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ADDITIONALITY AND OFFSET

PROGRAMMES CIP, EIP, OFFSET

AND OTHER INITIATIVES

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Aran irrigationsystem underconstruction

Clinic Constructionat Topal Hasanli

Water supplysystem at Talish,Samukh Region

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10 ADDITIONALITY AND OFFSET PROGRAMMES – CIP, EIP, OFFSET AND OTHER INITIATIVES This section presents an update on implementation status of the offset or additionality programme1.

The discussion below is restricted to a status update since the last quarterly report. Additional background to the Offset, EIP and CIP can be found in the Q1 2004 Report and the ESAP – Annex D Parts 7, 8 and 9 which is posted on the BTC website at www.caspiandevelopmentandexport.com.

10.1 OFFSET AND EIP During this quarter the EIP budget has been increased from $8.8 million to $9.3 million due to the addition of budget for monitoring and evaluation in Turkey and budget for a wetlands management project. The offset budget remains the same at approximately $2.5 million. Table 10.1 below outlines the offset projects and additionality (EIP) projects in each country and indicates whether the project is purely offset, purely additionality, or a combination of both. The implementation stage of the project is also recorded. Table 10.1: BTC Offset and EIP Projects

Country Project Offset EIP (Additionality)

Implementation Stage*

Cross Country

Caucasus biodiversity project Planning

Strategic Environmental & Cultural Management Plan for Proposed Gobustan National Park / Gobustan Cultural Heritage Reserve.

Implementation

Semi-desert conservation management - Project 1 (RFP) Definition

Semi-desert conservation management - Project 2 (RFP) Definition

Spur-thighed tortoise conservation management (Non-RFP)

Implementation

Public Awareness and Community Involvement -Project 1 (RFP)

Definition

Public Awareness and Community Involvement -Project 2 (RFP)

Definition

Azerbaijan

Persian gazelle conservation management (RFP) Definition

1 Offset programmes are carried out to offset residual impacts that cannot be mitigated directly. Additionally programmes form part of the Environmental Investment Programme (EIP) are investments or other initiatives that go beyond impact mitigation

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Country Project Offset EIP (Additionality)

Implementation Stage*

Tougay Forest conservation and restoration, Kura floodplain Implementation2

Kura-Araz Lake Management (RFP) Definition

Forest Eco-Compensation Programme Planning

Rare Floral Species Programme (Population enhancement element)

Implementation

Borjomi Kharagauli National Park Support Zone Program Planning

Management Planning for Ktsia Tabatskuri Managed Reserve (Non-RFP)

Planning

Caucasian Black Grouse Research, Monitoring and Conservation Management (RFP)

Implementation

Ecosystems and Species Conservation in Georgia: Brown Bear (RFP)

Implementation

Sustainable Forest Pilot Project Planning

Georgia

Small Grant for NGO Capacity Building and Public Awareness/Environmental Education

Definition

Important Plant Areas Implementation

Eco-compensation Planting for: Posof Wildlife Protection Area; Sarikamis Natural Site Area; Miscellaneous forest areas

Definition

Important Bird Areas Implementation

Improving the conservation status of Caucasian Black Grouse (CBG) in Turkey

Implementation

Mediterranean Monk Seal Research Implementation

Sea Turtles Implementation

Lesser Caucasus Forest Gap Analysis & Sub-ecoregion study Implementation

Forest Habitat Enhancement Planning

Turkey

Public Awareness / Community Involvement Planning

Small Investments Fund Planning

Wetlands Management Planning

* Key: Project Sequence = Planning, definition, implementation

2 Note that this project is in the implementation stage but BTC/SCP funding towards this project has not yet occurred.

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10.1.1 CROSS-CAUCASUS PROJECT The BTC and SCP projects are looking to fund a cross-Caucasus project that addresses the socioeconomic, political and institutional threats to, and opportunities for, conservation of biodiversity in the region. The project is to be undertaken within the framework of national biodiversity strategy and action plans and international conventions to which the host governments are signatories.

As a minimum projects must cover at least one of the following features:

• Involvement and encouragement of transboundary collaboration at various levels (e.g., government, institutions, NGOs) to ensure that biodiversity conservation takes account of regional needs and is comprehensive and effective

• Capacity development, in particular formal and informal training programmes and awareness raising, aimed towards increasing knowledge and support for biodiversity conservation for a range of stakeholders including governments, NGOs, universities and institutes

• Development of regional information management systems and analysis tools to provide adequate databases to identify priority actions and encourage information sharing within the region and internationally

• Promote sustainable resource use at all levels The request for proposals (RFP) will be issued during Q3 2004.

10.1.2 AZERBAIJAN The following section outlines the scope and status of Azerbaijan offset and EIP projects that are in the implementation stage. This is followed by a brief update of those projects that are either in the planning or definition stage. IMPLEMENTATION STAGE PROJECTS:

Project Name: Strategic Environmental & Cultural Management Plan for Proposed Gobustan National Park / Gobustan Cultural Heritage Reserve. Implementing Organisation: GRSCC (see below)

Project Start Date: October 2003. Location: Gobustan

Project Description: BTC is partnering with other Stakeholders in a forum to improve management of the Gobustan Cultural Reserve. Stakeholders include the Ministry of Culture, the Institute of Archaeology and the Ministry for Environment and Natural Resources as well as local people and all those with an interest in the management of the area. The Gobustan Reserve Stakeholder Consultative Committee (GRSCC) has been established involving representatives from key public, governmental and corporate groups (i.e. the Ministry of Culture, Institute of Archaeology, Local Authorities, Ministry of Tourism, Ministry of Environment, BTC/BP and Gobustan Operating Company) in discussions on the future of the Gobustan Reserve. The aim of the Committee is to implement actions proposed by UNESCO during the development of a management plan for the Reserve. Highlights and Achievements: The second meeting of the Gobustan Reserve Stakeholder Consultative Committee, comprising representatives from key public, governmental and corporate groups (i.e. the Ministry of Culture (MoC), Institute of Archaeology, Local Authorities, Ministry of Tourism, Ministry of Environment and private enterprises), and planned for Q2, was postponed by the MoC. A pamphlet describing the area is being produced and this will be designed and published by BTC on behalf of the MoC.

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Project Name: Spur-thighed tortoise conservation management

Project Start Date: 2002 (BTC funding not yet started)

Implementing Organisation(s): Project staff are hired directly by AIOC.

Location: Sangachal terminal and BTC pipeline

Project Description: AIOC is implementing the Spur Thighed Tortoise Breeding Programme as an offset measure related to the construction of the Sangachal terminal. BTC/SCP are contributing funds to this programme. The objective of the programme is to offset any losses of this red listed species that may occur as a result of pipeline construction activities. Through the BTC/SCP EIP Semi-Desert Conservation Program, opportunities for the release of the tortoises will be sought, and will take into account the range and density of a healthy tortoise community. A monitoring programme will be considered as a means of determining the success of the release strategy. Highlights and Achievements: A population in the order of 130 individuals bred under the AIOC initiated programme will be sufficiently mature for release in the near future. The BTC / SCP plan was to integrate the release and monitoring of the individuals into the semi-desert conservation area and therefore this project is linked to the Semi-desert conservation management projects (discussed later). Due to delays with these projects a contingency is being sought.

Project Name: Tougay Forest Conservation and Restoration

Project Start Date: Q4 2002 (BTC/SCP Funding Contribution will begin in the second half of 2004)

Implementing Organisation(s): BP

Location: Kura Floodplain

Project Description: This is a joint project involving BP Group, the BP Azerbaijan Business Unit and the BTC and SCP projects. It focuses upon the threatened Tougai forest habitat, and aims to enhance protection of Tougai Forest in a protected area. The project is divided into 3 phases: • Phase 1: Baseline investigations and project site selection (Complete April 2004) • Phase 2 Detailed Project Design (Completed May 2004) • Phase 3: Implementation BTC/SCP is making a financial contribution to help enable the implementation phase. BTC/SCP is represented on the Steering Committee for the project.

Phase 1 completed in April 2004. The Approval for the proposed project site was granted by the Ministry of Ecology and Natural Resources in May 2004; Phase 2 was completed in May and the project is moving into Phase 3.

PLANNING AND DEFINITION STAGE PROJECTS Phase 1 EIP Projects The Q1 2004 Lenders’ Report indicated that a number of Phase 1 projects are effectively on hold until such time as sufficient support is granted by the Ministry of Ecology and Natural Resources (MENR). Contingency plans are under development for each project should the regulator not support them as currently designed and packaged.

• Public Awareness and Community Involvement (Project 1). The first Public Awareness and Community Involvement project seeks to strengthen the awareness and participation of the public in preserving biodiversity in the communications corridor through which BTC passes. This project would involve a needs-based environmental education and awareness programme in communities along the right of way. The project goal is to increase knowledge and public participation in environmental issues.

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• Public Awareness and Community Involvement (Project 2). The second Public Awareness and Community Involvement project involves an environmental education and awareness programme for schools and the wider population. Again the objective is to raise public awareness of pertinent environmental issues through the circulation of newspapers and journals, and to promote the education and participation of schoolchildren in biodiversity and broader environmental issues.

• Tougai forest conservation and restoration, Kura floodplain. This is a joint project involving BP Group, the BP Azerbaijan Business Unit and the BTC and SCP projects. It focuses upon the threatened Tougai forest habitat, and aims to enhance protection of Tougai Forest in a protected area. Phase 1 of the project involves baseline investigations and project site selection, which are nearing completion. Phase 2 involves detailed project design and was completed in Q2. BTC is making a financial contribution towards the second Phase.

• Semi-desert conservation management (Project 1). The first semi-desert conservation program will be implemented in vicinity of Gobustan. The project objectives include:

• Implementation of a pilot project to demonstrate management techniques to combat desertification

• Development of a regional grazing management policy

• Implementation of a local outreach programme to raise awareness of the importance and fragility of the desert environment

• Implementation of a national public awareness project designed to increase national appreciation of the desert environment.

• Semi-desert conservation management (Project 2). The second project may involve preparation of a plan describing measures for the prevention of desertification. The Plan would address how to encourage the recovery of plant and animal communities in pilot areas located in the general vicinity of the BTC pipeline. The project goal is to develop a GIS database of the pilot area that can be used as an effective planning and monitoring tool for improved semi-desert land use management.

• Persian gazelle conservation management. This project involves improvement of park conditions and the ongoing development of breeding programmes for Persian (Goitered) Gazelles in the Shirvan Reserve. It would be implemented by a Baku based Azeri NGO. The project objectives include:

• Improved living conditions for the gazelle

• Enhanced protection for gazelles

• Raising ecological awareness and promoting conservation

• Development of a Shirvan National Park Management Plan

• Establishment of a pedigree breeding programme

• Kura-Araz Lake Management. This project involves the development and implementation of a multi-stakeholder management plan for the Kura-Araz lakes system, an internationally recognised over-wintering ground for important bird species. The objective of the project is to implement a strategy and plan addressing the rational use of the interconnected lakes (Ag-Göl, Sari-Su, Bos-Gobu and Mekhman) and their catchment area. If successful, the strategy could be applied to similar sites with artificial or semi-artificial water regimes in the semi-desert drylands of Azerbaijan.

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Phase 2 EIP Projects The strategy for further implementation of the EIP has been revised as a result of the difficulties experienced in instigating projects in the first Phase. Phase 2 projects will therefore focused on:

• Community needs-based environmental projects

• Community / local NGO capacity development

• Community needs-based forestry

As such, the Implementing Partners will shift from NGOs / academics to individuals or groups that are located near to the pipeline. The aim will be to encourage the sustainable use of natural resources and to deliver a general improvement to the quality of life in Project Affected Communities (PACs).

To facilitate implementation, Phase 2 will be executed within the framework of the CIP. The CIP Implementing Partners will be responsible for the solicitation of proposals, initial review, award of small grants, monitoring and evaluation, and reporting. BTC (and SCP) shall have final approval of proposals.

Additional project selection criteria are to be developed to address the specific nature of Phase 2 projects.

10.1.3 GEORGIA The following section outlines the scope and status of Georgia offset and EIP projects that are in the implementation stage. This is followed by a brief status update of those projects that are either in the planning or definition stage.

IMPLEMENTATION STAGE PROJECTS

Project Name: Rare Floral Species Programme (Population enhancement element)

Project Start Date: mid 2003 (for translocation programme (see Section 3.2.2)

Implementing Organisation(s): Dzelkva

Location: Locations along the route

Project Description: Several species of higher plants, having high conservation value due to endemism, rarity, size of the population etc., will be affected by pipeline construction and operation as their populations occur immediately within the proposed pipeline ROW - Pasqueflower Pulsatilla georgica; Marsh Orchid Dactylorhiza urvilleana; Fritillary Fritillaria lutea; Squill Scilla rosenii; Snowdrop Galanthus alpinus; Gentian Gentiana angulosa; Globe Daisy Globularia trichosantha; Oriental Thorn Crataegus orientalis. These plant populations are being managed and propagated in an ex situ environment for ultimate reintroduction in the wild. The populations are being managed so that the numbers are increased ready for re-introduction in to the natural habitat.

Highlights and Achievements: Progress with this programme is outlined in Section 3.2.2.

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Project Name: Caucasian Black Grouse (CBG) Research, Monitoring and Conservation Management

Project Start Date: January 2004

Implementing Organisation(s): The Lead Implementing Organization is the Georgian Center for the Conservation of Wildlife (GCCW). They are partnering with the World Pheasant Association (WPA) and University of Idaho (USA) and BirdLife International.

Location: Black Grouse habitats in Georgia as determined by the programme

Project Description: The goal of the project is to provide a scientific basis for the effective conservation management of the endemic, rare and globally threatened faunal species - Caucasian Black Grouse (CBG is qualified as a “Data Deficient” by IUCN), and to create capacity to perform such management in Georgia. The specific objectives of the project are to: • Collate available data on the species and identify areas for intensive studies; • Conduct ecological and population studies in identified areas essential for the

development of an effective monitoring plan and the feasible management procedures; • Develop a sustainable and effective species monitoring plan, and create the capacity at

local and national levels to initiate it; • Establish conservation goals for the species and produce a management plan based on

the research results; • Promote co-operation with other Caucasian Black Grouse conservation programs in the

region and internationally; and • Increase public awareness about the project activities and goals.

Highlights and Achievements: The following activities took place during Q2 2004 • Intensive field studies are in progress in two selected locations – Akhaltsikhe and

Lagodekhi districts: • Various methods have been tested for radio-telemetry study in both districts; • Five birds have been radio-tagged. The capture of birds for marking is continuing; • Detailed information has been collected on Caucasian Black Grouse lekking sites.

• A GIS database has been created for the current distribution and habitat requirement study.

• Samples for the genetic study have been collected in 5 districts. The genetics assistant has been identified and training initiated.

• The CGB list-serve and working group has been enlarged – 5 new members have joined. • The CBG project web site is being developed.

Project Name: Ecosystems and Species Conservation in Georgia: Brown Bear

Project Start Date: June 2004

Implementing Organisation(s): NACRES (Noah’s Ark Centre for Recovery of Endangered Species

Location: Trialeti Range in Georgia

Project Description: The objectives of the project are to estimate brown bear population within the Trialeti range, appraisal of current levels of threats, description of the underlying reasons for loss of bear habitat, development of a Bear Conservation Action Plan for the Trialeti range, and establishment of the basis for community involvement conservation activities.

Highlights and Achievements: The grant was awarded in mid June 2004. The only activities undertaken in Q2 were associated with setting up administrative systems.

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PLANNING AND DEFINITION STAGE PROJECTS The Q1 2004 Lender’s Report noted that a number of projects were still in pre-implementation stage. These projects rely on collaboration with other parties, including the Georgian Government – Ministry of Environment. The following is an update of activities related to these projects:

• Forest Eco-compensation Programme. In recognition of the fact that forested areas of the pipeline ROW cannot be fully reinstated to their original forested conditions due to pipeline integrity and safety restrictions, BTC has committed to planting additional trees off the ROW. The Forest Eco-compensation Programme will aim to recreate similar forest to that which is affected by the pipeline construction. The invitation to tender for expert forestry consulting for this programme was issued early in 2Q 2004. A consultant has since been selected to assist with the development of the programme. It is expected that they will be commissioned in Q3 2004. A basic agreement on the strategy has been reached with the relevant government authorities.

• Management Planning for Ktsia Tabatskuri Managed Reserve. BTC will work with the relevant authorities from the Georgian Government to develop the project. BTC/SCP issued a draft Memorandum of Understanding (MoU) for implementation of this project to the State Department of Protected Areas (SDPA) and the Ministry of Environment (MoE) in October 2003. This strategy (previously referred to as the MoU) was slightly revised and re-submitted to MoE in April and June 2004 for comment. Once comments are received, BTC will hold further discussions with the MoE to finalise the strategy agreement and start implementation of the strategy.

• Borjomi Kharagauli National Park Support Zone Program. This project is to be developed with the relevant authorities from the Georgian Government. Detailed consultation with relevant stakeholders took place during the 2Q 2004 in order to define this project that combines offset and additionality elements. The reaction of the stakeholders was variable – there are a number of views on the area of focus and implementation mechanism for the project. More work on theme definition will take place in 3Q 2004.

• Sustainable Forest Pilot Project. The sustainable forest management pilot project will be developed in conjunction with the relevant authorities of the Georgian Government. The invitation to tender for expert forestry consultancy services to prepare and manage early implementation of the sustainable forestry pilot project was issued early in the 2Q 2004. Proposals have been evaluated and a consultant selected.

• Small Grant for NGO Capacity Building and Public Awareness/Environmental Education. BTC/SCP has taken the decision to combine the two themes of NGO Capacity Building and Public Awareness/Environmental Education in an effort to maximise the overlap in efficiencies between environmental education and capacity building for NGOs, since in Georgia, many NGOs may be capable of undertaking environmental education activities but need capacity building support. The strategy is to contract an experienced grant management organisation to a) undertake a comprehensive capacity needs assessment for NGOs and Capacity Building Organisations working in the districts through which the pipelines pass; b) to define the scope for a small grants program based on this assessment; and c) to then manage the small grant program. Within the small grant categories will be a category focused on environmental education. An RFP was announced in mid-May with tenders due for return in mid-July, 2004. A tender clarification meeting was held with 6 NGOs who expressed interest in bidding on this programme. It is expected that a grant award can be made in 3Q 2004.

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10.1.4 TURKEY The following section summarises the status of projects currently being implemented.

IMPLEMENTATION STAGE PROJECTS

Project Name: Important Bird Areas (IBA)

Project Start Date: Commenced mid 2003.

Implementing Organisation(s): The implementing partner for this project is Doğa Derneği (Doğa Association) with BirdLife International & RSPB (NGO).

Location: The location of the project is along the pipeline route.

Project Description: The goals of the Project are: • To establish a basis for conservation of the Important Bird Areas (IBA) throughout BTC

pipeline route. There are six known IBA’s in BTC pipeline region: Lake Bostankaya, Lake Ulas, Erzurum Plateau, Yumurtalik lagoons, Ardahan Forest, Lake Aygir.

• To determine the existence and distribution of IBA’s in the region. IBA book to be developed and IBA classification data to be computerized (boundaries, threats, land use etc).

• To extend the local capacity to monitor the IBA network through the extension of the IBA Caretaker Network.

• Promote the development of a legal basis for IBA protection and promotion.

Highlights and Achievements: Ten potential new IBAs have been identified. Members of new birdwatching groups from Sivas, Erzurum and Kars were trained. The new IBA inventory book has been launched.

Project Name: Improving the conservation status of Caucasian Black Grouse (CBG) in Turkey

Project Start Date: Commenced mid 2003.

Implementing Organisation(s): The Implementing Partner is Doğa Derneği (Doğa Association) with BirdLife International & RSPB (NGO).

Location: The project is concentrated in north-east Turkey. The BTC pipeline crosses CBG habitat in Turkey through the Lesser Caucasus.

Project Description: The goals of the project include: • To improve conservation status of Black Grouse in Turkey • To produce an accurate picture of species current threat status, population size,

distribution and habitat requirements with a view to developing a species conservation strategy

• To develop a National Caucasian Black Grouse Action Plan (in line with the State Department of Environment and Forests).

• To develop eco-tourism in the region One of the important objectives of this project is to produce a “National Species Action Plan”; and encourage the Turkish Government to adopt the Plan. Currently there is no national plan available for Turkey.

Highlights and Achievements: CBG were recorded at two sites: Posof and Hatila Valley National Park (Artvin). Socio-economic and tourism data were collected and site profiles were prepared for the four prospective demonstration sites: Sivrikaya, Uzungol, Camlihemsin and Ayder.

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Project Name: Mediterranean Monk Seal

Project Start Date: Commenced mid 2003.

Implementing Organisation(s): The Implementing Partner for this project is the Middle East Technical University (Academic Institution).

Location: The main focus of the project is at the coastline from Karataş (Adana) to Turkey-Syria border.

Project Description: The goals of this research project include: • To understand the status quo of the seal colony in the Gulf of Iskenderun. The monk seal

has been sporadically sighted in the Gulf of Iskenderun. There is limited other scientific information available

• Survey coastline in search of suitable monk seal habitat (breeding and sheltering) • Educational initiative to target fishermen and encourage them to keep seal observation

logs • The above will assist in determining whether a resident colony of monk seals capable of

breeding exists in the area. Should one exist, a protection action plan will be developed.

Highlights and Achievements: Considerable seal movement in the Gulf of Iskenderun was noted during Q2. The areas identified as suitable habitat during Q1 2004 have been confirmed as supporting seals. Sightings of a young male and female indicate that it is likely that whelping takes place in the Gulf of Iskenderun. Efforts will be made to confirm this as part of forthcoming studies.

Project Name: Important Plant Areas

Project Start Date: Commenced mid 2003.

Implementing Organisation(s): The Implementing Partner for this project is the Istanbul University Research and Aid Foundation (Academic Institution).

Location: The location of the project is along the pipeline

Project Description: The goals of this project include: • The protection of the exceptional plant diversity of Turkey for future generations and

creating a sustainable management mechanism for the Important Plant Areas (IPA) designated along the BTC pipeline route.

• To establish a base for identification and conservation of IPA’s along the BTC Pipeline route.

• Collection of plant samples in region located along pipeline route, which will then be dried and preserved. Following a sample evaluation, the related areas will be determined as IPA’s.

• Following designation, there will be presentations directed at commanding support from voluntary organizations, public agencies and local government.

• Plans will be devised in order to determine a special management plan for the areas designated as IPA’s.

Highlights and Achievements: Fieldwork took place across the period in Artvin-Ardahna-Kars, Erzincan, Van, Adana, Sivas, Erzurum and Kayseri. Habitats surveyed included forests (pine, mixed), alpine and sub-alpine grasslands and riparian vegetation. A large number of specimens were collected for later identification by both the field team and additional specialists. Collection of plant samples for the herbarium is continuing. A list of endemic taxa for the region between the Ceyhan Terminal and Andırın was prepared based on literature. A number of endemic species were recorded at various locations along the route. Two confirmed IPAs have been noted and at least 13 potential IPAs identified.

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Project Name: Sea Turtles

Project Start Date: Commenced mid 2003.

Implementing Organisation(s): The implementing partner for this project is the Ecological Research Society (NGO).

Location: The locations for the project are Sugozu and Akkum beaches of Ceyhan and Yumurtalık provinces

Project Description: The main objective of this project is to determine the importance of the project areas as important nesting areas and developing conservation based action strategies and management plans in order to prevent impact to sea turtles and their nesting behaviour. The project goals include: • To monitor migration routes and diving depths of sea turtles with a view to developing and

improving management plans for turtle nesting area conservation • To highlight the importance of the species to local districts, and to encourage a reduction

in destructive activities leading to extinction through education • To encourage further development of eco-tourism

Highlights and Achievements: Fieldwork for 2004 was started in May and continued in June. Four potential important areas for the reproduction of the green sea turtle have been identified within the study area One of the sites is a small beach where the Botaş facilities are located. Monitoring of the most important Sea Turtle nesting site at Akyatan was initiated. A seminar aimed at education with regard to the importance of Sea Turtles was held in May. Meetings were held with government agencies e.g. Ministry of Environment and Forestry Nature Protection Department to gain further support for the project.

Project Name: Lesser Caucasus Forest Gap Analysis

Project Start Date: March 2004

Implementing Organisation(s): TEMA (NGO) with Middle East Technical University (Academic Institution)

Location: Eastern and southeastern parts of Artvin, Ardahan, some parts of Kars, and the northeastern part of Erzurum.

Project Description: The goal of the project is to map biodiversity richness in North East Turkey (the Lesser Caucasus Area) and then overlay areas with conservation protection status already applied in order to determine any gaps. Gap Analysis that is a proactive approach to protecting biodiversity. It seeks to identify gaps between land areas that are rich in biodiversity and areas that are managed for conservation The main activities of the project are: • To identify the flora and fauna not represented in the areas currently under protection or

covered by biodiversity management

• To propose areas eligible for legal protection and development of habitats in the light of those data to be obtained.

Highlights and Achievements: The project team hosted a very successful press team meeting and started its field surveys with its several field teams, including botany and wildlife teams.

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PLANNING AND DEFINITION STAGE PROJECTS Projects that are in the planning and definition stages of development are outlined below.

• Eco-Compensation Planting for: Posof Wildlife Protection Area; Sarikamis Natural Site Area; Sarikamis Natural Site Area; and Miscellaneous Forest Areas. Offset tree and shrub planting with the objective of reinstating the pre-construction vegetation in terms of both composition and density.

• Site specific re-instatement plans will be prepared with the assistance of the General Directorate of Afforestation and Erosion Control and when necessary with the General Directorate of Forestry. It is the responsibility of the Construction Contractor to determine site specific measures for the planting areas. These measures are to be reviewed by Botaş and the regional directorates of Forestry.

• Forest Habitat Enhancement. This project was to draw from data gathered during Forest Gap Analysis, and result in the implementation of conservation projects under the flowing circumstances:

• Where gaps in the protected land system exist

• Where habitat damage has been sustained

• Where there is a discontinuity in habitat

• Due to the delayed start of the Forest Gap Analysis, data required to implement this project is not available. It has therefore been necessary revised objectives of the project as follows:

• Integrate biodiversity and community participation elements into forest management by enhancing existing techniques or making use of new techniques

• Change the ways in which forests are used to alleviate pressure from forest users or ensure a resource-usage balance by creating alternative means or sources of living, fuel, dwelling, food etc.

• An RFP was issued in mid-May with short conceptual proposals being returned in mid-June as Phase I of the Application procedure. The conceptual proposals were reviewed and short-listed applicants invited to submit a detailed proposal under the Phase II Application. Phase II submissions are due for return in Q3 2004.

• Public Awareness / Community Involvement on Biodiversity. The goal is to raise awareness of the environment along the pipeline route and support EIP projects. This will be achieved through the production and dissemination of education or awareness raising materials geared towards understanding, protecting and sustainable use of local biodiversity and natural resources. The effectiveness of the tools will be tested in pilot areas along the BTC Pipeline and Iskenderun Bay prior to wider distribution.

• This theme was included as part of the RFP issued in mid-May and follows the same timetable of proposal submission and review as the Forest Enhancement Project.

• Small Investments Fund. Previously referred to as Small Grants Programme, this theme covers the provision of support to non-governmental and grassroots organizations along the pipeline route for biodiversity conservation projects and the establishment and/or successful operation of sustainable enterprises that promote conservation and sustainable use and management of biological resources.

• Final negotiations were ongoing with during with an international donor during the quarter. It is expected that the contract will be signed in Q3 2004.

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• Wetlands Management. The objectives of this project are to:

• Develop awareness among stakeholders about the value and function of selected wetland(s) and the urgency for their conservation;

• Determine the economic worth of the values and functions of the selected wetland(s); and,

• Act as the leader, along with the Ministry of Environment and Forestry, in the preparation of a participatory management plan with Ramsar Criteria.

• This theme was included as part of the RFP issued in mid-May and follows the same timetable of proposal submission and review as the Forest Enhancement and Public Awareness / Community Involvement on Biodiversity projects.

10.2 COMMUNITY INVESTMENT PROGRAMMES 10.2.1 AZERBAIJAN COMMUNITY INVESTMENT PROGRAMME

The key components of the CIP in Azerbaijan are:

• Community Mobilisation and Capacity Building, through the implementation of community led micro-projects

• Health Care, and

• Micro-Finance.

In Azerbaijan BTC/SCP is working with four different Implementing Partners:

• Save The Children (SC) - western half of pipeline

• International Rescue Committee (IRC) - eastern half of pipeline

• International Medical Corps (IMC) whole length of pipeline

• Foundation for International Community Assistance (FINCA) – whole length of pipeline

These organisations are implementing the projects with the help of local NGOs, who are gaining experience in project management and the skills to take charge of community projects themselves in the future. Details on the projects and achievements are outlined below.

Project Name: Community Mobilisation and Capacity Building

Project Start Date: July 2003

Implementing Organisation(s): • Western half of pipeline: Save the Children in

partnership with Agro-Information Centre and Umid

• Eastern half of pipeline: The International Rescue Committee (IRC) in partnership with Agro-Information Centre, Toward Civil Society (MCD) and Ganja Business Group.

Project Coverage: 48 communities (Western half of the pipeline) 34 communities (Eastern half of the pipeline)

Project Description: Through Community Mobilisation and Capacity Building techniques, Save The Children, IRC and their local partners help communities with no tradition of local self-government to: • Democratically elect an Ijma Group or Community action Group, responsible for

implementing individual community interventions. • Identify and prioritise their community needs • Participate in all aspects of project development – from design to procurement, to

fundraising, to determination of user fees etc

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• Execute the projects • Manage and maintain projects after implementation. The community mobilisation and capacity building programmes include an agricultural component aimed at increasing farmers’ agricultural knowledge and skills, so that they can improve productivity and thus obtain more income. This objective is achieved by training 27 and 25 selected farmers as agricultural extension experts (Western Sector / Eastern Sector respectively) who can then pass on their expertise to other farmers on a for fee basis. Transfer of knowledge includes the cultivation of crops such as alfalfa, grapes, vegetables and wheat; the control of crop pests and diseases; irrigation techniques; chicken breeding; prevention and treatment of livestock disease.

Highlights and Achievements (Western half of the pipeline) To date, SC has facilitated the formation of Community Action Groups, or Ijma Groups (IG), in all 48 of its CIP communities. 33 communities have completed their Participatory Rapid Assessments (PRA) and are now developing micro-project proposals.

As in previous quarters, the most frequently raised problems are in the following sectors and order of priority: electricity, road, irrigation, school, potable water, gas, community center, community kindergarten and community bath house. By the end of June, 5 projects were complete, and another 13 had progressed to the implementation stage.

In addition, 45 communities have completely self-funded some small projects and social events of their own, with a total value of over $34,000. This is a strong indication that the community mobilization and development process is having a positive impact.

The agricultural component is progressing well, and farmers have already started to benefit from the program activities. Agricultural Extension experts (AEs) from twenty-seven communities have received training consisting of a balanced program of classroom/theoretical teaching and field-based coaching. They are now operating as independent consultants in their respective villages, and to date they have concluded agreements with 237 farmers for advisory services on topics such as cultivation of crops (e.g. alfalfa, grapes, vegetables and wheat); the control of crop pests and diseases; irrigation techniques; chicken breeding; prevention and treatment of livestock disease. Highlights and Achievements (Eastern half of the pipeline) Management training for the ‘Ijma Group’ (IG) members has continued, with 8 groups being trained this quarter. All Ijma Groups have now been trained on project design, management, budgeting, proposal writing and gender and environmental issues. A total of 280 people have taken part in these trainings - 122 women and 158 men.

Nine communities have begun implementing their micro-projects. We are very pleased that the communities’ contributions for most of these projects have exceeded the mandatory 25%. This is a strong indication that the communities are highly motivated. Projects are as follows: one canal drainage to improve the productivity of farmland through increased irrigation and salt reduction; one potable water pipeline rehab; three school rehabs; two electricity supply improvements; two road rehabs.

The agricultural component in the eastern half of the pipeline route is being implemented by Agro-Information Centre (AIM), and their progress has been good. 25 people (from 289 applicants) have been selected and trained to work as independent agricultural extension experts on topics such as animal husbandry, crop farming techniques, poultry and cattle rearing, and farm management. As in the western region, they are working as independent consultants, passing their knowledge on to interested farmers on a for-fee basis. 425 farmers have used this service, of whom 17 are women and 11 are IDPs (internally displaced people).

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Project Name: Primary Community Health Care

Project Start Date: July 2003

Implementing Organisation(s): International Medical Corps. Local Partners are: Ministry of Health, National Reproductive Health Office, Shafali Allar (Caring Hands), Azerbaijan National Nurses Association (ANNA), and Azerbaijan Women and Development Centre (AWDC)

Project Coverage: Entire pipeline route

Project Description: • Training in primary healthcare & use of medicines for 75 doctors, 100 nurses, 85

midwives, 10 obstetricians, 60 school teachers and 300 community health workers • Full intervention with rehabilitated village clinic, supply of medical equipment and

medicines, trained nurses and doctors for 31 selected communities. • Partial intervention (everything but renovated clinic) for 25 “linked” communities that will

be able to access facilities at 31 • 31 Community health funds established to provide health ‘insurance’ for community

members. • As a consequence, the population will have improved access to preventative health care

and treatment. A very thorough and involved assessment program was implemented in all communities along the pipeline route in order to identify the 31 selected communities and the 25 linked communities.

Highlights and Achievements: In the year since IMC’s program has started, all goals for the period have been achieved:

• 55 communities were selected as program targets • 31 Community Health Management Committees (CHMCs) were elected using a

democratic process, and trained • 220 Community Action Groups (CAGs) were established and 1,336 volunteers mobilized • 1,333 CAG members have been trained to provide information to their communities on

subjects such as family planning, reproductive and perinatal health and HIV/AIDS awareness. This method ensures that members of the community receive accurate health information from their peers, delivered in an easily assimilated and culturally sensitive way. Men, women, boys and girls can be educated separately if desired.

• 9,100 community members received health education • One children’s health festival took place • 99 doctors have been trained on Module 1 and 2 of their Primary Health Care training

curriculum 107 nurses from 55 communities have completed a ten day Primary Health Care training curriculum which covered basic nursing skills

• Clinic assessments were conducted in all 31 target communities • 19 community proposals for clinic rehabilitation were received • clinic rehabilitation contracts were signed with each respective community • 9 clinics are now being reconstructed. IMC provides basic medical equipment and

supplies to these clinics when they are ready for use. The provision of medical services to communities is filling a gap, which was left when the old, centralized services collapsed with the end of the Soviet regime. The program provides significant economic benefit to CIP community members. After medical staff are trained and clinics renovated/built, utilization rates for those facilities dramatically increase. This means that more people are being treated sooner closer to “home” which reduces the number of cases that develop to a critical stage. Having medical problems diagnosed sooner rather than later reduces cost for medicine and reduces costs for travel to and treatment in either district hospitals or Baku hospitals.

IMC is maintaining good relationships with the district authorities, in order to ensure that the CIP health component is welcomed by them and obtain their assistance where needed.

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Project Name: Micro-Finance

Project Start Date: July 2003

Implementing Organisation(s): FINCA Azerbaijan

Project Coverage: Entire pipeline route

Project Description: The Micro-Finance Project implements the concept of “village banking” by provision of small loans to local entrepreneurs to promote small businesses. The bulk of loans are made with out collateral to groups and guaranteed by interdependence of its members. Other loan products to individuals and businesses are also available and involve collateral.

Highlights and Achievements: FINCA continued to execute the Pipeline Microfinance Initiative, with an emphasis on pushing program activities out of urban centers and into rural villages along the pipeline route. There are now 3,900 active clients altogether, and nearly 50% are women. Roughly 66% of loans are for the Rural Loan Product (RLP).

The outstanding capital (i.e. amount currently in clients’ hands) is $850,000. The repayment rate continues at 100%.

Four different loan products are now available to clients, including Small Enterprise Loans and a Rural Loan Product is proving very popular.

FINCA has had particularly high demand for the Rural Loan Product. Although primarily for agricultural purposes, the concept behind the loan assumes that there are numerous income streams in the families/businesses that are taking the loans. Given the current repayment rate, one can conclude that the assumption was correct. Agricultural credit is generally considered problematic, because of its seasonal nature; but FINCA’s approach has provided affordable and needed credit to a typically marginalized group of farmers/entrepreneurs.

BTC/SCP has provided FINCA with an additional $300,000 in loan capital to ensure they can meet demand.

10.2.2 GEORGIA COMMUNITY INVESTMENT PROGRAMME The Georgia CIP is made up of two parts: the Community Investment Programme (CIP) focused on villages in close proximity to the ROW, and the CIP-Improved Schools Project, focused on improve school infrastructure and services in large towns along the ROW.

In Georgia CIP is divided into two geographical areas: CIP-East and CIP-West. For each area there is one consortium of Implementing Partners, each of which are responsible for managing the various components of CIP in the relevant area. The projects are being implemented with the help of local Georgian NGO partners.

Key components of the Georgian CIP are:

• Renewal of rural infrastructure

• Agricultural support

• Support for Income Generation through Micro-Credit

• Energy Efficiency

• Social Services

• Capacity Building For CIP-East, Mercy Corps is the lead organisation, with the following partners:

• Technical Assistance in Georgia (infrastructure rehabilitation)

• Constanta Foundation (micro-credit)

• Curatio Foundation (health and social services)

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• Elkana (agriculture and agro-business)

Mercy Corps and their partners are leveraging an additional $500,000, in the form of jointly used equipment and facilities, loan capital match and operating costs match by Constanta, and other extension services being matched.

For CIP-West, CARE is the lead organisation, with the following partners:

• Technical Assistance in Georgia (infrastructure rehabilitation)

• Constanta Foundation (micro-credit)

• Curatio Foundation (health and social services)

• International Centre on Conflict and Negotiation (capacity building in conflict resolution)

CARE is leveraging resources of a project they are implementing in neighbouring district to the CIP area. This includes sharing trainings, workshops and extension services. Constanta is also matching the loan capital and donating operating costs after year two of CIP.

CIP-ISP aims to promote sustainable socio-economic development of urban areas along the pipeline route by preparing adolescents to participate more effectively in Georgia’s future social and economic growth. Proposals for the CIP-ISP were sought from CARE and Mercy Crops during this reporting period. Proposals were discussed in some detail and grants were made in June 2004. Activities will start in 3rd Quarter 2004.

Key outputs of the CIP-ISP project will include:

• Infrastructure rehabilitation in over 50 secondary schools in the towns of Gardabani, Rustavi, Marneuli, Tetritskaro, Tsalka, Bakuriani and Akhaltsikhe, benefiting over 28,000 students and 2,000 teachers.

• Over 275 teachers and administrators will be trained in specialised teaching or management techniques.

Parents, teachers, administrators and students will be prepared for the nation-wide move to the School Boards model of school management, though training, awareness raising and capacity building.

The progress and achievements of the Georgian CIP are described further below.

Project Name: Georgian CIP

Project Start Date: March 2003

Project Description: The project includes a number of inter-related components: Renewal of rural infrastructure; Capacity Building; Social Services; Energy Efficiency; Support for Income Generation through Micro-Credit; and Agricultural Support. Each of these is described further below. The project is implemented in 77 communities along the pipeline route.

Sub-project Description: Renewal of rural infrastructure: Over the three-year period, and through a mobilisation process which requires that communities themselves identify the project to be undertaken as well as develop the work plan, schedule and budget, a minimum of 150 infrastructure rehabilitation projects are being undertaken. Highlights and Achievements: To date, over 72 infrastructure rehabilitation projects have been completed, 10 of which were completed during this reporting period. Projects have fallen into the following categories: • potable water supply rehabilitation 25% • school/ classroom rehabilitation 25% • road rehabilitation 16%; Irrigation system rehabilitation 10%

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• natural gas system rehabilitation 8% • rehabilitation of venues for social events 7% • other 9%. The infrastructure rehabilitation has included 12 km of potable water system pipelines, 7 km of irrigation system, 20 km of roads, 6 km of gas pipelines, 265 gas meters, and 10 schools, 5 libraries and 4 clubs. Case Study 10.1 outlines real results of the CIP quick start project aimed at improving rural water infrastructure.

Sub-project Description: Agricultural Support: In order to support economic development in the target villages, the CIP will transfer agricultural technologies through a combination of on-farm demonstration and training sessions. Highlights and Achievements: Agricultural extension experts conducted over 500 monitoring visits to demonstration plots that were established in the first year of CIP. They provided over 400 individual on-farm trainings and consultation on various pre-planting, soil preparation, crop husbandry and livestock production activities. These training sessions were attended by nearly 700 farmers who, although not part of the demonstration farm program, showed great interest in adopting improved agricultural production technologies. In addition over 125 classroom and in-field trainings were held on topics including pre-planting seed preparation, crop-specific combination of fertilisers, and appropriate pest management practices. In addition, training in use of bio-pesticides and in the use of bio-gas generators were held. Cross visits to bio-efficient farms and biogas systems were arranged for a number of villages.

Sub-project Description: Support for Income Generation through Micro-Credit: To stimulate business and employment, the CIP will provide at least 6,000 micro-loans to communities in the districts through which the pipelines pass over the three-year time period. (This original goal was then revised upwards – see further details below) The project coverage includes communities in the 77 villages along pipelines’ route, as well as any other persons who wish to take out a loan who may be from towns or neighboring villages. Many of the loans are taken by people outside the pipeline corridor. Highlights and Achievements: The cumulative total of group loans as of the end of June is 1,112. These groups comprised of over 5,100 individuals. The total loan value to date is slightly over $1,000,000. A total of 38 individual loans have been given out this quarter for a total loan value of approximately $90,000. Loans were given for clothing and footwear businesses, grocery trading (fruits and vegetables), clothing trading, auto service, furniture trading, a beauty shop, a second hand shop, and a number of other activities. A pilot loan program for animal husbandry was also started this quarter, with loans for cattle and bee keeping. At the start of CIP, Constanta Foundation, the partner NGO managing the micro-credit component of CIP, targeted to make a total of 5,500 micro-loans to groups. By the end of the first year of CIP, however, they had already provided approximately 50% of their target. As such, and based on the demand for micro-credit demonstrated in the pipeline districts to date, Constanta have revised their target to 14,000 loans. Sub-project Description: Energy Efficiency: Energy efficiency activities, including winterisation of buildings and installation of fuel-efficient stoves, will be incorporated throughout the implementation of infrastructure rehabilitation projects. Highlights and Achievements: A total of 264 energy efficient stoves, which burn 20% more efficiently, have now been given to households, schools and clinics.

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Sub-project Description: Social Services: The CIP is establishing Social Services Networks for elderly and vulnerable people, train doctors and nurses at the ambulatory level, and will provide basic first aid training. Highlights and Achievements: Health training programmes continued in a number of villages during this reporting period. For instance, 10 doctors and 2 nurses from sixteen communities attended a training course on maternal care. Also, 10 doctors and 10 nurses from Gardabani and Tetritskaro districts attended a five-day training in child health care. As part of the program of developing social services networks, CIP has come to an agreement with Tetritskaro District whereby the District will pay the salaries of medical staff so that doctors and nurses from Tsinskaro ambulatory, which was refurbished using CIP funds, visit 3 additional nearby villages and provide services. This is a good example of CIP leveraging external funding. During the reporting period, CIP assessed the feasibility of implementing of a Community Based Health Insurance (CBHI) schemes. Based on a number of meetings with Community Based Organisations, local health authorities, local doctors and nurses, as well as feedback sought through questionnaires, CIP will consider how best to develop and target this programme. Such community based health case financing mechanisms are playing an increasingly important role in reaching the most marginalised and vulnerable population groups that are not typically reached by government health care. CIP also developed, printed and distributed health materials on HIV/STI and various other chronic diseases. These materials were distributed to local polyclinics and hospitals.

Sub-project Description: Capacity Building: One of the key aims of the CIP project is to improve the capacity of rural communities to analyse problems, mobilise resources and implement development initiatives. Highlights and Achievements: The process of registering official Community Based Organisations (CBOs) has revealed a process whereby villagers are renewing leadership. That is, CIG members who were not committed, or were not performing to the benefit of the community, were not elected to the CBO. This process of winnowing is another milestone in the formation of viable, representative CBOs. The International Center on Conflict and Negotiations conducted nine trainings during this reporting period for the newly established village CBOs and for local authorities. These on-day sessions were focused on community mobilisation for peaceful resolution of conflicts, teambuilding and leadership skills, decision making processes, and facilitation processes. CIP-East organised a Youth Festival for children from CIP-East communities. More than 160 Children and teachers from 15 communities participated in the event. Through this event, CIP-East was able to establish cultural connections between different groups. Capacity building in communities is continuing to have a positive impact. Communities are still mobilising resources of their own in order to undertake larger projects and achieve more gain for the village as a whole. In many cases they are contributing more than the percentages required by CIP.

10.2.3 TURKEY COMMUNITY INVESTMENT PROGRAMME In Turkey there are four Implementing Partners who each manage a geographical area (province) along the pipeline. These organisations manage a large number of projects that align with the CIP components in Turkey.

The key components of the CIP in Turkey are:

• Employment and Income Generating Activities (IGA): To improve income-earning and economic opportunities for project affected people

• Agriculture: To support the development of the agricultural sector

• Social Infrastructure: To support awareness of and access to social infrastructure

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• Capacity Building: To support the capacity of communities to self-organise, manage and self-initiate community driven development

The four Implementing Partners are:

• International Blue Crescent, an NGO, works in Ardahan Province, in 37 villages in Central, Damal, Hanak and Posof counties.

• Ataturk University works in Erzurum Province in around 50 villages. • PAR, a consultancy, works in Erzincan and Gumushane Provinces in about 20

villages. • Surkal, an NGO, works in Kars Province in 20 villages in the Selim and Sarikamis

districts.

10.2.3.1 Project Highlights

Project Name: Ardahan Province CIP

Project Start Date: June 2003

Implementing Organisation(s): International Blue Crescent (IBC)

Project Coverage: Ardahan Province: 37 villages in Central, Damal, Hanak and Posof counties.

Project Description: The aim of the IBC programme is to increase income levels of targets groups by assistance with: agricultural improvements, fruit and milk processing, computer training, Damal doll making, marketing plans, bringing drinking water to the villages, refurbishing a hospital, school and health centre and installing an IT classroom.

Highlights and Achievements: Social infrastructure projects: Open drains and ditches have been covered and supply pipes have been delivered to the Village Services Directorate to be used for water supply to project villages. These projects are using both community labour and municipality contributions, and in one village a water depot has been completed. In two villages excavations have been made for the installation of a drinking water system. Some road improvements have also been carried out. Agriculture and livestock: • Soil analysis has been conducted in Yolava and villagers advised on appropriate

plantation strategies. • Fodder crop demonstrations have been carried out and seeds distributed. Corn seeds

have been distributed to villagers in Posof as demonstration of the advantages of fodder crops, and more than 3,000 packets of vegetable seeds have also been delivered to 515 villagers in 13 villages

• Work has been undertaken on greenhouses, green gardens and fruit orchards in Posof. Training sessions have been conducted on subjects such as preparation of soil, planting, pruning, inoculation, natural insecticides as well as greenhouse maintenance. In Posof the number of active greenhouses has been increased from 4 to 20.

• IBC has delivered more than 3000 packets of vegetables seeds to 515 villagers in13 villages. (See Case Study 10.2)

• Buildings for milk collection centers have been identified and permission for restoration work has been granted.

• A Livestock Symposium was held in Ardahan in April, with 70 participants receiving information on cooperative management, livestock diseases, artificial insemination, zoonotic diseases, beekeeping and support activities. Participants were also informed about animal sheltering, feeding and health conditions.

• Vaccination, artificial insemination and livestock health examination operations have been completed in 17 villages.

• Brochures and leaflets on zoonotic diseases, shelters, livestock disease, artificial insemination, shelters and vaccinations were published for breeders. These were distributed at the Livestock Symposium, village trainings and offices.

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• Breeders have been trained on topics including artificial insemination, shelter hygiene, udder care, calf diarrhea, stomach swelling and other issues. Women have been trained in hygienic milking, milk collection and udder care.

• Women have been given training on production of home made jam, marmalade and canning.

Co-operative Development: • Work is continuing on the establishment of cooperatives in Ardahan, Hanak and Damal. • Posof Agriculture Development Cooperative changed its statute and started to register

new members from project villages.

Project Name: Kars Province CIP

Project Start Date: June 2003

Implementing Organisation(s): Surkal

Project Coverage: Kars Province in 20 villages in the Selim and Sarikamis districts

Project Description: The aim of the Surkal programme is to increase incomes and empower the most disadvantaged groups in 18 villages by assistance with: promoting animal husbandry, health care, improvements in pasture and fodder crops, drinking water, and sewerage projects working with women, the elderly and young people to improve their quality of life and opportunities to earn money.

Highlights and Achievements: Community involvement: Field staff held numerous meetings where technical issues were debated with farmers. A total of 2418 villagers participated at these informal training workshops. Out of these, 2240 were male and 178 were female. Community social infrastructure projects: Afforestation activities were carried out in Darboğaz village, with a total of 2000 yellow pine saplings planted. (See Case Study 10.2) Agriculture and Livestock: Field staff continued vaccinations against anthrax, foot-and-mouth disease, brucella, leptospiro and other diseases. A total of 2438 households benefited from these activities. Treatment of sick livestock also continued. 459 cows were artificially inseminated. Sainfoin and clover seeds were delivered for the cultivation of animal fodder. 15,569 kg of seeds were delivered. Capacity building activities: Training on Hygiene: 413 women and 632 students were trained in hygiene. Hygiene Councils are now established in a total of 8 villages. These Councils are regarded as the first step towards Women’s Project Councils (see next paragraph). Meetings held for Grassroots Level Organizations: The field staff held various meetings with the people to discuss the idea of setting up Project Councils and Women’s Project Councils. Up to date 6 Project Councils and 4 Women’s Project Councils are established. Activities for setting up Councils in other villages are ongoing. Mobilization of alternative funds: 11 project proposals have been developed for the World Bank’s Social Risk Mitigation Programme and submitted to the Social Solidarity Foundations located in the districts. They are currently under evaluation by the local Social Solidarity Foundations.

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Project Name: Erzurum Province CIP

Project Start Date: June 2003

Implementing Organisation(s): Atatürk University

Project Coverage: Erzurum Province in around 50 villages

Project Description: The aim of the Ataturk University programme is to increase incomes, empower disadvantaged groups and support quick impact projects in 50 villages by assistance with: improved crop yields and animal husbandry, trout farming, eco-tourism, training for women and girls, ‘capacity development’ for village heads, drinking water, and renewable energy in three villages.

Highlights and Achievements Community Involvement: Numerous meetings have been held in villages to set up various project activities. The district governors and other officials and local government departments have been particularly supportive of the CIP activities in Erzurum province. Social infrastructure projects: • Furniture and office equipment from Atatürk University Faculty of Agriculture were

provided to several schools, village administrations and a health centre. Agriculture and Livestock: • Farmers willing to shift to organic agriculture are being given advice and technical

support. Test production of some vegetables began in some villages, and nineteen farmers have been certified for organic production. (See Case Study 10.3)

Training, Education and Co-operative development: • In two communities preparations are being made for the development of milk collection

centers, which will serve a number of villages in the area. • One all-female cooperative is investigating the introduction of vegetable farming in the

village. Project staff organized transportation and helped 17 girls from Aşkale and Horasan to attend open secondary school exams held in Erzurum.

Project Name: Erzincan and Gümüşhane Provinces CIP

Project Start Date: June 2003

Implementing Organisation(s): PAR

Project Coverage: Approximately 20 villages in Erzincan and Gumushane Provinces

Project Description: The aim or the PAR programme is to increase incomes, improve community problem solving and empower disadvantaged groups in 20 villages by assistance with: pasture improvement, animal husbandry, bee keeping, community problem solving and project planning, as well as children’s dental health.

Highlights and Achievements General/Project administration: A number of activities were started or further developed during this quarter, including vaccination programmes, bee-keeping, the seed exchange programme and numerous training activities. Community involvement: Villagers continue to co-operate and be enthusiastic about participating in project activities. In addition, there has been some notable success in generating cash contributions by the villagers. This is a highly unusual practice in rural development programmes in Turkey: • Sixty percent of the vaccination cost was contributed by villagers. These funds were

given to the village co-operatives for them to use for other micro-projects. • Farmers also contributed towards the cost of the seed exchange programme

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Community social infrastructure projects: Fibreglass animal drinking troughs have been designed and produced. 97 of these were distributed to project villages during May. Restoration work is being done in two schools. Agriculture and Livestock: • A seed exchange program has been planned to exchange cultivated barley with higher

quality seeds to achieve a better yield. The General Directorate of Agricultural Enterprises has assisted with the programme.

• Demonstration activities: orchard development activities have been carried out, including demonstration orchards and the purchase of fruit tree saplings for some communities – again with the help of the District Directorate of Agriculture.

• Training in animal healthcare was given to the villagers (both men and women) by CIP’s veterinarian as part of the preventive medicine program.

• Beekeeping development is continuing, with a seminar in all four districts and several training events.

Community training/capacity building: • Introductory meetings were held on entrepreneurship and the establishment of small

businesses. The program will try to reach leading women in communities and help them establish their own businesses; financial support will also be given to the best business idea put forward.

• Training in the management of cooperatives was given to the cooperative founders and members.

• Health Training is still continuing with trainers from the Provincial Directorate of Health. The program covers pre- and post natal care for mothers and babies, nutrition, cancer, breast cancer, diabetes, blood pressure problems, nutrition, child and general healthcare.

• 9 agricultural development cooperatives have been established. Together with the existing 3 cooperatives, 12 cooperatives are now functioning in the project area.

• Activities and programs to be undertaken in every village were formally explained to the villagers at meetings hosted by PAR field staff. These village activity plans were posted up in every village. The activity plans cover all programs and activities to be carried out in the village on an annual basis, and the contribution of each stakeholder (villager itself, local government authorities and PAR on behalf of BTC Co.).

10.3 OTHER INVESTMENT INITIATIVES 10.3.1 AZERBAIJAN

The sustained success of the CIP in Azerbaijan has been instrumental in encouraging external parties to invest in additional projects along with BTC. As an example, in June, Unocal and BTC made the decision to jointly fund $89, 000 in the Caspian Vision project – an eye examination progamme along the length of the pipeline route. CIP Implementing Partner International Medical Corps – the CIP partners for health projects – will be running the Caspian Vision project.

In May, International Rescue Committee signed a $2 million Soya meal monetization programme with the United States Department of Agriculture. The monies received from the sale of Soya meal will be used to invest in agricultural development in the Eastern Regions including communities along the pipeline route. International Rescue Committee is also a CIP implementation partner.

In addition to the benefits offered by BTC to local communities such as employment and through the CIP, the Construction Contractors have voluntarily undertaken many initiatives to assist the local communities.

In Azerbaijan, SPJV the facilities construction contractor regularly donated useful materials to the local communities. Construction materials were donated to several communities. Fifty meters of electrical cable was donated for communities of Aran and Yaldilli, which can be used by community members for repair works. Gravel for road upgrade have been donated to 5 communities near to PSA2. 371 text books were

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donated to the libraries of 6 local schools. Books are designed to train applicants for exams at High Schools. SPJV have also started rehabilitating the roofs in the houses of the community members of Yeni Shihimli (IPA1).

CCIC the Pipelay Contractor have mostly contributed to the roads rehabilitation projects near to KP 130-131 and KP 70 and 210, Yevlakh camp, Ranjbar settlement, Borsunlu village, Arshaly- Tovuz chay road, Girag Kasaman village access road, Duz Girigli Village.

Following the grant agreement signed with Goranboy District to refurbish the District Museum, the construction of the new museum shell is progressing well. Upon completion, the museum will display some finds from the BTC pipeline excavations in the vicinity of Goranboy, thus preserving the communities cultural heritage and raising awareness of local archaeological issues.

10.3.2 GEORGIA BTC voluntarily carries out a range of initiatives in addition to the Community Investment Programme to assist both communities close to the pipeline route and wider stakeholders within Georgia. An outline of these activities for Q2 2004 is given below.

School books:

BTC has purchased 60,000 books for schools located within 2 km of the western half of the pipeline route. This matches a similar initiative conducted in the Fall of 2003.

Darakovi cultural hall:

The village of Darakovi is not included within CIP because it is not within 2 km of the ROW. However, as the village has been impactedas as a result of being near a borrow pit, BTC has agreed to finance a project to refurbish the local cultural center/meeting. This includes repairs to roof, windows, floors, etc. A local contractor is managing the work with villagers providing the labor force.

Tsalka District

The construction of a potable water supply systems for 6 villages in Tsalka district began in November 2003. A total of 22 km of pipeline and two small reservoirs will be constructed to the benefit of 5,000 people. This project was implemented as a gesture of goodwill towards these particularly remote villages, which often miss out on aid from other organisations. Construction during the reporting quarter progressed rapidly, with completion expected in August 2004.

Other BTC sponsored activities include:

• Sponsorship of Georgian National Karate Tournament - Akhaltsike May 2004

• Sponsorship of Tbilisi film festival - April

• Support to Independent Association of Georgian journalists to mark international Press Day - May

• Sponsorship of Union of Deaf of Georgia to take group of Children to participate in Folk festival in Armenia - August 2004 with Tbilisi concert in September

• Sponsorship of Basement Theatre Players for performances in Akhaltsike and Borjomi - to take place in September

• Sponsorship of Business Education Case Study Competition with Eurasia Foundation - ended August

• Sponsorship of art exhibition "Georgia Land of Artists" Tbilisi, June

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SPJV is carrying out a school refurbishment programme around PSG1 schools involving 6 schools. The work will include painting classrooms, installing doors and glass, fixing roof and toilets, improving floors. The work is on-going and is due to be complete in September. This is being coordinated with the CIP-ISP to maximise benefits to schools.

SPJV continues to regularly make small donations to local communities, including distribution of wood waste to schools and hospitals, and use of heavy equipment to undertake minor repair of roads.

Also, SPJV supports a programme whereby positive and innovate efforts towards environment compliance and better management are rewarded with recognition via an Environmental Compliance Initiative. In the last quarter, 1 new initiative was raised. The JV has set up a contract whereby paper from the Tbilisi office is recycled by a local recycling firm. Batteries are collected as special collection points in the office and disposed of with other Project Hazardous waste.

BP also carries out small community investment activities within Georgia, such as small NGO capacity building initiatives, which are in addition to CIP and aimed at a wider audience than pipeline affected communities.

10.3.3 TURKEY In addition to the benefits offered by BTC to local communities such as employment and through the Community Investment Programmes, the Construction Contractors have voluntarily undertaken many initiatives to assist the local communities. The construction contractors in Turkey are very active in ensuring that they assist the local communities in community upgrades where possible, and the contractors continue to loan project resources and materials to assist with this.

In Lot A, in the communities of Embiney, Damal, Hasköy and Posof Sub-Province, various construction equipment and material was loaned by the Construction Contractor for a variety of community improvement projects. Some personal protective equipment was made available to the community of Köprüköy Gendarme for their planned construction activities. Road upgrades and the provision of road construction materials were undertaken in Akçataş and Alvar villages.

The Construction contractor of Lot B provided machinery to help improve the river beds in Harmantepe and Yeşilyaka, and to provide post-flood assistance to the villages of Çadirkaya in Erzincan. The Kemreli Bridge was rehabilitated by the Lot B Construction Contractor.

The Construction Contractor has made every effort to make health care facilities available to the local communities within the vicinity of pipeline operations. Health examinations were conducted throughout the reporting period by the PLL JV doctor and nurse in the villages of Veysiye, Ceyhan and Adana. Mosquito killer was applied by the Construction Contractor over Kuzucak village, close to the pipelines’ Azizli camp.

Various waste streams were re-channeled into local communities in the vicinity of the pump trains in Turkey for reuse. Wooden wastes and organic wastes for animal food were donated to communities near PT1. At PT2 upon the request of the landowner, irrigation channels were rehabilitated. Yaylakent village (PT3) received topsoil and the loan of equipment. Various waste types (wood, organic, cement and other construction materials) were donated to villages near PT4. At the marine terminal, a solidarity and support campaign was initiated amongst the construction workers to support an employee with an infirm child.