Cornell je raziskovalni direktor Central Asia-Caucasus Institute in Silk Road Studies Program, Joint Transatlantic Research and Policy Center. Frederick Starr je predsednik Central Asia-Caucasus Institute in Silk Road Studies Program, Joint Transatlantic Research and Policy Center.
It’s About More Than Oil.”
Television interviews with citizens of the remote towns and villages they visited revealed something the skeptics failed to include in their dyspeptic view of the project: that those most directly affected by Baku-Tbilisi-Ceyhan welcomed and prayed for it , to be successful, not only for its sponsors, but for the people of the entire region. Their centrality meant that the pipeline design, construction and management process was no less important to the pipeline's success than simply laying the steel pipe.
Nine Degrees of Development
Development issues have loomed large in the BTC project than in most other such enterprises. This was even more important because most of the firms participating in the project were from abroad.
Unanswered Questions
Geostrategic Implications of the Baku-Tbilisi-Ceyhan Pipeline
Svante E. Cornell, Mamuka Tsereteli and Vladimir Socor
Immediate Implications of the BTC Pipeline
A major obstacle in the development of Caspian oil resources is the status of the Caspian Sea and the distribution of its resources, including hydrocarbons, among literal countries. The unresolved nature of the territorial demarcation of the Southern Caspian Sea is a major impediment to the development of additional Caspian resources in the longer term.
Implications for the Geopolitics of the Caucasus
Privatization and tenders for management contracts in the transport sector in Georgia and Azerbaijan should enable more efficient management of elements of this infrastructure. The slowly but clearly growing understanding of the strategic importance of the South Caucasus in the West is an important political factor in regional development.
Implications for Europe: Energy and Economic security
This in turn gives Europe an important stake in the security, stability and development of the South Caucasus as a whole. So, logically, Europe will gradually understand the need to invest politically and economically in the security of the South Caucasus.
Looking Over the Hill: Opportunities for the Future
Economic Implications of the Baku-Tbilisi-Ceyhan Pipeline
This essay examines the economic implications of BTC for global oil markets, for the region and the countries directly participating in it, and for the global energy industry. 1 The author is an independent consultant who worked as an external advisor for the BTC Pipeline Company.
Beginnings Of The Idea
The late 1990s brought a flurry of commercial studies, diplomatic initiatives and public statements on how to address the energy transport challenges of the Caspian region. Finally, after about five years of intensive analysis and negotiations, a commercial structure took shape leading to the creation of the Baku-Tbilisi-Ceyhan Pipeline Company (BTC Co.).4.
The BTC Project – Participants And Users
In short, the BTC project is therefore a critical link in the crude oil value chain of the Caspian region. BTC will move crude oil from production wellheads in the Caspian Sea to a modern deepwater port in the Mediterranean Sea.
BTC’s Significance For Global Energy Markets
Together, the reserves of the Caspian countries are about the same size as the reserves of the North Sea. Just as Azerbaijan's proven reserves are in the second tier of the global oil industry, Azerbaijan is also in the second tier of current oil production.
Significance For Host Countries
As mentioned above, the State Oil Company of the Azerbaijan Republic (SOCAR) owns a ten percent share of AIOC. It is currently one of the largest installations of its kind anywhere in the world, and it uses the latest technology.
Significance for the Energy Industry
This document explains in everyday language the nature of the commitments entered into by BP and its partners. A third case study of BP's transparent approach for the BTC project can be found in the form of the Caspian Development Advisory Panel (CDAP).
Conclusions
The Baku-Tbilisi-Ceyhan Pipeline: Implications for Azerbaijan
Svante E. Cornell and Fariz Ismailzade
BTC’s overall meaning for Azerbaijan
Average citizens of the country have been eagerly awaiting the completion of the pipeline, having been promised a long-awaited and much-desired economic boom and an accompanying reduction in the poverty rate.
BTC’s Economic Impact
The stronger manat may also slow down the real competitiveness of the local economy and result in higher unemployment. Should the accumulated oil revenues not be invested wisely in the diversification of the local economy, and if inflation is not kept at a minimal level, these pessimistic predictions may come true.
BTC’s impact for the communities
Most importantly, the construction of the BTC has become a process where many local residents and project staff do not feel their voices are being heard. Many residents and employees of the project believe that the local government and multinational companies are too powerful and distant from the local communities to hear their concerns.
BTC’s Environmental Impact
Despite the company's best efforts, it seems that these problems have not been completely averted. This is probably due in large part to the time constraints under which the project has been subjected, and to the complex trilateral interaction between local authorities, citizens and international companies.
BTC’s Impact on Democracy and Governance
At this moment, there are two ways to look at the impact of the BTC on the political developments in the country: an optimistic and a pessimistic one. Foreign powers and powerful energy companies are primarily interested in maintaining long-term stability in the country to ensure the smooth continuation of the oil and gas projects.
The State Oil Fund
The Parliamentary Court of Audit, the country's highest audit institution, is responsible for regular auditing of SOFAR's activities. The reinforcement of the army is also mentioned by President Aliyev as a regular focus for the spending of oil revenues.
Security Challenges to the BTC Pipeline
These troops are charged with fighting international terrorism and illegal migration, as well as protecting the energy infrastructure in the border areas. This Protocol was drawn up pursuant to the BTC Intergovernmental and Host Government Agreements and Article 22 i.
BTC and Azerbaijan’s relations with foreign countries
Iran has been another regional power that has aggressively opposed the BTC pipeline and the general involvement of Western oil and gas companies in projects in the Caspian Sea. Ashgabat competed with Baku for the Kjapaz oil field, located in the middle of the Caspian Sea.
Conclusion
The Baku-Tbilisi-Ceyhan Pipeline: Implications for Georgia
Vladimer Papava
Economic and Social Importance of the BTC Pipeline for Georgia
At the same time, the importance of the construction and operation of the BTC and SCP gas pipelines is emphasized in the optimistic scenario. Of particular importance are the social investments foreseen in the framework of the BTC gas pipeline construction project.
Dutch Disease”, Corruption, and Fostered Governmentalism
Dutch Disease”.31 During the implementation of the BTC construction project in 2004, some symptoms of the “Dutch Disease” appeared in Georgia. Most of the above factors (anti-corruption, money transfers and large-scale privatization, with the exception of the construction of the Georgian parts of the BTC and SCP pipelines) are political factors in nature.
The BTC Pipeline and Georgia’s Relations with USA, Europe, Russia and Iran
The Baku-Tbilisi-Ceyhan Pipeline: Implications for Turkey
Zeyno Baran
Geopolitical Pipeline
The strong commitment of the three countries to make the BTC pipeline commercially successful, as well as the continued close cooperation of the United States, played a large role in the companies' final positive decision. At the same summit, the presidents of Azerbaijan, Georgia, Turkey and Kazakhstan signed the Istanbul Declaration to further support the BTC.
Economic Impact
In fact, the construction of the BTC pipeline has had a very positive impact on unemployment. In addition to direct employment, the construction and operation of the pipeline has stimulated job creation in supporting industries as well as in the general economy.
Environmental and Social Impact
Turkey, Georgia and Azerbaijan also signed a joint declaration on 16 May 2003 to reaffirm their commitment to respect human rights. All three states want to prove to the international community that they will indeed be able to provide security while respecting internationally recognized human rights principles.
Impact on Foreign Relations
Turkish relations with Georgia have also been very positively affected as a result of the BTC project. The BTC project and the overall East-West Energy Corridor have been at the heart of Turkish relations with the US.
Looking Ahead
Environmental and Social Aspects of the Baku-Tbilisi- Ceyhan Pipeline
David Blatchford
Many of the challenges were of a kind that would be faced to varying degrees by all transnational pipeline infrastructure projects. The following sections of this environmental and social overview highlight some of the unique aspects of the BTC project, the associated environmental and social issues and interdependencies, and BTC Co's responses to the challenges they present.
Governing legal and policy regime
An additional set of documents that included, among others, an Environmental and Social Action Plan (ESAP), was prepared for the IFNs as part of the preconditions for project financing. Other Directives are binding as to the results to be achieved, but similarly leave the choice of form and methods to Member States.
Route selection and pipeline design
Accordingly, defining the actual pipeline route and design involved a multi-stage iterative process where a 10 km corridor of interest was defined before narrowing down to a final 8 m wide pipeline corridor that would be maintained throughout the life of the pipeline. A key outcome of the route selection process was that the route avoids all settlements and households, ensuring that no people need to be physically moved or relocated.
Land acquisition and compensation
The land acquisition and compensation process was in accordance with the World Bank Group's requirements regarding involuntary resettlement (which includes economic displacement), HGA, and host country laws and regulations. In addition, villages usually have the right to use common lands (especially pastures), even though the legal owner of the lands is the state.9.
Sustainable Investments, Offsets and Related Initiatives
As noted above, approximately 20% or more than 12,000 of the 62,000 individual shareholders of the land affected by the project are absentee owners. Instead of a mutual agreement, the BTC project submitted a request to the court for urgent expropriation under Article 27 of the Expropriation Act.
Transparency
Internal control refers to control carried out by contractors (self-audit), BTC/Botas staff or external (independent) third parties on behalf of the aforementioned persons. One aspect of the external monitoring process that deserves explanation is the role of the lender's independent environmental consultant (IEC).
Contractors and Environmental & Social Resources
A measure of the project's scope and level of commitment to environmental and social performance can be seen from data relating to E&S staff resources, Figure 2. Although the majority of the environmental and social obligations identified in the ESIA for the construction phase have been met, both BTC and their contractors the full implementation of some of a significant challenge, especially at the beginning of construction.
Case Study 1: Establishing Waste Management Infrastructure in Georgia and Azerbaijan
BP is also addressing long-term waste management issues in Georgia through a number of initiatives, e.g. is funding BP's development of an EU-compliant non-hazardous waste landfill to handle future waste generated by BP. Alongside this, BP has proposed to undertake a strategic waste management review for Georgia and to work with the Georgian government to improve national waste management capacity.
Case Study 2: Route Selection Through the Borjomi Region of Georgia - the Kodiana Pipeline Section
In addition, further mitigation measures that go far beyond industry norms were put in place on the Borjomi pipeline section. The long-term integrity of the pipeline will be ensured by inspection and scheduled maintenance activities.
Case Study 3: Helping to Create Conditions for Sustainable Development - Recreating Hope and A Future in Moliti Village, Georgia
In the Borjomi area in particular, potential impacts have been recognized and reduced through careful design to ensure that the pipeline poses as close to zero risk as possible. In the past, country potato seeds were old, genetically mixed and highly vulnerable to pests.
Case Study 4: Public Disclosure In Turkey: Selected Summary Statistics
The availability of the RAP was also announced through press releases in print media and public places until December 23. The press release was sent to all national newspapers (approximately 150) and television stations (approximately 20) in Turkey, as well as local newspapers along the pipeline route (23 local newspapers).
