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Caspian Development Advisory Panel Report CASPIAN DEVELOPMENT ADVISORY PANEL REPORT ON TURKEY AND PROJECT-RELATED SECURITY AND HUMAN RIGHTS ISSUES IN AZERBAIJAN, GEORGIA, AND TURKEY (DECEMBER 2003) DC: 1117183-5 Copyright © 2003 Caspian Development Advisory Panel TABLE OF CONTENTS I. Consolidated Executive Summary of Panel’s Work in 2003.....................................................1 TURKEY II. Introduction..........................................................................................................................20 A. The Panel’s Work ..............................................................................................21 B. The Institutional Structure in Turkey..................................................................24 III. Economic Impact ................................................................................................................28 A. Anticipated Revenue Inflow and Management ...................................................30 B. Procurement, Employment, and SMEs...............................................................32 1. Procurement ...........................................................................................33 2. Employment...........................................................................................35 IV. Environmental Impact.........................................................................................................38 A. Reduction in Tanker Traffic in the Turkish Straits..............................................40 B. Pipeline Routing and Related Issues...................................................................41 1. Erzurum Plain ........................................................................................42 2. Posof Wildlife Protection Area...............................................................44 3. Sarikamis Forest.....................................................................................44 4. Gas Supply Lines for Pump Stations.......................................................45 C. Reinstatement ....................................................................................................47 D. Issues at the Ceyhan Terminal............................................................................48 1. Site Selection .........................................................................................48 2. Cumulative Impact in Gulf of Iskenderun...............................................48 3. Oil Spill Response..................................................................................50 4. Double-Hull Tankers..............................................................................51 5. Discharge of Ballast Water.....................................................................53 6. Single Point Mooring System.................................................................55 V. Social Impact .......................................................................................................................57 A. Land Acquisition and Its Challenges ..................................................................58 1. Overview of the Land Acquisition Process .............................................58 2. BOTAS’s Responsibility for Land Acquisition.......................................59 3. The Complexity of Land Ownership in Turkey.......................................59 - i - B. The Resettlement Action Plan............................................................................60 1. Initial Assessment ..................................................................................60 2. Disclosure and Consultation...................................................................61 3. Land Acquisition and Compensation......................................................62 4. Monitoring Procedures...........................................................................68 C. Impact on Minorities..........................................................................................69 D. Cultural Heritage Management ..........................................................................71 VI. Investment Programs ..........................................................................................................73 A. CIP ....................................................................................................................77 B. EIP ....................................................................................................................79 VII. The Role of BOTAS ..........................................................................................................81 SECURITY AND HUMAN RIGHTS VIII. Security and Human Rights in Azerbaijan, Georgia, and Turkey ......................................87 A. BP’s Human Rights Commitment and the Regional Context ..............................89 B. Legal Framework...............................................................................................94 C. Operational Framework .....................................................................................97 1. Security Plans and Protocols...................................................................98 2. Host Country Coordination.....................................................................99 3. Risk Assessment .................................................................................. 100 4. Physical Protections ............................................................................. 101 5. Guards and Security Forces .................................................................. 102 6. Hiring and Training of Project Personnel.............................................. 104 7. Sharing Information with State Security Forces.................................... 106 D. Implementation and Coordination of Human Rights Monitoring ......................107 APPENDICES........................................................................................................................112 APPENDIX A Key Security and Human Rights Elements of the Projects’ Legal Framework ......................................................................................................114 APPENDIX B List of Meetings and Consultations .....................................................120 APPENDIX C Panel Policy Recommendations ..........................................................129 APPENDIX D Terms of Reference ............................................................................143 APPENDIX E Biographies of Panel Members............................................................145 - ii - LIST OF ABBREVIATIONS ACG Azeri-Chirag-Gunashli offshore oil field ATCA Alien Tort Claims Act BTC BTC Pipeline Company BTC pipeline Baku-Tbilisi-Ceyhan oil pipeline CCPs Contractor Control Plans CDAP Caspian Development Advisory Panel CHMP Cultural Heritage Management Plan CIP Community Investment Program CIPPs Contractor Implementation Plans and Procedures EBRD European Bank for Reconstruction and Development ECHR European Court of Human Rights EIA Environmental Impact Assessment EIP Environmental Investment Program EMMP Environmental Management and Monitoring Plan ESIA Environmental and Social Impact Assessments EU European Union GTZ Deutsche Gesellschaft für Technische Zusammenarbeit GmbH HGA Host Government Agreement IBC International Blue Crescent Foundation IFC International Finance Corporation IGA Intergovernmental Agreement IMO International Maritime Organization Joint Statement Joint Statement on the Baku-Tbilisi-Ceyhan Pipeline Project KPIs Key Performance Indicators LSTK Lump Sum Turnkey Agreement NGO Non-governmental organization Panel Caspian Development Advisory Panel - iii - Partners Collective reference to companies participating in the BTC and/or SCP consortia Project Baku-Tbilisi-Ceyhan pipeline Projects Baku-Tbilisi-Ceyhan pipeline and South Caucasus pipeline Project Participants Collective reference to companies participating in the BTC and/or SCP consortia PSA Production Sharing Agreement RAP Resettlement Action Plan RDI Regional Development Initiative RFP Request for Proposals RUDF Rural Urban Development Foundation SCP South Caucasus Pipeline Security Protocol Protocol Relating to the Provision of Security for the East- West Energy Corridor SMEs small- and medium-size enterprises SMMP Social Management and Monitoring Plan SPM Single Point Mooring System SSC Supreme Security Committee SSPS Special State Protection Service SÜRKAL The Sustainable Rural and Urban Development Society TUDAV Turkish Marine Institute Voluntary Principles Voluntary Principles on Security and Human Rights BP established the Caspian Development Advisory Panel (CDAP) as an independent external panel as part of its plan to ensure that the Baku-Tbilisi-Ceyhan (BTC) pipeline is a world class model project. CDAP's terms of reference include the provision of objective advice to the Company on the economic, social, and environmental impacts of the pipeline project in Azerbaijan, Georgia, and Turkey. The views, opinions, and recommendations expressed both in CDAP's Interim Report and in this Report are solely those of CDAP alone and are not necessarily shared by BP or its Partners in the pipeline project. - iv - Consolidated Executive Summary of Panel’s Work in 2003 Section I. Consolidated Executive Summary of Panel’s Work in 2003 Consolidated Executive Summary of Panel’s Work in 2003 This is the second report of the Caspian Development Advisory Panel (CDAP or the Panel), which was commissioned by Lord John Browne, Group Chief
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