TABLE of CONTENTS ABBREVIATIONS V EXECUTIVE SUMMARY 1 MAIN ACHIEVEMENTS 1 CHALLENGES 2

TABLE OF CONTENTS ABBREVIATIONS v EXECUTIVE SUMMARY 1 MAIN ACHIEVEMENTS 1 CHALLENGES 2

CONSTRUCTION PROGRESS 2 CONSTRUCTION PHASE: ENVIRONMENTAL AND SOCIAL STUDIES AND 3 SURVEYS

MANAGEMENT OF CHANGE 3 ENVIRONMENTAL AND SOCIAL TRAINING ACTIVITIES 4

CONSULTATION AND COMMUNICATION 5 LAND ACQUISITION AND COMPENSATION 7

INTERNAL AND EXTERNAL MONITORING 8 INTERNAL MONITORING 8

EXTERNAL MONITORING 9 HEALTH AND SAFETY 10

INVESTMENT AND OFFSET PROGRAMMES 11 1 INTRODUCTION 1-1 2 CONSTRUCTION PROGRESS 2-1 2.1 INTRODUCTION 2-1 2.2 CONSTRUCTION WORKFORCE 2-1 2.3 AZERBAIJAN 2-2 2.3.1 PERMANENT FACILITIES 2-3

2.3.2 TEMPORARY FACILITIES 2-3 2.4 GEORGIA 2-3

2.4.1 PERMANENT FACILITIES 2-4 2.4.2 TEMPORARY FACILITIES 2-4 2.5 TURKEY 2-4 2.5.1 PIPELINE PROGRESS 2-4

2.5.2 PERMANENT FACILITIES 2-5 2.5.3 TEMPORARY FACILITIES 2-5 3 CONSTRUCTION PHASE ENVIRONMENTAL AND SOCIAL 3-1 STUDIES AND SURVEYS 3.1 AZERBAIJAN 3-1

3.1.1 HOST GOVERNMENT RELATED ACTIVITIES 3-1 3.1.2 POST ESIA STUDIES 3-1 3.2 GEORGIA 3-3 3.2.1 HOST GOVERNMENT RELATED ACTIVITIES 3-3

3.2.2 POST ESIA STUDIES 3-3 3.3 TURKEY 3-4

3.3.1 HOST GOVERNMENT RELATED ACTIVITIES 3-4 3.3.2 POST EIA STUDIES 3-4

4 MANAGEMENT OF CHANGE 4-1 4.1 AZERBAIJAN 4-1

4.1.1 CLASS I, II AND III CHANGES 4-1 4.2 GEORGIA 4-2

4.2.1 CLASS I CHANGES 4-2 4.2.2 CLASS II AND III CHANGES 4-2 4.3 TURKEY 4-3 4.3.1 CLASS I CHANGES 4-4

4.3.2 CLASS II AND CLASS III CHANGES 4-5 5 ENVIRONMENTAL AND SOCIAL TRAINING ACTIVITIES 5-1 5.1 PROJECT WIDE APPROACH 5-1 5.2 AZERBAIJAN 5-1 5.2.1 BTC 5-1 5.2.2 CONTRACTORS 5-2 5.3 GEORGIA 5-3 5.3.1 BTC 5-3

5.3.2 CONTRACTOR 5-4 5.4 TURKEY 5-4

5.4.1 CONTRACTORS 5-4 5.4.2 BOTAŞ TRAINING 5-6 6 CONSULTATION AND COMMUNICATION 6-1 6.1 CONSULTATION APPROACH 6-1 6.2 PROJECT WIDE CONSULTATION 6-1 6.3 AZERBAIJAN 6-2

6.3.1 PROJECT AFFECTED COMMUNITIES 6-2

6.3.2 NATIONAL NGOS AND TECHNICAL ORGANISATIONS 6-3

6.3.3 INTERNATIONAL NGOS 6-3

6.3.4 GOVERNMENT MINISTRIES AND DEPARTMENTS 6-3

6.3.5 MEDIA 6-3

6.3.6 DONOR ORGANISATIONS 6-4 6.4 GEORGIA 6-4 6.4.1 PROJECT AFFECTED COMMUNITIES 6-4

6.4.2 ROW BLOCKAGES 6-6

6.4.3 NATIONAL NGO’S AND TECHNICAL ORGANISATIONS 6-6

6.4.4 GOVERNMENT MINISTRIES AND DEPARTMENTS 6-6

6.4.5 MEDIA 6-6

6.4.6 DONOR ORGANISATIONS 6-6

6.4.7 DIPLOMATIC CORPS 6-6 6.5 TURKEY 6-7 6.5.1 PROJECT AFFECTED COMMUNITIES 6-7

6.5.2 NATIONAL NGOS AND ACADEMIC INSTITUTIONS 6-9

6.5.3 GOVERNMENT MINISTRIES AND DEPARTMENTS 6-10

6.5.4 MEDIA 6-11

6.5.5 DONOR ORGANISATIONS 6-11

7 LAND ACQUISITION AND COMPENSATION 7-1 7.1 AZERBAIJAN 7-1

7.1.1 ACQUISITION AND COMPENSATION 7-1 7.1.2 LAND USE RETURN 7-2 7.2 GEORGIA 7-2 7.2.1 ACQUISITION AND COMPENSATION 7-2

7.2.2 RAP FUND 7-4 7.2.3 LAND USE RETURN 7-5 7.3 TURKEY 7-5 7.3.1 ACQUISITION AND COMPENSATION 7-5 7.3.2 RAP FUND 7-7

7.3.3 LAND USE RETURN 7-8 8 INTERNAL AND EXTERNAL MONITORING 8-1 8.1 INTERNAL MONITORING 8-3

8.1.1 MANAGEMENT TOOLS 8-3 8.1.2 CROSS PROJECT REVIEW 8-3

8.1.3 AZERBAIJAN 8-6 8.1.4 GEORGIA 8-7

8.1.5 TURKEY 8-8 8.2 EXTERNAL ENVIRONMENTAL AND SOCIAL MONITORING 8-10 8.2.1 SRAP 8-13 8.2.2 CDAP 8-14

8.2.3 HOST GOVERNMENT MONITORING 8-15 8.2.4 NGO MONITORING 8-16 9 HEALTH AND SAFETY 9-1 9.1 PERFORMANCE AND ACHIEVEMENTS 9-1

9.1.1 GENERAL 9-2 9.2 HEALTH AND SAFETY INCIDENTS 9-2

9.2.1 SIGNIFICANT INCIDENTS 9-3 9.2.2 OTHER INCIDENTS IN Q3 2004 9-3 10 ADDITIONALITY AND OFFSET PROGRAMMES – CIP, EIP, 10-1 OFFSET AND OTHER INITIATIVES 10.1 OFFSET AND EIP 10-1

10.1.1 CROSS-CAUCASUS PROJECT 10-3 10.1.2 AZERBAIJAN 10-3

10.1.3 GEORGIA 10-4 10.1.4 TURKEY 10-7 10.2 COMMUNITY INVESTMENT PROGRAMMES 10-12 10.2.1 AZERBAIJAN COMMUNITY INVESTMENT PROGRAMME 10-12

10.2.2 GEORGIA COMMUNITY INVESTMENT PROGRAMME 10-15 10.2.3 TURKEY COMMUNITY INVESTMENT PROGRAMME 10-20 10.3 OTHER INVESTMENT INITIATIVES 10-25 10.3.1 AZERBAIJAN 10-25

10.3.2 GEORGIA 10-25 10.3.3 TURKEY 10-26

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A1 APPENDIX 2: INTERNAL MONITORING - NON-COMPLIANCES A1-1 AND FOLLOW-UP A1.1 AZERBAIJAN A1-1 A1.1.1 LEVEL I NON-COMPLIANCES A1-1

A1.1.2 LEVEL II NON-COMPLIANCES A1-1 A1.2 GEORGIA A1-3

A1.2.1 LEVEL I NON-COMPLIANCES A1-3 A1.2.2 LEVEL II NON-COMPLIANCES A1-3 A1.3 TURKEY A1-6 A1.3.1 LEVEL I NON-COMPLIANCES A1-6

A1.3.2 LEVEL II NON-COMPLIANCES A1-6 A2 APPENDIX 2: CLOSE OUT STATUS OF ACTIONS RELATED TO A2-1 NON COMPLIANCES RAISED THROUGH IEC MONITORING A2A APPENDIX 2A: EXTERNAL MONITORING - IEC NON-COMPLIANCES A2A-1 AND FOLLOW-UP (AZERBAIJAN) A2B APPENDIX 2B: EXTERNAL MONITORING - IEC NON-COMPLIANCES A2B-1 AND FOLLOW-UP (GEORGIA) A2C APPENDIX 2C: EXTERNAL MONITORING - IEC NON-COMPLIANCES A2C-1 AND FOLLOW-UP (TURKEY)

LIST OF CASE STUDIES

SECTION 2. CONSTRUCTION PROGRESS: CASE STUDY 2.1 – SPECIAL DESIGN REQUIREMENTS FOR REINSTATING STEEP SLOPES CASE STUDY 2.2 – SEED COLLECTION AND STORAGE FOR ECOLOGICALLY SENSITIVE AREAS

SECTION 4. MANAGEMENT OF CHANGE: CASE STUDY 4.1 – DISCOVERIES IDENTIFIED DURING BTC PIPELINE CONSTRUCTION PRESERVE IMPORTANT HERITAGE IN GEORGIA

SECTION 5. ENVIRONMENTAL AND SOCIAL TRAINING ACTIVITIES: CASE STUDY 5.1 – RESPONDING TO ISSUES – DEVELOPMENT OF STANDARD PROJECT TOOLBOX TALKS CASE STUDY 5.2 – RESPONDING TO ISSES – REINFORCEMENT OF COMMUNITY SAFETY AWARENESS PROGRAMME CASE STUDY 5.3 – PRACTICAL FIELD TOOLS FOR BIORESTORATION: TURKEY BIORESTORATION FIELD GUIDE CASE STUDY 5.4 – PRACTICAL FIELD TOOLS FOR BIORESTORATION: FLORA HANDBOOK

SECTION 6. CONSULTATION AND COMMUNICATION: CASE STUDY 6.1 – A DAY IN THE LIFE OF A COMMUNITY LIASON OFFICER

SECTION 8. INTERNAL AND EXTERNAL MONITORING: CASE STUDY 8.1 – RESPONDING TO ISSUES – OPEN TRENCH MANAGEMENT

SECTION 10. ADDITIONALITY AND OFFSET PROGRAMMES – CIP, EIP, OFFSET SECTION AND OTHER INITIATIVES: CASE STUDY 10.1 – TRACKING TURTLE MIGRATION PATTERNS CASE STUDY 10.2 – COMMUNITY MOBILIZATION CASE STUDY 10.3 – ASSISTING LOCAL BUSINESSES BY PROVIDING MICRO-CREDIT CASE STUDY 10.4 – CIP- HELPING TO CREATE CONDITIONS FOR SUSTAINABLE DEVELOPMENT

ABBREVIATIONS AIOC - Azerbaijan International Operating Company ACG - Azeri, Chirag, Gunashli (offshore oil fields) AE - Agricultural Extension experts AGI - Above Ground Installation AGT - Azerbaijan-Georgia-Turkey (usually refers to the combination of the BTC and SCP projects) AIOA - Azerbaijan Institute of Archeology AIM - Agro Information Centre APLR - Association for the Protection of Landowners Rights AzBU - Azerbaijan Business Unit (BP) BTC - Baku-Tbilisi-Ceyhan Pipeline Project CAG - Community Action Group CBC - Caucasian Black Grouse CCIC - Consolidated Construction International Contractors CCP - Contractor Control Plan CDAP - Caspian Development Advisory Panel CIP - Community Investment Programme CP - Communication Plan CHARM - Chemical Hazard Assessment and Risk Management CLO - Community Liaison Officer DAFWCF - Days Away From Work Case Frequency DSA - Designated State Authority DFID - Department for International Development (UK) EBRD - European Bank of Reconstruction and Development EFO - Environmental Field Officers EIA - Environmental Impact Assessment EIP - Environmental Investment Programme EMMP - Environmental Monitoring and Management Plan EMS - Environmental Management System EPC Engineering, Procurement and Construction ERA - Environmental Risk Assessment E&S - Environmental and Social ESA - Environmentally Sensitive Area ESAP - Environmental and Social Action Plan ESIA - Environmental and Social Impact Assessment ESMS - Environmental and Social Management System FINCA - Foundation for International Community Assistance GBG - Ganja Business Group GCCW - Georgian Centre for the Conservation of Wildlife GEF - Global Environmental Facility

GIOC - Georgian International Oil Company GIS - Geographical Information System GoG - Government of Georgia GTZ - Deutsche Gesellschaft fur Technische Zusammerarbeit HGA - Host Government Agreement HDD - Horizontal Directional Drilling HSE - Health, Safety and Environment HTWMP - Hydrostatic Test Water Management Plan IBA - Important Bird Areas IEC - Lenders’ Independent Environmental Consultant IG - Ijma Group (community action group) IGA - Income Generating Activities IOA - Institute of Archaeology (Azerbaijan) IP - Implementing Partners IPA - Important Plant Areas IFI - International Finance Institutions IMC - International Medical Corps IPLOCA - International Pipeline and Offshore Contractors Association IRC - International Rescue Committee KP - Kilometer Point MENR - Azerbaijan Ministry of Ecology and Natural Resources MoE - Ministry of Environment (Georgia) MoC - Ministry of Culture (Azerbaijan) MoU - Memorandum of Understanding NGO - Non-Governmental Organisation NROW - Necessary Right of Way OSIA - Open Society Institute of Azerbaijan OSRP - Oil Spill Response Plan PIMS - Pipeline Integrity Monitoring System PL - Punj Lloyd PLL - Punj Lloyd Limak (Joint venture) PRA - Participatory Rapid Assessments PoE - Panel of Experts PSG1/2 - Pump Station Georgia 1/2 Q1/Q2/Q3 - Quarter 1/Quarter 2/Quarter 3 QHSER - Quality Health, Safety and Environmental Review RAP - Resettlement Action Plan RFP - Request for Proposal ROW - Right of Way RSPB - Royal Society for the Protection of Birds SARMS - Special Area Reinstatement Method Statement SC - Save the Children

SCP - South Caucuses Pipeline SEL - Small Enterprise Loan SOCAR - State Oil Company of Azerbaijan SPJV - (Amec) Spie Petrofac Joint Venture SRAP - Social and Resettlement Action Plan SME - Small and Medium (Sized) Enterprises STI - Sexually Transmitted Infections UNDP - United Nations Development Programme VPI - Vulnerable People Initiative WPA - World Pheasant Association WWTP - Waste Water Treatment Plant

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