Georgia: BTC Pipeline-33/Vale

Date Filed
30 May 2011
Status
Closed
Phase
Dispute Resolution (DR)
Country
Georgia

Case Tracker

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

Complaint Overview

Complainant

Landowners in Vale

Concerns

Impacts to land

Cross-Cutting Issues
Land Resettlement Land Loss of Livelihoods

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.

In June 2011, the CAO received a complaint from two landowning residents of Vale, Georgia. The complaint raised concerns about the activities of a BTC project contractor, which allegedly damaged the complainant’s land and rendered it unusable for agricultural purposes.  

CAO Action

The CAO found the complaint eligible for further assessment in July 2011 and an ombudsman team conducted an initial assessment trip to Georgia in August 2011.  At the conclusion of these initial meetings, all parties agreed to participate in a voluntary mediation process convened by CAO. The mediation was held at a neutral location in October 2011 with participation of the complainants, three BP representatives, and the contractor, Arali. A written agreement was reached and signed by the parties. All parties agreed to have the CAO team monitor the implementation of the agreement, which included working together to restore the complainants' damaged land and monetary compensation . In November 2011, CAO confirmed that the agreement had been implemented to all parties' satisfaction.

The CAO released its assessment/conclusion report in January 2012 and closed the case.  CAO's report documenting the case and actions taken is available in English and Georgian through the link below.

Status

The case is closed.

Case Documents

  • Dispute Resolution

    Complaint
    Letter of Complaint
    May 30, 2011
    English
    Letter of Complaint
    Letter of Complaint
    May 30, 2011
    Georgian
    Letter of Complaint
    Assessment Report(s)
    Ombudsman Assessment and Conclusion Report
    Dec 01, 2011
    English
    Ombudsman Assessment and Conclusion Report
    Ombudsman Assessment and Conclusion Report
    Dec 01, 2011
    Georgian
    Ombudsman Assessment and Conclusion Report
    IFC's Response to CAO's Ombudsman Assessment Report
    Jan 25, 2012
    English
    IFC's Response to CAO's Ombudsman Assessment Report