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The Project is the most important infrastructure project in the south Caucasus
region, with significant financial, environmental, political and social
benefits for Azerbaijan and Georgia.
The BTC Project is fundamental to unlocking the potential benefits of existing
hydro-carbon resources in the Caspian. Subject to appropriate management of
the associated revenues, the project has the potential to boost economic
growth and assist in reducing poverty, particularly in Azerbaijan, one of the
region's poorest countries.
Aside from the anticipated monetary benefits, the construction of the BTC
Pipeline will have substantial transition impact on the region including:
1. The application of the highest international environmental and technical
standards, highest health and safety standards, international principles of
good corporate governance and the respect for human rights.
2. The Project sets new standards of transparency through the disclosure of:
(a) all payments made to the relevant Governments; (b) of project documents
such as the Host Government Agreements, the Azeri Chirag and deepwater
Gunashli Production Sharing Agreements in English (and shortly in local
languages); and (c) by engaging independent review panels like the Caspian
Development Advisory Panel, which recently published an interim report on BTC
(www.caspsea.com).
3. The project will significantly boost economic cooperation between
Azerbaijan, Georgia and Turkey. It will help to strengthen the economic ties
between the Caspian region and its main markets in Europe.
4. To further enhance the sustainability of the economic benefits conferred by
the Project, the Bank is working with the Sponsors to develop financing
instruments in place for the duration of the project to support small and
medium sized enterprises and local private investment.
5. Increased backward linkages through the inclusion of local suppliers and
transfer of skills through the employment of local labour
6. The Project will open an alternative export route for Caspian oil producers
and will help to reduce transportation costs from the region through increased
competition, while at the same time avoiding the Turkish Straits.
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