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ADDITIONALITY AND OFFSET PROGRAMMES- CIP, EIP, OFFSET AND OTHER INITIATIVES BTC CIP involved in upgrades to Ranjbar Hospital (Azerbaijan)

Clinic construction at Topal Hasali - part of CIP (Azerbaijan)

1010 ADDITIONALITY AND OFFSET PROGRAMMES – CIP, EIP, OFFSET AND OTHER INITIATIVES Execution of the Additionality and Offset programmes are based on a series of regional and community-based projects. These projects are designed to promote and conserve biodiversity, deliver local, sustainable and long term benefits, and empower local communities to solve their own problems. Details of the individual projects were presented in the Q1 and Q2 reports. Information presented in this section the Q3 report does not repeat this information but instead concentrates on new projects that were added to the two programmes, and changes that were recorded to existing projects over the quarter. Some contextual information is retailed where appropriate to minimize the need to refer to previous quarterly reports. 10.1 OFFSET AND EIP Table 10.1 outlines the offset projects and additionality (EIP) projects in each country. The information is the same as presented in previous quarterly reports except that the implementation stage has advanced for three projects. These changes have been highlighted.

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Table 10.1: BTC Offset and EIP Projects Country Project Offset EIP Implemen- (additionality) tation Stage* Cross Country biodiversity project P Strategic Environmental & Cultural Management Plan for Proposed Gobustan National Park / I Gobustan Cultural Heritage Reserve. Semi-desert conservation management - Project 1 (RFP) D Semi-desert conservation management - Project 2 (RFP) D Spur-thighed tortoise conservation management (Non-RFP) I Azerbaijan Public Awareness and Community Involvement -Project 1 (RFP) D Public Awareness and Community Involvement -Project 2 (RFP) D Persian gazelle conservation management (RFP) D 2 Tougay Forest conservation and restoration, Kura floodplain I Kura-Araz Lake Management (RFP) D Phase 2 Projects P Forest Eco-Compensation Programme P Rare Floral Species Programme (Population enhancement element) I Borjomi Kharagauli National Park Support Zone Program D** Management Planning for Ktsia Tabatskuri Managed Reserve (Non-RFP) P Caucasian Black Grouse Research, Monitoring and Conservation Management (RFP) I Ecosystems and Species Conservation in Georgia: Brown Bear (RFP) I Sustainable Forest Pilot Project P Small Grant for NGO Capacity Building and Public Awareness/Environmental Education I** Important Plant Areas I Eco-compensation Planting for: Wildlife Protection Area; Sarikamis Natural Site Area; Miscellaneous forest areas D Important Bird Areas I Improving the conservation status of Caucasian Black Grouse (CBG) in I Mediterranean Monk Seal Research I Turkey Sea Turtles I Lesser Caucasus Forest Gap Analysis & Sub-ecoregion study I Small Investments Fund I** Forest Habitat Enhancement P Public Awareness / Community Involvement P Wetlands Management P Key: *Project Sequence = Planning (P), Definition (D), Implementation (I); ** advanced one implementation stage since Q2

2 Note that this project is in the implementation stage but BTC/SCP funding towards this project has not yet occurred. 10-2

10.1.1 CROSS-CAUCASUS PROJECT A Request for Proposal was issued for a cross-Caucasus project to address the socioeconomic, political and institutional threats to, and opportunities for, conservation of biodiversity in the region. (Further detail on scope in Q2 report). No suitable proposals were received. BTC is investigating the reasons for the lack of interest. 10.1.2 AZERBAIJAN EIP in Azerbaijan is taking a phased approach. The following section is described in terms of Phase 1 and Phase 2. The following section outlines the scope and status of the Azerbaijan offset and Phase 1 EIP projects that are in the implementation stage. This is followed by a brief update of those projects that are either in the planning or definition stage. IMPLEMENTATION STAGE PROJECTS: Project Name: Project Start Date: Strategic Environmental & Cultural Management October 2003. Plan for Proposed Gobustan National Park / Gobustan Cultural Heritage Reserve. Implementing Organisation: GRSCC (see below) Location: Gobustan Project Description: BTC is partnering with other Stakeholders in a forum to improve management of the Gobustan Cultural Reserve. Stakeholders include the Ministry of Culture, the Institute of Archaeology and the Ministry for Environment and Natural Resources as well as local people and all those with an interest in the management of the area. The Gobustan Reserve Stakeholder Consultative Committee (GRSCC) has been established involving representatives from key public, governmental and corporate groups (i.e. the Ministry of Culture, Institute of Archaeology, Local Authorities, Ministry of Tourism, Ministry of Environment, BTC/BP and Gobustan Operating Company) in discussions on the future of the Gobustan Reserve. The aim of the Committee is to implement actions proposed by UNESCO during the development of a management plan for the Reserve. Highlights and Achievements: A pamphlet describing the area has been published by BTC on behalf of the Ministry of Culture. Project Name: Project Start Date: Spur-thighed tortoise conservation management 2002 (BTC funding not yet started) Implementing Organisation: Location: Project staff are hired directly by AIOC. Sangachal terminal and BTC pipeline Project Description: AIOC is implementing the Spur-thighed Tortoise Breeding Programme as an offset measure related to the construction of the Sangachal terminal. BTC/SCP are contributing funds to this programme. The objective of the programme is to offset any losses of this red listed species that may occur as a result of pipeline construction activities. Through the BTC/SCP EIP Semi-Desert Conservation Program, opportunities for the release of the tortoises will be sought, and will take into account the range and density of a healthy tortoise community. A monitoring programme will be considered as a means of determining the success of the release strategy. Highlights and Achievements: The BTC / SCP plan was to integrate the release and monitoring of the individuals bred under the programme into the semi-desert conservation area and therefore this project is linked to the Semi-desert conservation management projects (which are still in the definition stage and are described in Q2 report). Due to delays with these projects a contingency is still under development.

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Project Name: Project Start Date: Tougay Forest Conservation and Restoration Q4 2002 (BTC/SCP Funding Contribution will begin in the second half of 2004) Implementing Organisation: Location: BP Kura Floodplain Project Description: This is a joint project involving BP Group, the BP Azerbaijan Business Unit and the BTC and SCP projects. It focuses upon the threatened Tougai forest habitat, and aims to enhance protection of Tougai Forest in a protected area. The project is divided into 3 phases: • Phase 1: Baseline investigations and project site selection (Complete April 2004) • Phase 2 Detailed Project Design (Completed May 2004) • Phase 3: Implementation BTC/SCP is making a financial contribution to help enable the implementation phase. BTC/SCP is represented on the Steering Committee for the project. Highlights and Achievements: The Phase 2 consultations, literature surveys and field studies for flora, fauna, soils and socio-economic conditions allowed the development of an Action Plan for the selected pilot area at Qizil Yugun forest, Agstafa. Proposed actions include tree planting, protection of the planted area from human intervention, monitoring of the planted area and public awareness activities. The Action Plan was elaborated in a Phase 2 design report that was reviewed by BTC members of the project Steering Committee. A revised version will be produced during Q4 2004. The project is preparing to move into Phase 3 – Implementation that will involve the refinement and implementation of the Action Plan. Project representatives continue to form part of the project Steering Committee.

PLANNING AND DEFINITION STAGE PROJECTS A number of projects are in the planning and definition stage of development. These have been described in the Q1 and Q2 reports. The following information provides an update on those projects that have advanced or recorded some activity during Q3. Projects that have remained current but inactive during the quarter have not been included. Future quarterly reports will only record changes in project status. Phase 1 EIP Projects In previous reports have outlined that a number of Phase 1 projects are effectively on hold until such time as sufficient support is granted by the Ministry of Ecology and Natural Resources (MENR). The project is looking at ways in which this issue can be resolved. • Kura-Araz Lake Management. This project involves the development and implementation of a multi-stakeholder management plan for the Kura-Araz lakes system, an internationally recognised over-wintering ground for important bird species. During Q3 it became apparent that the potential Implementing Partners for this project no longer wish to work together. BTC has progressed discussions with one of the partners. The project is being re-designed to be more acceptable to the MENR. This will involve a greater emphasis on the newly defined national priorities that include emphasis on the Shirvan and Kura Araz protected areas. • Phase 2 EIP Projects There was no change in the status of Phase 2 EIP projects during Q3. 10.1.3 GEORGIA The following section outlines the scope and status of Georgia offset and EIP projects that are in the implementation stage. This is followed by a brief status update of those projects that are either in the planning or definition stage.

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IMPLEMENTATION STAGE PROJECTS

Project Name: Project Start Date: Rare Floral Species Programme (Population mid 2003 (for translocation programme enhancement element) (see Section 3.2.2) Implementing Organisation: Location: Dzelkva Locations along the route Project Description: Several species of higher plants, having high conservation value due to endemism, rarity, size of the population etc., will be affected by pipeline construction and operation as their populations occur immediately within the proposed pipeline ROW - Pasqueflower Pulsatilla georgica; Marsh Orchid Dactylorhiza urvilleana; Fritillary Fritillaria lutea; Squill Scilla rosenii; Snowdrop Galanthus alpinus; Gentian Gentiana angulosa; Globe Daisy Globularia trichosantha; Oriental Thorn Crataegus orientalis. These plant populations are being managed and propagated in an ex situ environment for ultimate reintroduction in the wild. The populations are being managed so that the numbers are increased ready for re- introduction in to the natural habitat. Highlights and Achievements: Progress with this programme is outlined in Section 3.2.2

Project Name: Project Start Date: Caucasian Black Grouse (CBG) Research, January 2004 Monitoring and Conservation Management Implementing Organisations: Location: The Lead Implementing Organization is the Black Grouse habitats in Georgia as Georgian Center for the Conservation of Wildlife determined by the programme (GCCW). They are partnering with the World Pheasant Association (WPA) and University of Idaho (USA) and BirdLife International. Project Description: The goal of the project is to provide a scientific basis for the effective conservation management of the endemic, rare and globally threatened faunal species - Caucasian Black Grouse (CBG is qualified as a “Data Deficient” by IUCN), and to create capacity to perform such management in Georgia. The specific objectives of the project are to: • Collate available data on the species and identify areas for intensive studies; • Conduct ecological and population studies in identified areas essential for the development of an effective monitoring plan and the feasible management procedures; • Develop a sustainable and effective species monitoring plan, and create the capacity at local and national levels to initiate it; • Establish conservation goals for the species and produce a management plan based on the research results; • Promote co-operation with other Caucasian Black Grouse conservation programs in the region and internationally; and • Increase public awareness about the project activities and goals. Highlights and Achievements: The following activities took place during Q3 2004 • The field work for the population studies continued in the two locations - Akhaltsikhe and Lagodekhi. • Small grant agreements have been reached with local organizations for involvement in field surveys. • One of the five radio-tagged birds was killed by a predator. • Studies for current distribution and habitat requirements are proceeding at 7 sites. • The GIS database for logging distribution and habitat has been further developed • Further samples for the genetic have been collected from 7 locations. • Further training has been given to the genetics assistant.

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• An agreement has been reached with the State Museum to provide genetics data from studies carried out in Azerbaijan and Russia to allow comparisons with the Georgia black grouse populations and evaluate genetic variation. • Public awareness activities have been undertaken – brochures, newspaper articles, press releases, distribution of Caucasian Black Grouse book. • The cross-country Caucasian Black Grouse working group continue to function, partially though an e-mail user group.

Project Name: Project Start Date: Ecosystems and Species Conservation in Georgia: June 2004 Brown Bear Implementing Organisation: Location: NACRES (Noah’s Ark Centre for Recovery of Trialeti Range in Georgia Endangered Species Project Description: The objectives of the project are to estimate brown bear population within the Trialeti Range, appraisal of current levels of threats, description of the underlying reasons for loss of bear habitat, development of a Bear Conservation Action Plan for the Trialeti Range, and establishment of the basis for community involvement conservation activities. Highlights and Achievements: Early stage implementation activities were completed as planned. These included: • Initiation of preparatory phase activities including announcements for vacancies, procurement, publishing house tender, socio-economic study tender. • Completion of preparatory activities for field surveys • Initiation of preparatory activities for DNA analysis of samples • Provision of satellite images by BTC for habitat analysis work. • Commencement of analysis of satellite imagery and establishment of a GIS database • Initiation of seasonal field work to map habitat use by bears initiated

Project Name: Project Start Date: Management of Small Grants for NGO Capacity September 2004 Building along the BTC and SCP Pipeline Route Implementing Organisation: Location: Save the Children Pipeline Route Project Description: The overall goal of the project is to develop NGOs’ capacities to engage citizens in environmental awareness and education, and in social development. Six support NGOs will be selected to help build capacity amongst 26 primary (local) NGOs. The support NGOs act as providers of training, information, facilities, communications and office equipment, and any other services that primary level NGOs may need. Through a locally-based and transparent decision-making process, another 26 NGOs will be granted aid to undertake projects addressing environmental and/or social development needs. Such projects will have to incorporate public education/awareness and participation components. Extensive training will be given to all by Save the Children and its partners.

Highlights and Achievements: The project progressed from Definition to Implementation in the later part of Q3.

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PLANNING AND DEFINITION STAGE PROJECTS The following is an update of developments occurring during Q3. • Forest Eco-compensation Programme. The Forest Eco-compensation Programme aims to recreate similar forest to that which is affected by the pipeline construction. During Q3 a consultant was commissioned to assist with development of the programme. A field trip was undertaken and a meeting with MoE held. Further discussions are required to reach agreement on the project objectives and activities. The consultants are to develop a detailed plan for activities for discussion. • Management Planning for Ktsia Tabatskuri Managed Reserve. BTC is still awaiting comments on the revised Memorandum of Understanding submitted to the MoE in June 2004. • Borjomi Kharagauli National Park Support Zone Program. Following a long process of consultation with relevant stakeholders two themes were considered suitable for funding (1) enhancement of environmental education in schools and (2) development of environmentally sound grazing practices to reduce pressure on the Park. A partnership with an NGO was deemed to be the most appropriate implementation mechanism and a proposal has been solicited. • Sustainable Forest Pilot Project. This project is to be implemented in conjunction with the relevant authorities of the Georgian government. During Q3 BTC commissioned a forestry consultant to undertake development and early management of the project. The consultants completed a visit to Georgia during which a planned meeting with the forestry department was cancelled. The consultant is to develop a project framework proposal for internal review. 10.1.4 TURKEY The EIP in Turkey is being conducted in two phases. The following section summarises the status of projects currently being implemented. These are all part of the first phase. IMPLEMENTATION STAGE PROJECTS

Project Name: Project Start Date: Important Bird Areas (IBA) Commenced mid 2003. Implementing Organisations: Location: The implementing partner for this project is Doğa The location of the project is along the Derneği (Doğa Association) with BirdLife pipeline route. International & RSPB (NGO). Project Description: The purpose of the project is to establish a basis for conservation of the Important Bird Areas throughout BTC pipeline route. The main activities of the project are: • To identify and designate new IBAs as well as review the status of existing IBAs in the pipeline region. • To consolidate and extend the local IBA Caretaker Network in Eastern Turkey. • To promote establishment of a legal basis for the conservation of IBAs in the region. Highlights and Achievements: • Two additional sites have been identified, taking the total number of potential IBAs identified in 2004 to 12. • The new IBA list with general habitat classification and IBA species was completed. • A draft agreement on IBA monitoring and bird research was prepared and circulated to all relevant bird groups to help standardize their activities. • Copies of the Birdwatching poster were sent to several bird groups for promotional purposes at the start of the new school year.

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• The protocol with the Photogrammetry Unit of General Directorate of Forestry (OGM), which was expanded to include obtaining access to satellite images and large scale maps for potential IBAs, was signed in September. • A short article on the project was written and submitted for publication in RSPB, BirdLife and IUCN newsletters. It has been accepted by IUCN. A decision from the others is pending. • A financial review was completed. Key issues were discussed with senior management and corrective actions to address weaknesses were agreed.

Project Name: Project Start Date: Improving the conservation status of Caucasian Commenced mid 2003. Black Grouse (CBG) in Turkey Implementing Organisations: Location: The Implementing Partner is Doğa Derneği (Doğa The project is concentrated in north- Association) (DD) with BirdLife International & east Turkey. The BTC pipeline RSPB (NGO). crosses CBG habitat in Turkey through the Lesser Caucasus. Project Description: The goals of the project include: • To improve conservation status of Black Grouse in Turkey • To produce an accurate picture of the species current threat status, population size, distribution and habitat requirements with a view to developing a species conservation strategy • To develop a National Caucasian Black Grouse Action Plan (in line with the State Department of Environment and Forests). • To develop eco-tourism in the region • One of the important objectives of this project is to produce a “National Species Action Plan”; and encourage the Turkish Government to adopt the Plan. Currently there is no national plan available for Turkey. Highlights and Achievements: • Protocols with National Parks and Department of Forestry Photogrammetry Unit were signed in August. This allowed project to start eco-tourism activities on-site in Ayder. The National Parks protocol includes an agreement to designate areas identified by the project as important for the conservation of the Caucasian Black Grouse. Additionally, the protocol requests that Doğa Association use the results of the Ayder project to suggest appropriate eco-tourism development for the whole of the Kackar National Park. • The protocol with the Department of Forestry Photogrammetry Unit was signed in September. This is expected to allow almost immediate access to satellite images and Digital Elevation Maps. The project will provide training for two members of General Directorate of Forestry staff. • One hundred and eleven areas were visited during the quarter and a total of 31 birds were recorded during late summer / early autumn period • A short presentation on the project was given to the Ardesen municipality. • Advice was provided to BTC regarding the timing of construction work in the Posof area in relation to the breeding cycle of Caucasian Black Grouse based on project observations. • A financial review was completed. Key issues were discussed with senior management and corrective actions to address weaknesses were agreed.

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Project Name: Project Start Date: Mediterranean Monk Seal Commenced mid 2003. Implementing Organisation: Location: The Implementing Partner for this project is the The main focus of the project is at the Middle East Technical University (Academic coastline from Karataş (Adana) to Institution). Turkey-Syria border. Project Description: The goals of this research project include: • To understand the status quo of the seal colony in the Gulf of Iskenderun. The monk seal has been sporadically sighted in the Gulf of Iskenderun. There is limited other scientific information available • Survey coastline in search of suitable monk seal habitat (breeding and sheltering) • Educational initiative to target fishermen and encourage them to keep seal observation logs • The above will assist in determining whether a resident colony of monk seals capable of breeding exists in the area. Should one exist, a protection action plan will be developed. Highlights and Achievements: • Three recent seal sightings were reported. A seal on the outer limits of the project area was sighted and filmed by the team. • Two articles were sent to the bimonthly diving magazine, Sualti Dunyasi and are due to be published in November. One of the articles describes the seal monitoring system used in the project and explains the potential impact that cave divers can have on seals. • A local magazine, Hatay Ekonomik Rapor published an article about the project. The article concentrated on the fish enhancing role of the BTC marine terminal and its eventual consequences on monk seal behavior. • To increase the number of people reporting seal sightings to the METU-IMS an announcement was published in a national newspaper, HURRIYET on August 28th 2004. The announcement resulted in a good response.

Project Name: Project Start Date: Important Plant Areas Commenced mid 2003. Implementing Organisation: Location: The Implementing Partner for this project is the The location of the project is within University Research and Aid Foundation about a 40 km strip along the pipeline (Academic Institution). route. Project Description: The goals of this project include: • The protection of the exceptional plant diversity of Turkey for future generations and creating a sustainable management mechanism for the Important Plant Areas (IPA) designated along the BTC pipeline route. • To establish a base for identification and conservation of IPA’s along the BTC Pipeline route. • Collection of plant samples in region located along pipeline route, which will then be dried and preserved. Following a sample evaluation, the related areas will be determined as IPA’s. • Following designation, there will be presentations directed at commanding support from voluntary organizations, public agencies and local government. • Plans will be devised in order to determine a special management plan for the areas designated as IPA’s. Highlights and Achievements: • Two confirmed IPAs and at least 33 potential IPAs were identified during Q3. • Field work was carried out in Artvin--, Erzincan, Sivas, Kayseri and Adana. Over 1600 specimens were collected • The cooperation between the Important Plant Areas project and the construction teams is on-going

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Project Name: Project Start Date: Sea Turtles Commenced mid 2003. Implementing Organisation: Location: Ecological Research Society (NGO). The locations for the project are Sugozu and Akkum beaches of Ceyhan and Yumurtalık provinces (Adana) Project Description: The main objective of this project is to determine the importance of the project areas as important nesting areas and developing conservation based action strategies and management plans in order to prevent impact to sea turtles and their nesting behaviour. The project goals include: • To monitor migration routes and diving depths of sea turtles with a view to developing and improving management plans for turtle nesting area conservation • To highlight the importance of the species to local districts, and to encourage a reduction in destructive activities leading to extinction through education • To encourage further development of eco-tourism Highlights and Achievements: • Satellite tracking devices were attached to four green turtles. The animals were then released to the sea in the presence of the press (see Case Study 10.1) • Formal and informal meetings were held for different sections of the public. Numerous interviews with press also held. • Studies for nest caging, determining predation rates and causes, beach temperature profiling, recording daily nests and non-nesting emergences continued. • A financial review was completed. High level issues were discussed with senior management and corrective actions to address weaknesses were agreed.

Project Name: Project Start Date: Lesser Caucasus Forest Gap Analysis March 2004 Implementing Organisation(s): Location: TEMA (NGO) with Middle East Technical University Eastern and southeastern parts of (Academic Institution) Artvin, Ardahan, some parts of Kars, and the northeastern part of Erzurum. Project Description: The goal of the project is to map biodiversity richness in North East Turkey (the Lesser Caucasus Area) and then overlay areas with conservation protection status already applied in order to determine any gaps. Gap Analysis that is a proactive approach to protecting biodiversity. It seeks to identify gaps between land areas that are rich in biodiversity and areas that are managed for conservation The main activities of the project are: • To identify the flora and fauna not represented in the areas currently under protection or covered by biodiversity management • To propose areas eligible for legal protection and development of habitats in the light of those data to be obtained. Highlights and Achievements: • Field surveys were carried out in collaboration with local staff of the Nature Conservation and National Park authorities and local hunters. • The methodology for the first socio-economic survey was finalized • The contents for the web site were finalized (www.kafkaskoruma.net) • Twenty-one sites identified through GIS and remote sensing were visited. “Degraded Sites Evaluation Forms” were completed for each of these sites. Based on current information the most important sites appear to be: 1. Sarıkamış-Kars, 2.Uzundere- Erzurum, 3. Şavşat-Artvin, 4. Yalnızçam- Ardahan.

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Project Name: Project Start Date: Small Investments Fund (SIF) September 2004. Implementing Organisation: Location: UNDP Along the pipeline Project Description: The project will support local enterprises for conservation and sustainable use and management of biodiversity in the project region. It directly supports the goal to build local capacity to implement approaches to environmental management and energy development that respond to the needs of the poor. Each Project in the BTC Small Investments Fund portfolio will: • Address biodiversity loss and its root causes; • Demonstrate tangible links with other BTC EIP activities, for example Ecologically Sustainable Enterprise Projects to support other EIP activities; • Contribute to local economic development through environmentally sustainable enterprise promotion for income generation and creating job opportunities for the vulnerable segments of the local population; • Involve participatory mechanisms and support community development (through training, networking etc.), • Preferably have demonstrative impact for replication elsewhere, • Comply with environmental and business conduct norms, and follow best practices Highlights and Achievements: • First disbursement to UNDP • Candidates for the project manager position were interviewed and one was selected jointly by UNDP and BTC Co.

PHASE 2 - PLANNING AND DEFINITION STAGE PROJECTS Projects that are in the planning and definition stages of development and that recorded some activity in Q3 are outlined below. A full list of projects was presented in the Q1 and Q2 reports. • Eco-Compensation Planting for: Posof Wildlife Protection Area; Sarikamis Natural Site Area; Sarikamis Natural Site Area; and Miscellaneous Forest Areas. A Biorestoration Guide was developed for the construction contractor during Q3 and included guidelines for eco-compensation planting. (See Case Study 5.3) • Forest Habitat Enhancement. One Applicant was interviewed following review of the submission returned during Phase II of the Application process. After the interview the project team were not satisfied that the proposed project maximised the available opportunities. In order to enhance the project design a forestry consultant is to be engaged in November 2004 to develop a more detailed Scope of Work in collaboration with the Applicant. The Applicant will be invited to make a revised submission against the Scope. • Public Awareness / Community Involvement on Biodiversity Submissions returned under Phase II of the Application procedure were reviewed and three Applicants subsequently interviewed. One Applicant was selected as the Implementing Partner and contract negotiations and refinements to the project are ongoing. It is expected that the contract will be signed in Q4 2004 and that the project will commence in late November • Wetlands Management An Implementing Partner was selected following review of submissions made under the second Phase of the Application process and interview of two Applicants. It is expected that ongoing contract negotiations and project refinements will be completed in Q4 2004.

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10.2 COMMUNITY INVESTMENT PROGRAMMES 10.2.1 AZERBAIJAN COMMUNITY INVESTMENT PROGRAMME The key components of the CIP in Azerbaijan remain as follows: • Community Mobilisation and Capacity Building, through the implementation of community led micro-projects (see Case Study 10.2) • Health Care • Micro-Finance. In Azerbaijan the Implementing Partners also remain the same: • Save The Children (SC) - western half of pipeline • International Rescue Committee (IRC) - eastern half of pipeline • International Medical Corps (IMC) whole length of pipeline • Foundation for International Community Assistance (FINCA) – whole length of pipeline These organisations are implementing the projects with the help of local NGOs, who are gaining experience in project management and the skills to take charge of community projects themselves in the future. Details on the projects and achievements are outlined below.

Project Name: Project Start Date: Community Mobilisation and Capacity Building July 2003 Implementing Organisation(s): Project Coverage: • Western half of pipeline: Save the Children in 48 communities partnership with Agro-Information Centre and (Western half of the pipeline) Umid 34 communities • Eastern half of pipeline: The International (Eastern half of the pipeline) Rescue Committee (IRC) in partnership with Agro-Information Centre, Toward Civil Society (MCD) and Ganja Business Group. Project Description: Through Community Mobilisation and Capacity Building techniques, Save The Children, IRC and their local partners help communities with no tradition of local self-government to: • democratically elect an Ijma Group or Community action Group, responsible for implementing individual community interventions. • identify and prioritise their community needs • participate in all aspects of project development – from design to procurement, to fundraising, to determination of user fees etc • execute the projects • manage and maintain projects after implementation. The community mobilisation and capacity building programmes include an agricultural component aimed at increasing farmers’ agricultural knowledge and skills, so that they can improve productivity and thus obtain more income. This objective is achieved by training 27 and 25 selected farmers as agricultural extensionists (Western Sector / Eastern Sector respectively) who can then pass on their expertise to other farmers on a for fee basis. Transfer of knowledge includes the cultivation of crops such as alfalfa, grapes, vegetables and wheat; the control of crop pests and diseases; irrigation techniques; chicken breeding; prevention and treatment of livestock disease.

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Highlights and Achievements (Western half of the pipeline) • All 48 communities have fully functional Community Action Groups (Ijma Groups), and Save the Children and Umid have completed the full cycle of capacity building training in 24 of these. Examples of training include prioritising problems and identifying resources available in the community; action planning; proposal writing; safety; project management, monitoring and evaluation; financial management and documentation. • Infrastructure micro-projects have been completed 14 communities; in 16 communities they are ongoing. Micro-projects include construction or rehabilitation of school buildings, community centres, irrigation and potable water systems, road repairs and restoration of electricity systems • The agricultural component is progressing well. Over 1,700 farmers are now being served by the 27 agricultural extensionists (AEs) trained so far • An additional 21 candidates have been selected for training as AEs Highlights and Achievements (Eastern half of the pipeline) • During the quarter 12 micro-projects were completed. An additional 16 are currently being implemented, three of which are second projects in their communities. Community contributions have averaged more than the mandated 25%. Ongoing projects include school and road rehabilitation; installation of a gas supply pipe to a school; water pump installation; construction of medical points; water and drainage canal clearance; electrical transformer installation. • A considerable amount of training has been provided in the target communities, including the second phase of municipal councillor training for 21 communities. Average knowledge increase was assessed afterwards at 73%. The third phase of training will include gender and governance issues • The Ganja Business Group continued to provide training on topics such as business practices such as strategic planning, the formation of credit unions, credit documentation, financial and project management, and business planning for cattle breeding • Further classroom and field coaching was held for agricultural extensionists. These included topics such as foot-and-mouth disease, tomato plant pests and diseases; poultry and bee diseases and mastitis; vine and pomegranate cultivation; family income calculation and farm economy projection. The extensionists have now sold 2614 services to 716 farmers of whom a majority were women. They have distributed 30 different leaflets to 1530 farmers in the 33 communities, on topics including crop cultivation and soil conditions • The Development Resource Centre is now registered as a Limited Liability Corporation. 38 people have been attending English language courses, and computer courses are set to begin soon • Ten civic initiatives were also organised. These employ almost entirely local resources and give communities experience in using what they have learned from CIP to undertake activities themselves with no external financial support. Activities included cleaning up and equipping sports fields, health, sanitation and cleanliness days, and improving educational kindergarten activities. Community youth played a leading role in most of these activities.

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Project Name: Project Start Date: Primary Community Health Care July 2003 Implementing Organisation(s): Project Coverage: International Medical Corps. Local Partners are: Entire pipeline route Ministry of Health, National Reproductive Health Office, Shafali Allar (Caring Hands), Azerbaijan National Nurses Association (ANNA), and Azerbaijan Women and Development Centre (AWDC) Project Description: • Training in primary healthcare & use of medicines for 75 doctors, 100 nurses, 85 midwives, 10 obstetricians, 60 school teachers and 300 community health workers • Full intervention with rehabilitated village clinic, supply of medical equipment and medicines, trained nurses and doctors for 31 selected communities. • Partial intervention (everything but renovated clinic) for 25 “linked” communities that will be able to access facilities at 31 • 31 Community health funds established to provide health ‘insurance’ for community members. • As a consequence, the population will have improved access to preventative health care and treatment. A very thorough and involved assessment program was implemented in all communities along the pipeline route in order to identify the 31 selected communities and the 25 linked communities. Highlights and Achievements: • Community Action Groups (CAGs) for health matters are active in all but one community • 250 women’s CAG members received training on peri-natal care • 1,100 women in target communities received training from CAG members • 8 health education units have been formed, each consisting of 3 people: a member of the health care facility, a school teacher and the most active member of the CAG. They have all been trained and taken part in peer health education programmes • 16 community health education reference libraries have been established for the health education units. Training materials for reproductive health training for 205 medical providers have been printed • 21 teachers have been selected for training on the basics of reproductive health and healthy lifestyle. One male and one female teacher from each school will be trained to provide instruction on sensitive topics such as STDs and HIV/AIDS to girls and boys • 20 doctors have started electro-cardiogram (ECG) training, and 19 nurses have started training on lab techniques. • 3 Facility Management Boards have been formed for community cost recovery • 13 proposals for clinic rehabilitations have been received and contracts have been signed. 9 clinic rehabs have already been completed, while 16 are close to completion. • Basic medical equipment and drugs have been distributed to 30 communities, and drugs have been distributed to 6 hospitals • The provision of medical services to communities is filling a gap which was left when the old, centralized services collapsed with the end of the Soviet regime • IMC is maintaining good relationships with the district authorities, in order to ensure that the CIP health component is welcomed by them and obtain their assistance where needed. It is also working closely with the National Reproductive Health Office, especially on the training of obstetricians, gynaecologists, midwives, doctors and nurses

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Project Name: Project Start Date: Micro-Finance July 2003 Implementing Organisation(s): Project Coverage: FINCA Azerbaijan Entire pipeline route Project Description: The Micro-Finance Project implements the concept of “village banking” by provision of small loans to local entrepreneurs to promote small businesses. Loans are made to groups and guaranteed by interdependence of its members. Highlights and Achievements: • FINCA continued to execute the Pipeline Micro finance Initiative, with an emphasis on pushing program activities out of urban centres and into rural villages along the pipeline route. Lending systems operated smoothly and no major problems were encountered • FINCA continued to promote its new Rural Loan Product (RLP) and Small Enterprise Loan product (SEL). Demand for the RLP remained high throughout the summer and into the autumn • FINCA Azerbaijan has exceeded its original target of “2,279 loans to be disbursed by end September 2004” by 315%, having disbursed a total of 7,172 loans to CIP communities so far. This quarter alone it disbursed 1,825 loans, and its portfolio grew by 3.4% • 487 loan groups are now active, and the Pipeline Micro finance Initiative (PMI) serves 4,380 active clients, of whom 41% are female. The PMI now constitutes 27% of FINCA’s overall outstanding portfolio, and about 29% of its current active clients • The PMI has maintained its 100% repayment rate this quarter • FINCA maintained a continuous programme of training: e.g. for newly-hired Credit Officers (COs) • FINCA is continuing to develop links with external organisations to increase its loan capital. Earlier this year it concluded a deal with GTZ which an additional 397,000 Euros of loan capital, which is being used in some CIP communities. It is also working with the Asian Development Bank (ADB) to obtain a credit line of at least $3 million as part of the ADB’s rural financial markets development project in Azerbaijan, which is expected to come on-stream in late summer 2005 • During July, a FINCA International team conducted research among FINCA Azerbaijan’s clients to assess its effectiveness in reaching out to lower economic strata and to learn about the impact of FINCA at a household level. The results of the research will be known by the end of 2004

10.2.2 GEORGIA COMMUNITY INVESTMENT PROGRAMME Key components of the Georgian CIP remain as follows: • Renewal of rural infrastructure • Agricultural support • Support for Income Generation through Micro-Credit (see Case Study 10.3) • Energy Efficiency • Social Services • Capacity Building • Improved Schools Project The progress and achievements of the Georgia CIP for Q3 are described below.

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Project Name: Project Start Date: Georgian CIP March 2003 Project Description: The project includes a number of inter-related components: Renewal of rural infrastructure; Capacity Building; Social Services; Energy Efficiency; Support for Income Generation through Micro-Credit; and Agricultural Support. Each of these is described further below. The project is implemented in 77 communities along the pipeline route. Sub-project Description: Renewal of rural infrastructure: Over the three-year period, and through a mobilisation process which requires that communities themselves identify the project to be undertaken as well as develop the work plan, schedule and budget, a minimum of 150 infrastructure rehabilitation projects are being undertaken. Highlights and Achievements: To date, over 82 infrastructure rehabilitation projects have been completed, 12 of which were completed during the reporting period. Several communities have completed their third infrastructure rehabilitation project and have successfully contributed up to 40% of the project costs, as required by the phased infrastructure rehabilitation process. Mobilisation and engineering staff continue to work intensively assisting communities in development of project proposals and budget estimations of the second round infrastructure rehabilitation projects. These proposals include project descriptions/summaries, technical designs/budgets, descriptions of HSE risks and relevant safety measures, and plans for future maintenance of rehabilitated facilities. Specifically, through CIP, village infrastructure has been rehabilitated: • 12 km of potable water systems • 7 km of irrigation systems • 20 km of roads • 9 km of gas pipelines • 12 schools • 5 libraries • 4 social clubs. It is important to note that in many cases, these accomplishments are providing basic social infrastructure to villages that have been without such services for a number of years. The projects have also made substantial contributions to capacity building. Sub-project Description: Agricultural Support: In order to support economic development in the target villages, the CIP will transfer agricultural technologies through a combination of on-farm demonstration and training sessions. Highlights and Achievements: During the reporting period, Agricultural Extensionists in the West were mostly focused on monitoring of crop and livestock demonstration farms (DF), and provision of individual as well as group trainings to farmers and facilitating their cross-visits. Overall, project staff conducted a total of 550 monitoring visits to 85 cattle breeding and 465 crop production demonstration farms (DF). Also, project staff visited plots of randomly selected client farmers. These visits were also used to provide an additional 540 trainings on improved crop and livestock production issues, including modern crop-specific irrigation practices, measures against potato fungal deceases and weeds, appropriate and safe use of pesticides, vaccination of domestic animals, preparation of quality fodder, etc. Given farmers’ general interest towards these trainings in communities, more than 1,000 client farmers attended these trainings and improved their knowledge on effective agro production technologies. In September, project Extensionists assisted beneficiary farmers in assessing potential potato yields at demonstration plots as compared to the last year performance. 10 % of demonstration farms were assessed in this regard. These results indicate that after completion of this agricultural season DFs may expect to almost double their potato produce as compared to previous years’ yields. This demonstrates the improvement in the knowledge and skills of farmers, achieved by introducing them to new potato cultivation methods and technologies.

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CIP also support farmers’ participation in cross visits to demonstration farms. The project used these visits as a practical demonstration of the advantages of adopting project- prescribed farming technologies, and gave client farmers the opportunity to observe the differences between good and poor farming practices. Overall, 98 cross-visits to both livestock and crop production farms were facilitated during the reporting period. Training was also held in plant protection using bio-pesticides, immunisation of animals, ways of increasing livestock productivity, agrotechnology and production of grain crops. Demonstration plots to demonstrate the effectiveness of bio-pesticides were cultivated in a number of villages (see Case Study 10.4)

Sub-project Description: Support for Income Generation through Micro-Credit: To stimulate business and employment, the CIP will provide at least 6,000 micro-loans to communities in the districts through which the pipelines pass over the three-year time period. (This original goal was then revised upwards to 14,000 loans – see reasons for this in the next section) The project coverage includes communities in the 77 villages along pipelines’ route, as well as any other persons who wish to take out a loan who may be from towns or neighboring villages. Many of the loans are taken by people outside the pipeline corridor. Highlights and achievements: The cumulative total of group loans as of the end of September 2004 is 1,490 groups, comprising over 6,634 individuals. The total loan value to date is slightly over $1,500,000. In August, Constanta Foundation conducted a preliminary assessment of their activities in CIP-West (the same is planned for CIP-East and on-going thereafter), which aimed at identifying the ratio of jobs sustained through businesses of Constanta’s borrowers and the ratio of those clients who managed to increase incomes through participation in Constanta’s micro-loan schemes. The results of this assessment are as follows: a) one business on average sustains 1.35 jobs; and b) 62% of served clients reported either an increase or a considerable increase in their incomes as a result of participation in Constanta’s micro-loan schemes. Based on the above, the project estimates that more than 1,200 jobs are being sustained in CIP-West (active borrowers 912 x 1.35) as a result of participation in Constanta’s CIP-sponsored programme. In addition, 62% of borrowers are increasing their incomes, which results in an overall positive contribution to the local economy. Constanta plans to implement similar assessment surveys on a regular basis (see Case Study 10.3)

Sub-project Description: Energy Efficiency: Energy efficiency activities, including winterisation of buildings and installation of fuel-efficient stoves, will be incorporated throughout the implementation of infrastructure rehabilitation projects. Highlights and Achievements: In August-September 2004, CIP started piloting the bio-gas digesters in Tsalka District. After selecting a vendor and drafting the criteria for selection of farms for installation of the digesters, representatives of the vendor together with CIP staff visited ten villages in the Tsalka District to identify appropriate farmers who were interested in piloting biogas digesters and willing to provide the required contribution for construction. Staff also assessed the condition of potential locations and cattle-sheds, to ensure that the selected farms fully complied with the technical requirements. Two appropriate farms were selected and construction of the bio-gas digesters will start in October. Sub-project Description: Social Services: The CIP is establishing Social Services Networks for elderly and vulnerable people, train doctors and nurses at the ambulatory level, and will provide basic first aid training.

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Highlights and Achievements: During the reporting period, the International Center on Conflicts and Negotiations (ICCN) conducted two problem solving workshops and two training sessions on “mobilisation of Community Based Organisations”. ICCN representatives facilitated CBO members’ discussions on ways of reducing tension and rivalry between different ethnic groups and improving community cooperation. They also discussed villagers’ concerns about the implementation of the second round of rehabilitation projects (transfer of funds, problems with local labor, etc.). Given the increase of ethnic rivalry and frictions in Tsalka in particular, as a result of an influx of mainly Adjarans, these trainings have been particularly useful. Participants typically discuss selected topics actively, eagerly participate in all exercises and demonstrate increased understanding of teambuilding, negotiation and co-operation principles. They positively evaluate the event at the end of the day and underline the importance of creating a team for joint problem solving and decision-making. Also during this reporting period, Curatio Foundation has conducted a number of trainings on the following topics: major aspects of medical services for the elderly, and management of various diseases (hypertension, pneumonia, urinary tract infections, mental disorders, diabetes mellitus, cardiovascular and respiratory problems, musculo-skeletal pathologies). Tests of participants upon completion of the sessions, which aimed at measuring the progress made by groups, demonstrated considerable improvement of skills among primary health care providers in the management of psychological and geriatric disorders amongst elderly people. Curatio Foundation also monitored the nine social service networks that have been established in the eastern half of the pipeline. In all cases, the networks continue to provide services, especially to the elderly, and the partnerships with private businessmen (who made a financial commitment to cover the cost of medical care for the elderly in a couple of villages) and with government (who are providing salaries for local doctors and nurses) are continuing to function well. Mercy Corps also completed the distribution of over 18,000 school kits for students in CIP villages in the east. School kits contain crayons, colored paper, a notebook, scissors and other school equipment. These were provided by Mercy Corps to the CIP project as an in- kind contribution. Sub-project Description: Capacity Building: One of the key aims of the CIP project is to improve the capacity of rural communities to analyse problems, mobilise resources and implement development initiatives. Highlights and achievements: Over 50 training sessions for CBOs in CIP communities were held during the reporting period. These trainings were aimed at strengthening villagers’ capacity to plan and implement community self-help projects and manage rehabilitation grants effectively. The trainings focused on strategic and operational planning, financial and administrative systems, and safety measures during rehabilitation work. A total of over 230 people participated in the training. Two examples of how capacity building within villages has increased the ability of villages to resolve development issues are as follows: • In the village of Imera in Tsalka district, the local population had a potable water system rehabilitation project identified as a priority issue. As there is no source of potable water on the territory of Imera, the only possibility of supplying the village with potable water was to link to the water system of a neighboring village. The local administration assisted Imera residents to negotiate with the person who leased the land that needed to be crossed by the water project. In addition, the local mayor arranged for a specialist to visit the site and determine the best water flow options. • Another interesting example of collaboration between Sakrebulo (local) authorities and independent efforts by community members took place in Tabatskuri. When the potable water distribution system broke down in one part of the village, the former head of the CIG (now working as Deputy Sakrebulo Gamgebeli) volunteered to fix the problem. He mobilized the community, collected the required amount of money and facilitated the replacement of damaged pipes with new ones. This example clearly demonstrates that community and CIG/CBO members are successfully utilizing the lessons learnt from their experience of collaboration with CIP.

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Sub-project Description: CIP Improved Schools Project (CIP-ISP): Based on consultations with various NGOs, government, local communities, and with the aim to spread the CIP benefits to the towns along the pipeline route, BTC and SCP have decided to implement the CIP – Improved Schools Project (CIP-ISP) in towns along the pipeline, in addition to the current CIP activities. The aim of CIP-ISP is to promote sustainable socio-economic development of urban areas along the pipeline route by developing the skills of adolescents to enable them to participate more effectively in Georgia’s future social and economic growth. Key outputs of the CIP-ISP project will include: • Infrastructure rehabilitation in over 50 secondary schools in the towns of Gardabani, Rustavi, Marneuli, Tetritskaro, Tsalka, Bakuriani and Akhaltsikhe, benefiting over 28,000 students and 2,000 teachers. • Over 275 teachers and administrators will be trained in specialised teaching or management techniques. • Parents, teachers, administrators and students will be prepared for the nation-wide move to the School Boards model of school management, though training, awareness raising and capacity building. CIP-ISP is being implemented by Mercy Corps and TAG (Technical Assistance in Georgia) in Rustavi, Gardabani, Marneuli and Tetritskaro, and by CARE and TAG in Tsalka, Bakuriani and Akhaltsikhe. The project began in the summer of 2004.

Highlights and Achievements: • All project staff were recruited, hired and provided with appropriate training • Over 40 introductory meetings were held in Bakuriani, Tsalka, Rustavi, Marneuli, Gardabani and Tetritskaro to introduce the CIP-ISP project and implementation team, to select the CIP-ISP Initiative Group which will support implementation of the project, and to provide additional information as needed to communities. • A series of meetings were held with the Ministry of Education and Science (MoES), with the aim of agreeing on levels of cooperation. This included a detailed exchange of information regarding MoES’ plans for implementation of the Active Learning Program and for implementation of the Education Sector Reform Project. • Project staff met with regional representatives of MoES to introduce the project, including timetable and objectives, etc. • Workshops were held with project staff, BTC/SCP staff, representatives of MoES, participating school administration, students, etc. to gain collective understanding and commitment to cooperation. • Mercy Corps facilitated a cross visit for Rustavi town officials and representatives to Gori, where Mercy Corps has undertaken a similar project in schools. Participants were able to understand through first hand examples what can be achieved with active participation by the community. • An action planning meeting was conducted in over 40 schools in the east, where agreement was reached on the specific rehabilitation measures to be implemented and on the composition of the ISP CIG. • Capacity building training for CIGs was held. • Contractors to undertake school rehabilitation in Tsalka and Bakuriani were selected through a tendering process, and works began. • TAG engineers are conducting monitoring to ensure contractors are adhering to construction standards and specifications.

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10.2.3 TURKEY COMMUNITY INVESTMENT PROGRAMME In Turkey there are now five Implementing Partners who each manage a geographical area (province) along the pipeline, an increase of one since Q2. The key components of the CIP in Turkey remain as follows: • Employment and Income Generating Activities (IGA): to improve income-earning and economic opportunities for project affected people • Agriculture: to support the development of the agricultural sector • Social Infrastructure: to support awareness of and access to social infrastructure • Capacity Building: to support the capacity of communities to self-organise, manage and self-initiate community driven development • The new Implementing Partner is G & G Consulting. This company has recently begun work in the southern provinces. The first summary of their activities will be included in the 4Q Lenders’ report In order to meet the needs of all communities impacted by the BTC pipeline, 51 additional villages have been included in the CIP scope. These include settlements which had land intersected by the pipeline, but which themselves lie outside the 4km corridor. The total cost for these extensions is expected to be in the region of US $1m up to the end of 2005. These villages have been included in the numbers of villages shown below for each of the geographical areas.

Project Name: Project Start Date: CIP June 2003 Implementing Organisation: Project Coverage: International Blue Crescent (IBC) Ardahan Province: 37 villages in Central, , and Posof counties. Project Description: The aim of the Ardahan Province CIP programme is to increase income levels of target groups in 37 villages, through assistance with: agricultural improvements, fruit and milk processing, computer training, Damal doll making, marketing plans, bringing drinking water to the villages, refurbishing a hospital, school and health centre and installing an IT classroom. Highlights and Achievements: (1) Project administration • Ercan Balcı, former community participation manager, is appointed as Deputy Project Coordinator. A search for additional qualified staff with a developmental background is continuing. Ms. Hande Güngör, previous assistant project coordinator at IBC HQ, is appointed as project coordinator. • A mid-term internal evaluation on the management of the project and implementation of activities was carried out. Based on experiences gained last year, new approaches have been designed. • IBC continues to seek additional resources for its programmes in the north east through various applications to donors e.g. EU. Results should be known by next quarter. • The first newsletter was published and distributed to project villages, local authorities, stakeholders, and some MPs. • Community involvement: Agreements over contributions and participation levels have been signed with IBC, committing the communities to participate in the implementation of CIP activities.

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(2) Social infrastructure projects (Quick Impact Projects - QIP) • The Village Affairs Directorate prepared drinking water projects for four villages (Burmadere, Çimliçayır, Çakırkoç and Doğrular), which had been awaited for 1.5 years. • BTC requested that all project settlements be included in the scope of QIPs, and projects were designed accordingly. They are now presently under implementation. • Protocols were signed with district governors, municipalities and muhtars for the implementation of, and contribution to, quick impact projects. • Construction of a drainage system for the water depot in Hasköy was completed. • Needs assessments for QIPs were revised. Each village without a QIP was visited. • Contribution levels of all parties in the previous implementation of QIPs were determined and protocols signed with related parties (3) Agriculture and livestock • Livestock activities de-intensified, as livestock were moved to high plateaus during the summer • In cooperation with Ardahan Province Directorate, a total of 3335 livestock were vaccinated with various vaccines in 7 project villages. A total of 278 animals’ received veterinary examinations. In cooperation with Ardahan Province Directorate 294 livestock were ear tagged. • A plan for brucellosis vaccinations and anti-parasite applications was prepared in cooperation with Ardahan Province Agriculture Directorate. The program started in September. Effects of the vaccinations on livestock are being observed, a decrease in diseases having been identified. • The results have been received from seven soil analyses (in 4 villages) in preparation for demonstrative fodder crop plantation. • Owners of greenhouses were provided with vegetable seeds for the second planting season. Greenhouses in Armutveren, Eminbey, Armutveren, Güllece and İncedere Villages as well as Hanak County Centre were visited and technical assistance was provided to the owners. • Equipment for fruit processing was manufactured and installed in Posof. • A businessman donated a honey processing unit. (4) Capacity building • The cooperative of Damal is now established, and will become official after the convening of the first general assembly. • Posof Cooperative is continuing to accept new members from the project villages. • The board of directors of Posof Cooperative has established contacts with Georgian apple producers to expand the production capacity of the facility. (5) Training • 136 people in 13 project villages in Posof as well as in Hanak received training on different aspects of fruit culture and greenhouses. • Hygienic milking, udder care, calf feeding and calf care training sessions were conducted in ten villages, as well as instruction on combating blackleg, leptospirosis and brucellosis. A total of 253 people participated. (6) Home Economics • A meeting with the Public Education Directorate of Damal was held and the supply of materials for Damal Dolls was agreed on. • The wild herb collection managed by Posof Cooperative was stopped on the basis of BTC’s request due to concerns over a possible threat to bio-diversity. Preliminary talks were held with qualified experts for conducting research to see if such an activity posed a threat. • A meeting with an expert on production and marketing of folkloric dolls was held in Istanbul. Possibilities for cooperation were discussed.

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Project Name: Project Start Date: CIP June 2003 Implementing Organisation: Project Coverage: Surkal Kars Province in 26 villages in the Selim and Sarikamis districts Project Description: The aim of the Surkal programme is to increase incomes and empower the most disadvantaged groups in 26 villages through assistance with: promoting animal husbandry, health care, improvements in pasture and fodder crops, drinking water, and sewerage projects. They are working with women, the elderly and young people to improve their quality of life and opportunities to earn money. Highlights and Achievements: (1) Community involvement July and August were months of considerable labour burden in villages due to intense agricultural work. Due to this burden, community participation was limited in many activities. (2) Quick Impact Projects • Participatory planning and implementation of a water infrastructure improvement commenced in Sirataslar village. Construction of a water depot was completed in the village in 15 days. • Construction of a water network commenced in Sarıgün village. Feasibility studies have been undertaken. • In Kurbançayırı village, villagers undertook the construction of 4 km of path for an animal drinking water resource. (3) Animal Husbandry Activities • Field staff continued vaccination activities in the villages. They vaccinated 1129 cattle against foot-and-mouth disease and brucella. Sheep and goats in one village were vaccinated against enterotoxem disease. 13,000 doses of Newcastle disease vaccine were delivered and applied to poultry. (4) Treatment of Sick Livestock • Field staff continued treatment and operations on sick livestock as part of its preventive veterinary activities for a total of 378 head of cattle. (5) Genetic Improvement • The number of artificially inseminated animals for the period was 17, benefiting 13 households. (6) Grassroots Level Organizations • The setting up of grassroots organizations has continued. 5 new Project Councils and Women’s Project Councils have been established in the villages, bringing the total to 13. (7) Preliminary Studies on the Training Kits for the Local Intermediary Staff • The field staff has commenced the preliminary studies on the preparation of training kits for the volunteer local intermediary staff. (8) Meetings/Workshops 1st mid-term evaluation meeting: Following the completion of the first year of the activities, the project held its first mid-term evaluation meeting in a setting away from the project site. A report of the meeting was prepared and circulated within the organization. Required revisions following the evaluations and diagnosed deficiencies have been undertaken.

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Project Name: Project Start Date: CIP June 2003 Implementing Organisation: Project Coverage: Atatürk University Erzurum Province in around 63 villages Project Description: The aim of the Ataturk University programme is to increase incomes, empower disadvantaged groups and support quick impact projects in 63 villages through assistance with: improved crop yields and animal husbandry, trout farming, eco-tourism, training for women and girls, ‘capacity development’ for village heads, drinking water, and renewable energy in three villages. Highlights and Achievements (1) Community involvement: • Numerous meetings have been held in villages to set up various project activities. The district governors and other officials and local government departments have been particularly supportive of the CIP activities in Erzurum province. (2) Social infrastructure projects • A joint work proposal on drinking water and sewage treatments has been completed and submitted to Village affairs in Ankara and Erzurum. • A model solar heating system was installed in the Health Unit in Alaybeyi village, with in- kind contributions by the community, local government and the Provincial Directorate of Health. The system uses a new technology that remains active at temperatures as low as minus 40 degrees C and will provide hot water for the health unit serving four villages (Alaybeyi, Kayapa, Kahrmanlar and Ocak Köyü). The technology is expected to be adopted more widely in the area. (3) Agriculture and Livestock • Farmers sold certified organic hay for higher market prices • Work started on trout farming and vegetable production. • A silage machine was delivered to Altınbaşak Cooperative (4) Training, Education and Co-operative development • 238 new students (121 women and girls, whose fees are paid by the project budget, and 117 males, fees for 28 of whom are paid by the project funds) have been enrolled in open high- and secondary-school programs. • Several entrepreneurs were given technical support • Information and published material were provided to Alvar Agricultural Development Cooperative. CIP has assisted with the founding of a women’s agricultural co-operative in Kayirtepe village. The co-operative is establishing a milk collection center and will be able to supply the women with livestock against future milk yields. It will also assist with artificial insemination, fodder crop improvement and vaccination Project Name: Project Start Date: Erzincan and Gümüşhane Provinces CIP June 2003 Implementing Organisation: Project Coverage: PAR Approximately 46 villages in Erzincan and Gumushane Provinces Project Description: The aim of the PAR programme is to increase incomes, improve community problem solving and empower disadvantaged groups in 46 villages through assistance with: pasture improvement, animal husbandry, bee keeping, community problem solving and project planning, as well as children’s dental health. Highlights and Achievements: (1) General/Project administration • A number of activities were started during this quarter including scaling up of vaccination programmes, bee-keeping, a seed exchange programme and numerous training activities.

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(2) Community involvement: • During August, request forms for the wheat exchange program were collected in all project villages within four districts. In mid-August contributions were paid by the villagers to the village cooperatives. (3) Community social infrastructure projects • Consultations and investigations to find appropriate places for the animal water basins distributed in May were made with villagers. All water basins were located accordingly. Two animal water basins in Arpayazı village were repaired. • Şahverdi village cooperative- to be based in the village school building- was visited. Preliminary studies were discussed with cooperative members in order to determine necessary repair works for the building. A cost estimate was also prepared for the cooperative building in Arpayazı Village. • The need for a water storage tank in Güzyurdu will be met through the assistance of provincial Directorate of Rural Affairs, PAR and villager contributions. The excavation and construction works for the storage tank are being monitored during site visits. Material for the project was provided. • The drinking water project for Pınaryolu Village was initiated together with the provincial directorate of Rural Affairs. (4) Agriculture and Livestock • Preparations for the third round of the animal healthcare program continue. Request forms arranged for this purpose were distributed to project villages during August. • Beekeeping; the distribution of queen bees and beehives was completed in late May. During July, all project villages that had received beekeeping material were visited for monitoring purposes. • Agriculture: Controls and regular monitoring of barley and demonstration wheat seeds (only cultivated during summer time) in the seven participating villages were carried out during this quarter. The overall productivity of the seeds cannot yet be estimated, since the harvesting is not completed. Even through the expected rate was not reached, most of the villages have higher productivity rates compared to previous years. Detailed information on the productivity rate / increase for all villages can be given after the harvesting season is over. • Demonstrative activities: The previously introduced demonstration lamb fattening project was accepted by villagers in Yaylakent Village. In order to make use of the spring season and this year’s new born lambs, the villagers gathered 95 new born lambs. These lambs were numbered and marked. • Controls were made for cherry saplings planted in late April. Along with the controls, necessary pruning was carried out, and villagers were also given training on pruning techniques. • Due to the cyclical fluctuation of the cheese market, an agreement could not be reached with the dairy shops in Ankara for initiating a mass production of Erzincan cheese in our project villages. However, home made cheese was sold at the Agrotech Fair by women villagers from the project villages. (5) Community training/capacity building: • Healthcare training still continues in Erzincan under the protocol signed with the Provincial Directorate of Health. During June, a total of 41 people were trained in Çamdibi, Arpayazı and Yurtabşı villages. Topics included nutrition, milk and dairy products, vitamins and proteins, carbohydrates, blood pressure, diabetes and cancer. • General trainings on agriculture and beekeeping were also given during regular visits to villages. A very high participation rate was observed in the training given for the women entrepreneurship program. The training program covers various aspects of business establishment, and attracted the interest of 498 women villagers. • A cereals selection machine was bought and installed to Balıklı Village, • A honey filtering machine was provided to Yaylacık Village.

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(6) Mainstreaming Women in Society • Enrollment to secondary and high school : In June and July, 15 women were registered for the secondary school program of General Directorate of Educational Technologies. (Ministry of Education). 16 women were registered for the high school completion program. Women Entrepreneurship Program: In July, 105 women participated in seminars , which included training on entrepreneurship, production, creative entrepreneurship, marketing, finance, business ideas, and production planning. Many different requests and ideas came from villagers.

10.3 OTHER INVESTMENT INITIATIVES 10.3.1 AZERBAIJAN The success of the CIP in Azerbaijan has been instrumental in encouraging external parties to invest in additional projects along with BTC. The Caspian Vision Project – an extension of the BTC / SCP CIP – complements other health and community development activities occurring along the pipeline route. The project is co-sponsored by Unocal Khazar and BTC/ SCP and run by CIP Implementing Partner International Medical Corps (IMC) and Caspian Compassion Project (CCP). IMC staff doctors and CCP surgical staff are working to improve the vision and eye care of vulnerable people by conducting free vision screening, eye examinations and eye surgery. Capacity building for local eye care specialists and services also forms an important element of the programme. In Q3, the project was active in Samukh, Shamkir and Agdash districts where a total of 392 people were screened and medicine and glasses distributed to 57 patients. BTC/SCP, UNOCAL and Statoil have agreed to co-fund the Rehabilitation / Construction of three schools, which will be implemented by Save the Children and local communities. The project will be implemented in the communities of Ashagi Agashibeyli in Samukh, Duzdak in Yevlakh and Zayam in Shamkir In addition to the benefits offered by BTC to local communities such as employment and through the CIP, the Construction Contractors have voluntarily undertaken many initiatives to assist the local communities. The following examples illustrate the variety of projects being supported: • SPJV has finished rehabilitating the roofs on houses of the community members of Yeni Shihimli (IPA1). • BTC and SPJV have agreed to fund a school rehabilitation project in the Aran community of Yevlakh. • In Aran, SPJV and BTC/SCP have begun implementing a water distribution system upgrade. As a result, 50 households will gain access to potable water. • In a project to replace the roof of the school in Yaldili village, SPJV have donated materials while the community is going to undertake the repairs. • CCIC has contributed to road rehabilitation projects in Ashagi Gushchu, Ashagi Goychali, and Girag Kasamanli Shilyan. 10.3.2 GEORGIA In Georgia BTC voluntarily carries out a range of initiatives in addition to the CIP to assist both communities close to the pipeline route and stakeholders not directly associated with the project. A selection of activities committed to or initiated during Q3 2004 is given below:

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BTC commissioned a contractor to either rebuild or rehabilitate dilapidated water reservoirs located near the villages of Khando, Rekha, Avranlo, Kizil Kilisa, Gumbati and Ashkala. The restored reservoirs were then connected to the villages with upgraded or new reticulation pipelines. IDC also built a new reservoir to serve the village of Khando. This initiative is complemented by a CIP project that will lead to the installation of mini water tanks and taps in key locations in the village, all fed from the reservoirs. BTC has also directly sponsored the following organizations and activities: • Basement Theatre Players: to stage a performance in Borjomi and Akhaltsikhe. • Union of Deaf of Georgia: to conduct a concert involving deaf children • The schoolbook project, whereby books are distributed to eligible schools along the pipeline route. SPJV has voluntarily undertaken many varied initiatives to assist local communities. In many instances, the contractor actively assisted the villagers in improving their village environment. Some few examples of the Q3 community support include: • Rehabilitation of the Jandara clinic • Restoration of the Tetritskaro church and renovation of the local electrical substation • Donation of felt tip pens, pencils, and drawing paper to all first year pupils of schools located near PSG2 • Road improvement projects in the villages of Skhvilisi, Guniakala, Beshtasheni and Saphar-kharaba. Roads in the centre of Tsalka and Akhaltsikhe were also repaired. • Renovation of the Tsalka stadium, including installation of welded barriers, repairs to access roads and parking areas, fabrication of benches fabricated and installation of goalposts. 10.3.3 TURKEY In Turkey, construction contractors have voluntarily undertaken many varied initiatives to assist local communities. In many instances, they have donated construction materials and loaned project resources to assist villagers improve the village environment. Road upgrades and improvements to irrigation systems to facilitate better access to potable water were two priority areas during the reporting period. Specific examples from each of the three Lots are illustrated below. The construction contractor in Lot A provided road construction equipment, labour and materials to upgrade roads in the villages of Yeniköy, Aktaş, Şepina, Tepesuyu, Tepecik, Damal Municipality, Başköy, Gǖrbǖzler, Taşkiran, Söğutlǖkaya, Gǖreşkenyayla, Posof, Cakirkoc, Avcilar neighbourhood, Koyunpinari, Kaynak and Dereköy. The construction contractor in Lot B is helping the village of Fernas to open a small canal system in order to divert water from the ROW to a designated animal watering point. Improvements were also made to water pipelines in the villages of Sivas, Erzincan and Gümüşhane. Road improvements were completed in Akdağ, Günbatur, Güllüce, Topcuyenikoy, Ekinli, M.Ağa Cifliği, Bakimli and Kasaplar villages, and in Kemreli village the contractor assisted with the repair of a bridge. In Lot C irrigation channels were restored in the villages of Paşakoy and Başören and a bridge repaired in Mutubey village. In the Değirmendere Municipality the contractor assisted with groundwork preparations for the construction of a football pitch.

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Local communities in the vicinity of the pump stations in Turkey also received community support by the construction contractor. For example the water supply near the Geben Camli mosque (IPT1) was repaired. The villages of Posof, Söğütlükaya, Aşikzǖlali, Aşıküzeyir, Kopuzlu and Kırköy in the vicinity of PT1, received wood waste for reuse at schools and mosques. Some areas of pastureland associated with villages located near PT1 were rehabilitated. At PT2, at the request of the villagers, construction materials and equipment were donated to Cöğender and Yiğittaşi villages, and Pasinler Ekim primary school. The villagers of Yaylakent and Yaylalar near PT 3 requested that some water channels be rebuilt. This was done. In addition, construction materials (concrete and sand in the main) were donated to the villages of Başköy and Balikliand and heating materials were donated to primary schools in Yeşilyaka and Yaylakent villages, both lcoated in the vicinity of PT3. The resources of an electrical technician were provided to Başören village near PT4 in order that repairs could be made to the village water pumping station. Waste wood was collected and donated to several villages also for their reuse.

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