZATIONS, LOCAL GOVERNMENT AND BUSINESSES WORK
TOGETHER FOR THE BENEFIT OF THE VULNERABLE POPULATION

Source: The Messenger, August 30, 2004

Mercy Corps and Curatio International Foundation, implementers of the
Community Investment Program East (CIP-E), initiated and funded by BP
and its partners in BTC-SCP projects have expanded healthcare services
to the elderly in Kvemo Kartli villages. The goal of the program is to
involve different actors of Civil Society – NGOs, business and
government – in the provision of these services to make them more
sustainable and effective.

For the past few months Mercy Corps and Curatio International Foundation
have worked in partnership with local business to increase in funding in
the villages of Ivanovka and Jigrasheni and also reached an agreement
with local government of Tetritskaro district to support social service
provision in the villages of Khaishi, Kosolari, Didi and Patara Durnuki.
The services include visits by the medical crew in the above villages,
examination of patients, diagnostics and lab analyses, as well as
purchase of necessary medication for the elderly. The Tetritskaro local
government also agreed to fund salaries for medical personnel in
Samshvilde, Kosolari and Akhalsopeli, while CIP-E provides equipment for
the ambulatories in these villages.

Since its start, these healthcare services have directly benefited over
200 patients in the above villages that have not had access to
healthcare facilities for decades due to the lack of funding and the
remote location of their villages. Mercy Corps ad its partners in CIP-E
will monitor the implementation of the process and will try expanding
similar activities to promote greater collaboration of Civil Society
actors for the benefit of eh country.

3.5. MEASURES TAKEN TO SAVE LISI LAKE

Source: 24 Hours, August 31, 2004

On August 30, 2004 during the session after criticizing and warning the
structures responsible for city streets clean up the Mayor of Tbilisi
spoke about the sanitarian situation of Lisi Lake and demanded from the
relevant structures to take all the necessary measures to improve the
sanitarian situation of the lake, clean up the lake and alongside
territories before the next summer.

For a long time the Lisi Lake lost its function as lake, moreover, it
became very dangerous place for the population. During years National
Center for Controlling the Diseases warned the relevant structures that
lake turned into the source of infections. Two or three years ago in the
lake were discovered cholera vibrio. During the certain period the lake
disappeared at all. in 2002 the lake was filled again, that according to
the National Center for Controlling the Diseases improved the situation.
It is already a two year the Lisi Lake does not represent the risky
place for the spreading of the infectious stated Paata Imnadze, head of
the National Center for Controlling the Diseases, though according to
the sanitarian services this does not mean that the place is absolutely
safe from the sanitarian perspective. The chemical indicators of the
Lisi Lake do not in accordance with the standards, because of this
swimming in the lake is not allowed, stated in the Sanitarian
Supervising Service.

The Mayor of Tbilisi desires to turn the Lisi Lake into the recreation
and entertainment place. Thus in the next summer Turtle Lake will have
challenger in the person of Lisi Lake.

3.6. OIL THEFT FROM PIPELINE

Source: The Messenger, September 3, 2004

Officers of the Ministry of State Security and the State Defense Service
discovered a case of oil theft on the Baku-Supsa pipeline in the village
of Plevi in the Khashuri district on September 2, 2004.

According to officials the theft was don using an extremely dangerous
method.

The Deputy Minister of State Security Gigi Ugulava declared at a press
conference on September 2, 2004 that four people were arrested: Merab
Enukidze, Korneli Enukidze, Jangur Jangrashvili and Ivan Metreveli.

According to Mr. Ugulava, a special apparatus was installed on the
pipeline to regulate the oil pressure in the pipeline.

According to law enforcement bodies, they would have been unable to
detect the loss if it had not been for leads that warned them about the
theft.

One truck of oil and equipment that was used for stealing the oil has
been found at the crime scene.

3.7. BP COMPLAINS LOCAL RESIDENTS USE ACCESS ROADS

Source: The Messenger, September 6, 2004

BP, the lead of the Baku-Tbilibi-Ceyhan pipeline, has expressed
discontent over local residents using roads parallel to the pipeline in
Samtskhe-Javakheti and Kvemo-Kartli.

The company argues that it is a matter of safety that vehicles not
involved in the construction stay off the rods they built for the
pipeline crews.

According to Prime News, analysts consider the company’s statement to be
connected with protests against pipeline since before residents were
able to use the access roads without problems.

3.8. SAWMILLS FACE THE AXE IN BORJOMI

Source: The Messenger, September 6, 2004

All illegal sawmills will stop operating in Borjomi region from
September, in an ongoing crackdown against illegal logging and
unregistered business.

Representative of the Ministry of Environment and Natural Resources, the
Forestry Department and the Parliamentary Committee of Natural
Protection held a meeting with the Borjomi administration on August 27,
2004, where they discussed the situation in the region and developed a
plan for combating the illegal timber businesses.

According to the Head of the Forestry Department, Bidzina Giorgobiani,
after Georgian law enforcers started checking all sawmills in the
Borjomi region it was revealed that 70% of over 200 mills are illegal.

`These workshops do not have environmental permits, they also are not
registered in tax roles and the buildings they own are also constructed
without any permits,’ said Mr. Giorgobiani during the meeting.

Numerous workshops are visible along the stretch of road connecting
Khashuri to Borjomi. The village of Akhaldaba is best known for
producing beds of all shapes and sizes. As areuslt of the sawmills,
piles of saw dust end up being thrown into the Mtkvari River or burned
in local fields.

Mr. Giorgobiani adds that the law enforcers will continue to check the
existing mills in the region and already by the middle of September the
Georgian Finance Police will begin to close down their operations.
According to government estimations, there are 205 workshops in the
Borjomi region.

Meanwhile, the Georgian Environment and Natural Resources Ministry
announced earlier this summer that it plans to create a special service
that will work on issuing environmental licenses.

`This service will issue all licenses on using natural resources in the
country and permits for all environmental actions,’ Minister of
Environment and Natural Resources, Tamar Lebanidze, told journalists in
July.

In July the three-month moratorium on tree felling ended in
Samtskhe-Javakheti. The government introduced a moratorium on the usage
of forest resources on May 14, 2004. The one-month moratorium prohibited
the cutting down of trees throughout Georgia, except in the
Samtskhe-Javakheti region where a three-month ban has been introduced by
the government.

According to the ministry, during the moratorium the Forestry Department
revealed a large number of violations. More than 12,000 cubic meters of
illegal timber has been confiscated during this period.

Talking with The Messenger, earlier in the summer, Bidzina Giorgobiani
named other regions where the situation in the forests was more than
just alarming. He named the situations in Racha, Svaneti and Samegrelo
as `disastrous’.

According to Mr. Giorgobiani, the Georgian forestry sector can
successfully implement the models existing in Austria, Switzerland and
the Baltic countries. One of the reforms he plans to implement in the
sector is the creation of a forestry stock exchange.

Although the fate of Georgian forests is still vague, the Minister of
Economy Kakha Bendukidze recommends the selling off of the country’s
forest resources. Environmentalists like Manana Kochladze, from the
Georgian NGO Green Alternative, warn that the current uncontrollable
logging has already caused several landslides and water scarcity in the
Georgian regions.

3.9. ILLEGAL SAWMILLS OUT OF 200 ARE CLOSED

Source: Rezonance, September 7, 2004

The Ministry of Environment of Georgia together with the Financial
Police closed 6 illegal woodworking enterprises out of 200 acting in
Borjomi region. According to the information of the State Forestry
Department of Georgia 205 woodworking enterprises are registered in
Borjomi region and only 5 out of these enterprises are licensed.

It should be mentioned that several days ago the Ministry of Environment
of Georgia gave first notice to the head of the Forestry Department of
Samtskhe-Javakheti region regarding the illegal woodcutting in the
region, and also required from the owners of the woodworking enterprises
to submit within the week relevant documentations allowing them to work.
On the expiry of the deadline the Minister of Environment of Georgia
Mrs. Lebanidze visited region and the above-mentioned activities were
held in the presence of the Minister. 6

3.10. PB — CLEAN UP ACTIVITIES

Source: `24 Hours’, September 10, 2004

BP together with the German Technical Cooperation, International
Services launched implementation of the clean up program in Borjomi and
Bakuriani regions. Tender is already announced for the local
governmental structures and companies. Closing of the dumpsite,
improvement of current landfills and their access roads, purchasing
necessary equipment, public awareness campaigns to involve the
population in the clean up actions all this should be done in the frame
work of the above mentioned program. The program should be finished in
the first half of December. According to Bp the exact amount of money
provided to the winner would be announced after the end of the tender.

3.11. CHANTURIA DISCHARGED FROM GIOC

Source: Messenger, September 13, 2004

The post of president of the Georgian International Oil Corporation is
vacant after President Mikheil Saakashvili fired Gia Chanturia while he
was in Baku discussing the Baku-Tbilisi-Ceyhan pipeline. There are
rumors in the media that the prosecutor’s office may become interested
in Chanturia’s affairs.

Two possible candidates for the presidency of GIOC have been nominated:
the former media tycoon Erosi Kitsmarishvili and the US-based Georgian
Ramaz Berianidze.

Before the Rose Revolution, GIOC president Chanturia was considered to
be not only as a highly successful administrator, but as a possible
candidate succeed then-president Shevardnadze in the 2005 presidential
elections. During the revolution, however, Chanturia remained in
Shevardnadze’s camp, although he did not actively participate against
the Saakashvili-Zvania alliance.

Unlike many Shevardnadze allies, Chanturia was not discharged
immediately after the Rose Revolution, although his office building was
taken from him. The Georgian media suggested that Chanturia’s was able
to remain in his post owing to his personal friendship with current
Azeri president Ilham Aliev.

It is said that they have been friends from their youth and that,
according to newspaper Alia; Chanturia was appointed GIOC president by
Shevardnadze under the recommendation and promotion of the Aliev family.

Nobody can say whether Aliev agreed to Gia Chanturia’s discharge or if
Saakashvili asked him.

According to Alia, Chanturia may be questioned by the general
Prosecutor’s office. But assuming that he manages to avoid any
complications with Georgia law-enforcement bodies, he might be granted a
high position in Azerbaijan by his friend Aliev

3.12. GEORGIA TO COLLABORATE WITH IRAN IN TOURISM SECTOR

Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
September 14, 2004

Chairman of the State Department of Georgia for resorts and tourism Saba
Kinknadze stated that Iran shows interest in tourism sector of Georgia,
AzerTAj correspondent reported. According to S. Kinknadze, Georgian
delegation will visit Iran on September 24 and learn the experience of
this country in developing culture and historical tourism.

3.13. ONE BAR OF GOLD, ONE TONE OF CONTROVERSY

Source: The Messenger, September 16, 2004

The activities of the joint stock company Madneuli were accompanied by
loud scandals during the Shevardnadze era and the tradition continues
today.

Last week the director of Madneuli Vasil Tsotadze presented the
president of Georgia the first bar of gold produced in Georgia from gold
containing alloys. Almost simultaneously, however, 8 of 9 members of the
Board of Directors resigned, leading the deputy head of the
parliamentary economic policy committee Vazha Kiladze to declare that
the change of the Madneuli management has not resulted in a change of
the old, corrupt system.

Madneuli was not listed in Minister of Economy Bendukidze’s recent
privatization list, but the sensationalist paper Alia reports that
Madneuli may be sold soon – to the minister of economy himself.

The paper claims that the selling price has been set at USD 12 million,
which is regarded to be a very small sum for such a company and has been
described by Bendukidze himself as `absurd’.

The minister of economy does not question, however, that it is essential
the company should be privatized, Alia reports. According to him any
state owned company is a source of corruption.

The paper also reports that Bendukidzemay have a rival in former media
magnate Erosi Kintsmarishvili, who intends to try buy Madneuli. However,
Kintsmarishvili has not confirmed the information. There have been all
sorts of rumors regarding Kintsmarishvili’s business interests, and it
is difficult to determine which are true and false.

The current manager of Madneuli Vasil Tsotadze declares that he is not
against the privatization of the company, but is trying to show that
there has been progress in the company, as evidenced by the recent
production of a bar of gold.

In contrast with these statements of the general director, MP Kiladze
believes little has changed in Madneuli since the resignation of Zurab
Lobzhanidze, who managed the company during Shevardnadze’s period.

Although the company’s profits have risen, this is due to a rise in the
price of copper on the world market by USD 1, 000 (from 1,800 to 2,800).
The price of gold has also risen, from USD 300 to USD 400 per ounce. At
the same time, reports Khvalindeli Dghe, the cost of production at
Madneuli has sharply increased, from GEL 391 per tom of copper in 2000
to GEL 755 per ton day.

Kiladze claims that corruption is still at works at Madneuli. According
to him, Lobzhanidze, who is in exile, is now taking part in the
management of the company through his work at the Swedish company
Glencore International AG, which is a contractor of the Georgian
company. Kiladze says there is other evidence of corruption and has
called for the dismissal of the current director of the company.

3.14. STRONG LARI LEADS TO CALLS FOR ENERGY RATE REDUCTIONS

Source: The Messenger, September 16, 2004

There is growing concern among Georgians that despite the strengthening
of the lari, there has been no reduction in tariffs for electricity and
natural gas. Asked by a New Rights Opposition MP about the possibility
of a reduction in the electricity tariff, the chairmen of the Georgian
National Energy Regulatory Commission (GNERC) confirmed that none was
envisaged.

One kilowatt of electricity currently costs 12.4 tetri. This price was
fixed by GNERC on August 15,2003, when the lari rate against the dollar
was 2.11. Now 1 dollar buys approximately GEL 1.88, and this has led to
calls for a reduction of the price of electricity so as to provide
essential relief fir socially vulnerably sectors of the population.

GNERC Chairmen Gia Tavadze could only promise that the tariff would not
increase. He said that he was not yet sure how the GEL rate would affect
the electricity supply, particularly in winter, when Telasi will need to
import additional electricity.

The leader of the Right Wing Opposition David Gamkrelidze labeled
Tavadze’s statement as `blackmail of the population,’ as reported in
both Khvalindeli Dge and 24 Saati.

While the GNERC stared it had no plans to reduce the electricity tariff,
it said it does plan to reduce the natural gas tariff by around two
tetri. It is envisaged that the Russian natural gas distribution company
Itera will reduce its tariffs but negotiations continue and the final
decision is yet to be announced.

The GNERC is designed to be an organization independent of the state and
it sets the tariffs twice a year in April and October.

3.15. GEORGIA AND TURKEY SIGN FORESTRY COOP PROTOCOL

Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
September 17, 2004

Head of the Georgian Forestry Department Bidzina Giorgobiani met with
her Turkish counterpart Osman Gahvechi now visiting Georgia to sign a
protocol implying cooperation in forestry between the two countries
including joint combat against forest pests, and preventing illegal
timber removal.

During the visit, Mr. Gahvechi is expected to familiarize with Tbilisi
botanical gardens, forestry in Borjomi region and Ajaria, meet with
Minister of Natural Resources and Environment of Georgia Tamara
Lebanidze

4. NEWS FROM AZERBAIJAN
4.1. BP PRESIDENT DAVID WOODWARD PUTS PRESSURE ON THE AZERBAIJAN
MINISTRY OF ENVIRONMENT

Source: AZEROIL, September 10, 2004

According to the sources close to the Ministry for Environment and
Natural Resources BP President David Woodward put pressure on the
Ministry to resolve a series of issues.

The Ministry official stated that it is not the first time when
President of BP in Azerbaijan using the force to resolve BP
environmental problems by involving Office of the Republic President.

Ministry official stated `protection of the Environment for Azerbaijan
is as important as oil extraction.’

Ministry put a ban for sending by BP its drill cuttings to the Garadag
Cement Factory. Ministry found that is process as very harmful, i.e.
radioactive drill cuttings containing also a lot of toxic substances
should not be used in Cement manufacture. Such cement is very dangerous
for health of people. In spite of that BP again is insisting in
resumption of that process.

According to him, Minister criticized the environmental activity of a
number of foreign companies working in Azerbaijan, whose activity
harmfully impact on the environment. Among them were Garadag Cement
Plant, SalyanOil and BP. According to Ministry official `each company
working in Azerbaijan should comply with Azerbaijan law’. He stated that
the Ministry will undertake all necessary actions against such
companies, using the law Azerbaijan Republic, including fines and
penalties.

According to him, BP also violates the law of Azerbaijan Republic on
Environmental Protection. He said that the BP Company, known in the
world as a green company, works in Azerbaijan in non-green style. BP has
not clear plans on drill cuttings and produced water handling. He also
mentioned that documents which BP submits to the Ministry of Environment
for review are usually of poor quality.

Ministry of Environment and Natural Resources sent a number of letters
to BP claiming fines as compensation of the damage to the environment
for series of oil spills, which occurred in BP oilfields. The total sum
of the fine is about one million American dollars. Unfortunately all
letters signed by President Woodward to Ministry was saying that BP is
in compliance with Contract of Century and harmful oil and substances
can be damped to the sea.

Last negotiations and letter to Ministry shows that BP has changed its
approach and now is ready to pay fines for the damage. At the moment BP
and Ministry are negotiating the sum of the fines. `We hope this issues
will be resolved soon and we shall come to agreement’ – said Ministry
official. He also mentioned that even after that letter, BP approached
to the office of the Republic President. The Ministry is decisive and
going to take BP to the court if BP decides to violate Azerbaijan Law on
Protection of the Environment.

BP president in Azerbaijan is also making pressure to Ministry to get
approval for treatment of cuttings by thermal way. Ministry finds that
process does not allow to resolve management of that waste,
environmentally is not sound and extremely expensive as compared with
other methods. Ministry is against to this process as cost for this
non-friendly process is also shared by Azerbaijan.

We hope that BP will be not ignoring interests of Azerbaijan environment
, and will care about the environment of Azerbaijan as much as about its
profit from the extracted oil.

Currently BP is damping drill cuttings and oily water directly to the
Caspian Sea and its activity negatively impacts on the environment.
Ministry is going to put an end to these discharges from Chirag
platform.

Ministry official said all violators would be made answerable before the
law.

4.2. BTC OIL PIPELINE CONSTRUCTION GOES WITHIN SCHEDULE

Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
September 14, 2004

Construction of the Baku-Tbilisi-Ceyhan pipeline to be completed in
first half 2005, goes within the schedule, and over 75 % of works have
been already completed.

1695 km of pipeline is prepared for laying, 1583 km – for welding, 1487
km dug for ditch, 875 km of pipe laid, AzerTAj correspondent learnt from
Company’s press-service.

4.3. BTC MAIN PUMPING STATION BUILT ON SANGACHAL TERMINAL

Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
September 14, 2004

85% of construction works were completed in the main pumping station of
Sangachal terminal, envisaged for Baku-Tbilisi-Ceyhan export oil
pipeline.

Building of pumping cover at 14 m height and the first three main pumps
for oil export in `Central Azeri’ part of this station have been already
constructed, another two pumps will be delivered to the terminal late
2004, AzerTAj correspondent learnt from press-service of BP company.

Assemblage of steel construction is going on.

4.4. PROJECT ON CASPIAN BIRDS PROTECTION IMPLEMENTING

Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
September 22, 2004

Public association for ecology and birds protection of Azerbaijan
prepared a project `Protection of species of water and wader birds on
Azerbaijan waterside of the Caspian Sea’.

According to the project, species of water and wader birds, their
dwelling, place of their main accumulation will be determined,
anthropogenic influence on birds studied, territories to be polluted in
the course of offshore accidents researched, plans of arrangement linked
with birds protection prepared as well, Chairman of the association
Ilyas Babayev told AzerTAj correspondent.

Bp and its partners for Baku-Tbilisi-Ceyhan oil pipeline allocated funds
in 18 thousand US dollars for project implementation within a year.

4.5. BTC PROJECT SPENDS $4 MLN DAILY

Source: State Telegraph Agency of the Republic of Azerbaijan, AzerTag,
September 23, 2004

BP-Azerbaijan has spent $686 million out of the total $1 billion
scheduled in 2004 for the construction of the Baku-Tbilisi-Ceyhan oil
pipeline to be launched in the first half of the next year. The work in
three countries the pipeline will pass through cost $4 million per day.

4.6. ECOLOGY MINISTRY AND BP NEGOTIATE FINANCING OF PROJECT TO
REHABILITATE OIL-CONTAMINATED LANDS

Source: azerweb.com

The Ministry for Ecology and Natural Resources of Azerbaijan is in the
process of active negotiations with the World Bank on financing of the
project of rehabilitation of oil-contaminated territories of Absheron
peninsula.

Turan – A WB decision and governmental decree of Azerbaijan are
anticipated on the matter. It should be reminded that the WB intended to
award $14-15 million for rehabilitation of oil-contaminated territories
in Absheron peninsula, where most onshore oil and gas fields of
Azerbaijan are located.

Oil contaminated lands are going to be divided into sectors. In addition
to the state and WB, representatives of private sector will also be
involved in the project. Oil contaminated territories cover over 30
thousand hectares in Absheron peninsula. Complete rehabilitation will
demand for up to $10 billion.

The project of rehabilitation of oil-contaminated lands in Absheron
peninsula will begin in 2005.

5. NEWS FROM ARMENIA
5.1. ARMENIAN JOURNALIST BEATEN FOR FILMING LUXURY VILLAS

Source: Radio Free Europe / Radio Liberty, August 24, 2004

An Armenian photojournalist was beaten up Tuesday for taking pictures of
plush mansions apparently belonging to a high-level police official and
other government-connected individuals, the latest in a series of
violent attacks on representatives of the country’s media.

Mkhitar Khachatrian of the Photolur agency was attacked in Tsaghkadzor,
a resort town in central Armenia where he was on assignment together
with Anna Israelian, a correspondent for the independent daily “Aravot.”
Israelian was preparing an article about the damage to local mountainous
forests caused by housing construction in recent years.

The two reporters told RFE/RL that they were surveying an expensive
residential area when a man guarding one of its houses, reputedly owned
by Armen Yeritsian, deputy chief of the national police, told
Khachatrian to stop taking pictures.

“It was a very beautiful building and I wanted to photograph it,”
Khachatrian said. “He told me that I can’t do that, saying ‘Do you know
whose neighborhood you have entered?’ But I did take a shot and left the
neighborhood.”

The reporters said they were later confronted by the same person at an
indoor cafe as they were about to leave Tsaghkadzor. “The man who warned
me against taking pictures recognized me and then called a group of
other men. Suddenly one of them attacked me,” said Khachatrian, who had
traces of violence on his neck and arms.

The photographer added that the man kicked, punched, cursed and
threatened to kill him. He said he prevented his expensive digital
camera from being smashed by surrendering its picture storage card to
the attackers. “They would have broken the camera had I not told them to
take the card. I had no choice,” he said.

Khachatrian described the attackers as burly men with “shaven heads and
thick necks.” The description matches the appearance of two dozen thugs
that indiscriminately destroyed video and still cameras that filmed
their attempts to stir up trouble at an opposition rally in Yerevan on
April 5. Riot police stood by and refused to intervene, giving weight to
reports that the violence was provoked by the Armenian authorities.

Israelian said he believes that the man who beat Khachatrian was the
chief bodyguard of Levon Sargsian, a wealthy pro-government
parliamentarian notorious for punching an opposition colleague two years
ago. Also having a house in the same Tsaghkadzor area is Gagik
Tsarukian, one of Armenia’s richest men who also hold a parliament seat.

According to some media reports, Tsarukian’s and Sargsian’s men were
among the participants of the April 5 rampage. Only two of them have
faced a largely symbolic punishment for their role in the violence. A
Yerevan court fined them 100,000 drams ($195) each on June 10 following
a brief trial dismissed as a “farce” by Armenia’s leading media
associations.

Two of those groups, the Armenian Journalists Union and the Yerevan
Press Club were quick to condemn the Tsaghkadzor attack. “The violence
against the journalist and the obstruction of his work are the
consequence of the failure to punish those guilty of the previous
incidents,” they said in a joint statement. “We demand a meaningful
intervention from the law-enforcement bodies to identify and punish the
guilty.”

But Israelian, who lost her camera on April 5 and was a key witness at
the subsequent trial, said it would be “ridiculous” for her to turn to
the police again. Khachatrian, who is the author of the most famous
photograph of victims of the catastrophic 1988 earthquake in Armenia,
likewise said he would not lodge a formal complaint with the
law-enforcement authorities.

Violence against Armenian journalists, uncommon in the past, increased
dramatically this year with the start of the Armenian opposition’s
unsuccessful spring campaign to oust President Robert Kocharian. In the
most serious of such incidents, four reporters were beaten up by
security forces during the brutal of break-up of another opposition
demonstration in Yerevan in the early hours of April 13. Two of them
were severely injured.

5.2. RA GOVERNMENT TO STRENGTHEN CONTROL OVER ARMENIA’S BIOSECURITY

Source: Arminfo, September 2, 2004

The RA Government has decided to strengthen control over Armenia’s
biological security.

At his news briefing, RA Deputy Minister of Nature Protection Artashes
Ziroyan reported that a national coordinating center is expected to be
formed simultaneously with a scientific-technical council, the latter to
be consisted of 17 experts representing 10 institutions and public
organizations. He pointed out that the Government will establish control
over the import of food products and fodder of animal origin in
conformity with the Cartagena Protocol. He said that the center will
examine documents on imported goods and their conformity to the
Cartagena Protocol. Ziroyan stated that no laboratory analysis will be
conducted for lack of funds and equipment.

5.3. A CRITICAL MOMENT FOR LAKE SEVAN

Source: , September 8, 2004

The six-meter increase in the water level is not based on science

Lake Sevan was once a reservoir of water fit for drinking, according to
physical, chemical, and biological indices. But today, as a result of
the intensive exploitation of the lake over the years, its ecological
system has been disturbed, with falling water level and resultant
swamping bringing about qualitative changes, and the state of its native
fish life, the most sensitive index of the health of the lake, has
changed. There used to be three kinds of fish native to Sevan – ishkhan
(trout), koghak (carp) and beghlu (barbus).

Beghlu is a species peculiar to Lake Sevan . It has never had any
economic significance, much less so today. The quantity of Koghak has
decreased catastrophically as well, to the point where scientists plan
to declare it an endangered species. Of the four types of Ishkhan, two
used to spawn in the lake, and two in the rivers. Two of these have
disappeared, since their spawning grounds have vanished as the water
level has fallen, and the other two are on the verge of extinction.

Today only two kinds of fish of industrial significance remain in Sevan
– Sig (whitefish) and lake sazan.

Four years ago a project to restore Lake Gilli , in the southeast of the
Sevan basin, was launched, and it was expected to play a vital role in
saving the Sevan eco-system. Lake Gilli had dried up as a result of the
drop in Sevan’s water level. Since then, 110 kinds of birds have
disappeared from the basin, and the republic as a whole has been
deprived of 35 kinds of birds.

The Gilli project failed, and it is not clear yet what the fate of a
second project, recently started with an impressive initial investment
of $1 million, will be.

The most striking evidence of the government’s mishandling of the Sevan
problem is the complete absence of purifying stations on the lake. But
even if they were in operation, they would have trouble preventing the
damage to Sevan caused by agriculture. Irrigation is not the only
problem. The inability of villagers to utilize fertilizers correctly
contributes to the free flow of nitrates and phosphates into the lake,
the majority of which come from industrial and household wastewater.
Twice in the past, a decision was made to build in a purification
station in Gavar. Both times, the decisions were reversed and new
enterprises were built.

Delays in putting the Vorotan River-Arpa River hydro-system into
operation have played a role as well. It has come to light through the
2002 annual report of the Ministry of Ecology that although 1.4 billion
drams (about $2.7 million) was allocated for the construction of a
tunnel, no work was carried out.

There is another factor threatening the stability of the level of Sevan
which is beyond human control, the negative impact of evaporation on the
water level over the past few years. The volume of water lost through
evaporation has been greater than the volume of water flowing into the
lake.
And although there has been heavy rainfall in the last two years,
scientists predict that in connection with global warming, evaporation
will increase in the future. Some even hold the pessimistic view that no
matter what is done, the lake will eventually evaporate completely.

But at least this year, unprecedentedly abundant rains have helped
revive the beautiful mountainous lake. Today, Sevan seems to be waking
up, its dead green color gradually turning healthy and vivid. It is
expected that when the Vorotan – Arpa hydro-system goes into operation,
165 million cubic meters of water will flow into Sevan each year. This
will be a miracle cure for the lake, now at death’s door. The Law on
Sevan stipulates that the level of the lake must rise by six meters.
Compared to 2000-2001, the water level has already gone up one meter and
seventeen centimeters.

But a real battle has begun between ecologists and the government over
goals for the lake. Scientists say that emphasizing the six-meter mark
not only is unfounded scientifically, but also might have very dangerous
consequences for the lake. The chairman of the NGO For Sustainable Human
Development, Karine Danielyan, explains, “The ecological system of the
lake will become healthier if the lake water returns to its level in the
nineteen-sixties, i.e. 1,908.5 meters, when the processes of decline had
not yet begun and the lake was in its natural, balanced state. That’s
the only way that the water quality will improve, the flora and fauna
will revive, and it will become possible to talk about saving Sevan.”

“This six meters won’t do anything for the lake,” says the
deputy-director of the Institute of Hydro-ecology and Pisciculture of
the Academy of Science, Bartugh Gabrielyan. “Maybe it will hold up the
swamping process, but it will not improve the water quality, and Sevan’s
most important problem is water quality. People were talking about six
meters at a time when the lake’s water level had fallen by eighteen
meters. Since then the water level has kept falling, up to twenty to
twenty-two meters, but now the same figure is being mentioned again. ”

Minister of Ecology Vardan Aivazyan says that the figure of six meters
appeared as a result of a study by experts from the World Bank. The real
story is somewhat different. At one time, the Institute of Hydrology of
the Academy of Science of Armenia , together with institutes in Moscow
and Rostov ( Russia ), developed a mathematical model to find out what
would happen in the lake after the water level increased, and what level
would be necessary to return the water quality to its previous grade.
The mark of six meters was found as a result of applying this model.
Accepting these dated findings, without taking the trouble to do new
research or ask the opinion of local scientists regarding the current
situation, international experts merely reiterated the six-meter mark.
The fact that the ecological system of the lake has changed for the
worse, with new problems raising their heads, has been completely
ignored.

The reason that the government doesn’t want to consider raising the
level of the lake by more than six meters may simply be that a rising
water level will become a real threat to dozens of lakeside vacation
houses owned by the nouveaux riches with positions and connections.
Waves are lapping at the walls of Gagik Tsarukyan’s lakeside “cottage”,
and dozens of other buildings are already under water. So today,
stubborn attempts are being made to reduce even the six-meter mark. The
marzpet (governor) of Gegharkiunik, Stepan Barsegyan, says he receives
unofficial instructions that the water level should not go up by more
than four meters. The director of Sevan National Park , Gagik
Martirosyan, employs doubtful arguments to suggest that an increase of
even by one meter would be enough for Sevan. This could mean that the
quantity of water entering the lake will be controlled, in order to
protect the owners of lakeside buildings.

There are 350-400 structures along the coast today, owned by both
individuals and organizations, the majority of them illegal. The
government will not compensate the owners of illegal constructions if
they go under water. But the government will have problems with the
landlords whose houses were built with permits from town-planning
authorities. These landlords are understandably furious, since none of
the local officials or ministers dropped a hint about the water level
increase as they handed out these permits. But the strange thing is that
construction work is still going on all around the lake, even though
local officials now warn builders that their projects might one day be
under water.

The fifteen to twenty hectares of lakeside forests that have been
planted over the last fourteen years will be absorbed into the lake as
well, a sad but unavoidable loss.

Today for the first time in years, there is a real possibility that the
lake will be saved. The Vorotan – Arpa hydro-system, the twenty-eight
rivers that flow into the lake, and the reconstruction of the Yeghvard
Reservoir all hold real promise for Sevan. The unprecedentedly heavy
precipitation of the last few years was an unexpected gift. Some
ecologists believe that even without the hydro-systems Sevan may come
back from the brink of death. If, of course, its salvation is not
sacrificed to the interests of the oligarchs.

It’s a critical time for Lake Sevan once again. The general public has
been deprived of information about what has been going on around Sevan.
It has been deprived of the right to participate in deliberations over
the fate of the lake that plays such an important role in the life of
generations to come. Perhaps this is because both our government and our
society are lacking in environmental awareness. People sit by silently,
uninformed, as their rights and interests are threatened.

5.4. WHO IS DESTROYING THE FORESTS IN TSAGHKADZOR?

Source: , September 8, 2004

As we reported on August 28 th , a number of media outlets organized a
joint protest in which ninety journalists went to Tsakhkadzor in
nineteen cars. They drove around the town taking pictures of the
forests that have been cut down and the houses of various government
officials and businessmen that have gone up.

Pictured here is the wall surrounding the house of Levon Sargisyan, a
member of parliament. We remind you that it was Sargisyan’s bodyguard,
Gagik Stepanyan, who beat photojournalist Mkhitar Khachatryan of the
news agency PhotoLur and reporter Anna Israelyan from the newspaper
Aravot. Stepyanyan is currently under arrest. It makes sense that an MP
who walks around with dozens of bodyguards has to build a wall like
this, though only he knows who or what he is so afraid of.

This mansion belongs to the head of the State Customs Committee of
Armenia, Armen Avetisyan.

The path through the forest has been widened to enable Robert Kocharyan
to drive a snow mobile here. “Maybe some twenty trees were cut down
there,” says the mayor of Tsaghkadzor, Garun Mirzoyan.

When reporters had presented him with evidence that trees had been cut
down Tsaghkadzor the mayor made the following statement twice, “In this
area only ten or fifteen trees were cut down”.

Now that the forest has been occupied by the owners of these mansions –
government officials, MPs, oligarchs – ordinary people can’t even pick
berries there. On August 7, 2004, Samvel Baghdasaryan, a resident of
Hrazdan, was shot and wounded while picking gooseberries. Haykakan
Zhamanak reported that according to one theory, it was a bodyguard of
Olympic Committee Chairman Ishkhan Zakaryan who pulled the trigger. An
investigation into the case by the Hrazdan prosecutor’s office is
underway, although there are no suspects so far.

5.5. ARMENIA, IRAN SIGN $30-MLN CREDIT AGREEMENT FOR PIPELINE
CONSTRUCTION

Source: Interfax, September 9, 2004

Armenia and Iran signed a $30-million credit agreement on Wednesday to
finance the construction of the Armenian section of the Iran-Armenia gas
pipeline.

Energy is an important sector in cooperation between the two countries,
which have already gained a wealth of experience in cooperation in this
sphere, Armenian President Robert Kocharian said at a press conference
following the signing of the agreement.

“More serious steps will be taken based on this experience on the path
to unite the infrastructure of both states and raise mutual relations to
a qualitatively new level,” Kocharian said, adding that the construction
of the pipeline has an important regional significance.

Iranian President Mohammad Khatami, who was at the press conference,
also said bilateral cooperation was important in the energy sphere.

According to the agreement, Iran is to provide Armenia with a credit of
$30 million to build the Armenian section of the Iran-Armenia gas
pipeline. The credit will be provided for 7.5 years at 5% per year. The
funds will be used to finance the construction of a pipeline from the
border town of Megri to Kajaran.

Construction of the Armenian section of the pipeline should begin at the
end of 2004. Armenia will finance work to reconstruct and change parts
on the Kajaran-Yerevan gas pipeline.

Armenia and Iran signed an agreement on May 13 for the construction of a
pipeline between the two countries. The pipeline is 141 km long,
inducing 41 km in Armenia and 100 km in Iran. The total cost of the
project is estimated at $210-$220 million. The pipeline is expected to
be launched before January 1, 2007.

Gas should start to arrive in Armenia from January 2007 and will be used
at Armenian thermal power plants to produce electricity for export to
Iran. Iran will supply 36 billion cubic meters of natural gas to Armenia
over 20 years according to the document.

5.6. ARMENIA TO ASK FOR $900M IN EXTRA U.S. AID

Source: Radio Free Europe / Radio Liberty, Inc., September 17, 2004

Armenia is seeking as much as $900 million in additional U.S. government
assistance for the next three years and would like to spend most of the
money on getting its battered irrigation and drinking water
infrastructure into shape, officials said Friday.

The requested extra aid would come as part of the U.S. government’s
Millennium Challenge Account (MCA), a scheme designed to promote
political and market reforms around the world. Armenia as well as
neighboring Georgia were included last spring in the first group of 16
countries eligible for it. Each of them has to present and substantiate
specific aid proposals that will be considered by the Millennium
Challenge Corporation, a government body in charge of the MCA.

According to Aram Andreasian, head of the State Committee on Water
Resources, the Armenian government has already finalized its package of
proposals and will submit them to Washington by the end of this month.
He said two thirds of the requested sum are proposed to be used for
improving patchy water supplies to Armenian households and farmers.

`As far as our [MCA] package is concerned, the water sector is in
greatest need of investments,’ Andreasian told a news conference after a
weekly cabinet meeting.

Armenia’s notoriously inefficient drinking water network has undergone
sweeping structural reforms over the past two years. The authorities
promised in late 2002 that the situation with water supplies will
improve radically after introduction of water consumption meters. Most
Armenians have already bought and installed them at their own expense.
However, change has been very slow so far.

Andreasian reiterated a government pledge to extend round-the-clock
water supplies to 80 percent of the Yerevan households by the end of
this year. But with less than half of them having running water for 24
hours a day at the moment, this seems highly problematic.

Even more difficult is access to irrigation water in the country’s rural
areas. The problem is high on the list of grievances routinely cited by
impoverished villagers.

Andreasian’s controversial predecessor, Gagik Martirosian, estimated
that at least $300 million worth of capital investments will be needed
for ensuring normal functioning of the sector. The government has
already received some $150 million in low-interest loans from the World
Bank for that purpose.

Earlier this year, an ad hoc commission of the Armenian parliament
accused the government of misusing one such loan worth $30 million. The
allegations were rejected by the government and the World Bank’s office
in Yerevan.

Andreasian revealed that the government wants the Americans to set aside
$137 million for road construction and repair in Armenia. The Armenian
government would spend the rest of the requested sum on education and
agriculture, he said.

The U.S. government has already allocated some $1.5 billion in regular
assistance to Armenia since 1992. It remains to be seen whether it will
agree to the drastic increase in aid levels sought by Yerevan.

The total amount of MCA funds made available by the administration of
President George W. Bush for this year is $1 billion. The figure is
expected to soar to $5 billion in 2006.

6. NGO NEWS
6.1. GLOBAL DEMONSTRATION AGAINST WASTE AND POLLUTION LAUNCHED

Protest highlights human health impacts of waste and pollution

Yerevan-An international coalition of activists today launched the 3rd
Global Day of Action against Waste (GDAW) citing the increasing health
impacts of polluting waste disposal practices which affect mainly
children throughout the world.

182 groups from 45 countries participated this year in what has become
an annual day of protest against unsustainable and dangerous waste
disposal systems. Coordinated by the Global Alliance for Incinerator
Alternatives (GAIA), this year s protest highlighted recent evidence
from the World Health Organization which indicates that more than 3
million children under the age of five are dying each year because of
polluted air and water and exposure to other environmental hazards.

To be really blunt about it, the worsening levels of pollution worldwide
are killing children. Governments are obviously failing to protect
children and the human population at large from harmful chemical
assaults resulting from unsustainable and irresponsible practices such
as incineration, according to Von Hernandez, Co-Coordinator, GAIA.

Incinerators are linked to serious environmental health threats.
Incineration alone is responsible for 69 percent of global emissions of
the notorious pollutant dioxin which is linked to cancer, immune and
reproductive system disorders, birth defects, and other health threats.
Incineration is also a primary source of mercury, a potent neurotoxin,
which builds up in the environment – especially aquatic ecosystems – and
affects the brain, spinal cord, kidneys and liver. It is especially
harmful to pregnant women and children.

The NGO `Armenian Women for Health and Healthy Environment’ /AWHHE/ is
active member of GAIA. Planned activities of AWHHE for GDAW includes:
dissemination of information on GDAW by mass media /Medinfo-26 August,
`Noyan Tapan’-30 August, CENN-1 September, Sustainable Development
Network-1 September, radio broadcast on National Radio- 1st week of
September/, booklets and posters `Do Not Burn Trash’. Video spot `Do
Not Burn Trash’ will be shown by `Landz’ TV in Kotayk region on 1st
September. The AWHHE carried out 3 seminars in hospitals of Yerevan and
Kotayk region on `Harmful effects of Hospital Waste Incineration’. The
Global Day of Action against Waste is inseparable part of activities
AWHHE. The one of the main activities of AWHHE is focused on propaganda
of safe alternatives to incineration. AWHHE became a member of Advisory
Council organized by Ministry of Urban Development for sustainable waste
managing. AWHHE is member of `Kanach Janaparh’ Coalition Board.

In addition to the immediate pollution they create, incinerators and
landfills also perpetuate wasteful and unsustainable production and
consumption systems. Incinerators destroy resources, which would be
better conserved for future use given the increasing pressure to harvest
finite natural resources.

Available evidence worldwide from various academic, governmental and
international institutions indicate that many of the chemicals coming
out of dumpsites, landfills and incinerators have also now been found in
the human body. The fact that everyone is now contaminated with these
harmful pollutants proves that we are now dangerously skirting the edge
of the ecological precipice.

GAIA is an international coalition of community-based organizations,
research and policy advocacy institutions, citizen pressure groups and
other nonprofit organizations and individuals working together to
promote clean production, zero waste and sustainable discard management
systems. GAIA members which now number 470 in 75 countries are committed
to ending waste incineration and advancing real solutions to the waste
crisis

Armenian Women for Health and healthy Environment
Baghramyan str. 24d, room 609
375019 Yerevan, Armenia
Tel: (+3741) 52 36 04
Fax:(+3741) 52 36 04
E-mail: [email protected]

7. INTERNATIONAL NEWS
7.1. OSCE CENTRE, WWF GATHER YOUNG PEOPLE IN TAJIKISTAN TO DISCUSS
ECOLOGICAL DEGRADATION

DUSHANBE, 17 August 2004 – 125 young people from the remote southern
areas of Tajikistan came together at a summer camp focusing on
environmental issues.

The 10-day “Ecological Education for Youth” project, funded by the OSCE
Centre in Dushanbe and the World Wildlife Fund (WWF) and supported by
the Central Asian Regional Environment Center (CAREC) and Biodiversity
National Focal Point, was launched today in Sharora camp in Varzob
gorge, north of the capital Dushanbe.

The young participants, who come from near the Tigrovaya Balka reserve
in southern Tajikistan, will identify the reasons for the reserve’s
deterioration and the ways to protect it.

“The future is in your hands,” Saulius Smalys, Environmental Officer of
the OSCE Centre in Dushanbe, told the trainees.

“Do not keep the knowledge you receive in the camp for yourselves. Share
it with friends, neighbours and relatives, this way you will contribute
to reserve protection.”

Tojinisso Nasirova, Deputy Chairwoman of the State Committee for
Environmental Protection and Forestry, said Tigrovaya Balka was a unique
nature reserve in Tajikistan that has been deteriorating over the last
five years.

“The unstable economic situation in the area surrounding the reserve is
the main reason for irrational use of the natural resources by the local
population that is reflected in the mass extermination of wild animals
in the reserve, the illegal cutting down of trees and fish poaching,”
she said.

Young people will be widely involved in the decision-making process, and
will produce a document on the principal causes of the deterioration of
the reserve and the main concerns of the local population. This document
will later be submitted to the Government of the Republic of Tajikistan.

Alexandru Codreanu Deputy Head of Centre OSCE Centre in Dushanbe
12, Zikrullo Khojaev Str., 734017, Dushanbe, Tajikistan
Tel.: +992 372 21 40 63, +992 372 24 33 38, +992 372 24 58 79
Fax: +992 372 24 91 59
E-mail: [email protected]

7.2. UNEP AND ECONOMIC COOPERATION ORGANIZATION SIGN COLLABORATION
AGREEMENT

Source: World Environmental Journalists Egroup(WEJEG), August 18, 2004

UNEP PRESS RELEASE

UNEP and Economic Cooperation Organization sign collaboration agreement
Clean energy, eco-tourism, environmental law and education targeted

Tehran, Bangkok, August 18, 2004 — The United Nations Environment
Programme (UNEP) and the Economic Cooperation Organization (ECO)
headquartered in Tehran have agreed to cooperate for strengthening
environmental management in the ECO region.

UNEP Executive Director Klaus Toepfer and ECO Secretary General Askhat
Orazbay signed a Memorandum of Understanding at the ECO Secretariat
offices in Tehran today.

The agreement identifies the potential for joint activities to increase
the use of renewable energy, through UNEP’s Solar and Wind Energy
Resource Assessment project, to strengthen environmental law making,
enhance environmental education and training programmes, catalyze more
eco-friendly tourism development and improve environmental monitoring
and assessment.

“Over the past decade we have seen a growth and strengthening of
inter-governmental organizations in response to regional needs,” said
Mr. Toepfer. “This trend provides a tremendous opportunity to give
effect to the global goals made at forums such as the World Summit on
Sustainable Development in Johannesburg.”

ECO is an inter-governmental regional organization, established by Iran,
Pakistan and Turkey, and now embracing also Afghanistan, Azerbaijan,
Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan.
The organization’s purpose is to promote the socio-economic development
of member states, including through regional cooperation in the field of
environment, following adoption of an ECO Ministerial Declaration on
Environment in 2002.

The Memorandum of Understanding also identifies the potential for
strengthened links between the scientific community and policy makers,
and for further development of the Regional Environmental Action Plan
for Central Asia, developed by UNEP and the Central Asian governments
recently.

Late last year UNEP assisted countries of the region to negotiate and
agree a Framework Convention for the Protection of the Caspian Sea. In
March it signed a Memorandum of Understanding for Environmental
Cooperation with the Department of the Environment of the Islamic
Republic of Iran.

Mr. Toepfer has been in Tehran for a meeting of the Asia-Pacific Forum
for Environment and Development, a high-level regional ‘think-tank’,
chaired by former-Japanese Prime Minister Ryutaro Yoshimoto.

Mr. Toepfer told the Forum that to cope with a rapidly growing urban
middle class in Asia, expected to reach 600 million within a decade, the
concepts of “sustainable consumption” and “the life-cycle economy”-
being discussed by policy makers in China and Japan – needed to be
advocated more strongly.

“Once new infrastructure is built it is going to last for 100 years. The
newly affluent in Asia must have access to zero-emission housing, to
hybrid or fuel cell cars and/or clean public transport systems, and to
eco-friendly residential and commercial suburbs,” Mr. Toepfer said.

He told the forum that while the Millennium Development Goals and the
overarching need for poverty reduction would continue to be the major
challenge for the Asia-Pacific region, sub-regional institutions and
their targeted initiatives had an important part to play in making the
goal of environmental sustainability real and achievable.

For more information:

Eric Falt
Spokesperson/Director of UNEP’s Division of Communications and Public
Information,
Tel: 254 20 623292, Mobile: 254 (0) 733 682656,
E-mail: [email protected]
Or
Tim Higham
Regional Information Officer, UNEP, Bangkok,
Tel +66 2 288 2127, Mobile +66 9 1283803,
E-mail: [email protected].

7.3. INTERNATIONAL DAY FOR THE PRESERVATION OF THE OZONE LAYER

Source: ENWL-eng, September 20, 2004

Nairobi/Bridgetown, 16 September 2004 – Countries are today being urged
to re-double efforts to assess the quantities of an ozone damaging
chemical being used to kill pests on shipments of rice, maize, nuts and
other big commodity export crops.

Klaus Toepfer, Executive Director of the United Nations Environment
Programme (UNEP), said “significant knowledge gaps” existed on the true
levels of methyl bromide being used around the world.

He said this could have implications for the global effort to repair the
20-mile high ozone layer that filters out harmful levels of the sun’s
ultraviolet rays.

Methyl bromide, a pesticide and one of the major ozone depleting
substances in use, is being phased out for some key agricultural
purposes under an international agreement called the Montreal Protocol.
The phase-out covers such uses as fumigation of soils and pest control
on farms.

However other pest-control purposes, involving exports of commodity
crops, animal fodder, cut flowers, hides and consignments in wooden
pallets, are exempted from the international phase out.

Some experts estimate that close to a fifth of methyl bromide use
worldwide could be excluded from control measures under these Quarantine
and Pre-shipment exemptions with the amounts growing in some regions.

Klaus Toepfer, whose comments are being made to mark the International
Day for the Preservation of the Ozone Layer, said: “Efforts to repair
the ozone layer have been one of the great environmental success
stories. Scientists estimate that, by the middle of the century and as a
result of the phasing out on numerous ozone damaging chemicals, the
ozone layer will be repaired. But this is far from guaranteed”.

Under the Montreal Protocol, developed countries are required to end
their use of methyl bromide on farms by the end of this year.

However some developed world farmers in Australia, Europe and North
America, have expressed concern that the alternatives to methyl bromide
may, in some cases, be less effective and more expensive.

Their governments are seeking so-called Critical Use Exemptions beyond
the 2005 deadline that will be discussed again when countries gather in
Prague, Czech Republic, in November.

He urged countries to back a global survey, being carried out for UNEP’s
Ozone Secretariat, so that governments can be better informed on the
precise quantities of the chemical being used globally.

This year’s observance of the International Day for the Preservation of
the Ozone Layer, a commemorative day designated by the General Assembly,
has the theme “Save our Sky: Ozone Friendly Planet, Our Target”.

Countries worldwide will be undertaking public awareness activities to
celebrate achievements in complying with this treaty and to highlight
remaining challenges before the job is done.

UNEP is helping countries by providing guidance and materials to support
the 16 September celebrations. Principal among these is a new animated
awareness video, Ozzy Ozone, in which the main character, an ozone
molecule, takes viewers on a voyage of discovery to find out exactly
what is attacking the Earth’s protective ozone layer. It explains how
children can protect themselves from the harmful effects of ultraviolet
radiation caused by ozone depletion.

More than 56 governments will broadcast this video on their national
television channels today, reaching millions of viewers worldwide. The
film is available from UNEP in English, French and Spanish and has been
subsequently translated into 15 national languages by the governments
themselves.

This video uses key messages and concepts identified in the
Communication Strategy for Global Compliance with the Montreal Protocol,
a UNEP-developed information strategy linking awareness to national
compliance obligations under this international treaty.

The global launch of the video is taking place in Barbados as the Ozzy
Ozone character was originally created by the Government of Barbados for
use in its national awareness programme, and then shared with the world
through UNEP.

Today, UNEP is also announcing that the United Nations headquarters in
Gigiri, Nairobi, is ozone-friendly with equipment such as fridges on the
premises free of any ozone-depleting substances. It is hoped that the
initiative can be extended to all UN complexes across the globe using
guidelines developed earlier by UNEP’s OzonAction Programme.

Meanwhile, an Asia Pacific region-wide celebration of Ozone day is being
held for the first time today in Kathmandu, Nepal, where awareness
raising activities include the launch of the booklet “Shield: South
Asia’s compliance with the Montreal Protocol”.

The key issues in Asia and the Pacific – the region with the largest
producing and consuming countries of ozone depleting substances – are to
ensure governments meet their phase out commitments for use of CFCs,
halons and methyl bromide, and to prevent illegal trade.

Activities in other parts of the region include Mongolia, where ozone
day messages are being emailed to key decision makers in, a screen saver
is being distributed, and lectures given at tertiary institutes; Fiji,
where ozone officials have planned newspapers, radio and television
publicity and a ceremony to present certificates to customs officers who
have completed training in detecting illegal ozone depleting substances;
Malaysia, where radio listeners, school children and consumers are being
targeted with publicity material; and the Republic of Korea, where
posters produced through a nationwide competition among primary, middle
and high schools are being distributed.

For More Information Please Contact:
Eric Falt, Spokesperson/Director of UNEP’s Division of Communications
and Public Information
Tel: 254 2623292
Mobile: 254 (0) 733 682656
E-mail: [email protected]

or

Nick Nuttall, UNEP Head of Media
Tel: 254 2 623084
Mobile: 0733 632755;
E-mail: [email protected],
or

Robert Bisset, Spokesperson for Europe
Tel: 33 1 4437 7613
Mobile: 33 6 2272 5842
E-mail: [email protected]

or
Tim Higham, Regional Information Officer, UNEP, Bangkok
Tel +66 2 288 2127
Mobile +66 9 1283803
E-mail [email protected].

OzonAction Web site, including Ozzy Ozone in streaming video, is
available at

UNEP’s Ozone Secretariat can be accessed at

7.4. THE 54th SESSION OF THE WHO REGIONAL COMMITTEE FOR EUROPE

Source: EUROPEAN ECO-FORUM NEWS DIGEST, N 84, September 2004

The 54th session of the WHO Regional Committee for Europe will take
place in Copenhagen on 6-9 September 2004. The session will address a
European strategy for tackling noncommunicable diseases, follow-up of
the Fourth Ministerial Conference on Environment and Health, the process
for updating the European health for all policy framework, the Regional
Office’s strategy for geographically dispersed offices and the proposed
programme budget for 2006-2007.

The preparation of the European strategy on noncommunicable diseases
(NCD) is among key items of agenda. In 2002, an estimated 86% of all
deaths in the European Region of WHO were due to NCD. In terms of
mortality, the leading NCD for Europe in 2002 were cardiovascular
disease, cancers, respiratory disorders, digestive disorders and
neuropsychiatric disorders. In terms of burden of disease, the chief
contributions were estimated to come from cardiovascular disease at 23%
and neuropsychiatric disorders at 20%, with cancers contributing 11%.

The WHO experts are convinced that the NCD place a considerable burden
on Europe; if they are unchecked, the picture is set to worsen,
particularly in the eastern part of the Region. In 2000, the average
figures for CVD mortality (all ages) for NIS were three times higher
than those for the then EU.

A European NCD strategy should make explicit the importance of this
problem for the Region, support countries in tackling this problem with
due account of national characteristics, link existing foundations
together into a coherent, synergistic approach. It is expected that the
drafting of the Strategy will complete in 2006, so that it would be
endorsed by the 56th session of the WHO Regional Committee for Europe.

The documentation of the WHO Euro session is available at:

7.5. WORLD NEEDS MORE OIL CAPACITY – WATCHDOG

Source: Georgian Times, September 6, 2004

An extra 3 million barrels per day (bpd) of production capacity
worldwide is needed to avoid another year of blistering oil prices,
International Energy Aency (IEA) executive director Claude Mandil warned
on September 4, 2004.

`We expect oil demand will be around 2 million barrels per day more in
2005 versus the average in 2004, so we need something like 3 million
barrels per day of additional capacity globally to avoid another year of
high prices,’ Mandil told Reuters on the 19th World Energy Congress in
Sydney.

He said improved political stability in the Middle East would also be
needed to temper prices.

U.S. oil, propelled by surging world demand for petroleum and violence
in Iraq (news-web sites), traded at $ 44 a barrel on Friday, within $
5.50 of record highs reached in August.

Asked whether he expected the Organization of Petroleum Exporting
Countries (OPEC (news -web sites) to raise official production quotas at
its next meeting on September 15, Mandil said: `I don’t think OPEC can
do a lot immediately because they produce more than what is needed. The
best thing for the OPEC meeting would be pledge for immediate investment
in additional capacity.’

Mandil said he believed higher output from Saudi Arabia – the world`s
top exporter – should be enough to bring US oil prices below $40 but
decline to elaborate.

`So far we haven’t yet seen the impact of high prices on economic growth
but if they stay at this we will certainly see it.’

The EIA, the West’s energy watchdog, has calculated that a $10 increase
in oil prices would cause global GDP (news web sites) growth to contract
0.4 percent.

Saudi Arabia is the only OPEC producer with any significant spare
capacity. OPEC producers are already pumping near 25-year highs.

A Reuters survey this month showed total August output from OPEC rose
100,000 bpd to 29.6 million bpd. Saudi Arabia raised supply to 9.5
million bpd, up 250, 000 bpd.

Cartel production is near its highest since December 1979, just below
the 29.76 million it pumped in November 2000.

But Mandil said surging oil prices were not changing the attitudes of
oil companies on investment in new capacity, which he said continued to
take a conservative $20 view of prices.

`Why $20? They say other sectors of the economy do the same, but it’s a
very bad signal because they are effectively saying to shareholders we
have a better use for your money than putting it back into the
business.’

He said it was difficult to judge whether an expected slowdown in oil
demand growth from China was started to occur but said the world’s
second biggest oil consumer could do more to improve energy efficiency.

China, the world’s seventh largest economy, has shaken up the oil market
this year, intensifying competition for supply with established
consuming giants such as the United States.

`What we know is that the Chinese government is aware it has to slow
down the economy means slowing down oil consumption.’

8. CALENDAR (INTERNATIONAL)
8.1. INTERNATIONAL CONFERENCE – EDUCATION FOR A SUSTAINABLE FUTURE

Dear Madam/Sir,

2005-2014 has been declared as the UN Decade of Education for
Sustainable Development (UNDESD). To coincide with the beginning of DESD
and to mark 20 years of work in Environmental Education, Centre for
Environment Education, India is organizing an International
Conference – Education for a Sustainable Future during 18-20 January 2005
at CEE, Ahmedabad. CEE is a national institution engaged in developing
programmes and materials to increase awareness about the environment
(please see ).

ESF is being organized in partnership with Ministry of Environment and
Forests, Ministry of Human Resources Development, Govt. of India and
UNESCO and UNEP. We feel that ESF can contribute significantly in giving
direction to the Decade. The objective of the Conference is to share
experiences, best practices in ESD and to develop a blueprint of action
for ESD. the details are in the attached brochure and we look forward to
your being with us at ESF.

Meena Raghunathan
Programme Coordinator

Centre for Environment Education
Thaltej Tekra, Ahmedabad 380054, Gujarat, INDIA
Phone: +91-79-26858002 to 09, Fax: 26858010
Web sites: ;

Caucasus Environmental NGO Network (CENN)

E-mail: [email protected]
URL:

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Editorial policy: CENN both solicits and accepts submissions for
environmental information to the Caucasus Environmental News Bulletin.
Although, CENN retains the right to edit all materials both for content
and length. The information provided for the Bulletin does not
necessarily represent the opinion of CENN and SDC.
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Fax: ++995 32 92 39 47
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