New report on BTC refutes claims of poverty reduction

11 October 2005

Report released on October 11, ahead of Baku-Tbilisi-Ceyhan (BTC) pipeline opening ceremony in Tbilisi, Georgia details the infringements detected in the construction phase of the Georgian section of the BTC pipeline and the problems – many of them with long-term implications – faced by Georgians during the implementation of the project.

“BTC Pipeline – An IFI Recipe for Increasing Poverty”, report released on October 11, reveals the real impacts of BP’s Baku-Tbilisi-Ceyhan (BTC) pipeline and the Georgian people's unfulfilled hopes of increased welfare and development arising from BP’s billion dollar project, hopes which have been fuelled by project backers the World Bank and the European Bank for Reconstruction and Development (EBRD).
Based on field research carried out by CEE Bankwatch Network and Green Alternative, with the support of local groups in different regions of Georgia, the report also criticizes the International Finance Corporation, the World Bank’s private lending arm, and the EBRD for their failure to ensure the implementation of the “highest international standards” that were widely trailed by each when they agreed to support the BTC project with separate USD 250 million loans in November 2003. Manana Kochladze, CEE Bankwatch Network’s Caucasus Coordinator, commented, “The BTC project is causing immense problems for those communities unfortunate enough to be living next to the pipeline. In a country like Georgia, where the judicial system simply does not work and access to justice remains a dream, thousands of people now realize that the major international banks’ talk of increased welfare and development might as well be language from another planet. The World Bank and EBRD can live up to their development mandates by using their influence to suspend operations until the key environmental and social risks that continue to dog the project are addressed.”

To see the report, contact:

For more information, contact:

Manana Kochladze
CEE Bankwatch Network
Tel: +995 32 22 38 74
Email: