Georgia: BTC Pipeline-27/Tbilisi
Resident of Tbilisi
$125 million (A loan) $125 million (B loan)
The Baku-Tbilisi-Ceyhan (BTC) oil and gas pipeline is a 1,768 km long crude oil pipeline stretching from the Caspian Sea to the Mediterranean Sea. It is the second longest oil pipeline in the world and passes through Azerbaijan, Georgia and Turkey. IFC has invested $250 million since 2003 and the total project cost is approximately $3.6 billion. The project is operated by BTC Co., which comprises a consortium of 11 partners. To date, CAO has received 33 complaints in relation to the project ranging from individuals to communities to local organizations. On June 15, 2006, CAO received a complaint from a Tbilisi resident regarding land compensation issues. BTC Co. has occupied the complainant’s land for pipeline construction since April 2004. The complainant alleges that the amount offered to him by BTC Co. for his land is inadequate.
The CAO attempted to facilitate a settlement between the parties, but BTC Co. was unwilling to negotiate further with the complainants. On September 7, 2006, the CAO Ombudsman closed the case and transferred it to CAO Compliance for appraisal.
CAO Compliance determined that the issues raised in the complaint did not meet the criteria for an audit. The appraisal was completed and published on April 17, 2007. Both the appraisal and the complaint are closed.