"The Challenges of Baku-Tbilisi-Ceyhan pipeline monitoring"

Seminar Report

A seminar dedicated to "The challenges of Baku-Tbilisi-Ceyhan pipeline monitoring" took place in Grand Hotel Europe on March 11, 2004. Organized in the framework of the "Transparency of Oil Revenues and Public Finance" program of the Open Society Institute-Assistance Foundation, the seminar intended to define (a) the subjects and (b) the methodology of the monitoring, and (c) perspectives of partnership with the oil companies in this process.

Seminar objectives were:

• to form a "common vision" on BTC pipeline monitoring;
• to discuss and analyze new opportunities and conditions for partnership with the oil companies;
• to identify NGO monitoring areas and issues
• to draw on the lessons learned from the Chad-Cameroon oil pipeline monitoring experience.

Together with the representatives of international organizations like the OSI-AF, CRS (Catholic Relief Services) and BP, the representatives of close to 70 local NGOs have participated in the seminar. Special presentations were made by the Chairman of OSI-AF Board, Sabit Bagirov, the Executive Director of OSI-AF, Farda Asadov, BP representative Elizabeth Wild and Jack Byrne of CRS. Mrs. Wild's presentation explained the aspects of internal and external pipeline monitoring--the first conducted by the BP and BTC and the second involving the state agency, NGOs and citizens' advisory councils-and stressed the special role that local NGOs could play in this process. Authenticity and importance of the issues in the presentation resulted in a deep and active discussion.

Mr. Jack Byrne noted the experience of similar monitoring conducted in Cameroon by the CRS where local community representatives had been involved into monitoring the impact of pipeline construction on natural and social environment. He made following recommendations on the basis of this experience:

• to establish a cooperation and exchange mechanism among different stakeholders interested in this project;
• to focus monitoring on three main directions:
  1. the impact of the pipeline on the environment and the preservation of the historical sites;
  2. the impact of the pipeline on local population;
  3. development of local resources after the project is completed.

Based on Chad-Cameroon experience Mr. Byrne distinguished two different types of monitoring: (1) monitoring of the pipeline itself, and (2) monitoring of the oil revenues. He stressed the importance of clearly defining the subject of monitoring and conducting the monitoring on regular and continuous basis.

Almost all seminar participants agreed on the importance of close cooperation between the state agencies, oil companies and interested NGOs for the success of the monitoring. First of all, it is necessary to have mutual trust and close cooperation with the BP, for the permission of entrance into the pipeline area and access to necessary documentation and for the improvement of the BTC project at the end.

Methods and Instruments

Roundtable groups were formed around following themes:

• Environmental issues;
• Employment opportunities for the local population and involvement of local business;
• Social problems and human rights;
• Preservation of historical monuments and archeological findings in the area.

Group work results were schematically presented on the flip charts in the form theses. The group on environmental issues defined the objects of monitoring besides its subjects. The objects of environmental monitoring were defined as followings:

• The terminal (entrance-exit)*
• Pipelines *
• Construction and protection areas*
• Pumping stations
• Workers' camp
• Radio station

The ideas sounded in the seminar clarified several aspects of pipeline monitoring. Three particular aspects: the subject, methodology and perspectives of cooperation with the oil companies, as defined in the seminar, are presented below according to each thematic group.

1. Environmental Issues

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   The subject of the monitoring:
   1. Land use and re-cultivation;
   2. Fauna and flora;
   3. Water (channels and rivers);
   4. Physical pollution;
   5. Air pollution;
   6. Production waste;
   7. Calculation for extreme cases.
   
   The methodology of monitoring:
   1. Learning the documents and standards;
   2. Training and involvement of local community;
   3. Visual observation;
   4. Instrumental observation;
   5. Surveys;
   6. Regional exchange of experience;
   7. Preparation of information web site.
   
   Cooperation with the oil companies:
   1. Access to documents and reports
   2. Providing conditions for independent investigation;
   3. Continuous notification of public during the construction and exploitation;
   4. Intensive involvement of media;
   5. Translation of important environmental reports into Azeri and distribution among population;
   6. Establishment of procedures for NGOs' entrance into BTC facilities;
   7. Establishment of effective business relations between BTC staff members responsible for environmental and security issues and the NGOs;
   8. Regional forum of BTC (Azerbaijan-Georgia-Turkey);
   9. Implementation of the internal and foreign environmental policy of Azerbaijan.
   
   
2. Employment opportunities for the local population and involvement of local business

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   The subject of the monitoring:
   1. Monitoring of contract responsibilities on the employment of local workers;
   2. Extra-contractual local worker use;
   3. Surveillance of the contract conditions compliance in the agreements with the subcontractors;
   4. Recording/ surveillance of the lost jobs due to the project;
   5. Transparency of hiring procedures;
   6. Comparisons with the situation in Turkey and Georgia;
   7. BP's provision of employment alternatives for the people who will lose jobs after the construction is over;
   8. Surveillance of over staff improvement;
   9. Use of local products and services;
   10. Monitoring of the professional qualifications of hired local workers.
   
   Methodology of the monitoring:
   1. Collection of the official data;
   2. Examination of the official data;
   3. Inspection of tender transparency;
   4. Public discussions;
   5. Cooperation with the municipalities;
   6. Surveillance of the hiring and monitoring procedures;
   7. Monitoring of terminated employment contracts;
   8. Monitoring of the limited usage of the restored lands in the impact zone.
   
   
3. Social problems and human rights

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   The subject of the monitoring:
   1. Consumer rights-analysis of the contracts;
   2. Compliance of the existing contracts with the Constitution and national legislation of Azerbaijan Republic; *
   3. Land and property rights of the owners;
   4. Employee rights -salaries, insurance, etc.;
   5. Problems on land property;
   6. Monitoring over the obligations undertaken by BTC in its social investment program; *
   7. Monitoring over the expenditure of the social investment program budget; *
   8. Employment of the local workforce, including the workforce populated along the pipeline area;
   9. Social Investment problems in the pipeline area;
   10. Existence of discriminative approach with regard to local employees;
   11. The impact of the project on demographic situation;
   12. Corruption problems in hiring, land purchase, and agreements with local executive powers;
   13. Ensuring of the right to health;
   14. Conditions of limited land use rights;
   15. Provision of the access to information on pipeline system operation;
   16. Freedom of association; *
   17. Opportunities for legal aid;
   18. Provision of rights to address the courts;
   19. Protection of the rights of socially disadvantaged people;
   20. Children's rights.
   
   The methodology of monitoring:
   1. Comparative analysis of the contracts and other normative documents;
   2. Surveys, interviews and expert opinions;
   3. Meetings with the beneficiaries;
   4. Analysis of the investigation results;
   5. Media analysis;
   6. Hot line;
   7. Raising public awareness;
   8. Determining focus groups for cooperative work;
   9. Public work;
   10. Legal work.
   
   Cooperation with oil companies:
   1. Willingness of information exchange;
   2. Provision of access to facilities;
   3. Cooperation for joint solution to the problems;
   4. Complete transparency on social problems and human rights issues;
   5. Joint action.
   
   
4. Preservation of historical monuments and archeological findings

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   The subject of the monitoring:
   1. Registration of the monuments along the pipeline area, their study and preservation;
   2. Protection of the archeological excavation zones*
      • Ruins of Old Ganja
      • Hajigabul
      • Gobustan
      • Necropolises and kurgans along the river basins
      • Collection and protection of the findings
      • Establishment of open air museums
   3. Registration of the findings and their delivery to the specialists;
   4. Protection of the material culture landscape;
   5. Education of the population on preservation of the cultural heritage*
   6. Protection of the monuments from extreme situations.
   
   The methodology of monitoring:
   1. Learning BTC responsibilities on the issue;
   2. Assessment of the existing and newly excavated findings;
   3. Monitoring groups entrance into the special regime zones along the pipeline;
   4. Assessment of the findings reports on already constructed areas of the pipeline;
   5. Preparation of visual materials -electronic, CD, video and photo materials;
   6. Regular exchange and assessment meetings between the BP and the monitoring groups;
   7. Public distribution of the reports;
   8. Organizing open debates on the issue.
   
   Cooperation with the oil companies - what should the oil company provide for monitoring?
   1. Registration of the monitoring groups for the entrance into the monitoring area;
   2. Permission for photo and video recording;
   3. Transportation;
   4. Accommodation for the monitoring group in the monitoring zone whenever necessary;
   5. All documentation and the reports useful for the purposes of the monitoring;
   6. Inclusion of the monitoring results and recommendations into BTC reports.

The statements indicated with * sign are the highest priority areas as voted by the participants.
It has become possible to clarify many relevant and important problems related to monitoring due to the true commitment and active contributions of the seminar participants. The organizers of the seminar express their sincere gratitude and hopes for further development of the cooperation for effective BTC pipeline monitoring.

Seyfi Gasilov
OSI-AF