II International Congress
369
qazdan məhrum olmuşdur, Azərbaycan köməyi-
mizə gəldi- ... bizə öz yardım əlini uzatdı, Gür-
cüstanı enerji ilə təmin etdi. Biz bunu heç vaxt
yaddan çıxartmıyacağıq”.
Azərbaycan üçün BTQ dəmir yolu xətti daşı-
nacaq yüklərdən daha çox siyasi yükünə görə
mühüm əhəmiyyət kəsb edir. Gələcəkdə Qarsdan
Naxçıvana dəmir yolu çəkməklə, onu Ermənis-
tanın blokadasından azad etmək olar.
Analitiklərin qeyd etdiyi kimi: “Bu layihə öz
əhəmiyyətinə görə birincisi transkontinental sə-
viyyə daşıyır, ikincisi isə yerli əhəmiyyətə ma-
likdir”.
Strateji tərəfdaşlığın nəticəsi kimi reallığa
çevrilmiş bu layihə bütövlükdə regionun tranzit-
kommunikasiya əhəmiyyətini artırmaqla yanaşı
subregional inteqrasiyasını, sülhü və sabitliyi, nəq-
liyyat təhlükəsizliyini möhkəmləndirəcək, Azər-
baycan üçün həm ixracatçı, həm də tranzit ərazi
olması baxımından çox böyük iqtisadi əhəmiyyət
kəsb edəcəkdir.
370
A LINE WITH RESPONSIBILITIES
“Analysis of the Regional Sustainability Development Program of
British Petroleum in the Baku-Tbilisi-Ceyhan Pipeline”
1
Deniz TURA
dtura@post.harvard.edu
ABSTRACT
In 2003, British Petroleum (BP), an energy company, started a two year social investment program with twenty five million
dollars in four hundred fifty communities located in three different countries. A unique component to the project lies in the role of
BP serving as a facilitator for a major energy resource project along with creating a social investment program. BP had previous
smaller scale social investment projects but this one is differentiated by its size, scale and brand identity. The program is also not
like the traditional voluntary contribution or one-off sponsorships. The program requires new management capabilities and
resources that international development agencies, national governments and non profit organizations can offer. In order to
conduct the program, BP engages itself with new organizations and develops new relationships. Together with these new partners,
widely ranged projects are implemented. Two years later, the program is completed and future social investment programs are set
into motion.
The objective of this paper is to describe the Regional Sustainable Development Program of the Baku-Tbilisi-Ceyhan (BTC)
pipeline implemented by an energy company with unusual partners and to discuss its impact on the stakeholders of the project.
The background information about the project complements the three week research conducted in Azerbaijan and Turkey while
providing details about the development projects and partners. The discussion portion analyzes the implications of the projects
and the relationship between the parties. Finally, the conclusion will summarize the multidimensional business problem.
1
This paper is submitted for the Second International Congress on the “Caucasus and Central Asia in the Globalization
Process” prepared by the Qafqaz University, Azerbaijan. It is based on the dissertation that I completed as part of my Master
of Business and Administration studies at the University of London, Royal Holloway in September 2005. It is an independent
and self-funded research conducted during the three weeks trip to Azerbaijan and Turkey and includes data from more than
sixty five face to face interviews with the stakeholders of the project.
II International Congress
371
Introduction
The Baku-Tbilisi-Ceyhan (BTC) pipeline is 1,760
km long and starts in Azerbaijan, passes through
Georgia ending up in Turkey. It is composed of an
international consortium of eleven companies
from eight different countries. BTC Company
(BTC Co.) is responsible for the management of
the pipeline with the leadership of British
Petroleum (BP). BP is the largest stakeholder and
it is responsible for the design and construction
phases. It is the longest pipeline sponsored and
operated by BP and its budget exceeds $3.6
billion. The organizations which financed BTC are
compromised of a group of financial institutions
including International Finance Corporation (IFC)
and the European Bank of Reconstruction and
Development’s (EBRD).
From its beginning, BTC has been a
controversial project with national and regional
level implications. After the completion, the oil
from the Caspian Sea from Azerbaijan will be
transported to the Turkish Mediterranean Coast
and the pipeline has the potential to become a
transit corridor between Europe and Central Asia.
However, many international and national groups
have strong opposition to the construction and
route of the pipeline as well as to BP regarding the
economic, social and environmental impact of its
operations. The relationship of BP with its
stakeholders and their activities along the pipeline
are complex and multi-layered in three countries
with different social, economic and political
characteristics.
Table 1: The Route of BTC Pipeline
1
Regional Sustainable Development
Program
The introduction provided an overview of the
BTC pipeline. This chapter will focus in detail on
the two social investment projects and the stake-
holders of the projects in Regional Sustainable
Development Program (RSDP). RSDP manages
1
Source: www.caspiandevelopmentandexport.com
the Regional Development Initiative (RDI), Com-
munity Investment Program (CIP). The CIPs
started in 2003 with the construction but RDI is
currently at the initial stage. CIP and RDI are two
separate programs with clear strategic goals and
there are no overlapping activities between the
two programs.
Community Investment Program
CIP is not the traditional voluntary contribu-
tion. It is considered as an investment by BP and
social and economic return is expected. CIPs are
community driven and are based on education and
capacity building. Around eight million dollars for
each country is allocated for a period of two years
to implement the program for the communities
living along the pipeline.
Analysis I: Azerbaijan
In Azerbaijan, the development partners are
International Medical Corporation (IMC), Interna-
tional Rescue Committee (IRC), Save the Children
and FINCA which are all United States based
NGOs with Azerbaijani experience. The main goal
of CIPs in Azerbaijan is community mobilization
and capacity building.
International NGOs
International Rescue Committee (IRC) was
founded in 1933 and operates in twenty five
countries where they serve refugees and commu-
nities by providing assistance in emergency relief,
protection of human rights, post conflict develop-
ment, resettlement assistance and advocacy. For
BTC, IRC is working with three national NGO to
deliver social investment programs for thirty three
communities. The micro projects implemented by
IRC range from installation of water pumps to
fencing the school yard.
International Medical Corps (IMC) founded
in 1984 by a group of American physicians
provides assistance in more than twenty countries.
For BTC, their first project was the vision project
which provided free eye examination, treatment
and surgeries to the communities along the
pipeline. Another program was the rural inclusive
education program to integrate children with
disabilities into daily life and the HIV/AIDS
prevention program. The third program is the
“Emergency Medicine Development Initiative”
that provides training for emergency medicine
doctors and nurses, and also medical equipment
and supplies.
Open Society Institute (OSI), Assistance
Foundation has been operating in Azerbaijan since
1997. The grant making foundation is funded by
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