Georgia: BTC Pipeline-29/Tsalka

Date Filed
03 Aug 2006
Status
Closed
Phase
Dispute Resolution (DR)
Country
Georgia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Monitoring
Closed
Closed
Compliance
CURRENT Status
Closed(DISPUTE RESOLUTION)
Closed

Complaint Overview

Complainant

Resident of Tsalka

Cross-Cutting Issues
Land Resettlement Land

Project Information

Region
Europe & Central Asia
Institution
IFC
Name & Number
Baku Tbilisi-Ceyhan Pipeline 11251
Company
Baku Tiblisi-Ceyhan Pipeline
Sector
Mining, Oil, Gas and Chemicals
Department
Other
Category
A
Commitment

$125 million (A loan) $125 million (B loan)

Synopsis

Complaint

The Baku-Tbilisi-Ceyhan (BTC) oil and gas pipeline is a 1,768 km long crude oil pipeline stretching from the Caspian Sea to the Mediterranean Sea. It is the second longest oil pipeline in the world and passes through Azerbaijan, Georgia and Turkey. IFC has invested $250 million since 2003 and the total project cost is approximately $3.6 billion. The project is operated by BTC Co., which comprises a consortium of 11 partners. To date, CAO has received 33 complaints in relation to the project ranging from individuals to communities to local organizations. On August 3, 2006, the CAO received a complaint from a resident of Tsalka regarding BTC’s methods for calculating the value of his land, its restoration efforts on his leased lands, and its adherence to the resettlement action plan.

CAO Action

After a series of negotiations between the parties, a final settlement agreement was reached in May 2007 at a meeting facilitated by the CAO in Tbilisi. The parties agreed not to disclose the terms of the settlement.

Status

The CAO closed the complaint following distribution to the parties of the final, signed settlement agreement, which was made available in Russian, Georgian and English.