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CENN Daily Digest - July 27, 2005

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  • CENN Daily Digest - July 27, 2005

    CENN - JUly 27, 2005 Daily Digest
    Table of Contents:1. Visit to Armenia2. Constriction Project
    of Iran-Armenia Gas Pipeline is Main Component for Providing Armenia's
    Energy Security3. Banks - Participants of Renewable Energy
    Development Program to be Announced in Late Autumn4. Low Quality
    of Service Hinders Tourism Development in Armenia5. Lost Riches of
    the Mtkvari - Legend or Reality?6. Akhurian Water Reservoir
    Pollution Rises Concerns7. EBRD Provides $3M Finance to Armenian
    Bank8. Open Science Conference: Global Change in Mountain Regions
    1. Visit to Armenia


    On July 22, 2005 employees of Bolnisi Public Environmental Informational
    Center visited their Armenian colleagues. In the office of Akhtala
    Center in the framework of the project "Local Capacity and Regional
    Confidence Building and Networking for Promotion of Integrated Water
    Management in the South Caucasus Countries (watersheds of the Debed and
    Khrami Rivers)" was held meeting. Besides the employees of Bolnisi and
    Akhtala Centers the meeting attended representatives of NGO "Ecological
    survival" (Yerevan), Foundation Eurasia, representatives of local and
    regional governmental structures, also invited specialists.



    The main objectives of the meeting were:



    1. disforestation and ecological problems connected
    with this process;

    2. river pollution with industrial wastes



    Employee of Alaverdi enterprise industrial complex mentioned that in
    their complex was installed the new system for water pumping as a result
    of this pollution of river Debed was stopped. For current time the main
    ecological problem is surge of atmosphere by sulphuric gas.



    Georgian participants familiarized the participants of the meeting with
    the process privatization of "Madneuli" Ltd. It was mentioned that CENN
    carries an active negotiations with the ministry of Economical
    Development and Environmental Protection and Natural Resources, also
    with the heads of "Madneuli" Ltd. The aim of CENN activity is to
    introduce the environmental issues in privatization terms.

    Such meetings that are aiming the exchange of information and
    experience will be held in future too.



    Prepared by CENN

    Public Environmental Informational Center of Bolnisi 2.
    CONSTRUCTION PROJECT OF IRAN-ARMENIA GAS PIPELINE IS MAIN COMPONENT FOR
    PROVIDING ARMENIA's ENERGY SECURITY Source: ARMINFO, July 19, 2005 The
    construction project of Iran-Armenia gas pipeline is the main component
    for Armenia's energy security, Armenia's deputy energy minister Areg
    Galstyan stated at today's seminar on "Armenia's energy security". In
    his words, this project has been involved into Armenia's energy
    development strategy till 2025 ratified recently by country's
    government. Galstyan noted that active construction works are being
    continued at present at the first section from Meghri to Kajaran. He
    assured that the project will be realized completely in late 2006. Two
    agreements were signed between the Yerevan TPS and Iranian national
    company on gas export within the framework of Iranian petroleum and gas
    minister Bizhan Zangane to Yerevan on May 13-14, 2004. The first
    concerned the direct purchasing of the Iranian gas, the second - the
    payment of Iranian "pale blue fuel" with supplies of Armenian electric
    power from the Yerevan TPS - 3 kw-hour per one cubic meter of gas. These
    documents determine that the program will start from January 1, 2007.
    Later on, next two agreements were signed during a September visit of
    Iranian president Mohammad Khattami to Armenia. One of them concerned
    the allotment of $30 mln by the Iranian Bank of reconstruction and
    export for the construction of the Meghri-Kajaran first section of the
    gas pipeline. An agreement between "High-voltage network" CJSC and
    Iranian "Sanir" company on the construction of 42-km gas pipeline
    section in Armenia's territory was signed on the base of this document.
    The Iranian party, in its turn, undertook to construct a 110 km pipeline
    section from Tavriz to Meghri. "However, the realization of this part of
    the project will not allow to fulfill the terms of the contract as the
    Iranian party undertook to provide Armenia with no less than 1 bln cubic
    meter of gas, which the capacities of the first section do not allow,
    Simonyan noted adding that is why it is necessary to continue the gas
    pipeline construction on two directions - 55.4 km Kajaran-Sisian and
    99.7 km Jermuk-Ararat. At present, construction works on the first
    section in direction of Meghri-Kajaran in Armenia and Tavriz-Nordus in
    Iran have been started. "Sanir" company - a general contractor of the
    project, conducted a tender and signed an agreement with a subcontracted
    Iranian company. Specialists of "ArmRosgasprom" CJSC participate at the
    gas pipeline construction in Armenia's territory, Simonyan noted. 3.
    BANKS - PARTICIPANTS OF RENEWABLE ENERGY DEVELOPMENT PROGRAM TO BE
    AMMOUNCED IN LATE AUTUMN



    Source: NOYAN TAPAN, July 22, 2005



    Staring late 2005, the KFW Bank (Germany) will implement in Armenia a
    program on renewable energy development to be financed by the German
    government. The program envisages credits for the operating, half
    completed and new hydroelectric power stations. According to the
    Armenian representative of KFW Karapet Gevorgian, the program advisors
    will arrive in Armenia in November to develop jointly with the Central
    Bank of Armenia (CBA) the criteria for choosing banks - participants of
    the program and organize the competition of banks. K. Gevorgian said
    that KFW Bank will allocate a total of 7.5 mln euros for the purpose of
    providing long-term credits for small hydro power stations. Out of the
    indicated sum, 6 mln euros will be given as a concessional loan
    (carrying a 0.75% interest rate and repayable over 40 years), and 1.5
    mln euros - as a grant. With the aim of implementing the program, the
    German-Armenian Fund-2 will be set up to re-credit the selected
    banks-participants with these resources. K. Gevorgian assured that the
    repayment terms of the loans provided within the framework of the
    program will be longer and their interest rates - lower compared with
    those of loans given to other spheres. The hydro power station together
    with its infrastructures, as well as other property of the owner may be
    put in pledge. However, in order to get a loan, the recipient's
    investment must make up at least 30% of the amount required for
    restoration. According to K. Gevorgian, as it is a new crediting sphere
    for Armenian banks, initially they will work with the operating hydro
    power stations that have guaranteed cash flows.





    4. LOW QUALITY OF SERVICES HINDERS TOURISM DEVELOPMENT IN
    ARMENIA


    Source: NOYAN TAPAN, July 22, 2005


    The development of tourism in Armenia is mainly hindered by a low
    quality of services. According to the rector of the Armenian Institute
    of Tourism Robert Minasian, low-quality services are conditioned by the
    fact that most employees of the sphere lack the necessary special
    education. In his opinion, in order to solve this problem, the
    government should establish definite rules to be applied in the tourism
    sphere and supervise their fulfilment. R. Minasian said that the
    tourism-related legislation field is not regulated. The current law on
    tourism has been in effect since 1993 and, according to the rector, is
    of a declarative character. According to R. Minasian, if not enough
    funds are allocated for tourism development from the state budget, the
    tourist rent and tourist tax must be introduced, which will allow to
    obtain additional resources to be used for the formation of
    infrastructures. It was also noted that adventure and medical tourism
    have prospects for development in the country.





    5. Lost Riches of the Mtkvari - Legend or Reality?



    Source: "24 Saati"("24 Hours"), July 25, 2005


    Certainly, the banks of the River Mtkvari are not the same today. The
    ecological conditions in some places are really shocking. I make my way
    through garbage, empty bottles and dirty cellophane bags. And what an
    amazing paradox: I look up and see beautiful green trees and bushes, the
    light blue Tbilisi sky with running white and smoke-colored clouds. A
    fish is splashing in the flooded Mtkvari water... the contrast of two
    parallel realities is striking.



    In the shadow of a young almond-tree sits an elderly fisherman with a
    younger friend. They are watching a 16-year-old boy who is standing in
    the water, his eyes fixed on his fishing rod. I come nearer and sit down
    on a piece of foam plastic. The' elderly man, whose name is Tristan, has
    been a professional fisherman for more than forty years. His friend
    Igor, who is about 40 years old, is also a very experienced fisherman.
    Fishing has a specific sense for them (sometimes strange for us). So
    they start a conversation. These men are very educated in what they do,
    and they immediately give me plenty information and literature on the
    theme. I am greatly interested in the burning topic of poachers.
    According to the law, the total weight of fish caught shouldn't exceed 5
    kilograms per day. These people catch 100 and sometimes even 200 kg. But
    the worst thing is that they kill fish with electric current.



    They were first noticed in 1988 -people on boats, killing fish with 220
    volts from a transformer. This doesn't just kill the caviar, but
    sometimes eating such fish poses serious health risks. And an
    interesting point: poachers were given counterfeit licenses by GruzFish
    in the early 1990s. Now the police catch these people, who mainly work
    in the upper Mtkvari: Mtskheta, 'Zahes', Rustavi boundaries, killing all
    varieties of fish.



    Tristan says, `Such illegal fishing has led to the birth of second and
    third category fish, which is more adapted to the dangerous life in
    Mtkvari River, eating very valuable and useful caviar of such fish as,
    mountain barbel, zanthe, etc. These fish breeds have almost
    disappeared'.



    As we can see, Georgia's ecology, professional, sportsmen and amateur
    fishermen, and all Tbilisi residents suffer from this fact. As L.
    Sabaneev mentions in his work, `Fish suffer greatly from the
    interference of man and industry'. We already can see the facts.
    Specialists state that in 10 years Georgian ecological river system will
    pass the point of no return. Certainly, it's not only the poachers who
    are to blame. In the 1980s, the Soviets established the `Shamkhori Hes'
    on Azerbaijan territory, which causes serious harm to Mtkvari fish,
    preventing migration, which is the main way by which these fish live and
    spawn.



    The spawning starts early in June, and the actions of the poachers are
    even more dangerous during this period. The fishing season runs from
    September to May. In summer, when the caviar starts growing, fishermen
    can only fish with rods and other simple instruments.



    I was very curious to know if the fish caught in Mtkvari was safe to
    eat. Igor told me, 'Tristan can confirm that in the 40 years he has been
    working he has never had any problems with the fish he has caught. You
    risk poisoning from fish only if you eat caviar during the spawning. It
    is certain that the pollution and toxic substances in the river upsets
    the natural balance, but it is very important for everyone to abandon
    the idea that Mtkvari fish are dangerous because they feeds on sewerage
    faults. People are misled when they are told that there is no Mtkvari
    fish in restaurant menus. There certainly is - and what's more, it is
    completely safe to eat'.



    The average price of Mtkvari fish varies from 5 to 10 GEL per kilogram.
    An ordinary riverside fisherman catches at best about five kilograms of
    fish, which is the legally permissible standard to maintain a positive
    ecological balance. They conscientiously sell their catch at specially
    made markets at the quay, where there are peculiar unwritten rules for
    the fishermen. But let us imagine how much money a man using electric
    current, catching from 50 to 200 kg per night. By catching about 100 kg,
    they damage the river balance two and even three times more by using
    electric current. This doesn't happen anywhere else in the world - and
    this is just wild!' says Igor. In 2003, some ecological delegations and
    TIbilisi Municipality became engaged in this issue and the progress
    became more and more noticeable. However, this didn't last for long, and
    the professional fishermen often still see poachers at night.



    So how is it possible to identify them? Fish poachers `work' mainly in
    the darkness of the night. They are usually two men in a boat. One of
    them rows and other holds a net that is connected to an electric
    transformer with 220 Volts. He has a lamp fixed on his head like miners
    use. He switches it on very rarely - just at certain times when they are
    ready to catch. It is not very difficult to spot or catch these
    criminals, and the patrol police do so. But there is another problem to
    solve: holding them responsible before the law.



    Igor and Tristan on behalf of all their friends-professional and amateur
    fishermen state: We see them (the poachers) very often. Sometimes they
    even wave to us. But we don't return their greeting. They're harming the
    river that feeds most of us. We can understand them - they are just
    trying to earn money to keep their families from starving, but it is not
    an honest way. It kills the fish and river wildlife, including many fish
    that are already in the Red Book. All of us - Tbilisi residents,
    representatives of the government police, ecological movements and
    certainly fishermen, must struggle to restore the ecological balance and
    the previous bounty of really unique fish, which by right belong to the
    Mtkvari'.



    6. AKHURIAN WATER RESERVOIR POLLUTION RAISES CONCERNS


    Source: ARMENPRESS, July 25, 2005


    Findings of an extensive study of Armenia's biggest Akhurian
    water-reservoir in the north-eastern province of Shirak close to
    Turkish-Armenian border indicate that though the water from the
    reservoir is still fit for irrigation, the level of its pollution (the
    water contains a number of heavy metals) makes consumption of its water
    hazardous.



    These findings were compiled in a book that was presented in Gyumri. It
    was published with the assistance of the World Council of Churches,
    Swiss EFO and other organizations. The three-year study was conducted by
    Armenian GeoFon organization. The reservoir's capacity is 525 million
    cubic meters of water. It irrigates around 104,000

    hectares of agricultural lands.



    According to Levon Martirosian, who coordinated the studies, the
    reservoir water is likely to be polluted by a Turkish leather factory
    across the border that pours out its waste waters into Akhurian River
    that feeds the reservoir. He says to prevent further pollution

    extensive studies should be conducted also in the Turkish section, as
    the reservoir is used equally by Armenia and Turkey. Martirosian said
    their effort to get a permission of the Turkish authorities t conduct
    such studies was rejected.





    7. EBRD PROVIDES $3M FINANCE TO ARMENIAN BANK


    Source: Press Release - European Bank for Reconstruction and
    Development, July 25, 2005


    The European Bank for Reconstruction and Development is providing a $3
    million financing to the Agricultural Cooperative Bank of Armenia
    (ACBA). The loan is the first in Armenia of a new type of EBRD
    instrument, the Medium-Sized Loan Co-Financing Facility (MCFF).



    The MCFF is one of several instruments offered in Armenia, Azerbaijan,
    Georgia, the Kyrgyz Republic, Moldova, Tajikistan and Uzbekistan, the
    Bank's seven lowest-income countries of operation, under the Early
    Transition Countries (ETC) initiative. This

    iitiative, launched by the EBRD in 2004, aims to stimulate market
    activity by using a streamlined approach to financing more and smaller
    projects, mobilizing more investment, and encouraging economic reform.
    The initiative is part of an international effort to address poverty in
    these members of the Commonwealth of Independent States (the former
    Soviet Union). The Bank will accept higher risk in the projects it
    finances in the ETCs, while still respecting the principles of sound
    banking.



    The MCFF is available to banks with strong credit policies and
    procedures, but which are limited in the loans they can provide to local
    corporate clients. It allows ACBA to co-finance, with the EBRD, bigger
    sub-loans to its clients and share with the EBRD any risks involved with
    such lending. While ACBA's internal credit procedures have until now
    limited any credit exposure per single borrower to a maximum of
    $180,000, with the help of the MCFF it will be able to offer its most
    trusted and financially viable clients from $400,000 to $1 million.



    ACBA was created in 1996 to help farmers find finance after Armenia
    privatised state-held land. It was modelled on France's Credit Agricole.
    Its structure -- with collective ownership based on village cooperative
    associations, and coffers swelled at the grassroots by more than 20,000
    farmers' sign-up fees of $10 - is unique in the former Soviet space.
    ACBA has since developed business outside agriculture in almost all
    areas of the economy. The EBRD is delighted to make this co-financing
    available to ACBA, which is now Armenia's largest bank by
    capitalisation, and generates solid profits, said Michael Weinstein,
    head of the EBRD's Armenia Resident Office.





    8. Open Science Conference: Global Change in Mountain Regions


    Open Science Conference: Global Change in Mountain Regions will be held
    on October 2-6, 2005 in Perth, Scotland, UK.



    Outcomes:



    1. communication of new results between scientists and researchers
    working in the mountains of both industrialized and developing countries
    around the world



    2. a framework for long-term research on global change that can be
    implemented in Mountain Biosphere Reserves and other mountain locations
    in both industrialized and developing countries.



    Format:



    · Plenary Presentation

    · Concurrent Sessions for contributed papers (chosen from 310
    submissions)

    · Poster session and reception

    · Synthesis: a global change strategy for mountain regions

    · Fieldtrip (October 2)



    Additional information available at: www.mountain.conf.uhi.ac.uk





    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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