CENN - OCTOBER 5, 2004 DAILY DIGEST
Table of Contents:
1. Invitation -- New Issue of The `Caucasus Environment'
2. EBRD Energy Policy Review: Time to Set Targets for Renewables
3. City Launches Grants, Volunteer Programs to Beauty Tbilisi
4. Hopes of a Brighter, Warmer Winter
5. UN Population Fund Announces New Country Program
6. School Project Successfully Launched
7. Armenian Nuke Plant Restarts Work, Monday
8. Hearings on the Attack on the Photojournalist Scheduled for October 7

9. Industrial Production in Armenia Increased 2.4% in Jan-Aug 2004
10. Iran-Armenia Gas Pipeline to Kick off Soon
11. Ecology and Economy in Harmony
12. EIA Reports Submitted to the Ministry of Environment of Georgia
13. EIA Report on the Improving of the Bakuriani landfill, Borjomi Region



1. INVITATION -- NEW ISSUE OF THE `CAUCASUS ENVIRONMENT'

We are happy to inform you that the new issue of the `Caucasus
Environment' regional environmental magazine is published, with
financial support of SDC - Swiss Agency for Development and Cooperation.
This seventh issue is dedicated to Mountains, Sustainable Development
and Tourism of the Caucasus.

We publish materials on birdwatching potential, REC project of
mountains` sustainable development, Borjomi-Kharagauli National Park,
ski mountaineering, forest privatization etc. The magazine is
illustrated with high-quality photos and maps and is distributed
worldwide. Articles are in Russian and English languages.

Presentation of the magazine will take place on 7 October, 17.00 on the
following address:
Chonkadze Str., 14 B, Tbilisi. CENN office.

We are looking forward to see you on our presentation!


2. EBRD ENERGY POLICY REVIEW: TIME TO SET TARGETS FOR RENEWABLES

Dear friends,

The European Bank for Reconstruction and Development (EBRD) has just
announced that it will undertake a review and propose a new energy
policy. This policy will also result in the merger to two existing
policies, the Natural resources Operations Policy (oil, gas, coal mining
and mining of precious and non-precious metals) of March 1999
http://www.ebrd.com/about/policies/sector/natural/main.htm, and the
Energy Operations Policy (power generation, transmission and
distribution, heat generation and distribution, gas distribution and
utilisation of power, heat and gas including energy consumers and energy
utilities) of May 2000
http://www.ebrd.com/about/policies/sector/energy/main.htm.

In preparation for this review the Bank has released an evaluation of
its past performance in Extractive industries which is available at
http://www.ebrd.com/projects/eval/showcase/eistudy.pdf. The study is
based on the Natural Resources Operations Policy of 1999. The management
response is included in Appendix G.

The process for the preparation of a new Energy Policy for the EBRD will
commence in September 2004 and should be completed in July 2005. The
indicative timetable is as follows:-

? September 2004
The Bank will invite comments on its website based on the soon to be
published Extractive Industries Report prepared by the EBRD's Project
Evaluation Department, together with the `Management Response,'
(www.ebrd.com/project/eval/index.htm) and the previous policies referred
to above.
? October / December 2004
The Bank will consult with a range of stakeholders in informal sessions
or electronically, including selected clients/potential clients in power
and energy, energy efficiency, renewables, oil and gas, mining as well
as selected energy and mining institutions and "think tanks" in the
region and the oil/gas producers association; the EBRD's Environmental
Advisory Council and NGOs. With the involvement of independent
Facilitators the Bank will consult NGOs in three locations (London,
Moscow and Sofia) to seek a wide range of perspectives.
? January 2005
Taking into consideration the comments received during the initial
consultation period, the Bank will prepare the draft Energy Policy.
? March 2005
The Bank will publish on its website the draft Energy Policy for 45
calendar days during which time the public will be invited to send
comments to the Bank.
? July 2005
After the consultation period, the Bank will respond to the comments and
finalise the new draft Energy Policy for consideration by the Board of
Directors. The final Policy document and the summary of comments and
staff responses will be posted on the Bank's website in accordance with
the Public Information Policy. In addition, the summary will be e-mailed
to participants in the consultation process for their information.

The EBRD has so far not adopted any target for it's lending for energy
efficiency or renewable energy and current has no plans to do so.
However, we sufficient guidance and pressure from NGOs, business and
Governments, this position can be reversed.

Therefore please can those that are interested in being involved look at
the relevant documents and let me know if you wish to take action,
within a coalition or individually,

With thanks

Manana Kochladze

Regional Coordinator for Caucasus
CEE Bankwatch Network

Visiting address: Rustaveli avenue. 1. Entrance I. floors 4
Mailing address: Chavchavadze 62, Tbilisi, Georgia, 380062
Tel: 99532 22 38 74, 99 04 72
Fax: 99532 93 24 03
E-mail: [email protected]
www.bankwatch.org


3. CITY LAUNCHES GRANTS, VOLUNTEER PROGRAMS TO BEAUTY TBILISI

Source: The Messenger, October 4, 2004

On October 1, 2004, the Tbilisi municipal government announced a new
grant competition for neighborhood groups hoping to inject some fresh
paint and cleanliness into dilapidated courtyards and entranceways.

Sponsored by the Tbilisi Service, the competition will award GEL 3,000
each o five `Tenant Partnerships.'

Organizers say the goal of project is to stimulate citizens to take care
of their living area, yards, squares and graders that form the image of
the city.

`The Tbilisi City Service was founded exactly with the intention of
supporting and improving cooperation between the city administration and
the public an to engage citizens in activities of local
administrations', says the head of office Shalva Tskhakaia.

Ultimately, he says, this will `awake the soul of districts.'

The first steps made to improving residential neighborhoods include the
publication of a guide on establishing community partnerships and their
work, made by the Tbilisi City Service together with the German
Technical Cooperation organization, GTZ.

`The Georgian mentality needs changing towards strengthening the sense
of respect to one's hometown,' adds Tskhakaia. `It is a complicated
process, but important and will last for the years.'

Initially the project `Tents Partnerships' aims to form groups in each
district, section of town or even a ingle building. City officials say
this is a long-term project that will be financed by the municipal
budget. In addition, the City Service plans to utilize the new Tbilisi
Corps of volunteers as a manpower resource for eh projects.

Mr. Tskhakaia says that Tbilisi Corps volunteers could partner with any
state structure or non-governmental organization to do anything from
tiding up neighborhood, delivering booklets, monitoring illegal
constructions to preparing community database.

Training of volunteers is already underway, being conducted by the local
head of the Urban Institute Lado Vardosanidze and financed by the GTZ
team.

Law student and new volunteer David Kavtaradze say that the experience
is worth it. `Unpaid employment in a sector where I can get work
experience is acceptable for me - it is essential for my studies at
university.' He also admits `it would be better if in future there is
remuneration'.

People interested in volunteering or applying to the grants program can
contact the Tbilisi City Service in city hall. Trainings are underway
and will continue throughout the fall; winners of the grants program
will be announced at the Tbilisoba festival later this month.


4. HOPES OF A BRIGHTER, WARMER WINTER

Source: The Messenger, October 4, 2004

New agreement means Georgia `will be without problems' this winter

Deputy Chairman of the Management Board of RAO UES Anderei Rappoport
and Prime Minister Zurab Zhvania signed an agreement on Friday which is
hoped will ensure the uninterrupted functioning of the Georgian
electricity system this fall and winter.

According to the agreement, the Georgian government commits to pay for
the received electricity on time and must also ensure that the Georgian
Energy Wholesale Market's debt to the RAO UES-owned ninth and tenth
Gaedabani power units does not exceed GEL 30 million.

For its part, RAO UES will provide an uninterrupted supply of
electricity form the ninth power unit from October 10 to March 31. It
must also settle the question of Telasi's debt to the Energy Wholesale
Market Telasi, which distributes electricity to Tbilisi, is also owned
by RAO UES.

The Prime Minister said that as a result of the agreement, this winter
`will be without problems' as far as electricity supply is concerned,
saying that electricity form the repaid ninth unit would be supplemented
by imports provided from Russia. `We think that the technical side well
prepared,' Rappopport said with regard to both the 200MW ninth unit and
imports. He added that this is why the sides are currently more
concerned not about the prospects of future cooperation.

Rappaport's words were in marked contrast to last month, when he told
Russian newspaper Gazeta: `I am not feeling very comfortable, so I am
not planning serious investment in Georgia. Our position is based on
business logic - if you want energy, pay for it, and if there is not any
money to pay, then good bye.'

On Friday, Rappaport explained that these remarks were provoked by the
actions of Georgian law enforcement bodies. `Law enforcers tried to
arrest our bank accounts. They had claims against Telasi, and we in turn
had claims against the budget organizations.'

Rappoport denied rumors that RAP UES buys energy in Abkhazia and then
sells it to Georgia. `This is an interesting idea,' he joked, `buying
cheap energy and then selling it at a more expensive price.' More
seriously Rappoport called this rumor `a monstrous accusation.'

`We only negotiate with Enguri hydroelectric station through the
Ministry of Energy.' Rappaport assured journalists.

Both Rappoport and Zhvania said political tension between Georgia and
Russia did not effect the negotiations. As Zurab Zhvania said, `all
decisions are far from the political background.'

RAO UES controls the energy distribution company Telasi that supplies
Tbilisi with electricity, as well as the ninth and tenth power units in
Gardabani. It also has the rights to manage the hydroelectric stations
Khrami-1 and Khrami-2. The company invested USD 5 million in the ninth
bloc and in the Telaasi distribution system - more than USD 6 million
this year.

The company reports that it has managed to decrease the number of
accidents on electricity transmission lines by 60 percent.

Meanwhile RAO UES also reports the amount of payments fron Telasi
consumers increased from 40 percent in summer 2003 to 80 percent this
summer.


5. UN POPULATION FUND ANNOUNCES NEW COUNTRY PROGRAM

Source: The Messenger, October 4, 2004

On Friday, October 1, 2004 the UNFPA (United Nations Population Fund)
held a conference regarding its activities in Georgia, which was
attended by the UNFPA Country Director for Georgia, Armenia, Azerbaijan
Anne-Birgitte Albrectsen government officials and partner organizations.

UNFPA that has worked in Georgia since 1993, notes on its website that
it is the world's largest international source of funding for population
and reproductively health programs.

The UNFPA Country Director for Georgia, Armenia, Azerbaijan
Anne-Birgitte Albrectsen confirmed the organization's commitment to
continuing its programs in Georgia, and the introduction of a new
country program.

`UNFPA will continue to focus on improving access top and information
about reproductive health service in Georgia. Many high impact and low
cost activities are on going and we have excellent collaboration with
government, NGOs and donors. The new country program will support new
government priorities, `Albrectsen said.

UNFPA consultant in PR issues in Georgia Tea Skhiereli told The
Messenger that `the special country program has already been worked out
and it means that UNEPA will have a more long term strategy and larger
budget for projects which need to be implemented in Georgia.'

Mrs. Skhiereli said that the 5-year country program, which will offer
more effective assistance to the Georgian government, will start in
2006, while Albrectsen told journalists that they will need to give
increased attention to young people, male involvement and women's
empowerment.

During her visit, Albrectsen met with Minister of Health Vladimer
Chipashvili, First Deputy Foreign Minister Nika Tabatadze and other
government officials, as well as representatives of donor organizations
and the United Nations.

`I had very good meetings. The Minister of Health is very aware of our
activities and he welcomes our ideas. He is very open to the kind of
work what we do. We had a similar response at the Ministry of Foreign
Affairs,' Albrectsen told The Messenger.

Indeed, Albrectsen stated the UN Population Fund has always experienced
good relations with government, as well as NGOs. `During the time I have
been in Georgia, I have looked at all the projects we were doing in the
past. I found that we have collaborated very well with all our partners,
NGOs, the government and with the general population,' she The
Messenger.

`We will continue the project we have now until 2005 and then the
program from 2006 to 2010 will hopefully be approved by the executive
board in New York next June. Once that is approved, we can really start
scaling up our activities. So we will be here for the long term,'
Albrectsen stated.

Director of Zhordania Research Institute Professor Archil Khomasuridze
is involved in the UNEPA program and said that approximately 27,000
socially vulnerable patients have been checked up. `The mobile groups
bring help to vulnerable regions. The main goal of this program is the
work of the mobile groups, education of the population, the treatment of
adults and coping with AIDS,' he stated in an interview with The
Messenger.

At the conference, Anne-Birgitte Albrectsen also presented UNEPA's
annual report, which found that life expectancy in Georgia is 69.5 years
for men and 77.6 for women.

According the press release, the UN is committed to the Millennium
Development Goals, which aim to reduce extreme poverty and hunger,
maternal and child mortality and the spread of AIDA. This report is a
call to the government to invest in the education, health and human
rights of women and young people to ensure a more equitable and
sustainable world.


6. SCHOOL PROJECT SUCCESSFULLY LAUNCHED

Source: The Messenger, October 1, 2004

BP, as operator of the Baku-Tbilisi-Ceyhan (BTC) oil export pipeline and
South Caucasus (SCP) gas pipeline projects, is pleased to announce the
launch of the second stage of a USD $ 150, 000 School Project. This
project will benefit schoolchildren throughout the Eastern part of
Georgia by providing schoolbooks for all classes in the schools of
Tetritskaro, Gardabani and Marneuli districts as well as in the towns of
Rustavi and Tetritskaro that are located within the 4km corridor of the
pipeline route.

The School Project is another of BP's development initiatives in the
education sector and aims to compliment the $ 5 million Community
Investment Program (CIP) and $3 million Improved School Projects (ISP)
already initiated and funded by BP and its partners.

The first phase of the School Project was successfully implemented in
late 2003 with the distribution of schoolbooks to students in Tsalka,
Borjomi, Akhaltsikhe and Adigeni.

On September 28, 2004 the second stage of the project began with the
distribution of schoolbooks in Rustavi schools.

Ed Johnson, General Manager of BP in Georgia met with the teachers' ad
children from two schools in Rustavi. He said, `At BP we are proud that
thanks to our extensive engagement with local communities, NGOs, local
governments and general public al our initiatives are directed to the
core needs of those affected by our activities. It is important for BP
to contribute to the development of Georgia's future generation, and be
an active partner in the development of the country, through sustainable
educational initiatives such as this. We are happy we could play a
significant role in this respect.'

BP's $5 million Community Investment Program (CIP) was launched in May
2003 and is aimed at benefiting the 72 communities along the pipeline
route. To date more than 50,000 people have benefited from CIP projects
in the areas of infrastructure rehabilitation, agricultural support,
income generation projects, access to energy and community capacity
building.

The $3 million Improved Schools Project (ISP) was launched in August
2004 and will target 54 secondary schools in the towns of Gardabani,
Marneuli, Rustavi, Tsalka, Akhaltsikhe, Borjomi, Vale, benefiting over
28,000 students and 2,000 teachers, administrators and parents through
school infrastructure rehabilitation projects, the establishment of
Boards of Trustees and capacity building projects for teachers.


7. ARMENIAN NUKE PLANT RESTARTS WORK, MONDAY

Source: RIA Novosti, October 1, 2004

The Armenian nuclear power plant was stopped, July last, for an overhaul
and refueling. It will recommence work October 4, on schedule, Gaghik
Markosyan, its Director General, announced today.

The plant has scheduled repairs annually, and overhauls once every four
years, he added.

This year's overhaul concerned turbine No. 4. There was also a thorough
check of the metal reactor casing. Industrial safety has been increased,
and the refueling procedure has been introduced, Mr. Markosyan said to
Novosti.

The Armenian nuclear plant stopped in the small hours, July 30. Another,
12 million dollar batch of nuclear fuel was finally delivered to the
plant the week before.

Commissioned in 1980, the plant was shut down in March 1989 and
re-commissioned, November 1995, with an acute energy crisis in the
country. The INTER United Russian Power Grid paid for its fuel,
according to a contract.

Unit 2, with a first-generation VVER-440 water-cooled reactor, of
Russian manufacture, accounts for an average 30-40 per cent of Armenia's
entire electricity. Experts think the plant can safely work up to 2016.

Plant management was warranted for five years, September last, to the
INTER United Russian Power Grid, United Russian Power Grid-its branch,
and the Rosenergoatom Russian nuclear industrial concern.

The European Union expressly demands the plant sealed, and is willing to
grant 100 million Euro for the purpose, while Armenian experts think it
will take close on a billion Euro to build sufficient substitute plants
in the country.


8. HEARINGS ON THE ATTACK ON THE PHOTOJOURNALIST SCHEDULED FOR OCTOBER 7

On October 7, 2004 in the court of primary jurisdiction of Kotayk region
of Hrazdan city the hearings on the case of attack on the correspondent
of "Photolure" photo news agency Mkhitar Khachatrian, committed on
August 24, 2004, in Tsaghkadzor, are to start. As it has been reported,
Mkhitar Khachatrian together with the correspondent of "Aravot" daily
Anna Israelian were in Tsaghkadzor preparing a piece on the forest
cutting in the vicinity of sports complex for the construction of
summerhouses of high-ranked officials. After the end of the shootings
the memory chip of the journalist's camera was taken away by force.
Charges of public disorder (part 1 of Article 164 of the RA Criminal
Code) and the obstruction of legitimate professional activities (part 1
of Article 258 of the RA Criminal Code) of correspondents Mkhitar
Khachatrian and Anna Israelian were introduced by the RA General
Prosecutor's Office to a Yerevan resident, formerly twice convicted
Gagik Stepanian, whose prevention measure was chosen to be arrest

See details in YPC Weekly Newsletter, August 26 - September 2, 2004 and
September 3-9, 2004


9. INDUSTRIAL PRODUCTION IN ARMENIA INCREASED 2.4% IN JAN-AUG 2004

Source: ARMINFO, October 1, 2004

The volume of the industrial production in Armenia in Jan-Aug of the
current year as against 2003 increased by 2.8% and totaled 330.9 bln
drams. Not taking into account the energetic sphere, gas supply and
water economy it increased by 2.6%. National Statistical Service of
Armenia informed ARMINFO, in Aug as against July 2004 the volume of
industrial production increased by 5.9%. Industrial production worth
326.8 bln drams were sold in the period under review, including in CIS
countries - 30.9 bln drams, and other countries - 89.7 bln drams.

A considerable growth was registered in production of textile goods in
Jan-Aug of 2004 as compared with the same period of 2003 - the index
made up 222.8% and production of textile goods - 207.2%, nonmetallic
mineral products - 128.5%, in production of tools and devices - 124.8%.
in production of finished clothes and leather working - 122.1%, in
production of finished metallic goods - 113.2%. The most considerable
fall has been fixed in production of jewelry goods - the index made up
85.6%, in working of wood 97.1% and metallurgy industry - 92.3%

In Jan-Aug 2004 energetic enterprises of Armenia had generated 4,097.6
mln kW/h electricity or 112.2% out of the index of the same period of
last year. Electricity produced by the Armenian Atomic Power Station
made up 40.6% of the total generation, in thermal power stations - 24.1%
and in hydro power stations - 35.3%.

Production of bread and bakery products for the accounting period
totaled 196,400 tons. Production of beer increased by 23.9%, totaling
6,454,000 liters. Growth of production of flour by 9%, macaroni - by
104.5%, production of vodka by 30% and wine 28.5% were registered in the
period under review. Production of cigarettes and meat products
decreased by 12.9% and 22.6% respectively.

Production of aluminum roll grew 9.2 times, black copper - by 26.8% zinc
concentrate - by 13.8%, molybdenum concentrate - 4.1%, and of copper in
copper concentrate and aluminum foil decreased by 1.9% and
97.5% respectively.


10. IRAN-ARMENIA GAS PIPELINE TO KICK OFF SOON

Source: IranMania.co, October 3, 2004

Official in charge of a gas pipeline to Armenia noted that the project
would kick off within two months after announcement of tender winner,
Petroenergy Information Network (PIN) reported.

Mohammad Reza Lorzadeh added that the project is a major enterprise
launched by the National Iranian Gas Company and 14 major Iranian
contractors have been qualified for it.

"The Armenian gas pipeline will be constructed as EPC (engineering,
procurement, construction) and contractors should hand in their
proposals within next two months," he noted.

The official said the winner would be announced after quoted
transactions commission of the National Iranian Gas Company studies
prices and its implementation will follow.

"The Iranian part of the pipeline is 110-120 km long and the pipeline
will carry 10 mln cu. m. gas to the northern neighbor per day. After
installing compression stations, the figure can be increased to more
than 15 mln cu. m.," he noted.


11. ECOLOGY AND ECONOMY IN HARMONY

We believe that we can have a real, measurable and positive impact on
the biodiversity of the world. If you are a non-governmental
organization (NGO) or an environmental agency who thinks the same way,
please read on Building on last 2 years' success BP is pleased to
announce the third

Georgian Biodiversity Competition

The competition, which is part of BP's Biodiversity Strategy in Georgia,
supports our commitment to undertaking a series of specific biodiversity
initiatives in the countries and areas where we operate.

The cost of the projects submitted for the competition should be in the
range of $5,000- $20,000. These projects should:

Deliver practical, long-term benefits
Have potential for dual benefit for climate change and biodiversity
Include sustainability initiatives
Have identified ways of measuring performance and success
Be based on sound science
Be cost effective

We will also consider projects with a research element if they also add
practical, long-term benefits.

Projects can be submitted by one organization or by a group of NGOs.
Please note that only credible NGOs and organizations can participate in
the Competition.

The document submitted for the competition should include detailed
project description (objectives, expected outcomes, implementation
dates, detailed work plan (action, date, responsible people and their
CVs) and budget breakdown.

Submission deadline is 25 October, 2004. The winner project will be
announced in December, 2004.

All proposals should be addressed to Communications Team
(38, Saburtalo St. Tbilisi, Georgia/0177). Tel: (995 32) 59 34 00


12. EIA REPORTS SUBMITTED TO THE MINISTRY OF ENVIRONMENT OF GEORGIA

Source: `Sakartvelos Respublica' (`Republic of Georgia'), October 2,
2004

In accordance with the Georgian legislation, Ltd. `Roki' submitted EIA
report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of second category - Processing of
the Deposit along the River Khrami, Marneuli region, in order to Extract
Sand and Gavel.

In accordance with the Georgian legislation, Ltd. `Mshenebeli' submitted
EIA report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of second category - Processign of
the Inert Materials Deposit in Borjomi Region, along the Vashlovani
Settlement and Village Dvirti.

In accordance with the Georgian legislation, Ltd. `Ibolia' submitted EIA
report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of second category - Extracting
Sand and Gavel in Gori Region.

In accordance with the Georgian legislation, company `Vakhtangi' EIA
report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of second category - Basalt
Extracting Enterprise in Ninotsminda Region, Village Mamamtsvari.

EIA reports are available at the press-center of the Ministry of
Environment (68, Kostava Str., VI floor) and at the Department of
Environmental Permits and State Ecological Expertise (87, Paliashvili
Str., Tel: 25 02 19). Interested stakeholders can analyze the document
and present their comments and considerations until November 16, 2004.

Public hearing will be held on November 16, 2004 at 12:00, at the
conference hall of the Ministry of Environment.


13. EIA REPORT ON THE IMPROVING OF THE BAKURIANI LANDFILL, BORJOMI
REGION

Source: `Sakartvelos Respublica' (`Republic of Georgia'), October 2,
2004

In accordance with the Georgian legislation, Governance of Borjomi
Region submitted EIA report to the Ministry of Environment of Georgia to
obtain an environmental permit for the activity of first category -
Improving of the Bakuriani landfill, Borjomi Region.

EIA reports are available at the press-center of the Ministry of
Environment (68, Kostava Str., VI floor) and at the Department of
Environmental Permits and State Ecological Expertise (87, Paliashvili
Str., Tel: 25 02 19). Interested stakeholders can analyze the document
and present their comments and considerations until November 19, 2004
instead of October 5, 2004.

Public hearing will be held on November 19, 2004 at 12:00, at the
conference hall of the Ministry of Environment.


--
*******************************************
CENN INFO
Caucasus Environmental NGO Network (CENN)

Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
URL: www.cenn.org