BTC NEWS
BTC Co in Turkey launched a second request for proposals on 15 December as part of its $9 million Community Investment Programme (CIP). This second round targets the five remaining provinces - Sнvas, Kayseri, Kahramanmaras, Osmaniye, and Adana in central Anatolia and southern Turkey - through which the BTC pipeline corridor runs. For more information about the programme, visit the new website for the Turkey CIP here. As the BTC Bulletin went to press, as many as 30 organizations had registered via the website to receive the request for proposals documentation.
Overall, the CIP in Turkey continues to make good progress. Ataturk University recently organized a symposium with the aim of bringing local farmers into contact with private companies and state organizations to look at adopting high yielding seed varieties. In Erzincan province, PAR Consulting organized an agricultural training programme in co-operation with the governorship of the province that was led by 7 agricultural engineers and covered 18 topics. The quick impact projects are also making headway, with drinking water pipes having been delivered to 13 villages.
CONSTRUCTION OVERCOMES WORSENING WEATHER
Bad weather at higher elevations in early December posed challenges to construction work along the BTC pipeline route, although the project continues to make steady gains. Civil engineering at pump station PSA1 in Azerbaijan is nearly complete. In Georgia, BTC Co took delivery of a crude topping unit for the pump station PSG1 that will convert oil from the mainline crude supply into distillate for use as fuel for the pump. By mid-December, over 634km of the Right of Way - the designated corridor for the BTC pipeline - had been prepared and over 424km of pipe sections welded together across the three countries. During December, the workforce for the construction of the pipeline reached 11,500.
EXPORT CREDIT AGENCY POISED TO BACK PROJECT
The UK Export Credits Guarantee Department (ECGD) announced on 17 December its decision to support the financing of the BTC Pipeline project. It will provide cover for a credit facility of up to $150 million. The agreement remains subject to approval of final project documentation. As an export credit agency (ECA), the ECGD promotes exports of capital equipment and project-related goods and services from the UK by providing finance and insurance cover. It is one of eight ECAs involved in financing the project.
ADVISORY PANEL PUBLISHES SECOND REPORT
On 17 December, the Caspian Development Advisory Panel (CDAP) published its report on BP's activities in Turkey and on security and human rights issues related to the BTC project in Azerbaijan, Georgia and Turkey. This is the panel's second report, following the publication in August of its interim report for Azerbaijan and Georgia. The panel was established by BP to provide independent advice on its projects in the region, focusing on the social, environmental and economic impacts of its activities. It is part of an unprecedented degree of public consultation that has characterized the development of the BTC project.
Fifteen commercial banks have now joined a syndicate to loan up to $1.2 billion to the BTC pipeline project. Four banks are leading the process - ABN AMRO, Citigroup, Mizuho and Societe Generale. Several banks in the group are signatories to the Equator Principles, a financial industry initiative to determine, assess and manage environmental and social risks in project finance. ABN AMRO has carried out due diligence assessment of the BTC project against the Equator Principles/
Study to identify further sustainable development opportunities in Georgia
The German development agency GTZ has been selected by BTC Co to identify opportunities to support medium- to long-term socio-economic projects in western Georgia. GTZ IS, the commercial branch of its international services, will formulate project proposals in various sectors, including small enterprise development, eco-tourism, vocational training and infrastructure rehabilitation. It will also employ a local expert, recruited in Georgia, to carry out a rapid assessment of the economic development potential of the region that will help to identify where investment might make the greatest difference.
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