Wednesday, 30 June 2004

OPPONENTS OF BAKU-TBILISI-CEYHAN PROJECT REACTIVED

Published in Field Reports

By Gulnara Ismailova (6/30/2004 issue of the CACI Analyst)

Once finalized, the pipeline will carry one million barrels of oil per day, implying ca. 1,3 % of the global deliveries of oil. By means of BTC, some estimates note that 25% of the growth of demand of oil in the world in one year will be provided.
Once finalized, the pipeline will carry one million barrels of oil per day, implying ca. 1,3 % of the global deliveries of oil. By means of BTC, some estimates note that 25% of the growth of demand of oil in the world in one year will be provided.

The construction of the pipeline is planned to finish in the beginning of 2005, and within 5-6 months the pipeline and the terminal in Ceyhan will be filled by oil, the first tanker being projected to be sent in the second half of 2005.

At the same time, according to one local NGO representative Mais Gulaliyev, the Head of BP in Azerbaijan, David Woodward, has named several dates for sending the first oil from Azerbaijan to Ceyhan. \"First it was the end of 2004, then the first and second quarter of 2005. With each delay, the cost of the project will also increase.” The daily charges on BTC are estimated to be ca. $4 million. Gulaliyev argued that delays in production are causing serious losses for Azerbaijan.

According to Mirvari Gahramanli, chairman of the Committee of the Rights of Oil Workers, the reason for the delays is the poor quality work of contractors. She also informed that in connection with statements about corruption in the State Oil Company of Azerbaijan Republic (SOCAR), the European Bank for Reconstruction and Development is suggesting to lead a re-structuring of the company and to strengthen its transparency. \"Representatives of the EBRD are going to hold a number of meetings with the management of BP in order to discuss various issues, including presumably complaints of corruption while providing compensation for the renting of lands on the route of the oil pipeline.

Inhabitants of the Mugan village of Hajigabul district held a press conference where they accused the local executive authority and the regional municipality in misappropriation of compensations allocated by BP for the rent of their lands. Participating in this action, local villager Vidadi Safarov declared that the deputy head of the district administration, Sahib Aslanov, purposefully refused to distribute lands located on the route of the BTC pipeline: \"Aslanov gave these lands to his son and some other close relatives.” Safarov also noted that the head of the municipality in turn distributed 200 hectares of land among his relatives. “And they say that other lands have been allocated for us. In this way, they plan to take the compensations allocated by BP for the rent of land. That’s why we refused to participate in the distribution of lands,” Safarov declared.

Inhabitants of Mugan village have declared that they are going to court with their complaint. If their complaints are not heard, they will lead a picket in front of the presidential palace.

Almost simultaneously, inhabitants of Krtsanisi village outside Tbilisi, Georgia, conducted a protest action against the construction of the BTC pipeline. According to the Ministry of Internal Affairs of Georgia, police had to use force in order to keep protesters from BP’s working area. The police arrested two women who are suspected of organizing the action. About 60 protesters demanded lands along the oil pipeline. Compounded with a weak legal basis for land ownership, inhabitants of the village insist that these lands belong to them. One of the leaders of the Azerbaijani Diaspora in Georgia, Zumrud Gurbanov, said that owners of these lands demand reimbursement. \"There is a court decision and according to it reimbursement should be given also to those who owned these lands at the moment when the plan of BTC’s construction were approved. According to some sources, the sum of reimbursement varies from $12,000 to 30,000.

Azerbaijani workers also reacted heavily to news that an employee of a subcontractor, PIG, a British manager severely beat Azerbaijani worker Taleh Rustamov. The reason for the British manager’s \"anger\" was that the employee had put on a white helmet instead of a yellow one (management wears white helmets). Rustamov was hospitalized. This incident became a last drop for Azerbaijani workers, who declared a strike. According to the workers, it is not the first time that foreigners offend and humiliate local workers.

Human rights activist Mirvari Gahramanly noted that foreign managers use Azerbaijani workers as slaves, curse at them, raise their voices, and publicly humiliate them. The first strike on the Azerbaijani part of the pipeline took place on February 29, 2004, near Kurdamir. 200 of 600 workers living in building camps protested, their main claim being to obtain an increase in wages and the improvement of living conditions in building camps. In turn, the management of CCIC (the general contractor for the construction of the Azerbaijani segment of the pipeline) noted that the demands had no grounds as the wages of employees involved in BTC construction significantly exceed the monthly average wage in Azerbaijan (437,6 thousand AzM or about $40), and that living conditions in the camp is up to advanced standards.

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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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