CENN – MAY 24, 2005 Daily Digest
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Table of Contents:
1.. Russia Upset by Decision to Not Privatize Gas Pipeline
2.. “One Window’ Licensing Nowhere in Sight
3.. Government Puts Energy Up for Sale
4.. Kazakhstan Poised to Ink Official Document On Joining BTC
5.. Pipelines Carried 4,2 mln Tons of Crude Oil and Oil Products
6.. EBRD Satisfies with Oil Revenue Management in Azerbaijan
7.. Saakashvili to Attend Oil Pipeline Opening Ceremony
8.. Award for Bankwatch Co-produced Film on BTC Pipeline at
International Human Rights Film Festival (May 5)
9.. MA Releases Second Report: Biodiversity and Human Well-being
10.. Press Release
11.. Announcement of the Ministry of Environmental Projection and
Nature Resources
12.. Announcement of the Ministry of Environmental Projection and
Nature Resources
13.. Announcement of the Ministry of Environmental Projection and
Nature Resources
14.. EIA Reports
15.. Announcement — for the Attention of Organizations Operation in
the Small and Medium Enterprise Supporting Field
1. Russia Upset By Deciosn to Not Privatize Gas PIpeline
Source: The Messenger, May 18, 2005
One week before US President George Bush’s visit to Georgia, Minister
of Energy Nika Gilauri announced that, following an agreement from the
Millennium Challenge Corporation (MCC) that USD 40 million will be
allotted by the corporation for repairs to the trunk gas pipeline, the
government had decided not to privatize the pipeline after.
The government had initially suggested that the pipeline would need to
be sold as it was unable to pay for the cost its rehabilitation. The
Russian energy giant Gazprom expressed its interest in buying the
pipeline, and this led to opposition both within Georgia and from the
US to sale.
Local experts expressed concern that selling the pipeline to a Russian
state owned company would put Georgia in a position of even greater
dependence on energy imports from its northern and not always friendly
neighbor. US officials, meanwhile, concerned that the trunk pipeline
might prove an eventual competitor to the US funded South Caucasus
Pipeline, also expressed opposition to the pipeline’s sale.
Nevertheless, without any alternative course of financing the vital
rehabilitation work, the possible sale of the pipeline remain on the
agenda, leading critics to wonder about the presence of shady,
pro-Russian forces within the government, or else equally shady
figures with a personal interest in its sale.
Conservative MP Kakha Kukava, for example, said, “I am sure that the
Georgian government has corrupt and financial interests in the
issue. I don’t think that the government came to such a decision
because of been pro-Russian. In this case it was not the political but
corrupt interests. If there exist pro Russian interests in the
government than even these interests have financial rather than
ideological or strategic motives,” as quoted by Akhali Taoba.
The government of course denies such accusations, stating that it was
only possible to take the pipeline off the market once the Millennium
Challenge funding had been won. It could be added that, given obvious
US animosity to sale on the agenda was a useful way of persuading MCC
that rehabilitation of the pipeline was a project worth supporting.
Following the decision not to sell the pipeline, the government was
eager to stress that it as not a “decision against the Gazprom or
Russia,” 24 Saati quotes Prime Minister Zuran Nogaideli as saying.
Nevertheless, the decision has clearly upset Moscow. Russian MP
Konstante Zatulin, for example said that this was yet another US
measure to drive a wedge between Russia and other CIS countries, by
reducing the level of dependence of countries like Georgia on Russia.
Russian expert Aleksandr Blokhin complains that the US has no economic
interests in the gas pipeline, an is merely interested in interfering
in reducing Russian influence in the Caucasus region.
Mr. Blokhin underlines that through the pipeline Russian gas is
transited to Armenia – the only country strongly loyal towards Russia
in the region. “The amount of transited gas to Armenia is not
sufficient for Gazprom. It should be mentioned that by refusing to
sell the gas pipeline to the Gazprom America is separating Georgia
form Russia,” Mr. Blokhin said as quoted by 24 Saati.
2. “One Window’ Licensing nowhere in sight
Source: The Messenger, May 20, 2005
A draft law prepared by the government aims to reduce the number of
licenses and permits to be issued by 80%, but the “on window
principle” promised by the authorities still does not exist.
Some analysts and businessmen have called on the administration to
pass much more radical reforms in order to allow entrepreneurs to
apply to only one structure when seeking a license. The “one window”
proposal is likely to come up during the parliamentary session’s
discussion of the draft “on issuance of licenses and permits.”
The initiative to simplify the licensing and the permit issuance
system came from State Minister for Economic and Structural Reform
Kakha Bendukudze. The current system is highly complicated, with
approximately thirty state bodies authorized to issue come 76
different types of license and permit. As the newspaper Khvalindeli
Dge reports, there heretofore existed 545 licenses and 600 permits for
various businesses. Obviously such conditions created an array of
difficulties for entrepreneurs. It is clear as well that the more
licensing procedures there are, the greater the changes of corruption.
The authorities have given great attention to the issue of simplifying
the license issuance process. As Rezonansi reports, President Mikheil
Saakashvili promised entrepreneurs to work out a “one window
principle” for licensing, by which only one license from one structure
would be required for each kind of business. The president called this
move the second revolutionary simplification of the country’s economy,
the first being the new tax code.
The number of licenses issued has reduced from 600 to 140, but this
still is not the promised one window system, and businessman still
have to go to through several bureaucratic hoops to receive a license.
Rezonansi quotes Executive Director of the Federation of Georgian
Businessmen Giorgi Isakadze as suggesting the government created a
chancellery type agency to license business. “We want to deal with one
specific structure where we can pay money and officially receive
approval or a justification refusal, he said, as quoted by newspaper
Khvalindeli Dge.
Meanwhile analysts oppose the cancellation of licenses over
environmental protection foreseen in the draft prepared by the
government – four categories of environmental protection decrease to
one. Only the license for building atomic energy plants and other
heavy industry factories is rob be retained, while other business can
be carried out without control.
Leader of the Green Movement Giorgi Gachechiladze sees the decrease of
environmental protection licenses as an “anti-Georgian” decision that
will badly influence the country’s environment and will tarnish its
international image as well.
3. Government Puts Energy Up for Sale
Source: The Messenger, May 20, 2005
The Ministry of Economic Development of Georgia has posted details of
energy infrastructure to be privatized on the government’s web site.
“Privatization will be carried out through a competitive process,” the
web site states. “Interested investors are invited to submit their
expression of interest in writing and confirm their willingness to
participate in the possible privatization process.”
Letters in English, Georgian or Russian should be received by 18:00 on
October 1, 2005, the ministry states.
Companies slated to be privatized include the electricity distribution
companies the Adjara Power Company (authorized capital GEL 27,809,464)
and Untied Distribution Power Company (GEL 59,032,782).
Hydroelectric power station to be privatized are listed as: Rioni,
Kutaisi, authorized capital 7,391,073 lari, installed capacity 48 MW;
Gumati, Kutaisi, 1,966,732 lari, 44 MW; Lanjanuri, Tsageri, 2,391,791
lari, 112 MW; Dzevruli, Terjola, 919,786 lari. 80 MW; Shaori, Tkinuli,
1,735,390 lari, 38 MW; Alsi, Keda, 84,284 lari, 16 MW.
In all cases, the state’s 100% share is to be privatized, except for
Dzevrili, where the government’s share is 98,45%.
Interested investors should submit detailed proposals with respect to
privatization only after the announcement of the competition, the
statement6 reads.
4. KAZAKHSTAN POISED TO INK OFFICIAL DOCUMENT ON JOINING BTC
Source: State Telegraphic Agency of the Republic of Azerbaijan,
Azertag, May 21, 2005
Kazakhstan is ready to sign the agreement on joining the
Baku-Tbilisi-Ceyhan (BTC) main export pipeline, according to the
information provided by the State Oil Company of Azerbaijan.
The intergovernmental agreement, which is set to be sealed within
short time, will be ratified by the parliaments of both countries.
BTC will initially export 7,5 million tons of Kazakh oil and further
increase this volume up to 20 million tons yearly. In the initial
stage, the oil will be carried via tankers. However, the sub sea
pipeline linking Kazakhstan and Azerbaijan is also to be laid in the
near future. The pipeline will be completed as soon as the first oil
is extracted from “Kashagan” oilfield.
5. PIPELINES CARRIED 4,2 MLN TONS OF CRUDE OIL AND OIL PRODUCTS
Source: State Telegraphic Agency of the Republic of Azerbaijan,
Azertag, May 23, 2005
Azerbaijan oil pipelines have carried 4,2 mln tons of oil and oil
products between January and April 2005 that is 0.9% more than it was
done for the corresponding period of the last year, according to the
State Statistics Committee of Azerbaijan
6. EBRD SATISFIES WITH OIL REVENUE MANAGEMENT IN AZERBAIJAN
Source: State Telegraphic Agency of the Republic of Azerbaijan,
Azertag, May 23, 2005
The Azerbaijan strategy overview prepared by EBRD said that based
largely on Foreign Direct Investment in the oil sector and the
consequential spill-over effects to the transport and construction
sectors, Azerbaijan has, during the last few years, registered robust
economic performance. With vigorous export growth in some sectors,
most notably agriculture and chemicals, annual GDP growth since 2000
has averaged over 10%. Within the time span of this country strategy
these growth rates could double.
During the current strategy period, the Government’s economic policy
mix has been broadly appropriate. To compensate for the greater
liquidity in the system resulting from the capital inflows to the oil
sector, the Government has progressively tightened its fiscal
policy. Within this context, tax reforms have been successfully
executed.
The recently adopted long-term oil revenue management strategy
provides an appropriate framework for supporting macroeconomic
stability. Institutional capacity building is needed in support of
those structural reforms which have been introduced.
The Bank will contribute to the development of the non-oil sector by
making direct debt and equity investments and via support to the
financial sector. Micro-, small- and medium-sized enterprises are
anticipated to be the primary target for these investments. The
instruments, resources and programmes available under the ETC
Initiative will be fully utilized in order to accentuate the Bank’s
engagement in these activities.
7. Saakashvili to attend oil pipeline opening ceremony
Source: Rustavi2, May 24, 2005
Georgian President Mikheil Saakashvili will leave for Azerbaijan to
attend the opening ceremony of the Baku-Tbilisi-Ceyhan (BTC) oil
pipeline.
It is reported that Mr. President will hold a two-day visit to
Azerbaijan; today he will negotiate with his Azeri counterpart Ilham
Aliev.
The official opening ceremony of the Baku-Tbilisi-Ceyhan oil pipeline
will hold on May 25, 2005; the presidents of Georgia, Azerbaijan,
Turkey, Kazakhstan and US Secretary of Energy, Samuel Bodman will
participate in the opening ceremony.
According to the official data, “BTC project is a $2.9 billion
investment to unlock a vast store of energy from the Caspian Sea by
providing a new crude oil pipeline from Azerbaijan, through Georgia,
to Turkey for onward delivery to world markets.
Traversing 1,760km of often remote and challenging terrain, the BTC
pipeline will be able to transport up to one million barrels of crude
oil per day from a cluster of discoveries in the Caspian Sea…”
8. Award for Bankwatch co-produced film on BTC pipeline at
international human rights film festival (May 5)
Source:
The Bankwatch co-produced film called “The Source”, directed by Czech
Martin Marecek, received a Plzenský Prazdroj Audience Award for
the film which met with the most positive response from members of the
audience attending the recent international “One World” human rights
film festival in Prague. The film, which documents the social and
environmental implications of the IFI-funded Baku-Ceyhan pipeline in
Azerbaijan, also received a special commendation from the festival
jury.
9. MA releases second report: Biodiversity and Human Well-being
Launched today, on May 19, 2005 the second Millennium Ecosystem
Assessment report, Biodiversity and Human Well-being: A Synthesis
Report for the Convention on Biological Diversity, synthesizes and
integrates findings related to biological diversity from the four MA
Working Groups: Conditions and Trends, Scenarios, Responses and
Sub-global Assessments, in response to requests for information
received through the Convention on Biological Diversity (CBD).
The report will be launched as part of the celebrations for
International Day for Biological Diversity today in:
a.. Montreal, Canada – the CBD Secretariat will hold a press
conference followed by a reception and will co-sponsor, with McGill
University, a seminar aiming at providing an in-depth discussion of
the report and its relationship to science, and policy. b.. London
& Cambridge, United Kingdom – UNEP will hold a press briefing on the
findings of the Biodiversity Synthesis Report at the Royal Society,
followed by a scientific seminar organized by UNEP-WCMC, and hosted
at University of Cambridge. More details at
c.. Beijing, China – State Environmental Protection Administration
(SEPA) will hold a press conference highlighting the Chinese
government’s efforts to protect biodiversity in the past 10
years. More details at
“Loss of biodiversity is a major barrier to achieving development
goals, and poses increasing risks for future generations,” said Walter
Reid, Director of the Millennium Assessment. “The Millennium Ecosystem
Assessment report shows that management tools, policies and
technologies do exist to dramatically slow this loss.”
More detailed information is available at:
10. PRESS RELEASE
Source: Advocacy.Ge
Save the Children promotes establishment of a democratic and legal
state, civil society, and the rule of law
Tbilisi – On May 22, 2005 at 7:00 PM at cafe “Kala” on Erekle II
Street Save the Children with its local partner organizations – Civil
Development Center “Alternative”, Civic Initiative Center, Center for
Change and Conflict Management – Partners Georgia, the Caucasian
Institute for Peace, Democracy and Development, United Nations
Association of Georgia, Civil Society Institute and Center for
Strategic Research and Development of Georgia will hold a Code of
Ethics Compliance Awards Ceremony. The Code of Ethic Compliance
Ceremony is organized within the frame of a three-year Citizens
Advocate! Program funded by United States Agency for International
Development (USAID).
Citizens Advocate! Program aims to improve the capacity of Civil
Society Organizations (CSOs) and create an enabling environment so
that CSOs can promote citizens’ interests and effectively advocate
their cause.
The aim of the Code of Ethics Compliance Ceremony is to award those
CSOs who are in compliance with the main five silver principles of the
Code: 1) Civil Society Organizations issue annual reports about their
activities; 2) Civil Society Organizations regularly undergo audits;
3) Civil Organizations are governed by an independent Board. The Board
is free from any external influences in decision-making; 4) CSOs have
mission statements and internal regulations, which describe in detail
the mechanisms that govern the functioning of the organization. This
document is approved by the Board; 5) Information about the mission,
members, and finances of CSOs is available to the public, and their
activities and work are transparent.
The Code of Ethics Compliance Ceremony will be attended by the NGO
community, Bob Wilson, Nick Higgins and Keti Bakradze from USAID,
representatives from international and governmental organizations, and
business community.
11. Announcement of the Ministry of Environmental Projection and
Nature Resources
Source: “Sakartvelos Respublica” (“Republic of Georgia”), May 19, 2005
The Ministry of Environmental Projection and Nature Resources
according to the law on fauna announces competition on development of
fish farms in Dedoplistskaro region – Dalis Mta, Dusheti Region –
Jinvali and Ambrolauri region – Reservoir of Shaori.
To obtain the general license interested parties should submit
announcements and competition materials within the month after
publishing the competition.
For the additional information please contact the Department of
Environmental Permits and State Ecological Expertise of the Ministry
of Environmental Projection and Nature Resources at the following
address: 6, D. Gulua str., II Floor, Tbilisi.
12. Announcement of the Ministry of Environmental Projection and
Nature Resources
According to the pubic administration law the Ministry of
Environmental Projection and Nature Resources announces commence of
the execution of the licensing activities of the geological activities
according to the following licenses announcement Ltd. “GT Trade” –
Engineer Geological activities.
Public hearing will be held on June 7, 2005 at 11:00, at the
Department of Environmental Permits and State Ecological Expertise of
the Ministry of Environmental Projection and Nature Resources at the
following address: 6, D. Gulua str., II Floor, Tbilisi. 6, D. Gulua
str., II Floor, Tbilisi.
13. Announcement of the Ministry of Environmental Projection and
Nature Resources
Source: “Sakartvelos Respublica” (“Republic of Georgia”), May 19, 2005
The Ministry of Environmental Projection and Nature Resources
according to the law on fauna announces competition on development of
hunting farms in Kvareli region, on the territories of Duruji, kvareli
and Shildi forestry districts and Kaspi Region, on the territory of
Kaspi’s forestry farm Ksvtiskhevi forest district.
To obtain the general license interested parties should submit
announcements and competition materials within the month after
publishing the competition.
For the additional information please contact the Department of
Environmental Permits and State Ecological Expertise of the Ministry
of Environmental Projection and Nature Resources at the following
address: 6, D. Gulua str., II Floor, Tbilisi.
14. EIA Reports
Source: “Sakartvelos Respublica” (“Republic of Georgia”), May 19, 2005
In accordance with the Georgian legislation on “environmental Permits”
were submitted the following reports to obtain the environmental
permits for the activity of second category:
1. Technical-technological report and mitigation measures KP 80+120,
KP 71+215, KP 68+900, KP 67, KP 62+700, KP 61+000 deposits
(Tetritskaro region) development technological schemes
(project) submitted by Spi Petrofac.
2. EIA Report of the Beer Producing Enterprise submitted by
Ltd. “Lomisi”.
EIA reports are available at the Department of Environmental Permits
and State Ecological Expertise (6 Gulua Str.). Interested stakeholders
can analyze the document and present their comments and considerations
until July 4, 2005.
Public hearing will be held on July 4, 2005 at 12:00, at the
conference hall of the Ministry of Environment.
15. Announcement — for the Attention of organizations operation in
the Small and Medium Enterprise supporting field
Junior Achievement Georgia is Updating information about organization
which is operating, Small and Medium Enterprise supporting (Georgian/
foreign) field. We are interested in:
o in Georgia established, public and private institutions
o NGOs, associations, governmental or nongovernmental
bodies/institutes incl. Chambers, Confederations
o consultancy companies/ single advisers
o training institutions and etc.
If you are working in the above mentioned filed please fulfil in the
form attached and send tot the following address: [email protected] ASAP.
Eka Gegeshidze
Executive Director
Junior Achievement Georgia
995 99 15 25 80
995 32 251813
E-mail: [email protected]
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