MONITORING WORKING GROUP ON … contents of this report should be treated as the opinions and conclusions of the monitoring group members. In no way does this report reflect the policies

NATIONAL NGO MONITORING OF AZERBAIJAN SECTION OF BAKU-TBILISI CEYHAN (BTC) OIL

PIPELINE

MONITORING WORKING GROUP ON ASSESSMENT OF SOCIAL IMPACTS OF

BTC PIPELINE DURING THE CONSTRUCTION PHASE

F I N A L R E P O R T Members of the Monitoring Group: Gulaya Guliyeva, Coordinator, Merhemet (Charity) Foundation Ilham Huseynli, Evaluator, Public Union for Socio-Strategic Studies and Analytical

Research Mirvari Gahramanly, Group Member, Committee for the Protection of Oil Workers Rights Zohrab Ismayilov, Group Member, Free Economy Centre Shahin Ramazanov, Group Member, Ojag Public Union Tamkin Eminli, Group Member, Azerbaijan Diabetes League

Baku-2005

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DISCLAIMER

The contents of this report should be treated as the opinions and conclusions of the monitoring group members. In no way does this report reflect the policies or views of the project sponsor or any other organisation concerned. The authors are solely responsible for any mistakes in this report. The report reflects the results of the monitoring conducted by various means. However, for reasons beyond our will, in some cases, it was not possible to learn the views of all of the parties concerned. All group members signatory hereto are in agreement with the contents of this report. Signatures:

Gulaya Guliyeva ____________________

Ilham Huseynli ____________________

Zohrab Ismayilov ____________________

Mirvari Gahramanly ____________________

Shahin Ramazanov ____________________

Tamkin Eminli ____________________

Gulaye Guliyeva

Coordinator

Ilham Huseynli Evaluator

Zohrab Ismayilov Group Member

Mirvari Gahramanly

Group Member Shahin Ramazanov

Group Member Tamkin Eminli Group Member

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Experts:

Ehtiram Soltanoglu, Scientific-Technological Progress and Education Foundation

Azad Aliyev, Public Union for Socio-Economic Research

Mushfig Huseynov, Himayadar Relief Organisation

Ehtiram Soltanoglu

Expert Azad Aliyev

Expert Mushfig Huseynov

Sociologist

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ................................................................................................................................1

1.1 ACHIEVEMENTS....................................................................................................................... 3 1.2 FINDINGS .............................................................................................................................. 4 1.3 PROPOSALS AND RECOMMENDATION .......................................................................................... 6

2. EVALUATOR’S STATEMENT ........................................................................................................................8

3. INTRODUCTION..........................................................................................................................................10

4. METHODOLOGY...........................................................................................................................................11

5. MONITORING IMPLEMENTATION STRATEGY ....................................................................................12

6. RESULTS OF SURVEYS AND INTERVIEWS..........................................................................................13

6.1. RESULTS OF QUESTIONNAIRE SURVEYS REGARDING THE FULFILMENT OF COMMITMENTS OF THE COMMUNITY INVESTMENT PROGRAMME (CIP) .......................................................................... 15

6.2. RESULTS OF QUESTIONNAIRE SURVEYS ON IMPACTS OF BTC CONSTRUCTION ACTIVITIES ON THE LOCAL COMMUNITIES AND INFRASTRUCTURE....................................................................................... 18

7. ANALYSIS OF MONITORING FINDINGS...............................................................................................22

7.1. ACHIEVEMENTS..................................................................................................................... 22 7.2 FINDINGS ...................................................................................... ERROR! BOOKMARK NOT DEFINED. 7.3. PROPOSALS AND RECOMMENDATIONS: ..................................................................................... 34 7.4. RESULTS OF MONITORING FINDINGS AND RECOMMENDATIONS: ..................................................... 1

8. ACKNOWLEDGEMENTS ...............................................................................................................................1

9. ANNEX AND REFERENCES ..........................................................................................................................1

APPENDIX 1: BRIEF DESCRIPTION OF 2004 ACTIVITIES CONDUCTED ON BEHALF OF BTC IN VARIOUS COMMUNITIES UNDER CIP PROJECTS:....................................... 1

1. Executive Summary

This present report sponsored by the Open Society Institute-Assistance Foundation (OSI-AF). It reflects the activities conducted within the framework of the project on “Monitoring Social Impact of Baku-Tbilisi-Ceyhan (BTC) Pipeline on Local Communities Residing along the Pipeline Route.”

Objectives of monitoring:

1. Study and assessment of the implementation of Community Investment Programme (CIP) in compliance with BP/BTC commitments

2. Study and assessment of the impacts of BTC construction activities on the local communities and infrastructure

3. Study and assessment of the working conditions and social status of local workers currently and previously involved in BTC pipeline construction

The purpose of the CIP is to make a positive contribution to the sustainable socio-economic development of affected communities along the Azeri section of the BTC oil pipeline.

In order to achieve the goal , the CIP sets up the following objectives (Reference: BP presentation materials on the CIP):

• Improvement of social welfare and business opportunities of communities affected by BTC/SCP projects

• Supporting community access to improved social infrastructure

• Support for raising awareness on issues related to health and sanitation

• Assistance to agricultural development in the regions along the pipeline route

Prior to the monitoring, the working group held discussions with BP/BTC representatives from the relevant departments and listened to comprehensive presentations on BTC’s social commitments and Community Investment Programmer (CIP) strategy. These discussions addressed BTC activities aimed at fulfilling the obligations, as well as the company’s achievements and constraints. The working group also conducted a number of meetings with the BTC Social Performance and Social Investment Manager and numerous other responsible individuals, thus familiarising themselves with CIP goals and objectives and the strategy of its implementation.

It was a concern to the group that although the monitoring was implemented during the last quarter of 2004, BP provided the monitoring group with information regarding the budget of the CIP implementing partners, namely four international NGOs, which related primarily to the first quarter of 2004.

The monitoring of both CIP and the impact of construction activities were implemented through the use of three major components: questionnaire survey, interviews (discussion) and observation (including photography and video filming).

The group spent 60 days implementing the monitoring procedures. Firstly, group members conducted pilot monitoring lasting eight days. The monitoring aimed to define methodology and a unified approach for group members, as well as to make preparations for conducting the core section of the monitoring.

After analysing the results of the pilot monitoring, group members split into three subgroups, with each group identifying its target areas and communities.

The monitoring executed by each subgroup lasted for 16 days, totalling 48 days of monitoring.

In addition, the working group monitored CCIC and Spie Capag-Petrofac operations for four days, two days per company.

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The monitoring statistics include:

• Number of companies and organisations involved in discussions and questionnaire surveys (NGOs and companies directly or indirectly participating in BTC CIP) – 9

• Number of communities visited – 86 (in 11 regions)

• Number of people contacted during the monitoring period – up to 3,000; including

• Expats – 60, Citizens of Azerbaijan – up to 2,940

• Males – up to 2,400, females – up to 600

• Representatives of municipalities – 153

• Members of community groups – 328

• Representatives of organisations implementing CIP – 36

• Representatives of companies involved in BTC pipeline construction – 75; and,

§ Respondents involved in questionnaire survey – 600

§ Number of interviewees – 338

§ Audio recording – 28 hours

§ Video filming – 6 hours

§ Number of photos – 202

We would like to note that although there were 600 respondents involved in the questionnaire survey, only 479 questionnaires were valid. This is for the reason that 19 questionnaires were left almost entirely blank and 102 were incomplete or completed improperly without observing survey procedures. Consequently, it was impossible to summarise the results of these questionnaires. We would like to d stress that, due to a shortage of time and other reasons beyond our control, it was impossible to undertake a classical, random selection of respondents.

In other words, the working group maintained a balance among communities and involved those community members in the questionnaire survey, with whom the working group had met and who had agreed to participate. This method can be considered to be a mixture of quota sampling and opportunistic sampling.

Due to lack of information and certain technical restraints the working group was not able to reach the third objective as outlined above. A primary reason for this was that the monitoring was implemented during the final stage of construction. Alternatively, BP Azerbaijan delayed construction site surveys. In addition, BP/BTC, together with its contractors, did not fully comply with the agreement envisaging information exchange. It is worth mentioning that this agreement is reflected in the Memorandum of Understanding signed between BP and OSI-AF on April 22, 2004. Despite the working group’s frequent requests, it was not possible to obtain a list of workers currently and formerly employed by CCIC -- a company undertaking pipeline construction activities in Azerbaijan.

The labour rights of workers involved in BTC construction were investigated by the Human Rights Monitoring Working Group within the frameworks of the monitoring programme. You may refer to the report submitted by the Human Rights Monitoring Working Group for detailed information on the labour rights of employees involved in BTC construction.

In order to assess the level to which commitments were fulfilled, group members analysed the monitoring findings and discussed them with experts and consultants. As a result, group members arrived at the following conclusions.

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1.1 Successes 1.1.1 Improvement of Social Welfare and Business Opportunities of Communities

Affected by BTC/SCP Projects

• The first attempt to launch the process of community mobilisation for CIP implementation has been made, as well as the identification of community priorities and involvement of community members in problem resolution

• Community Groups have been formed to represent communities. These groups enjoyed effective capacity-building training and advice on Community Development Programmes. Community Groups acquired certain skills for representing their community

• The initiative to build a business relationship among communities, municipalities and local authorities has been established. Municipalities have become more active and cooperation has materialised between municipalities and communities

• Temporary workplaces and Community Funds have been created. The community has been provided with Financial Management Guidelines

• A number of local NGOs have been involved in CIP implementation. They delivered training that made an impact on the development of community skills

1.1.2 Supporting Community Access to Improved Social Infrastructure:

• At least one priority problem with regard to improvement of social infrastructure has been identified in each community and resolved to a considerable extent, e.g. road construction, construction of classrooms, renovation of medical facilities and other social facilities, artesian well, drilling, etc…

• According to information received by the working group, although CCIC does not have any obligation it has implemented social projects amounting to $1,650,958 not only in the areas crossed by BTC, but also other regions of Azerbaijan. According to information that the working group has received, 7,500 internally displaced persons’ families (IDP) have been provided with tents totalling $300,000. Seventy homes, a water reservoir, sport yard, power systems and other facilities have been constructed for IDPs in the Saatli region. As the monitoring term was short, the working group did not assess the projects conducted by CCIC

• Although Spie Capag-Petrofac has not made any commitments, the company has implemented social projects amounting to $110,000, including the reconstruction of roads and schools and water supply projects.

1.1.3 Support for Raising Awareness on Issues Related to Health and Sanitation:

• Various activities aimed at the modification of medical services and facilities have been held in several communities that had prioritised these problems. Medical facilities and hospitals have been provided with equipment

• The International Medical Corpse Organization has provided community to training programs on First Medical Aid Reproductive Health, Family Planning

• Some community members suffering from eye disease underwent free medical eye surgery

1.1.4 Support for Agricultural Development in Regions Along the Pipeline Route:

• At least one agricultural specialist has been selected in each community along the route of the BTC pipeline. These communities have been provided with training and advice on various issues and acquired appropriate skills. As a result of the training, community

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members and farmers were provided with counselling services on development of agricultural sector

• Spie Capag-Petrofac successfully implemented sustainable agricultural development project and provided several villages with combine and tractor

1.2 Opportunities for Improvement

1.2.1 Social Welfare and Business Opportunities of Communities Affected by

BTC/SCP Projects

• The process of community mobilisation within the frameworks of the CIP is not very effective in a number of communities. The maximum participation of the local communities in Community Group elections was not ensured. Links between organisations implementing the project and communities are weak. There are conflicts between some Community Groups. Most community members have very little information about the community and projects being conducted in the area (See: Results of CIP monitoring commitments – answer to second question; Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004)

• CIP has not covered all of the communities along the BTC pipeline. For instance, despite the establishment of a unified community comprising two villages in Agdash and Kurdamir, only one village has benefited from the project

• FINCA has been poor at establishing links with Community Groups. Instead of giving preference to Community Groups and community members in the process of issuing loans, FINCA has built up its business mostly in markets (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004)

• FINCA’s interest rates are higher than those of Azeri banks and other micro-loan organisations. This fact increases project risks and impedes the creation of sustainable business structures.( source; interviews and video footages)

1.2.2 Support for Community Access to Improved Social Infrastructure:

• There is an uncertainty in the handover policy of transferring authority to the appropriate bodies for using the facilities launched and financed by CIP. For instance, the Community Centre of Borsunlu in Goranboy is now being used as a canteen by the Community Leader

• Funds allocated for the implementation of community projects are sufficient for partly resolving a priority problem identified by the communities. (see: Results of CIP monitoring commitments – answer to eighth question). Moreover, the principle of the 25% community contribution does not consider the level of community mobilisation. For instance, members of the Garagemerli community in Shamkir could not collect the 25% community contribution and, therefore, children are still studying at school under poor conditions. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews)

• Occasionally, the dominance of a certain group was evident in identifying community problems within the frameworks of the CIP. This impeded the identification of a real priority. The majority of respondents in the communities have indicated problems with gas and electricity as the major issues. However, only a few projects have been conducted to partly resolve the problems with electricity. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004)

• The sustainability of micro-projects has not been properly considered. Thus, there is no control mechanism over the implementation of project sustainability plans in some

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communities. Examples of this are the reconstructed roads in the Saritepe village of Shamkir, the artesian well project in Akstafa ( See: Photo and interviews regarding the shortcomings)

1.2.3 Support for Agricultural Development in Regions along the Pipeline Route:

• Loans are not favourable for agricultural development in a number of regions along the pipeline given high interest rates and timeframes. Therefore, the number of people receiving loans from FINCA for agricultural projects is extremely low. People who have received loans for agricultural projects are reluctant to do so again. For instance, during interviews held in Shamkir, farmers expressed their concern with regard to loan process and interest rate (Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews)

1.2.4 CIP implementation Strategy and Efficiency of the CIP

• The implementation of the CIP mostly by four international NGOs is not economically efficient. A significant amount of the funds allocated to international NGOs is spent on office maintenance, salaries and transportation and travel expenses. At most, the amount allocated to national NGOs constitutes 10% of the total project budget at most. In some cases, only several employees of local NGOs have been contracted while, on the whole, the organisations themselves have been left out of the process. The procedures for selecting NGOs for the programme were mostly dependent on international organisations (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004; Results of CIP commitments monitoring – answer to the third question)

• In some cases, there is a discrepancy between the expenditures envisaged in the micro-project budget and real market prices. This creates the impression that funds allocated for micro-projects sometimes are being spent carelessly (See: Photos 10,11 )

• The process of drafting, assessing, approving and implementing micro-projects sometimes takes several months and there is no flexibility in this process. This causes discrepancies between the budget of the expenditure and real market prices during the period when the price rises. Eventually, it has a negative impact on the quality of construction (Source: Interviews, video filming)

1.2. 5. Impact of BTC Construction Activities on the Local Communities and

Infrastructures

• 76% (188 respondents) of those involved in the questionnaire survey stated their disturbed by heavy equipment and machinery. The list included five factors stated as causing a disturbance. 49% (119 respondents) explained this disturbance as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained primarily about the noise created during the day

• 38% (95 respondents) are concerned with the behaviour of expatriates employed in construction outside of the camp. 47% of the complainants are disturbed by their clamour while 40% are concerned with their fast driving

• 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance caused directly and indirectly by pipeline construction. 61% of the complaints have been addressed to local authorities while 10% to BP and its associates. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received nothing whatsoever. Overall, only 28% (23 complainants) were to some extent satisfied with the responses

• Roads in most villages and settlements located along the route of the BTC pipeline have been affected due to the movement of heavy machinery and large-tonnage lorries

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during construction activities. For instance, roads in Shamkir, the Muzdurlar community in Goranboy, the Garadagli and Shikhimli communities in Ujar and the Armali community in Kurdamir sustained significant damage during the construction activities. Overall, the majority of the roads used for construction purposes sustained damage (See: Photos 14-15 reflecting the impact)

• In a number of communities, homes located within the vicinity of the roads that were crossed by heavy machinery and lorry traffic endured cracks and damage. Among the communities visited by the monitoring group, up to 50 homes in the Girag Kasaman community in Akstafa and Shikhimli community in Ujar have been damaged

• Irrigation systems, which were utilised by the communities, sustained damage during construction activities (See: Photos reflecting the damage)

1.3 Proposals and Recommendation

1.3.1 Improvement of Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects

• Mobilisation of communities to participate in several welfare and business development initiatives should be enhanced and promoted. New techniques should be widely applied. It is important to strengthen the links between the organisations implementing projects and local communities

• Micro-projects must be implemented in communities that should have been covered by the CIP, but actually have not. The method for prioritising community projects should be improved and preference should be given to projects that will equally benefit several communities

• FINCA’s mechanism for interacting with communities should be improved and a control mechanism needs to be established over this process. FINCA should be influenced to collaborate with communities in the process of issuing loans and give preference to sustainable projects

• FINCA’s interest rate policy regarding CIP funds should be revised

1.3.2 Support of Community Access to Improved Social Infrastructure:

• The status of each facility constructed or rehabilitated within the frameworks of the CIP should be determined and transferred to the appropriate bodies for task oriented use with all necessary documentation (i.e. municipality and other communities)

• Funds allocated for community projects should be increased. Community contribution terms should be lowered in poorly mobilised communities. A model for quick fix project for stimulating public involvement in this process should be created

• The future policy of the CIP should focus specifically on projects related to accessing energy resources and elaborating task-oriented activities aimed at resolving this problem as communities consider this to be the most problematic issue

• Closer cooperation should be maintained with communities for project sustainability and to develop sustainability plans on infrastructure development


• More efficient and long-term loans should be created for agricultural development: The aim should be to establish control over a stable turnover of funds allocated for FINCA within the 4-km corridor

1.3.4 CIP implementation Strategy and Efficiency of the CIP:

• More national NGOs should have an increased role in CIP implementation

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• It is important to audit the financial activities of certain international NGOs, particularly, IRC and IMC, with the aim of increasing the efficiency and task-oriented fashion of spending the funds allocated for the implementation of CIP projects

• More flexibility should be introduced in the process of drafting, assessing, approving and implementing micro-project

1.3.5 Impact on Social Environment and Infrastructure during BTC construction:

• Local communities should be better informed in advance about the progress and movement of construction activities and places where heavy equipment and machinery is to be used to allow them to know when noise or other temporary disturbance will occur in construction areas.

• Prior to commencement of the project it is important to develop guidelines for increasing the awareness of expatriates on local culture and behaviour and maintaining positive relations with the communities

• It is important to establish a hot line service to create the opportunity for the BTC affected local communities to lodge their complaints on social problems to BP/BTC. At the same time the companies Community Liaison Officers should closely acquaint the local communities with grievance management procedure to assist them to address their complaints to appropriate bodies.

• The claim of those whose homes have been damaged by BTC construction should be investigated, and alleged damage to the personal property should be indemnified. The concrete addresses of claimers have been presented to BP/BTC.

• Micro-projects should be implemented in all communities which have been affected by BTC in order to eliminate negative impact.

Note: Other proposals and recommendations for eliminating impacts on social infrastructure have been presented by the report of the Working Group on the Use of Local Resources entitled, Assessment of BTC Pipeline Impact on Economic conditions of the Regions. For detailed information, you may refer to this report.

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2. Evaluator’s Statement

Prior to the monitoring, members of the working group participated in project-related training and consultations and acquired professional skills. Both local and foreign experts contributed to this process. As a result of the training and consultations, group members displayed high operational capability during the implementation of the monitoring project:

• Group members developed their own monitoring strategy prior to the commencement of the monitoring, which they subsequently followed throughout the project. The methodology used during the monitoring was decided on the basis of the monitoring strategy

• Over the term of the project, the monitoring group worked as an organised team. Nevertheless, it is undeniable that the group encountered certain difficulties during the course of the activities. This could be explained by their lack of monitoring experience

• Thinking realistically, group members refrained from using the random selection method and gave priorities to the local communities, with whom they had met and who had expressed their willingness to participate in the questionnaire survey. However, a balance between regions and communities was maintained

• Questions asked by group members to interviewees were impartial and neutral. Undertaking the questionnaire survey and interviews, members of the working group were successful in establishing a sense of confidence among respondents. This was an extremely crucial factor. When making contact with community members, BTC employees and representatives of international organisations implementing the CIP, group members strictly adhered to ethical norms and completely relied on the cooperation factor

• Monitoring findings were analysed through several stages with the involvement of local and foreign experts. After taking into consideration the monitoring findings, proposals and recommendations, the working group’s activity can be assessed as satisfactory

POTENTIAL CONFLICT OF INTEREST OF TWO MEMBERS OF THE SOCIAL ISSUES MONITORING GROUP

The Memorandum of Understanding between OSI and BP dated 22nd April 2004, Exhibit 2, Page 3, states that “To avoid conflict of interest among stakeholders the NGOs directly or indirectly implementing the work under the financial support of Projects operated by BP cannot be involved in the monitoring activities, however they will be able to participate and contribute to the discussions”.

Two organisations with members represented in the Social Issues Monitoring Group submitted proposals to BTC to participate in the BTC Community Investment Programme (CIP) in November These organisations were the Social & Strategic Research Centre (represented in the Monitoring Group by Ilham Huseynli, Evaluator) and Ojag Public Union (represented in the Monitoring Group by Shahin Ramazanov).

Monitoring activity of the Social Issues Monitoring Group started in September 2004 and all fieldwork, data collation and analysis was completed in February 2005. The final report was submitted to OSI in April 2005.

OSI was informally advised by Mr. Ilham Huseynli that the proposal to BTC CIP from the Social & Strategic Research Centre had been successful.

Following the announcement that the applications to BTC CIP by the Social & Strategic Research Centre and Ocak Humanitarian Organization had been successful, members of other Working

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Groups raised concerns with OSI about the continued participation in the monitoring of organisations awarded CIP projects.

The OSI Project Consultant Dr Clive Morgan discussed the issue of conflict of interest with members of the Social Issues Monitoring Group. Members of the group who participated in the discussion expressed their unanimous support for retaining Ilham Huseynli and Shahin Ramazanov as Evaluator and member of the Social Issues Monitoring Group respectively while allowing them to participate in the BTC CIP projects awarded to their organisations. The Social Issues Monitoring Group justified this position on the grounds that Ilham Huseynli and Shahin Ramazanov were an integral part of the Social Issues Monitoring Group and excluding them would compromise the ability of the group to complete their final report. This position was accepted by OSI on condition that the Social Issues Monitoring Group record their decision and endorse it in the final report.

We, the undersigned, members of the Social Issues Monitoring Group, acknowledge our decision to retain Ilham Huseynli, Evaluator, representing the Social & Strategic Research Centre, and Shahin Ramazanov, representing Ocak Humanitarian Organization, as active members of the group notwithstanding the participation of them and their organisations in BTC CIP projects awarded after the start of social issues monitoring. 1. Gulaya Guliyeva 2. Mirvari Gahramanly 3. Tamkin Eminli

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3. Introduction The BTC Export Pipeline Consortium consists of BP, the State Oil Company of the Azerbaijan Republic (SOCAR), Unocal, Statoil, Total Finna Elf, Itochu, INPECS, Amerada Hess and ConocoPhilips. Oil pipeline construction was officially launched on September 18, 2002. The pipeline, with a total length of 1,769 km (42 inches=1m) and capacity of 1,000,000 barrels/day, is capable of transporting 50 mln tonnes of oil annually. Eleven local and foreign companies have been implementing the project’s construction, which is currently nearing completion. The project operator BP is the largest shareholder (30.1%). The shareholder holding the smallest share is the Saudi–Canadian alliance Delta-Hess (2.36%). SOCAR holds a 25% share. 30% of the project construction is financed by oil companies according to their share in the sponsors group; 70% is allocated by international financial institutions as credit. A minimum of 40 mln and maximum of 60 mln tonnes of oil are intended to be exported annually via BTC. The pipeline’s lifespan is 40 years. The signing of “The Contract of the Century” opened a new chapter in the history of Azerbaijan’s energy industry and promoted the development of yet another world-scale project – the Shah Deniz Gas Project. Upon the sanctioning of the Shah Deniz Gas Project in February 2003 with the participation of BP and its partners, the construction of a new infrastructure began. This infrastructure is designed to deliver the gas produced from this field to Turkey. The 690km-long South Caucasus Pipeline (SCP) is scheduled for construction parallel to the BTC pipeline and is located within the same corridor. The Azeri section of BTC and SCP pipeline are being constructed by CCIC and Spie Capag-Petrofac ( USA France Joint Enterprise). The BTC and SCP pipelines project envisaged a preliminary environmental and social impact assessment study. To that end, the project identified communities and a surveyed territory. The 443-km-long Azeri section of the pipeline covers 137 villages and settlements (257.3 thousand people) in 13 regions. As an operator, BP on behalf of its partners has made commitments to enhance the socio-economic living standards of affected communities for the elimination of risks and impact during BTC and SCP pipelines construction. Therefore, the Community Investment Program (CIP) along the pipeline facilities has been financed by the BTC and SCP investors. The main goals of the CIP are to have a positive influence on the social welfare of the local communities affected by project construction, to contribute to the establishment of the most appropriate and effective way to manage expected revenues and to facilitate poverty reduction in the BTC and SCP regions. In order to assess the honouring of these commitments to assess findings and to make the appropriate recommendations to relevant companies for the elimination of shortcomings OSI and BP signed a Memorandum of Understanding on BTC pipeline monitoring to be conducted by national NGOs. Approximately 90 NGOs have participated in the process. Hence, there was a wider opportunity to execute multi-faceted BTC monitoring. The monitoring covered five fields. The social sphere was among them. The participation civil society in the monitoring of BTC construction is considered to be immensely important by the members of Social Issues working group. It explains why BTC Co., BP, CCIC, Spie Capag-Petrofac and four CIP implementing partners displayed a particular interest in the monitoring activities.

Group members have explored the following issues established during project:

1. Current status of mobilisation of communities concerning CIP implementation, capacity building and technical support

2. Issues related to infrastructural development along the BTC pipeline route

3. Improvement of healthcare services, refurbishment and renovation of medical facilities

4. Impacts of BTC on agricultural and entrepreneurial development

5. Impact of BTC construction activities on the local communities.

6. BTC construction impact on working condition of local communities

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4. Methodology

Throughout the course of the monitoring, the working group used various methods for collecting the maximum possible amount of data and applied diversified methodological principles, which allowed the group to make the information more demonstrative and tangible.

The basic principle of the group was to investigate and evaluate the subjective opinions of the local communities in an objective manner and to impartially protect the interest of involved parties.

Table 1 shows the techniques and indicators used during the monitoring. Table 1. Methods and Indicators Fields Indicators Techniques 1 CIP implementation

strategy, mobilisation of communities, capacity building and technical support

Quantitative Indicators

• Determining the number of visited communities • Determining the number of community

members, who had participated in training • Interviews and discussions

2 Support access to social infrastructure along the BTC pipeline route

Quantitative and Qualitative Indicators Physical Indicators

• Determining the number of newly constructed or rehabilitated objects

• Summarising information provided by local executives

• Interviews • Photography and video filming

3 Support for entrepreneurial and agricultural development

Quantitative and Qualitative Indicators

• Determining the number of trained agricultural experts

• Determining the number of people, who had acquired loans (BTC figures)

• Interviews 4 Issues related to CIP

efficiency Qualitative Indicators

• Studying the latest status of the projects implemented within the frameworks of the CIP

• Analysis of financial indicators • Interviews • Photography and video filming

5 Impacts of BTC construction on communities

Indicators of Social Impact

• Questionnaire • Interviews and observations • Photography and video filming

6 BTC construction moral and psychological impact on local communities

Indicators of moral and psychological impact

• Questionnaire • Interviews and observations

Our group benefited from the following methodological principles while working to attain its monitoring objectives:

1. Allegations brought forth by various individuals were investigated in a practical manner to ensure maximum objectivity. For reasons beyond the working group’s will, in some cases, it was impossible to double-check the information. These reasons include restraints imposed on the monitoring process by concerned organisations

2. Learning the views of all of the parties concerned. In some cases, it was not possible to fully adhere to this principle as parties either ignored working group questions or provided inefficient responses

3. Reaching a consensus within the group regarding all of the conclusions made

Note: Group members signed a memorandum aimed at ensuring confidentiality and regulating a code of conduct during the course of the project.

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5. Monitoring Implementation Strategy

A segment of the activities envisaged by the monitoring had been performed by the working group before the project’s official commencement date. Project implementation was provisionally divided into four stages comprising of the following activities:

1. Definition of roles and responsibilities

2. Preparation of questionnaires and other materials

3. Pilot monitoring to be conducted by the entire team in one of the regions along the route of the pipeline

4. Establishment of three subgroups and identification of the target area for each group

5. Implementation of questionnaire survey

6. Data collection and analysis, evaluation of results and development of monitoring report

According to the project action plan, the first stage had to be completed before the commencement of the official segment. Prior to the main monitoring process, group members made a joint pilot trip with the aim of establishing a working mechanism, system of time management and appropriate and unified approach. Such tactics enabled us to further verify and standardise questions for subsequent interviews. This approach was also helpful in data analysis and summarising results.

Since the process of accommodating visits to BTC construction sites was complicated and the visits were short-term, the working group made additional trips to conduct the questionnaire survey among the workers.

All of the material collected during the monitoring, including questionnaires, interview contents, photos, official documents, etc. was promptly submitted to the group coordinator for storage in a safe. This material was used by all of the group members for data analysis and drafting the report.

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6. Results of Surveys and Interviews

As mentioned above, in order to mitigate and eliminate the risks the purpose of the CIP is to make a positive contribution to the sustainable socio-economic development of affected communities along the Azeri section of the BTC pipeline.

To this end, the CIP establishes the following objectives (reference: BP/BTC presentation materials on the CIP):

• Improvement of social welfare and business opportunities of communities affected by BTC/SCP projects

• Supporting community access to improved social infrastructure

• Support for raising awareness of issues related to health and sanitation

• Assisting agricultural development in the regions along the pipeline route

These priorities have been identified on the basis of the conclusions of consultations held at a local level and reflected in BTC/SCP Environmental and Social Impact Assessment (ESIA) document.

The CIP programme is due to be conducted along the route of the BTC and SCP pipelines within the 4-km-wide corridor, 2 km on both sides of the pipeline. Four international NGOs have won tenders organised within the framework of the CIP. The budget of the CIP in Azerbaijan is $8mln, roughly $5.5mln of which is being spent by these NGOs for the implementation of social projects (Reference: BP/BTC 2004 presentation materials on the CIP):

1. Community Development Project ($3mln): • Western regions of Azerbaijan – Save the Children • Eastern regions of Azerbaijan – International Rescue Committee

2. Health Project ($1.5mln): • International Medical Corps

3. Micro-Financing Project ($1mln): • International Foundation for Community Assistance (FINCA)

The objectives of the NGO monitoring are:

1. Study and assessment of the implementation of Community Investment Programme (CIP) in compliance with BP/BTC commitments

2. Study and assessment of the impacts of BTC construction activities on the local communities and infrastructure

3. Study and assessment of the working conditions and social status of local workers currently and previously involved in BTC pipeline construction

Therefore extensive activities were conducted within the frameworks of the monitoring process. Six hundred respondents participated in the questionnaire survey. The working group has enclosed relevant tables and diagrams reflecting the survey results. In addition, group members have monitored CIP implementation in 86 communities.

The group spent 60 days implementing the monitoring procedures. Firstly, group members conducted pilot monitoring lasting eight days. The monitoring aimed to define methodology and a unified approach for group members, as well as to make preparations for conducting the core section of the monitoring.

After analysing the results of the pilot monitoring, group members split into three subgroups, with each group identifying its target areas and communities.

The monitoring executed by each subgroup lasted for 16 days, totalling 48 days of monitoring.

In addition, the working group monitored CCIC and Spie Capag-Petrofac operations for four days, two days per company.

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The monitoring statistics include:

• Number of companies and organisations involved in discussions and questionnaire surveys (NGOs and companies directly or indirectly participating in BTC CIP) – 9

• Number of communities visited – 86 (in 11 regions)

• Number of people contacted during the monitoring period – up to 3,000; including

• Expats – 60, Citizens of Azerbaijan – up to 2,940

• Males – up to 2,400, females – up to 600

• Representatives of municipalities – 153

• Members of community groups – 328

• Representatives of organisations implementing CIP – 36

• Representatives of companies involved in BTC pipeline construction – 75; and,

§ Respondents involved in questionnaire survey – 600

§ Number of interviewees – 338

§ Audio recording – 28 hours

§ Video filming – 6 hours

§ Number of photos – 202

We would like to note that although there were 600 respondents involved in the questionnaire survey, only 479 questionnaires were valid. This is for the reason that 19 questionnaires were left almost entirely blank and 102 were incomplete or completed improperly without observing survey procedures. Consequently, it was impossible to summarise the results of these questionnaires. We would like to d stress that, due to a shortage of time and other reasons beyond our control, it was impossible to undertake a classical, random selection of respondents.

In other words, the working group maintained a balance among communities and involved those community members in the questionnaire survey, with whom the working group had met and who had agreed to participate. This method can be considered to be a mixture of quota sampling and opportunistic sampling.

Monitoring group members have assessed the status of CIP implementation in communities affected by BTC pipeline construction. Additionally, the working group has surveyed the social status of a group of local workers employed in pipeline construction and the process of recruiting individuals from affected communities. Monitoring group members have held meetings with community members living in areas covered by the social investment projects, familiarised themselves with the key problems of the communities and taken other relevant actions.

The working group visited the local offices of contractors involved in BTC pipeline construction, CCIC and Spie Capag-Petrofac, to observe the social problems faced by local employees at workplaces and camps. In addition, the monitoring group became acquainted with the CIPs of these companies.

The activities of various organisations within the frameworks of the CIP and outside of the programme have been reflected in the separate interviews and surveys conducted in the communities. The information provided below has been collected via the monitoring activities and is based on the principles reflected in the Executive Summary and “Methodology” sections.

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6.1. Results of Questionnaire Surveys Regarding the Fulfilment of Commitments of

the Community Investment Programme (CIP)

Overall, 300 respondents were invited to participate in the questionnaire survey. However, only 234 questionnaires were valid for summarisation as 11 questionnaires were left almost entirely blank and 55 were incomplete or completed improperly breaking survey protocol. Thus, it was impossible to summarise the results of these questionnaires. The working group maintained a balance among communities and involved those community members, with whom the working group had met and who had agreed to participate in the survey. Thus, the survey was conducted according to a method, which may be considered to be a mixture of quota sampling and opportunistic sampling.

Composition of Respondents: Females 98 42% Males 136 58%

Including: Age group of 18-35 125 53% Those over the age of 35 109 47%

Including: Those with higher education 45 19% Those with secondary education 189 81%

Summary of the questionnaire survey were as follows:

• 32% (75 respondents) indicated that they had information on the CIP

• 18% (43 respondents) indicated that they had participated in meetings aimed at establishing the Community Group

• In terms of the community awareness of organisations operating within the framework of the CIP, respondents indicated the names of six organisations in the questionnaire forms. FINCA was at the top of the list with 75% (165 respondents). Local organisations UMID and Agro Information Centre were also indicated with 10-11% representing fifth and sixth positions respectively (20-21 respondents)

• 19% (44 respondents) stated that they participated in training sessions within the frameworks of the CIP, while 72% (169 respondents) had no information in this regard. The vast majority of training participants, namely 43% (19 respondents), only once participated in training sessions. 84% (37 respondents) were able to recall the training topics. 75% said that they were satisfied to a certain extent with the training

• In terms of community problems, the majority of respondents indicated mostly power, gas and electricity issues, which proved even more important for the community than unemployment. But CIP projects, road construction and school construction and renovation took the top two places on the list with 19% and 18%, respectively

• On the whole, 75% (175 respondents) were aware of the projects being implemented in the communities. 42% (98 respondents) had some information regarding the amount of funds allocated for these projects. 18% (41 respondents) said that the funds were adequate, while 58% had difficulty answering this question. 36% (85 respondents) underlined a transparent and task-oriented fashion of spending these funds. 65% (152 respondents) would like these projects to be sustainable, subject to a transparent and task-oriented spending of funds

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Summary information has been derived from the following questionnaire results:

1. Are you aware of the BTC Community Investment Programme? 1. Yes 75 32% 2. No 122 52% 3. I refrained from joining it 37 16% Total 234 100%

2. Did you participate in the meeting dedicated to establishing the Community Group in your

village or settlement? 1. Yes 43 18% 2. No 145 62% 3. I refrained 46 20% Total 234 100%

3. What CIP-implementing partner organisations do you know of? Please enumerate several

organisations?

1. Save the Children 39 2. International Medical Corps 41 3. FINCA 165 4. International Rescue Committee 37 5. Agro information Centre 21 6. UMID Organisation 20

4. Did CIP-implementing organisations conduct training sessions in your community? 1. Yes 44 19% 2. No 21 9% 3. I do not know 169 72% Total 234 100%

a) If the answer is “yes,” please indicate the topics of the training

1. Health issues 12 2. Agriculture development 16 3. Project and proposal development 3 4. Creation of the Community Fund 6 5. I do not remember 7 Total 44

b) If the answer is “yes,” please indicate how many times you participated in the training

1. Once 19

2. Twice 15

3. Three times and more 10

Total 44

1 2 3

1 2 3

1 2 3

17

c) Were you satisfied with the quality of these training sessions?

1. Yes 14 2. No 11 3. Partly 19 Total 44

5. What are the major problems in your community, village or settlement? Please indicate several

problems that concern you.

1. Problems with electric power 203 87% 2. Problems with gas supply 215 92% 3. Unemployment 169 72% 4. Conditions of schools 62 26% 5. Health issues 41 18% 6. Roads 182 78% 7. Problem with water supply 126 54%

Note: Percentage ratio has been calculated in accordance with the number of respondents

6. Which problems have been addressed by the projects implemented by your community? 1. Construction of a community centre 24 10% 2. School construction or

refurbishment 43 18%

3. Solution of water supply problem 21 9% 4. Construction or refurbishment of

medical facilities 36 15%

5. Solution of power problem 6 3% 6. Road construction 45 19% 7. I do not know 59 25% Total 234 100%

7. Do you know the amount of funds allocated for the implementation of these projects?

1. Yes 25 11%

2. No 136 58%

3. Partially 73 31%

Total 234 100% 8. Do you think that this amount is adequate for resolving priority problems? 1. Yes 18 8%

2. No 57 24%

3. Partially 23 10%

4. It is hard to answer 136 58%

Total 234 100%

1 2 3 4 5 6 7

1 2 3

1 2 3 4

18

9. Do you think that these funds have been spent in a transparent and practical way? 1. Yes 31 13% 2. Most likely, yes 54 23% 3. No 12 5% 4. Most likely, no 72 31% 5. It is difficult to answer 65 28% Total 234 100%

10. Would you like the CIP projects to be sustainable? 1. Yes, it is important 53 23% 2. Yes, but subject to a

transparent and practical spending of funds

152 65%

3. No, it is of no importance 11 5% 4. No, they just pull the wool

over our eyes 3 1%

5. It is difficult to answer 15 6% Total 234 100%

6.2. Results of Questionnaire Surveys on Impacts of BTC Construction Activities on

the Local communities and Infrastructure

Three hundred respondents were invited to participate in the questionnaire survey regarding impact of BTC construction and etc. Only 245 out of 300 questionnaires were valid for summarisation as eight questionnaires were left almost entirely blank and 47 were incomplete or completed improperly without observing survey processes. Thus, it was impossible to summarise the results of these questionnaires. We would like to stress that, due to time restraints and several other reasons beyond the working group’s control, it was impossible to undertake a classical, random selection of respondents. In other words, the working group maintained a balance among communities and involved those community members, with whom the group members had met and who had agreed to participate in the survey. This method can be considered to be a mixture of quota sampling and opportunistic sampling.

Composition of Respondents Having Completed 245 Valid Questionnaires: Females 101 41.2% Males 144 58.8%

Including: Those in the 18-35 age group 132 53.9% Those over the age of 35 113 46.1%

Including: Those with higher education 48 19.6% Those with secondary education 197 80.4%

Results of the questionnaire survey were as follows:

• 89% of respondents have received information regarding the construction of camps and facilities related to the BTC pipeline project

• 76% (188 respondents) are concerned about problems and disturbance created by heavy equipment and machinery used BTC construction activities. The list included five factors

1 2 3 4 5

1 2 3 4 5

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stated as reasons for disturbance. 49% (119 respondents) explained these disturbances as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained about the noise made primarily during the day


• Eight factors have been listed regarding the negative impacts of pipeline construction on local infrastructure. 51% (125 respondents) stated damaged roads as the most negative

• 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance directly and indirectly caused by pipeline construction. Overall, there have been 141 such complaints. These complaints touched upon six factors, of which five were related to negative impacts on local infrastructure and one to noise. Most complaints (i.e. 30%) were related to cracks in homes. 61% of the complaints have been addressed to local authorities while 10% to BP and its associates. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received unsatisfactory response. Overall, only 28% (23 complainants) were to some extent satisfied with the responses

Conclusions regarding this section are derived from the following data:

1. What camps and facilities related to BTC pipeline construction are (were) located in the vicinity of your community (village or settlement)?

1 Construction camp 41 17% 2 Heavy machinery storage

and parking 114 47%

3 Facilities related to pipeline construction 62 25%

4 I do not know 28 11% Total 245 100%

2. Are (were) you disturbed by noise or any other activities caused by facilities or machinery used

during pipeline construction?

1 Yes, very much 67 27%

2 To some extent 121 49%

3 Not at all 14 6%

4 Not considerably 43 18%

Total 245 100%

a) If you answered “yes,” please indicate what disturbed you and your family. You may indicate several

1 Movements of heavy machinery and lorries 90 2 Noise made by heavy machinery, generators and other equipment 119 3 Effects of safety lights 16 Other effects 4 Dust 44 5 Whistle 29 Total 298

1 2

3 4

1 2

3 4

20

b) If you answered “yes,” please indicate the part of the day when they disturbed you and your family

1 Early in the morning 42 2 In the daytime, during work hours 94 3 At sunset 38 4 At night 14 Total 188

3. Are (were) you and your family disturbed by the behaviour of expat workers outside of the

camp?

1 Yes, very much 28 11.43%

2 Yes, to some extent 67 27.35%

3 Not at all 41 16.73%

4 Not considerably 109 44.49%

Total 245 100%

a) If you answered “yes,” please indicate the negative impacts on the local community

1 They drive fast 38 2 They get drunk and scuffle with local people 0 3 They insult local people 0 4 They clamour 45 Other possibilities: 5 They lead women astray 9 6 Their behaviour tempts young people to drink 29 Total 95

4. What other impacts does the pipeline construction have on communities, villages and

settlements? Please indicate several?

1 Roads undergo further destruction 125 35.6% 2 Houses are damaged by vibration 125 35.6% 3 Irrigation channels sustained damage 79 22.5% 4 Access to pastures and sown areas has become

difficult 21 6%

5 Small bridges sustained damage 11 3.1% 6 Children get scared 9 2.6% 7 Farm animals get frightened 8 2.3% 8 Yards are covered with dust 4 1.1%

Note: Percentage ratio has been calculated in accordance with the number of respondents 5. Have you complained about any problems or disturbances connected with pipeline construction

that directly or indirectly affected you or your family?

1 Yes 81 33% 2 No 164 67%

Total 245 100%

1 2 3 4

1 2

21

a) If you answered “yes,” please indicate what you were complaining about. You can indicate several causes

1 House cracks 41 2 Damage caused to irrigation channels 35 3 Difficulties with access to pastures and sown areas 31 4 Damage caused to roads 24 5 Noise made by heavy machinery 3 6 Damage caused to small bridges 2 Total 136

b) To whom have you complained?

1 Representative of the executive 47 2 Head of regional executive authorities 39 3 Head of municipality 31 4 BP and its subcontractors 14 5 President of the country 6 6 Human rights champions 2 7 Regional Land Department 2 Total 141

c) What responses did you receive?

1 They promised to tackle the problem 37 2 No response 41 3 They said that the issue was difficult 3 Total 81

d) Were you satisfied with the responses?

1 Absolutely 2 2 Partly 21 3 No 58 Total 81

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7. Analysis of Monitoring Findings

Monitoring results have been analysed by group members and discussed with experts and consultants. Conclusions made by the monitoring group are outlined below: 7.1. Successes 7.1.1 Improvement of Social Welfare and Business Opportunities of Communities

Affected by BTC/SCP Projects

• The first attempt to launch the process of community mobilisation for CIP implementation has been made, as well as the identification of community priorities and involvement of community members in problem resolution

• Community Groups have been formed to represent communities. These groups enjoyed effective capacity-building training and advice on Community Development Programmes. Community Groups acquired certain skills for representing their community

• The initiative to build a business relationship among communities, municipalities and local authorities has been established. Municipalities have become more active and cooperation has materialised between municipalities and communities

• Temporary workplaces and Community Funds have been created. The community has been provided with Financial Management Guidelines

• A number of local NGOs have been involved in CIP implementation. They delivered training that made an impact on the development of community skills

7.1.2 Supporting Community Access to Improved Social Infrastructure

• At least one priority problem with regard to improvement of social infrastructure has been identified in each community and resolved to a considerable extent, e.g. road construction, construction of classrooms, renovation of medical facilities and other social facilities, artesian well drilling, etc…

• According to information received by the working group, although CCIC does not have any obligation it has implemented social projects amounting $1,650,958 not only in the areas crossed by BTC, but also other regions of Azerbaijan. According to information that the working group has received, 7,500 IDP families have been provided with tents totalling $300,000. Seventy homes, a water reservoir, sport yard, power systems and other facilities have been constructed for IDPs in the Saatli region. As the monitoring term was short, the working group did not assess the projects conducted by CCIC

• Although Spie Capag-Petrofac has not made any commitments, the company has implemented social projects amounting to $110,000, including the reconstruction of roads and schools and water supply projects

7.1.3 Support for Raising Awareness on Issues Related to Health and Sanitation

• Various activities aimed at the modification of medical services and facilities have been held in several communities that had prioritised these problems. Medical facilities and hospitals have been provided with equipment

• The International Medical Corpse Organization has provided community to training programs on First Medical Aid Reproductive Health, Family Planning

• Some community members suffering from eye disease underwent free medical eye surgery

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7.1.4 Support for Agricultural Development in Regions Along the Pipeline Route:

• At least one agricultural specialist has been selected in each community along the route of the BTC pipeline. These communities have been provided with training and advice on various issues and acquired appropriate skills. As a result of the training, community members and farmers were provided with counselling services on development of agricultural sector

• Spie Capag-Petrofac successfully implemented sustainable agricultural development project and provided several villages with combine and tractor

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Photos Reflecting Activities that is Regarded as Positive

Photo 1

Shamkir region, Deller Chirdakhan community The renovation of a medical facility is fairly good

Photo 2

Goranboy region, Yolpag community The construction of new classrooms is underway

25

Photo 3

Akstafa region, Boyuk Kasik community Local communities are satisfied with road repairs

Photo 4

Samukh region, Seyidlar community Assembly hall construction is underway

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7.2 Opportunities for Improvement 7.2.1 Social Welfare and Business Opportunities of Communities Affected by BTC/SCP

Projects

• The process of community mobilisation within the frameworks of the CIP is not very effective in a number of communities. The maximum participation of the local communities in Community Group elections was not ensured. Links between organisations implementing the project and communities are weak. There are conflicts between some Community Groups. Most community members have very little information about the community and projects being conducted in the area (See: Results of CIP monitoring commitments – answer to second question; Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004)

• CIP has not covered all the communities along the BTC pipeline. For instance, despite the establishment of a unified community comprising two villages in Agdash and Kurdamir, only one village has benefited from the project

• FINCA has been poor at establishing links with Community Groups. Instead of giving preference to Community Groups and community members in the process of issuing loans, FINCA has built up its business mostly in markets (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004)

• FINCA’s interest rates are higher than those of Azeri banks and other micro-loan organisations. This fact increases project risks and impedes the creation of sustainable business structures.( source; interviews and video footages)

7.2.2 Support for Community Access to Improved Social Infrastructure:

• There is an uncertainty in the handover policy of transferring authority to the appropriate bodies for using the facilities launched and financed by CIP. For instance, the Community Centre of Borsunlu in Goranboy is now being used as a canteen by the Community Leader

• Funds allocated for the implementation of community projects are sufficient for partly resolving a priority problem identified by the communities. (see: Results of CIP monitoring commitments – answer to eighth question). Moreover, the principle of the 25% community contribution does not consider the level of community mobilisation. For instance, members of the Garagemerli community in Shamkir could not collect the 25% community contribution and, therefore, children are still studying at school under poor conditions. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews)

• Occasionally, the dominance of a certain group was evident in identifying community problems within the frameworks of the CIP. This impeded the identification of a real priority. The majority of respondents in the communities have indicated problems with gas and electricity as the major issues. However, only a few projects have been conducted to partly resolve the problems with electricity. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004)

• The sustainability of micro-projects has not been properly considered. Thus, there is no control mechanism over the implementation of project sustainability plans in some communities. Examples of this are the reconstructed roads in the Saritepe village of Shamkir, the artesian well project in Akstafa (See: Photo and interviews regarding the shortcomings)

27


• Loans are not favourable for agricultural development in a number of regions along the pipeline given high interest rates and timeframes. Therefore, the number of people receiving loans from FINCA for agricultural projects is extremely low. People who have received loans for agricultural projects are reluctant to do so again. For instance, during interviews held in Shamkir, farmers expressed their concern with regard to loan process and interest rate (Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews)

7.2.4 CIP implementation Strategy and Efficiency of the CIP

• The implementation of the CIP mostly by four international NGOs is not economically efficient. A significant amount of the funds allocated to international NGOs is spent on office maintenance, salaries and transportation and travel expenses. At most, the amount allocated to national NGOs constitutes 10% of the total project budget at most. In some cases, only several employees of local NGOs have been contracted while, on the whole, the organisations themselves have been left out of the process. The procedures for selecting NGOs for the programme were mostly dependent on international organisations (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004; Results of CIP commitments monitoring – answer to the third question)

• In some cases, there is a discrepancy between the expenditures envisaged in the micro-project budget and real market prices. This creates the impression that funds allocated for micro-projects sometimes are being spent carelessly (See: Photos 10,11 )

• The process of drafting, assessing, approving and implementing micro-projects sometimes takes several months and there is no flexibility in this process. This causes discrepancies between the budget of the expenditure and real market prices during the period when the price rises. Eventually, it has a negative impact on the quality of construction (Source: Interviews, video filming)

7.2. 5. Impact of BTC Construction Activities on the Local Communities and

Infrastructures

• 76% (188 respondents) of those involved in the questionnaire survey stated their disturbed heavy equipment and machinery. The list included five factors stated as causing a disturbance. 49% (119 respondents) explained this disturbance as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained primarily about the noise created during the day


• 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance directly and indirectly caused by pipeline construction 61% of the complaints have been addressed to local authorities while 10% to BP and its associate. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received nothing whatsoever. Overall, only 28% (23 complainants) were to some extent satisfied with the responses

• Roads in most villages and settlements located along the route of the BTC pipeline have been affected due to the movement of heavy machinery and large-tonnage lorries during construction activities. For instance, roads in Shamkir, the Muzdurlar community in Goranboy, the Garadagli and Shikhimli communities in Ujar and the Armali community in Kurdamir sustained significant damage during the construction activities

28

Overall, the majority of the roads used for construction purposes sustained damage (See: Photos 14-15 reflecting the impact)

• In a number of communities, homes located within the vicinity of the roads that were crossed by heavy machinery and lorry traffic endured cracks and damage. Among the communities visited by the monitoring group, up to 50 homes in the Girag Kasaman community in Akstafa and Shikhimli community in Ujar have been damaged

• Irrigation systems, which were utilised by the communities, sustained damage during construction activities (See: Photos reflecting the damage)

29

Photos Reflecting Shortcomings:

Photo 5

Shamkir region, Saritepe village The condition of the repaired road

Photo 6

Shamkir region, Kechili community The evening arrival of the monitoring group to the community

prompted an overnight foundation of classrooms

Photo 7

The Community Centre of Borsunlu community in Goranboy is now being used as a canteen

30

Photo 8

Shamkir region, Garagemerli community Due to a failure to collect the 25% community contribution

for the refurbishment project, children are still obliged to study under these conditions

Photo 9

Shamkir region, Bayramli community Medical facility refurbishment proceeds normally. However, the project does not envisage re-roofing, which may lead to further damage of a renovated building

31

Photo 10

Tovuz region, Ashagi Ayibli medical facility Each of these chandeliers has been documented as amounting to 220,000AzM,

which is different from the market price

Photo 11 Tovuz region, Khatinli medical facility

This sink has been documented as amounting to 80,000AzM, which seems to be different from the market price

32

Photos Reflecting Alleged Damage Inflicted on Communities during Construction:

Photo 12-13

Girag Kasaman village in Akstafa Houses located along the road where heavy machinery and lorries regularly moved during the construction activities

Photo 14

Muzdurlar village in Goranboy A schoolgirl points to damage inflicted on the village road

by heavy lorries used during construction

33

Photo 15

Roads in the Armali village in Kurdamir have been damaged by BTC pipeline construction

Photo 16

Goranboy region The irrigation system has sustained damage

in the course of construction

34

7.3. Proposals and Recommendations: Based on the analysis of the successes and shortcomings detected during the monitoring, the Social Working Group has concluded that the CIP is of vital importance. Community development and resolving infrastructural and healthcare problems and initiatives aimed at agricultural development deserve attention. In addition, the group thinks that the following proposals and recommendations should be taken into consideration to eliminate the social impacts of BTC and fully attain CIP goals:

7.3.1 Improvement of Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects:

• Mobilisation of the communities to participate in several welfare and business development initiatives should be enhanced and promoted. New techniques should be widely applied. It is important to strengthen the links between the organisations implementing projects and local communities

• Micro-projects must be implemented in communities that should have been covered by the CIP, but actually have not. The method for prioritising community projects should be improved and preference should be given to projects that will equally benefit several communities

• FINCA’s mechanism for interacting with communities should be improved and a control mechanism needs to be established over this process. FINCA should be influenced to collaborate with communities in the process of issuing loans and give preference to sustainable projects

• FINCA’s interest rate policy regarding CIP funds should be revised

• Support of Community Access to Improved Social Infrastructure:

• The status of each facility constructed or rehabilitated within the frameworks of the CIP should be determined and transferred to the appropriate bodies for task oriented use with all necessary documentation (i.e. municipality and other communities)

• Funds allocated for community projects should be increased. Community contribution terms should be lowered in poorly mobilised communities. A model for quick fix project for stimulating public involvement in this process should be created.

• The future policy of the CIP should focus specifically on projects related to accessing energy resources and elaborating task-oriented activities aimed at resolving this problem as communities consider this to be the most problematic issue

• Closer cooperation should be maintained with communities for project sustainability and to develop sustainability plans on infrastructure development


• Creation of more efficient and long-term loans for agricultural development: The aim should be to establish control over a stable turnover of funds allocated for FINCA within the 4-km corridor.

7. 3.4 CIP Implementation Strategy and Efficiency of the CIP:

• More national NGOs should have an increased role in CIP implementation.

• It is important to audit the financial activities of certain international NGOs, particularly, IRC and IMC with the aim of increasing the efficiency and task-oriented fashion of spending the funds allocated for the implementation of CIP projects

35

• Simplifying and introducing more flexibility in the process of drafting, assessing, approving and implementing projects

7.3.5 Impact on Social Environment and Infrastructure during BTC Construction:

• Local communities should be better informed in advance about the progress and movement of the construction activities and where heavy equipment is to be used to make them aware that these disturbances will occur

• Prior to commencement of the project it is important to develop guidelines for increasing the awareness of expatriates on local culture and behaviour and maintaining positive relations with the communities

• It is important to establish a hot line service to create the opportunity for the BTC affected local communities to lodge their complaints on social problems to BP/BTC. At the same time the companies Community Liaison Officers should closely acquaint the local communities with grievance management procedure to assist them to address their complains to appropriate bodies

• The claim of those whose homes have been damaged by BTC construction should be investigated, and alleged damage to the personal property should be indemnified. The concrete addresses of claimers have been presented to BP/BTC.

• Micro-projects should be implemented in all communities which have been affected by BTC in order to eliminate negative impact.

Note: Other proposals and recommendations for eliminating impacts on social infrastructure have been presented by the report of the Working Group on the Use of Local Resources entitled, Assessment of BTC Pipeline Impact on Economic condition of the Regions. For detailed information, you may refer to this report.

7.4. Results of Monitoring Findings and Recommendations:

№ Findings Proposals and Recommendations 1 Social welfare and business opportunities of

communities affected by BTC/SCP projects

1.1 The process of community mobilisation within the frameworks of the CIP is not very effective in a number of communities. The maximum participation of the local communities in Community Group elections was not ensured. Links between organisations implementing the project and communities are weak. There are conflicts between some Community Groups. Most community members have very little information about the community and projects being conducted in the area

1.2 CIP has not covered all of the communities

along the route of the BTC pipeline. For instance, despite the establishment of a unified community comprising two villages in Agdash and Kurdamir, only one village has benefited from the project

1.3 FINCA has established links poorly with

Community Groups. Instead of giving preference to Community Groups and community members in the process of issuing loans, FINCA has built up its business mostly in markets

1.4 FINCA’s interest rates are higher than those

of Azeri banks and other micro-loan organisations. This fact increases project risks and impedes the creation of sustainable business structures.

1.1 Mobilisation of the communities to participate in several welfare and business development initiatives should be enhanced and promoted. New techniques should be widely applied. It is important to strengthen the links between the organisations implementing projects and local communities

1.2 Micro-projects must be implemented in

communities that should have been covered by the CIP, but actually have not. The method for prioritising community projects should be improved and preference should be given to projects that will equally benefit several communities

1.3 FINCA’s mechanism for interacting with

communities should be improved and a control mechanism needs to be established over this process. FINCA should be influenced to collaborate with communities in the process of issuing loans and give preference to sustainable projects

1.4 FINCA’s interest rate policy regarding CIP

funds should be revised.

2

№ Findings Proposals and Recommendations

2 Support for community access to improved social infrastructure

2.1 There is an uncertainty in the handover policy of transferring authority to appropriate bodies to use the facilities launched and financed by CIP. For instance, the Community Centre of Borsunlu community in Goranboy is now being used as a canteen by Community Leader

2.2 Funds allocated for the implementation of

community projects are sufficient for partly resolving a priority problem identified by the communities. (see: Results of CIP monitoring commitments – answer to eighth question). Moreover, the principle of the 25% community contribution does not consider the level of community mobilisation. For instance, members of the Garagemerli community in Shamkir could not collect the 25% community contribution and, therefore, children are still studying at school under poor conditions

2.3 Occasionally, the dominance of a certain

group was evident in identifying community problems within the frameworks of the CIP. That impeded the identification of a real priority. The majority of respondents in the communities have indicated problems with gas and electricity as the major issues. However, only a few projects have been conducted to partly resolve the problems with electricity

2.4 The sustainability of micro-projects has not

been properly considered. Thus, there is no control mechanism over the implementation of project sustainability plans in some communities. Examples of this are the reconstructed roads in the Saritepe village of Shamkir, the artesian well project in Akstafa

2.1 The status of each facility constructed or rehabilitated within the frameworks of the CIP should be determined and transferred to the appropriate bodies for task oriented use with all necessary documentation (i.e. municipality and other communities)

2.2 Funds allocated for community projects should be increased, community contribution terms should be lowered in poorly mobilised communities. A model for a quick fix project for stimulating public involvement in this process should be created

2.3 The future policy of the CIP should focus

specifically on projects related to accessing energy resources and elaborating task-oriented activities aimed at resolving this problem as communities consider this to be the most problematic issue

2.4 Closer cooperation should be maintained with communities for project sustainability and to develop sustainability plans on infrastructural development

3


3 Support for agricultural development in regions along the pipeline route

3.1 Loans are not favourable for agricultural development in a number of regions along the pipeline given high interest rates and timeframes. Therefore, the number of people receiving loans from FINCA for agricultural projects is extremely low. People who have received loans for agricultural projects are reluctant to do so again. For instance, during interviews held in Shamkir, farmers expressed their concern with regard to loan process and interest rate

3.1 More efficient and long-term loans should be created for agricultural development: The aim should be to establish control over a stable turnover of funds allocated for FINCA within the 4-km corridor

4 CIP implementation strategy and efficiency of the CIP

4.1 The implementation of the CIP mostly by four international NGOs is not economically efficient. A significant amount of the funds allocated to international NGOs is spent on office maintenance, salaries and transportation and travel expenses

4.2 In some cases, there is a discrepancy

between the expenditures envisaged in the micro-project budget and real market prices. This creates the impression that funds allocated for micro-projects are sometimes being spent aimlessly

4.3 The process of drafting, assessing,

approving and implementing micro-projects sometimes takes several months and there is no flexibility in this process. This causes discrepancies between the budget of the expenditure and real market prices during the period when the price rises. Eventually, it has a negative impact on the quality of construction

4.1 More national NGOs should have an increased role in CIP implementation

4.2 It is important to audit the financial

activities of certain international NGOs, particularly, IRC and IMC with the aim of increasing the efficiency and task-oriented fashion of spending the funds allocated for the implementation of CIP projects

4.3 More flexibility should be introduced in

the process of drafting, assessing, approving and implementing micro-projects

4


5 Impacts BTC construction activities on the local communities and infrastructures

5.1 76% (188 respondents) of those involved in the questionnaire survey stated their disturbed by heavy equipment and machinery. The list included five factors stated as causing a disturbance. 49% (119 respondents) explained this disturbance as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained primarily about the noise created during the day

5.2 38% (95 respondents) are concerned with the behaviour of expatriates employed in construction outside of the camp. 47% of the complainants are disturbed by their clamour while 40% are concerned with their fast driving

5.3 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance caused directly and indirectly by pipeline construction . 61% of the complaints have been addressed to local authorities while 10% to BP and its associates. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received nothing whatsoever. Overall, only 28% (23 complainants) were to some extent satisfied with the responses

5.4 Roads in most villages and settlements located along the route of the BTC pipeline have been affected due to the movement of heavy machinery and large-tonnage lorries during construction activities. For instance, roads in Shamkir, the Muzdurlar community in Goranboy, the Garadagli and Shikhimli communities in Ujar and the Armali community in Kurdamir sustained significant damage during the construction activities. Overall, the majority of the roads used for construction purposes sustained damage

5.1 Local communities should be better informed in advance about the progress and movement of construction activities and places where heavy equipment and machinery is to be used to allow them to know when noise or other temporary disturbance will occur in construction areas

5.2 Prior to commencement of the project it is important to develop guidelines for increasing the awareness of expatriates on local culture and behaviour and maintaining positive relations with the communities

5.3 It is important to establish a hot line service to create the opportunity for the BTC affected local communities to lodge their complains on social problems to BP/BTC. At the same time the companies Community Liaison Officers should closely acquaint the local communities with grievance management procedure to assist them to address their complains to appropriate bodies

5.4- Note: Other proposals and

recommendations for eliminating impacts on social infrastructure have been presented by the report of the Working Group on the Use of Local Resources entitled, Assessment of BTC Pipeline Impact on Economic condition of the Regions. For detailed information, you may refer to this report

5

5.5 In a number of communities, homes located within the vicinity of the roads that were crossed by heavy machinery and lorry traffic endured cracks and damage. Among the communities visited by the monitoring group, up to 50 homes in the Girag Kasaman community in Akstafa and Shikhimli community in Kurdamir have been damaged.

5.6 Irrigation systems, which were utilised by the communities, sustained damage during construction activities

5.5 The claim of those whose homes have been damaged by BTC construction should be investigated, and alleged damage to the personal property should be indemnified. The concrete addresses of claimers have been presented to BP/BTC.

5.6 Micro-projects should be implemented in all communities which have been affected by BTC in order to eliminate negative impact.

Appendix 1: Brief Description of 2004 ACTIVITIES CONDUCTED on Behalf of BTC in Various Communities Under CIP Projects:

Data On Activities Conducted in Communities MONITORING OUTCOMES

№

NAMES OF DISTRICTS

AND COMMUNITIES

BRIEF INFORMATION ON COMMUNITIES

CIP Implementin

g Partners MOBILISATION

TECHNICAL ASSISTANCE

WORKSHOP AND TRAINING INFRASTRUCTURE

Save the Children

The Community Group was established at the community meeting with the support of organisation

The training programme on the Participatory Assessment of the Area (PAA) was conducted by the organisation. The community was provided with advice for project proposal writing. During BTC construction, the organisation's engineers provided the community with training on safety rules

Artesian Well Project totalling $9,000 implemented with 25% participatory contribution from 37 households

Local residents complain about noise and dust caused by BTC construction. No village residents were involved in BTC construction. Members of the community who we interviewed said that they were not aware of the establishment of a Community Group or activities conducted by the group in the community

International Medical Corps

FINCA The community has no information on FINCA activity

UMID HSDM

The organisation provided the community with training programmes on: 1. Community Management, Community

Fund and Utilisation 2. Needs Identification, Project Proposal

Writing 3. Long-Term Action Plan of Community 4. Sustainability and Management Plan 5. The community has been provided with Financial Guidelines

1

SHA

MK

IR

Gar

agem

erli

§ The community is situated 25km from Shamkir on the right bank of the Kura River

§ The population is 7,000.

§ The population is mainly engaged in agriculture and animal husbandry

§ The main problems of the village are unemployment and the poor social and economic conditions of infrastructure (roads, schools, hospitals)

Agro Information Centre

2

Save the Children

The Community Group was established at the community meeting with the support of the organisation


The extension of the school was planned (three additional classrooms to be constructed). The cost of the project is $6,799. The municipality has undertaken the 25% community participatory contribution

Members of the community who we interviewed said that they were not aware of the activities conducted in community. It was decided to construct an irrigation channel for the community with financial assistance from Save the Children. But, later on, the irrigation channel construction project was substituted with another project. No village residents were involved in BTC construction


FINCA

UMID HSDM



Writing 3. Long-Term Action Plan of Community 4. Sustainability and Management Plan 5. The community has been provided with Financial Guidelines.

Kec

hili

§ The community is situated 15km from Shamkir on the left bank of the Shamkir River.



Cha

parl

y

§ The community is situated 20km from Shamkir on the right bank of Shamkir Lake.


Save the children


The training programme on the Participatory Assessment of the Area (PAA) was conducted by the organisation. The community was provided with advice for project proposal writing. During BTC construction, the organisation's engineers provided the community with training on the safety rules

Electric power system rehabilitation is to be implemented. At the time when the interview was conducted by the working group, the proposal for the project was being prepared

3

IMC

The Community Group was established to implement the project.

The organisation provided the community with training programmes on: 1. First Aid 2. Reproductive Health 3. Family Planning

Project and estimation for the renovation of the village medical facility were developed by the organisation. The total cost of the project is $4,500, of which 25% will be contributed by the community

The quality of rehabilitation and purchased materials is low

FINCA

UMID HSDM

The organisation provided training programmes to the community on: 1. Community Management Community

Fund and Utilisation 2. Needs Identification Project Proposal

Writing 3. Long-Term Action Plan of Community 4. Sustainability and Management Plan 5. The community has been provided with Financial Guidelines


Save the Children



Electric power system rehabilitation is deemed to be implemented. The cost of the project is $9,000, of which $3,000 will be contributed by the community. The implementation of the project has not yet started

IMC

The Community Group was established to implement the project.


The village medical facility was renovated by the organisation. The quality of the rehabilitation is satisfactory. The medical facility was provided with free medicine and medical bags

Dal

lar

Jayi

r

§ The community is situated 25km from Shamkir on the right side of the Baku-Tbilisi railway.


§ The main problems of the village are unemployment and poor social and economic conditions of infrastructure (roads, school, and hospital).

FINCA

4

UMID HSDM

The organisation provided training programmes to the community on: 1. Community Management, Community


Writing 3. Long-Term Action Plan of Community 4. Sustainability and Management Plan 5 The community has been provided with Financial Guidelines


Save the Children


The raining programme on the Participatory Assessment of the Area (PAA) was conducted by the organisation. The community was provided with advice for project proposal writing. During BTC construction, the organisation's engineers provided the community with training on safety rules

The school building was renovated. The total cost of the project was $6,240, of which 27% was contributed by the community

Only active members of the community, teachers, nurses, and municipal officials are aware of the implementation of CIP projects in the community. The majority of village residents are not aware of the activities conducted in the community

IMC

The organisation provided the community with training programmes on: 1. First Aid; 2. Reproductive Health; 3. Family Planning.

The village medical facility was rehabilitated by the organisation. The cost of the project was $4,540, of which 25% was contributed by the community. The quality of rehabilitation was satisfactory. One patient underwent free cataract surgery

FINCA

Dal

lar

• The community is situated 3km from Shamkir on the right–left sides of the Baku-Tbilisi railway

• The population is 4,718

UMID HSDM



Writing 3. Long-Term Action Plan of Community 4. Sustainability and Management Plan 5. The community has been provided with Financial Guidelines.

5


Save the Children

The Community Group was established at the community meeting with the support of the organisation. Only active members of the villages participated at the community meetings

The training programme on the Participatory Assessment of the Area (PAA) was conducted by the organisation. The community was provided with advice for project proposal writing. During BTC construction, the organisation’s engineers provided the community with training on safety rules

The school roof of 290m2

was rehabilitated by the organisation. The total cost of the project was $10,000, of which 25% was contributed by community

IMC

The medical facility was provided with free medicine and medical bags by the organisation. Three residents of the village underwent free cataract surgery. The medical facility was rehabilitated. The cost of project was $45,000, of which 25% was material contributed by municipality.

The medical employees said that the condition of the medical facility was better prior to rehabilitation.

FINCA

UMID HSDM

The organisation provided the community with training programmes on: 1. Community Management, Community Fund and Utilisation 2. Needs Identification, Project Proposal Writing 3. Long-Term Action Plan of Community. 4. Sustainability and Management Plan. 5. The community has been provided with Financial Guidelines.

Mah

mud

lu

• The community is situated 15km from Shamkir on the left bank of the Shamkir Lake.

• The population is 5,200.

Agro information Centre

Talış

h

• The community is situated 27km from Shamkir on the left bank of the Kur River.

• The population is 604.

Save the Children

The Community Group was established at a community meeting with the support of the organisation.


The drinking water project was implemented by the organisation for the community. The cost of the project was $7,315, of which 16.2% was contributed by the community

6


FINCA

UMID HSDM

The organisation provided the community with training programmes on: 1. Community Management, Community Fund and Utilisation; 2. Needs Identification, Project Proposal Writing; 3. Long-Term Action Plan of Community; 4. Sustainability and Management Plan. 5. The community has been provided with Financial Guidelines.


Save the Children

The Community Group was established at the community meeting with the support of the organisation.

The training programme on the Participatory Assessment of the Area (PAA) was conducted by the organisation. The community was provided with advice for project proposal writing. During BTC construction, the organisation’s engineers provided the community with training on safety rules.

The road of a 6km length was rehabilitated by the organisation. The cost of the project was $6,709, of which $1,509 was contributed by the community.

Community members who received micro-credit from FINCA were not pleased with the criteria of the organisation

IMC

FINCA

FINCA representative visits the village and talks to community members. Twenty schoolteachers receive micro-credit from the organisation.

UMID HSDM


Sarı

tapa

• The community is situated 10km from Shamkir on the right side of the Baku-Tbilisi-Ceyhan road.



7

Save the Children



The organisation has planned to implement the school renovation project for the community. The total cost of the project was $50,000.


The organisation does not conduct activities in the community.

FINCA

UMID HSDM


Zaya

m

• The community is situated 15km from Shamkir on the left side of the Baku-Tbilisi road.



Save the Children

The Community Group was established at the community meeting with the support of the organisation. Roughly 110-140 people participated in the community meetings.


It has been planned to rehabilitate the drinking water system and road of a length of 3km in the community. The total cost of the project was $7,000, of which 25% will be contributed by community.

Chairman of the village municipal council Huseynov Khagani said that, while presenting the project, the organisation stated that the project amount should be $3,500-$7,000.

IMC

The organisation provided training programmes to the community on: 1. First Aid; 2. Reproductive Health; 3. Family Planning.

Some wards in the medical facility were rehabilitated by the organisation. The cost of the project was $4,500, of which 25% was contributed by the community. The quality of the rehabilitated wards is poor. One patient underwent free cataract surgery.

Dal

lar

Jırd

akha

n

• The community is situated 27km from Shamkir on the right bank of the Kura River.


FINCA

8

UMID HSDM


Agro Information

Save the Children



The school was extended (four additional classrooms are being constructed). The cost of the project was $7,000, of which 25% was contributed by the community.

As the masons have not been paid their salaries, they have suspended construction. Generally, the community does not have sufficient information on CIP implementation.

IMC

The organisation provided the community with training programmes on:

1. First Aid; 2. Reproductive Health; 3. Family Planning.

The village medical facility was rehabilitated by the organisation. The cost of the project was $5,600, of which 25% was contributed by community.

FINCA

UMID HSDM


Bay

ram

lı

• The community is situated 15km from Shamkir on the right side of the Baku-Tbilisi road.



9

Save the Children



The organisation rehabilitated the road of a length of 10km. The cost of the project is $9,515, of which 25% was contributed by the community.

Members of the community who we interviewed said that they were not aware of the activities conducted in the community. Two village residents were involved in BTC construction. Twenty residents applied for construction work.

IMC

IMC established the Community Group for project implementation. The medical facility is to be built in the community.


FINCA

UMID HSDM


2

AK

STA

FA

Boy

uk K

asik

• The community is situated in the surroundings of the Baku-Tbilisi railway on the border of the Republic of Georgia.


• Village residents are mainly engaged in animal husbandry.

• The main problem of the village is unemployment.


10

Save the Children



Electric power wires will be replaced. The total cost of the project is $7,000. the community will contribute 25% of this amount.

Local residents complain about the noise and dust caused by BTC construction. No village residents were involved in BTC construction. The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted in the community under the CIP Project. The community members who received micro-credit from FINCA are not pleased with its criteria

IMC

FINCA

Organisation is providing community with micro credit service. Mainly, teachers received micro credit.

UMID HSDM


Koc

hval

ili

• The community is situated on the right side of the Baku-Tbilisi railway.


• Village residents are mainly engaged in animal husbandry.

• The main problem of the village is unemployment.


11

Save the Children



The project on the rehabilitation of the electric power system is being implemented. The total coast of the project is $ 6,766.

The community members are not pleased with FINCA criteria. Members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted under the CIP Project.

IMC

FINCA FINCA representatives held talks with community members.

UMID HSDM


Soyu

gbul

aq

• The community is situated on the left side of the Baku-Tbilisi railway.



Save the Children



The construction of the water pipeline from Chandargol Lake is being implemented. The length of the water pipeline is 3km. The cost of the project is $7,500, of which 25% will be contributed by the community.

No village residents have been involved in BTC construction.

IMC

The organisation conducts activities in the community.

The project is deemed to be implemented in the community.

Salo

glu



FINCA

12

UMID HSDM



Save the Children



The electric power system rehabilitation project was implemented in the community. The cost of the project was $6,800, of which 25% was contributed by the community.

Three village residents were involved in BTC construction by CCIC.

Beynəlxalq Tibbi Korpus

FINCA

UMID HSDM


St/

Poy

lu




13

Gir

ag K

asam

an

Although the community is within 500m of BTC, the community is not covered by the CIP. Local residents complain about the noise and dust caused by BTC construction. The walls of more than 30 houses sustained cracks due to the movement of heavy lorries.

Save the Children



The electric power system rehabilitation project was deemed to be implemented in the community. The total cost of the project is $7,000. The community has undertaken to contribute 25% of this amount.

Local residents complain about the noise and dust caused by BTC construction. No village residents have been involved in BTC construction.


FINCA

UMID HSDM


Aşa

gı K

asam

anli




Save the Children



The organisation implemented the Community Centre Construction Project. The total cost of the project was $9,333. The community has undertaken to contribute 25% of this amount.

The community has many social problems. The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted under the CIP Project.

Zalim

khan

• The community is situated on the right side of the Baku-Tbilisi railway.



14

FINCA

UMID HSDM



Aşa

gı A

yıblı

• The community is situated 15km from Tovuz on the right side of the Baku-Tbilisi road.



The Community Group was established.


Four wards of the village hospital planned to be rehabilitated. The total cost of the project is 42,770,000AzM. The community has undertaken to contribute 11,969,000AzM of aforementioned the amount. The quality of the rehabilitated wards is good. The price of the purchased materials is higher than market price.

Save the Children



Road rehabilitated in community. The cost of project is $6,000, of which 25% contributed by community The quality of rehabilitation work is low

The community has many social problems. Members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted under the CIP Project. The quality of the work and purchased materials is low.



The organisation provided the community with training programmes on: 1 First Aid; 2. Reproductive Health; 3. Family Planning.

Four wards in the village hospital planned were to be rehabilitated. The cost of the project is 7,299,000AzM. Of this amount, 15,189,000AzM has been contributed by the community

3

TOV

UZ

Xatın

lı



FINCA

15

UMID HSDM



Duz

Gir

igly





The estimate and project on the rehabilitation of four wards in the village hospital were developed by the organisation. The total cost of the project is $6,000, of which 25% is being contributed by the community. The quality of the work and purchased materials is low. Prices do not coincide with prices in estimate.

The quality of the work and purchased materials is low. The price of the purchased material is not compatible with the price indicated in the estimate.

Save the Children



The drinking water pipeline system project is being implemented in the community. The total cost of the project was $6,500, of which 25% was contributed by the community.



The village medical facility is to be constructed by the organisation. The total cost of the project is $6,000, of which 25% will be contributed by the community.

Ash

agi M

ulku

lu



FINCA

The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted under the CIP Project. Only active members of community are aware of the implementation of the CIP. Community members are not pleased with FINCA criteria.

16

UMID HSDM



Save the Children



The school project is to be implemented in the community. The organisation refused to implement the foregoing project due to difficulties in raising 25% of the community participatory contribution.



FINCA

UMID HSDM


4

YEV

LAK

H

Duz

daq

• The community is situated 10km from Yevlakh on the right side of the Baku-Tbilisi road.


• The main problems of the village are unemployment, poor social and economic conditions of infrastructure (roads, school, hospital).


An agricultural specialist was elected at the general meeting of the community.

The agricultural specialist participated in a nine-month training programme on agriculture. Now, he is providing community members and farmers with counselling services.

Local residents complain about the noise and dust caused by BTC construction. Although the crops of the community have been affected by pipeline construction, the community has not received compensation. No village residents have been involved in BTC construction. The members of community are not pleased with FINCA criteria.

17

Save the Children



The community was involved in the rehabilitation of roads.



The village medical facility was rehabilitated by the organisation. The quality of the project is satisfactory.

FINCA

The members of the community are unhappy with the interest rate imposed by FINCA. The community has a revolving fund. The community members voluntarily pay 3,000AzM in membership fees per month.

UMID HSDM


Ney

mət

abad

• The community is situated 7km from Yevlakh on the left side of the Baku-Tbilisi road.





Nər

iman

kənd






The village medical facility was rehabilitated by the organisation. The quality of the project is satisfactory.

18



The organisation provided the community with training programmes on: 1. Mobilisation; 2. Agriculture; 3. Sustainability; 4. Micro-Project Development.

Two projects were implemented in the community: 1. Rehabilitation of electric power system. The cost of the project is $3,100, of which 52% is to be contributed by the community; 2. Floors in 21 classrooms were repaired. The cost of the repairs was $3,900, of which 25% was contributed by the community.

FINCA

FINCA is conducting activities in the community.

The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted under the CIP Project. Only active community members are aware of the implementation of the CIP in the community. Community members are not pleased with FINCA criteria. No village residents were involved in BTC construction.


Sam

adab

ad




An agricultural specialist was elected at a general meeting of the organisation.

The agricultural specialist participated in a nine-month training programme on agriculture. Now, he is providing community members and farmers with counselling services

19



The organisation provided the community with training programmes on: 1. Mobilisation; 2. Agriculture; 3. Sustainability; 4. Micro-Project Development

The artesian water well project for the community is to be implemented by the organisation. The cost of the project is $3,500. The members of the community required more money for the implementation of the project.

No village residents were involved in BTC construction. The movement of the CCIC heavy lorries caused immense damage to village roads and irrigation system. Community members are not pleased with FINCA criteria.

FINCA FINCA is conducting activities in the community.


Ash

agi G

arkh

un

• The community is situated 5km from Yevlakh on the right side of Yevlakh and the Baku-Tbilisi road on the right bank of the Kura River.





Save the Children



The organisation is going to implement the electric power system rehabilitation project totalling $5,956.

5

SAM

UK

H

Yux

arı A

gası

bayl

i


• The community is situated on the bank of the Ganja River.


20

FINCA

The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted under the CIP Project. Only active members of the community are aware of the implementation of the CIP. The community leader does not have any information on the Community Fund. A representative of the executive authority manages the fund resources. The administrative building and power lines and water channels have been partially rehabilitated through fund resources.

UMID HSDM





21

Save the Children



The school construction project for the community is to be implemented.


FINCA

Community members are not pleased with the organisation's activities. No village residents were involved in BTC construction. CCIC heavy lorries have caused huge damage to rural roads. Prior to pipeline construction, the community had bitumen roads. After damaging the roads, however, the company rehabilitated them by paving it with gravel.

UMID HSDM


Ash

agi A

gası

bayl

i


• The community is situated on the right bank of the Ganja River.




Save the Children



The school building is to be rehabilitated.



The medical facility is to be rehabilitated. Due to difficulties in raising the participatory contribution of the community, the project is not being implemented.

Lak


FINCA FINCA is conducting activity in the community.

Community members are not pleased with FINCA criteria. CCIC heavy lorries have caused huge damage to rural roads.

22

UMID HSDM





Save the Children



The organisation is implementing school the construction project totalling $10,000, of which $7,500 will be covered by the organisation and $2,500 by the community.



The organisation has not performed any activities other than training.

FINCA

FINCA is providing the community with services. The members of the community have received micro-credit.

Nacıa

lıly


UMID HSDM


Community members are not pleased with FINCA criteria. CCIC heavy lorries have caused huge damage to rural roads. No village residents were involved in BTC construction.

23




Save the Children



The organisation is implementing the school construction totalling $9,000, of which 25% is being contributed by the community.


Some patients were provided with free eye treatment by the organisation.

FINCA

UMID HSDM


Ali

Bay

ram

lı

• The population is

920.




CCIC heavy lorries caused huge damage to the village bridge. Although community members wrote a letter of complaint to CCIC, the company has not taken any measures yet. No village residents were involved in BTC construction.

Save the Children



The organisation is implementing the school construction project totalling $10,000, of which 25% is being contributed by the community.

Qad

ily

• The community is situated on the right bank of the Kura River.



24

FINCA

The community does not have any information on FINCA. The village has a lot of social problems. The Community Fund has been established. Five persons from the community have been involved in pipeline construction. BTC construction greatly affected rural roads. According to the agreement signed by CCIC, the company has undertaken road rehabilitation.

UMID HSDM





Save the Children



A conference hall for the school was built in the community.


Seyi

dlar


FINCA

The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted in the community under the CIP Project. Only active members of the community are aware of the implementation of the CIP. Community members

25

UMID HSDM



An agricultural specialist was elected at the general meeting of community.


refused to collaborate with FINCA. Local residents complain about the noise and dust caused by BTC construction. Although pipeline construction affected residential crops, they have not received compensation. Only one village resident was involved in BTC construction.

Save the Children

The Community Group was established at the community meeting with the support of the organisation. 80% of the community members participated in the election of the Community Group.


The irrigation water system rehabilitation project is to be implemented in community. The cost of the project is $7,000, of which 25% will be contributed by the community.


FINCA

FINCA is providing the community with credit services. Eight households have received credit.

Gar

a-ar

kh


UMID HSDM


The gas line was rehabilitated and channels were cleaned through the revolving fund of the community. No one was involved in BTC construction.

26




Save the Children



The Community Centre established with financial support from the organisation. Currently, the Community Centre is operational like a canteen. When asked how the income from the canteen is spent, the community leader said that he covered the community’s participatory contribution for the facility construction and, therefore, was personally receiving the income generated from canteen.



The medical facility has been rehabilitated. The prices in estimate are higher than market prices.

FINCA

UMID HSDM


6

GO

RA

NB

OY

Bor

sunl

y

• The community is situated on the right side of the Baku-Tbilisi highway.





No one was involved in BTC construction.

27

Save the Children



The water system is to be rehabilitated. Due to difficulties in raising the 25% community participatory contribution, the project has not been started yet.


FINCA UMID HSDM


No one is involved in BTC construction. The community refused to collaborate with FINCA. IRC does not conduct activities in the community.

Gaz

anbu

laq

• The community is situated on the left side of the Baku-Tbilisi highway.





Save the Children



The irrigation water system has been rehabilitated in the community. The cost of the project was $6,100, of which 25% was covered by the municipality as a community contribution.



The medical facility has been rehabilitated. Prices in estimate are higher than market prices.

Jinl

i Bol

uslu

• The community is situated on the left side of the Baku-Tbilisi highway.


FINCA The organisation held meetings with the community.

Community members are not pleased with FINCA criteria. No village residents were involved in BTC construction.

28

UMID HSDM





Save the Children



The irrigation water system was rehabilitated by the community. The cost of project is $9,327, of which, 25% is to be covered by the municipality as a community contribution.



FINCA

The organisation held meetings with the community. A group of village residents received credit from the organisation.

Yah

arch

i Gaz

akhl

ar

• The community is situated at the bottom of the Boz Mountains on the right bank of the Kura River.


UMID HSDM


No village residents were involved in BTC construction. Pipeline construction caused huge damage to the roads.

29




Save the Children



The drinking water system rehabilitation project is to be implemented by the organisation. The total cost of project is $9,496, of which $6,981 is to be covered by Save the Children and $2,515 by the community. The project has not yet started.


FINCA

UMID HSDM


Saro

v






Only one village resident has temporarily been involved in BTC construction. BTC construction has caused huge damage to the roads. Community members are not pleased with FINCA criteria. Community members noted that they did not consider their cooperation with FINCA useful.

Save the Children



The existing school building is to be renovated and extended. Three additional classrooms are to be constructed. The cost of the project is $8,000, of which 25% will be contributed by the community.


Yol

paq



FINCA

No village residents were involved in BTC construction. Pipeline construction caused huge damage to the roads. Community members are not pleased with FINCA criteria.

30

UMID HSDM





Save the Children



The irrigation water system project is to be implemented. The cost of the project is $7,000. As implementation of the project delays, community members lose their confidence in the project.


The organisation provided the community with training programmes on: 1.First Aid 2.Reproductive Health 3. Family Planning

FINCA

UMID HSDM


Azi

zbay

ov

• The community is situated on the right side of the Baku-Tbilisi road.


• People mainly engaged in animal husbandry and agriculture.


An agricultural specialist was elected at the general meeting of the community


No village residents were involved in BTC construction. Community members are not pleased with FINCA criteria.

31

Save the Children

The Community Group was established at a community meeting with the support of the organisation


The project for the rehabilitation of school the roof and construction of additional classrooms is being implemented by the organisation. The cost of the project is $18,000, of which 25% will be contributed by the community


FINCA

UMID HSDM


Muz

durl

ar

• The community is situated on the right side of the Baku road.


• People are mainly engaged in animal husbandry and agriculture




No village residents were involved in BTC construction. Pipeline construction has caused huge damage to the roads. Community members are not pleased with FINCA criteria

Save the Children



A school with four classrooms was constructed by the organisation in the community


Irav

anlı

• The community is situated on the right side of the Baku-Tbilisi road.


• People are mainly engaged in animal husbandry and agriculture.

FINCA

No village residents were involved in BTC construction. As community members are not pleased with FINCA activity and criteria, they have not received micro-credit from FINCA

32

UMID HSDM





Save the Children



The drinking water system rehabilitation project is being implemented by the organisation. The cost of project is $11,684, of which 40% is being contributed by the community



Three patients underwent free eye surgery. The organisation provided the medical facility with medicine

FINCA

The organisation is conducting activity in the community. Although 18 people received credit from the organisation, generally, people are unhappy with the criteria of the credit

Nad

irka

nd

• The community is

situated on the right side of the Baku-Tbilisi road


• People are mainly engaged in animal husbandry and agriculture

UMID HSDM


Two village residents were involved in BTC construction. Affected roads and water channels were partially rehabilitated.

33




International Rescue Committee

The Community Group was established

The organisation provided the community with training programmes on: 1. Mobilisation 2. Agriculture 3. Sustainability 4. Micro-Project Development

FINCA


Mug

an

• The community is situated on the bank of the Shirvan Channel




Although the water supply project is to be implemented in the community, nothing has been done yet




The irrigation water pipe is to be laid.

FINCA


7

HA

CIG

AB

UL

Gar

asu

• The community is situated on the bank of the Shirvan Channel




The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and activities conducted in the community under the CIP project

8

KU

RDƏ

MIR

Sıgı

rly

• The community shares a border with the Hajigabul District

• The main problems of the village are




The school gymnasium is being constructed

The members of the community who we interviewed said that they were not aware of the establishment of the Community Group and

34

FINCA


unemployment and poor social and economic conditions of infrastructure (roads, school, hospital)




activities conducted in the community under the CIP Project. Local residents complain about the noise and dust caused by BTC construction




FINCA


Johr

anlı

• The main problems of the village are unemployment and poor social and economic conditions of infrastructure (roads, school, hospital)




Local residents complain about the noise and dust caused by BTC construction. Heavy lorries caused huge damage to the village roads




Rehabilitation of road with 3,600m length completed

FINCA


Ara

shli

• The main problems of village are unemployment, poor social and economic condition of infrastructure (roads, school, hospital)




Local residents complain about the noise and dust caused by BTC construction

35




The inter-community road was rehabilitated and the electric power system is being rehabilitated. The community was provided with a waste container and the community’s sewage system was cleaned

FINCA


Ram

al



The community is pleased with the activities conducted by the Community Group. The community has sufficient information on the CIP



The organisation provided the community with training programmes on: 1. Mobilisation 2. Agriculture 3. Sustainability 4. Micro-Project Writing

The road of a length of 5km was rehabilitated

FINCA



9

UC

AR

Shah

lıq

• The main problems of village are unemployment, poor social and economic condition of infrastructure (roads, school, hospital).





36




Two projects totalling $ 3,000 are to be implemented in the community. Due to difficulties in raising 25% of the community participatory contribution, the implementation of the projects has been suspended

FINCA

The organisation conducts activities in the community. Several people received micro-credit


Cit

y co

mm

unit

y (F

in s

ettl

emen

t)





The community is pleased with activities conducted by the Community Group. The community has sufficient information on the CIP. Two people were involved in BTC construction




The power generator was installed in the community

FINCA


10

AG

DA

SH

Am

irar

x

• The main problems of the village are unemployment, poor social and economic conditions of infrastructure (roads, school, hospital, power lines).

• There is a need for the construction of an irrigation channel from

• Turyanchay. Agro Information Centre



The community is pleased with activities conducted by the Community Group. The community has sufficient information on the CIP

37

Laki

set

tlem

ent


• There is a need for the construction of a kindergarten in the community




The community is pleased with activities conducted by the Community Group. The community does not have sufficient information on the CIP

FINCA



Medical equipment has been partially provided and medicine has been distributed




Hap

itli

• The main problems of the village are unemployment, poor social and economic conditions of infrastructure (roads, school, hospital, power lines)




The community is pleased with activities conducted by the Community Group. The community does not have sufficient information on the CIP

FINCA





38




The irrigation water channel has been constructed

FINCA


The community is pleased with the activities of the Community Group. The community has sufficient information on the CIP

Alik

and

• The main problems of the village are unemployment, poor social and economic conditions of infrastructure (roads, school, hospital, power lines)




Local residents complain about the dust and noise caused by BTC construction. Heavy lorries caused huge damage to the rural roads. Local people are pleased with the activities conducted by the Community Group




Inter-community roads were partially rehabilitated. Roads were paved with gravel.

FINCA

Beynəlxalq Tibbi Korpus

Anv

ar M

amm

adkh

anly


• There is a need for the construction of an irrigation channel from

• Turyanchay. Agro Information Centre



The community is pleased with the activities of the Community Group. The community has sufficient information on the CIP



The organisation provided the community with training programmes on: 1. Mobilisation; 2. Agriculture; 3. Sustainability; 4. Micro-Project Development.

FINCA

Chi

yni




The medical facility was rehabilitated in the community.

Community is partially pleased with activity of Community Group.

39







The electric power system was rehabilitated.

FINCA



The medical facility has been constructed.

Ort

a La

ki





No village residents were involved in BTC construction. Community was pleased with the activities conducted by the Community Group. The community does not have enough information on the CIP.

8. Acknowledgements The working group would like to thank the following groups and persons for the assistance that

they rendered us during the monitoring activities:

1. BP Exploration Company and, personally, Ms. Khatira Iskender

2. Translator Ms. Elmira Gasimova

3. Dan Bliss, BTC Social Performance and Social Investment Manager

4. Dr. Clive Morgan, Mentor

5. Enterprise Centre established by BP and its partners

6. Spie Capag-Petrofac and CCIC

7. Save the Children, IRC and IMC

8. Mr. Sabit Bagirov, economist, for his invaluable advice, which was instrumental for the drafting of a quality report

9. Mr. Azer Ramazanov, management consultant

9. Annex and References

1. ESIA on BTC. Preliminary situation in social sector. May 2002.

2. Report of the monitoring council on the action plan on social affairs and land acquisition.

3. Presentations on “Community Investment Programme.”

4. 4-km-Long Corridor documentary.

5. Audio and video recordings of interviews, photos.

6. Resume of a dialogue with CCIC Manager Mr. Juan Boulos during BTC onsite visit. October 30.

Documents

MONITORING WORKING GROUP ON … contents of this report should be treated as the opinions and conclusions of the monitoring group members. In no way does this report reflect the policies