Georgia: BTC Pipeline-33/Vale
Landowners in Vale
Impacts to land
$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.
In June 2011, the CAO received a complaint from two landowning residents of Vale, Georgia. The complaint raised concerns about the activities of a BTC project contractor, which allegedly damaged the complainant’s land and rendered it unusable for agricultural purposes.
The CAO found the complaint eligible for further assessment in July 2011 and an ombudsman team conducted an initial assessment trip to Georgia in August 2011. At the conclusion of these initial meetings, all parties agreed to participate in a voluntary mediation process convened by CAO. The mediation was held at a neutral location in October 2011 with participation of the complainants, three BP representatives, and the contractor, Arali. A written agreement was reached and signed by the parties. All parties agreed to have the CAO team monitor the implementation of the agreement, which included working together to restore the complainants' damaged land and monetary compensation . In November 2011, CAO confirmed that the agreement had been implemented to all parties' satisfaction.
The CAO released its assessment/conclusion report in January 2012 and closed the case. CAO's report documenting the case and actions taken is available in English and Georgian through the link below.
The case is closed.