No Setback in BTC Despite EBRD’s Delay to Finance – Azeri Official Says

(Tbilisi. April 21, 2003. Civil Georgia) – Vice-president of Azeri State Oil Company (SOCAR) Ilham Aliev said that issue of loan from the European Bank for Reconstruction and Development (EBRD) for the construction of the Baku-Tbilisi-Ceyhan (BTC) pipeline “has run into problems.”

The AFP news agency quotes Aliev that the delay was linked to widely held concerns about the environmental impact of the US-backed pipeline project.

“Because of the delay in financing Azerbaijan will itself find the funds to finance its participation in the project until the credit lines open up,” said Aliev.

“The state oil company will do that using its internal funds. We have already collected 40 million dollars (36.7 million euros), which will be enough,” AFP reports quoting SOCAR Vice-President.

Ilham Aliev also said that there will be no effect on the project timetable.

Environmental groups are concerned that the possible leak from the pipeline could damage the Borjomi region of Georgia, which is the source of a famous Georgian brand of mineral water.

The US-backed BTC is USD 2.9-billion pipeline project to export Caspian oil to the western markets via Georgia and Turkey.

The pipeline consortium is led by oil major BP and also includes oil companies Statoil, SOCAR, ConocoPhillips, Itochum TotalFinaElf, Inpex, Unocal, TPAO, Eni Agip and Amerada Hess. SOCAR needs to find close to 500 million dollars to finance its share in the construction costs.