Georgia: BTC Pipeline-29/Tsalka
Resident of Tsalka
$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 August 3, 2006, the CAO received a complaint from a resident of Tsalka regarding BTC’s methods for calculating the value of his land, its restoration efforts on his leased lands, and its adherence to the resettlement action plan.
After a series of negotiations between the parties, a final settlement agreement was reached in May 2007 at a meeting facilitated by the CAO in Tbilisi. The parties agreed not to disclose the terms of the settlement.
The CAO closed the complaint following distribution to the parties of the final, signed settlement agreement, which was made available in Russian, Georgian and English.