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CENN Daily Digest - May 24, 2005

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  • CENN Daily Digest - May 24, 2005

    CENN - MAY 24, 2005 Daily Digest
    X-Sender: Asbed Bedrossian <[email protected]>
    X-Listprocessor-Version: 8.1 -- ListProcessor(tm) by CREN

    Table of Contents:

    1.. Russia Upset by Decision to Not Privatize Gas Pipeline
    2.. "One Window' Licensing Nowhere in Sight
    3.. Government Puts Energy Up for Sale
    4.. Kazakhstan Poised to Ink Official Document On Joining BTC
    5.. Pipelines Carried 4,2 mln Tons of Crude Oil and Oil Products
    6.. EBRD Satisfies with Oil Revenue Management in Azerbaijan
    7.. Saakashvili to Attend Oil Pipeline Opening Ceremony
    8.. Award for Bankwatch Co-produced Film on BTC Pipeline at
    International Human Rights Film Festival (May 5)
    9.. MA Releases Second Report: Biodiversity and Human Well-being
    10.. Press Release
    11.. Announcement of the Ministry of Environmental Projection and
    Nature Resources
    12.. Announcement of the Ministry of Environmental Projection and
    Nature Resources
    13.. Announcement of the Ministry of Environmental Projection and
    Nature Resources
    14.. EIA Reports
    15.. Announcement -- for the Attention of Organizations Operation in
    the Small and Medium Enterprise Supporting Field


    1. Russia Upset By Deciosn to Not Privatize Gas PIpeline



    Source: The Messenger, May 18, 2005



    One week before US President George Bush's visit to Georgia, Minister
    of Energy Nika Gilauri announced that, following an agreement from the
    Millennium Challenge Corporation (MCC) that USD 40 million will be
    allotted by the corporation for repairs to the trunk gas pipeline, the
    government had decided not to privatize the pipeline after.



    The government had initially suggested that the pipeline would need to
    be sold as it was unable to pay for the cost its rehabilitation. The
    Russian energy giant Gazprom expressed its interest in buying the
    pipeline, and this led to opposition both within Georgia and from the
    US to sale.



    Local experts expressed concern that selling the pipeline to a Russian
    state owned company would put Georgia in a position of even greater
    dependence on energy imports from its northern and not always friendly
    neighbor. US officials, meanwhile, concerned that the trunk pipeline
    might prove an eventual competitor to the US funded South Caucasus
    Pipeline, also expressed opposition to the pipeline's sale.



    Nevertheless, without any alternative course of financing the vital
    rehabilitation work, the possible sale of the pipeline remain on the
    agenda, leading critics to wonder about the presence of shady,
    pro-Russian forces within the government, or else equally shady
    figures with a personal interest in its sale.



    Conservative MP Kakha Kukava, for example, said, "I am sure that the
    Georgian government has corrupt and financial interests in the
    issue. I don't think that the government came to such a decision
    because of been pro-Russian. In this case it was not the political but
    corrupt interests. If there exist pro Russian interests in the
    government than even these interests have financial rather than
    ideological or strategic motives," as quoted by Akhali Taoba.



    The government of course denies such accusations, stating that it was
    only possible to take the pipeline off the market once the Millennium
    Challenge funding had been won. It could be added that, given obvious
    US animosity to sale on the agenda was a useful way of persuading MCC
    that rehabilitation of the pipeline was a project worth supporting.



    Following the decision not to sell the pipeline, the government was
    eager to stress that it as not a "decision against the Gazprom or
    Russia," 24 Saati quotes Prime Minister Zuran Nogaideli as saying.



    Nevertheless, the decision has clearly upset Moscow. Russian MP
    Konstante Zatulin, for example said that this was yet another US
    measure to drive a wedge between Russia and other CIS countries, by
    reducing the level of dependence of countries like Georgia on Russia.



    Russian expert Aleksandr Blokhin complains that the US has no economic
    interests in the gas pipeline, an is merely interested in interfering
    in reducing Russian influence in the Caucasus region.



    Mr. Blokhin underlines that through the pipeline Russian gas is
    transited to Armenia - the only country strongly loyal towards Russia
    in the region. "The amount of transited gas to Armenia is not
    sufficient for Gazprom. It should be mentioned that by refusing to
    sell the gas pipeline to the Gazprom America is separating Georgia
    form Russia," Mr. Blokhin said as quoted by 24 Saati.





    2. "One Window' Licensing nowhere in sight



    Source: The Messenger, May 20, 2005



    A draft law prepared by the government aims to reduce the number of
    licenses and permits to be issued by 80%, but the "on window
    principle" promised by the authorities still does not exist.



    Some analysts and businessmen have called on the administration to
    pass much more radical reforms in order to allow entrepreneurs to
    apply to only one structure when seeking a license. The "one window"
    proposal is likely to come up during the parliamentary session's
    discussion of the draft "on issuance of licenses and permits."



    The initiative to simplify the licensing and the permit issuance
    system came from State Minister for Economic and Structural Reform
    Kakha Bendukudze. The current system is highly complicated, with
    approximately thirty state bodies authorized to issue come 76
    different types of license and permit. As the newspaper Khvalindeli
    Dge reports, there heretofore existed 545 licenses and 600 permits for
    various businesses. Obviously such conditions created an array of
    difficulties for entrepreneurs. It is clear as well that the more
    licensing procedures there are, the greater the changes of corruption.



    The authorities have given great attention to the issue of simplifying
    the license issuance process. As Rezonansi reports, President Mikheil
    Saakashvili promised entrepreneurs to work out a "one window
    principle" for licensing, by which only one license from one structure
    would be required for each kind of business. The president called this
    move the second revolutionary simplification of the country's economy,
    the first being the new tax code.



    The number of licenses issued has reduced from 600 to 140, but this
    still is not the promised one window system, and businessman still
    have to go to through several bureaucratic hoops to receive a license.



    Rezonansi quotes Executive Director of the Federation of Georgian
    Businessmen Giorgi Isakadze as suggesting the government created a
    chancellery type agency to license business. "We want to deal with one
    specific structure where we can pay money and officially receive
    approval or a justification refusal, he said, as quoted by newspaper
    Khvalindeli Dge.



    Meanwhile analysts oppose the cancellation of licenses over
    environmental protection foreseen in the draft prepared by the
    government - four categories of environmental protection decrease to
    one. Only the license for building atomic energy plants and other
    heavy industry factories is rob be retained, while other business can
    be carried out without control.



    Leader of the Green Movement Giorgi Gachechiladze sees the decrease of
    environmental protection licenses as an "anti-Georgian" decision that
    will badly influence the country's environment and will tarnish its
    international image as well.





    3. Government Puts Energy Up for Sale



    Source: The Messenger, May 20, 2005



    The Ministry of Economic Development of Georgia has posted details of
    energy infrastructure to be privatized on the government's web site.



    "Privatization will be carried out through a competitive process," the
    web site states. "Interested investors are invited to submit their
    expression of interest in writing and confirm their willingness to
    participate in the possible privatization process."



    Letters in English, Georgian or Russian should be received by 18:00 on
    October 1, 2005, the ministry states.



    Companies slated to be privatized include the electricity distribution
    companies the Adjara Power Company (authorized capital GEL 27,809,464)
    and Untied Distribution Power Company (GEL 59,032,782).



    Hydroelectric power station to be privatized are listed as: Rioni,
    Kutaisi, authorized capital 7,391,073 lari, installed capacity 48 MW;
    Gumati, Kutaisi, 1,966,732 lari, 44 MW; Lanjanuri, Tsageri, 2,391,791
    lari, 112 MW; Dzevruli, Terjola, 919,786 lari. 80 MW; Shaori, Tkinuli,
    1,735,390 lari, 38 MW; Alsi, Keda, 84,284 lari, 16 MW.



    In all cases, the state's 100% share is to be privatized, except for
    Dzevrili, where the government's share is 98,45%.



    Interested investors should submit detailed proposals with respect to
    privatization only after the announcement of the competition, the
    statement6 reads.





    4. KAZAKHSTAN POISED TO INK OFFICIAL DOCUMENT ON JOINING BTC



    Source: State Telegraphic Agency of the Republic of Azerbaijan,
    Azertag, May 21, 2005



    Kazakhstan is ready to sign the agreement on joining the
    Baku-Tbilisi-Ceyhan (BTC) main export pipeline, according to the
    information provided by the State Oil Company of Azerbaijan.



    The intergovernmental agreement, which is set to be sealed within
    short time, will be ratified by the parliaments of both countries.



    BTC will initially export 7,5 million tons of Kazakh oil and further
    increase this volume up to 20 million tons yearly. In the initial
    stage, the oil will be carried via tankers. However, the sub sea
    pipeline linking Kazakhstan and Azerbaijan is also to be laid in the
    near future. The pipeline will be completed as soon as the first oil
    is extracted from "Kashagan" oilfield.





    5. PIPELINES CARRIED 4,2 MLN TONS OF CRUDE OIL AND OIL PRODUCTS



    Source: State Telegraphic Agency of the Republic of Azerbaijan,
    Azertag, May 23, 2005



    Azerbaijan oil pipelines have carried 4,2 mln tons of oil and oil
    products between January and April 2005 that is 0.9% more than it was
    done for the corresponding period of the last year, according to the
    State Statistics Committee of Azerbaijan





    6. EBRD SATISFIES WITH OIL REVENUE MANAGEMENT IN AZERBAIJAN



    Source: State Telegraphic Agency of the Republic of Azerbaijan,
    Azertag, May 23, 2005



    The Azerbaijan strategy overview prepared by EBRD said that based
    largely on Foreign Direct Investment in the oil sector and the
    consequential spill-over effects to the transport and construction
    sectors, Azerbaijan has, during the last few years, registered robust
    economic performance. With vigorous export growth in some sectors,
    most notably agriculture and chemicals, annual GDP growth since 2000
    has averaged over 10%. Within the time span of this country strategy
    these growth rates could double.



    During the current strategy period, the Government's economic policy
    mix has been broadly appropriate. To compensate for the greater
    liquidity in the system resulting from the capital inflows to the oil
    sector, the Government has progressively tightened its fiscal
    policy. Within this context, tax reforms have been successfully
    executed.



    The recently adopted long-term oil revenue management strategy
    provides an appropriate framework for supporting macroeconomic
    stability. Institutional capacity building is needed in support of
    those structural reforms which have been introduced.



    The Bank will contribute to the development of the non-oil sector by
    making direct debt and equity investments and via support to the
    financial sector. Micro-, small- and medium-sized enterprises are
    anticipated to be the primary target for these investments. The
    instruments, resources and programmes available under the ETC
    Initiative will be fully utilized in order to accentuate the Bank's
    engagement in these activities.





    7. Saakashvili to attend oil pipeline opening ceremony



    Source: Rustavi2, May 24, 2005



    Georgian President Mikheil Saakashvili will leave for Azerbaijan to
    attend the opening ceremony of the Baku-Tbilisi-Ceyhan (BTC) oil
    pipeline.



    It is reported that Mr. President will hold a two-day visit to
    Azerbaijan; today he will negotiate with his Azeri counterpart Ilham
    Aliev.



    The official opening ceremony of the Baku-Tbilisi-Ceyhan oil pipeline
    will hold on May 25, 2005; the presidents of Georgia, Azerbaijan,
    Turkey, Kazakhstan and US Secretary of Energy, Samuel Bodman will
    participate in the opening ceremony.



    According to the official data, "BTC project is a $2.9 billion
    investment to unlock a vast store of energy from the Caspian Sea by
    providing a new crude oil pipeline from Azerbaijan, through Georgia,
    to Turkey for onward delivery to world markets.



    Traversing 1,760km of often remote and challenging terrain, the BTC
    pipeline will be able to transport up to one million barrels of crude
    oil per day from a cluster of discoveries in the Caspian Sea..."





    8. Award for Bankwatch co-produced film on BTC pipeline at
    international human rights film festival (May 5)



    Source: http://www.bankwatch.org/



    The Bankwatch co-produced film called "The Source", directed by Czech
    Martin Marecek, received a Plzenský Prazdroj Audience Award for
    the film which met with the most positive response from members of the
    audience attending the recent international "One World" human rights
    film festival in Prague. The film, which documents the social and
    environmental implications of the IFI-funded Baku-Ceyhan pipeline in
    Azerbaijan, also received a special commendation from the festival
    jury.





    9. MA releases second report: Biodiversity and Human Well-being



    Launched today, on May 19, 2005 the second Millennium Ecosystem
    Assessment report, Biodiversity and Human Well-being: A Synthesis
    Report for the Convention on Biological Diversity, synthesizes and
    integrates findings related to biological diversity from the four MA
    Working Groups: Conditions and Trends, Scenarios, Responses and
    Sub-global Assessments, in response to requests for information
    received through the Convention on Biological Diversity (CBD).



    The report will be launched as part of the celebrations for
    International Day for Biological Diversity today in:



    a.. Montreal, Canada - the CBD Secretariat will hold a press
    conference followed by a reception and will co-sponsor, with McGill
    University, a seminar aiming at providing an in-depth discussion of
    the report and its relationship to science, and policy. b.. London
    & Cambridge, United Kingdom - UNEP will hold a press briefing on the
    findings of the Biodiversity Synthesis Report at the Royal Society,
    followed by a scientific seminar organized by UNEP-WCMC, and hosted
    at University of Cambridge. More details at www.unep-wcmc.org
    c.. Beijing, China - State Environmental Protection Administration
    (SEPA) will hold a press conference highlighting the Chinese
    government's efforts to protect biodiversity in the past 10
    years. More details at www.biodiv.gov.cn


    "Loss of biodiversity is a major barrier to achieving development
    goals, and poses increasing risks for future generations," said Walter
    Reid, Director of the Millennium Assessment. "The Millennium Ecosystem
    Assessment report shows that management tools, policies and
    technologies do exist to dramatically slow this loss."



    More detailed information is available at:
    http://www.maweb.org/en/index.aspx





    10. PRESS RELEASE



    Source: Advocacy.Ge



    Save the Children promotes establishment of a democratic and legal
    state, civil society, and the rule of law



    Tbilisi - On May 22, 2005 at 7:00 PM at cafe "Kala" on Erekle II
    Street Save the Children with its local partner organizations - Civil
    Development Center "Alternative", Civic Initiative Center, Center for
    Change and Conflict Management - Partners Georgia, the Caucasian
    Institute for Peace, Democracy and Development, United Nations
    Association of Georgia, Civil Society Institute and Center for
    Strategic Research and Development of Georgia will hold a Code of
    Ethics Compliance Awards Ceremony. The Code of Ethic Compliance
    Ceremony is organized within the frame of a three-year Citizens
    Advocate! Program funded by United States Agency for International
    Development (USAID).



    Citizens Advocate! Program aims to improve the capacity of Civil
    Society Organizations (CSOs) and create an enabling environment so
    that CSOs can promote citizens' interests and effectively advocate
    their cause.



    The aim of the Code of Ethics Compliance Ceremony is to award those
    CSOs who are in compliance with the main five silver principles of the
    Code: 1) Civil Society Organizations issue annual reports about their
    activities; 2) Civil Society Organizations regularly undergo audits;
    3) Civil Organizations are governed by an independent Board. The Board
    is free from any external influences in decision-making; 4) CSOs have
    mission statements and internal regulations, which describe in detail
    the mechanisms that govern the functioning of the organization. This
    document is approved by the Board; 5) Information about the mission,
    members, and finances of CSOs is available to the public, and their
    activities and work are transparent.



    The Code of Ethics Compliance Ceremony will be attended by the NGO
    community, Bob Wilson, Nick Higgins and Keti Bakradze from USAID,
    representatives from international and governmental organizations, and
    business community.





    11. Announcement of the Ministry of Environmental Projection and
    Nature Resources



    Source: "Sakartvelos Respublica" ("Republic of Georgia"), May 19, 2005



    The Ministry of Environmental Projection and Nature Resources
    according to the law on fauna announces competition on development of
    fish farms in Dedoplistskaro region - Dalis Mta, Dusheti Region -
    Jinvali and Ambrolauri region - Reservoir of Shaori.



    To obtain the general license interested parties should submit
    announcements and competition materials within the month after
    publishing the competition.



    For the additional information please contact the Department of
    Environmental Permits and State Ecological Expertise of the Ministry
    of Environmental Projection and Nature Resources at the following
    address: 6, D. Gulua str., II Floor, Tbilisi.





    12. Announcement of the Ministry of Environmental Projection and
    Nature Resources



    According to the pubic administration law the Ministry of
    Environmental Projection and Nature Resources announces commence of
    the execution of the licensing activities of the geological activities
    according to the following licenses announcement Ltd. "GT Trade" -
    Engineer Geological activities.



    Public hearing will be held on June 7, 2005 at 11:00, at the
    Department of Environmental Permits and State Ecological Expertise of
    the Ministry of Environmental Projection and Nature Resources at the
    following address: 6, D. Gulua str., II Floor, Tbilisi. 6, D. Gulua
    str., II Floor, Tbilisi.





    13. Announcement of the Ministry of Environmental Projection and
    Nature Resources



    Source: "Sakartvelos Respublica" ("Republic of Georgia"), May 19, 2005



    The Ministry of Environmental Projection and Nature Resources
    according to the law on fauna announces competition on development of
    hunting farms in Kvareli region, on the territories of Duruji, kvareli
    and Shildi forestry districts and Kaspi Region, on the territory of
    Kaspi's forestry farm Ksvtiskhevi forest district.



    To obtain the general license interested parties should submit
    announcements and competition materials within the month after
    publishing the competition.



    For the additional information please contact the Department of
    Environmental Permits and State Ecological Expertise of the Ministry
    of Environmental Projection and Nature Resources at the following
    address: 6, D. Gulua str., II Floor, Tbilisi.





    14. EIA Reports



    Source: "Sakartvelos Respublica" ("Republic of Georgia"), May 19, 2005



    In accordance with the Georgian legislation on "environmental Permits"
    were submitted the following reports to obtain the environmental
    permits for the activity of second category:



    1. Technical-technological report and mitigation measures KP 80+120,
    KP 71+215, KP 68+900, KP 67, KP 62+700, KP 61+000 deposits
    (Tetritskaro region) development technological schemes
    (project) submitted by Spi Petrofac.



    2. EIA Report of the Beer Producing Enterprise submitted by
    Ltd. "Lomisi".



    EIA reports are available at the Department of Environmental Permits
    and State Ecological Expertise (6 Gulua Str.). Interested stakeholders
    can analyze the document and present their comments and considerations
    until July 4, 2005.



    Public hearing will be held on July 4, 2005 at 12:00, at the
    conference hall of the Ministry of Environment.





    15. Announcement -- for the Attention of organizations operation in
    the Small and Medium Enterprise supporting field



    Junior Achievement Georgia is Updating information about organization
    which is operating, Small and Medium Enterprise supporting (Georgian/
    foreign) field. We are interested in:



    o in Georgia established, public and private institutions

    o NGOs, associations, governmental or nongovernmental
    bodies/institutes incl. Chambers, Confederations

    o consultancy companies/ single advisers

    o training institutions and etc.



    If you are working in the above mentioned filed please fulfil in the
    form attached and send tot the following address: [email protected] ASAP.

    Eka Gegeshidze
    Executive Director
    Junior Achievement Georgia
    995 99 15 25 80
    995 32 251813
    E-mail: [email protected]

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

    Tel: ++995 32 75 19 03/04
    Fax: ++995 32 75 19 05
    E-mail: [email protected]
    URL: www.cenn.org
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