StatoilHydro is a partner in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, which runs from Baku in Azerbaijan through Georgia to the Turkish port of Ceyhan on the Mediterranean. We are also commercial operator of the South Caucasus Pipeline (SCP) for gas, which runs parallel with the BTC line through Georgia to the Turkish border.
Making sure that the whole region benefits from these investments in a balanced and inclusive manner is therefore a clear precondition for and insurance of our long-term success and presence in the country and the region. Because they are interested in developing a stable operating environment, the partners in the operations took a long-term perspective in order to find good initiatives to support our investments.
The result was the Regional Sustainable Development (RSD) programme, operated by BP on behalf of all partners, including StatoilHydro. The RSD consists of the following initiatives - the Community Investment Programme (CIP), the Future Communities Programme (FCP) and the Regional Development Initiative (RDI).
Community Investment Programme (CIP)
The CIP was primarily initiated to manage stakeholder involvement and impacts during the construction of the two pipelines, and to create sustainable social and economic development in the local communities along the pipeline routes in Azerbaijan, Georgia and Turkey.
In cooperation with local and international non-governmental organisations (NGOs), the CIP has implemented programmes to create jobs, secure wider access to improved social infrastructure such as schools and hospitals, and strengthen farming.
The partners spent USD 24 million on such work during the construction phase. In 2007, an additional USD 3.7 million was spent on Economic and Business Education and Training projects in the Baku corridor in Azerbaijan, Small grants for Schools Villages along the WREP in Georgia and eight sustainable rural development projects in Turkey.
Moving from the construction to the operations phase, the Future Communities Programme (FCP) takes over where the CIP left off and continues to focus on community empowerment and mobilisation, while the Regional Development Initiative (RDI) will introduce more innovative mechanisms for socio-economic development in the region.
Regional Development Initiative (RDI)
The RDI is a long-term commitment by the partners to maximise the development impact of our core business and ensure that the proceeds from these activities are fairly distributed in the region. The RDI addresses basic development challenges such as enterprise development, effective governance and access to energy. The initiative also has an underlying focus on education, capacity building and vocational training.
To maximise the benefits of the RDI, the partners have established close collaboration with development agencies as well as the governments and societies involved, including the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) and the UN Development Programme (UNDP).
Together with our partners, we spent USD 12 million on projects in this programme during 2006. This is set to rise to USD 15 million from 2008. In 2007, an additional USD 6.5 million was dedicated to Enterprise Development and Training in Azerbaijan, Corporate Governance and Engineering Design projects in Georgia, and Technical Assistance and Capacity Building projects in Turkey.
In addition to the projects pursued in Georgia and the wider region with our partners, since 2005 StatoilHydro has also been providing support to Internally Displaced Persons, refugees and returnees in Georgia through the Norwegian Refugee Council (NRC) and the United Nations High Commission for Refugees (UNHCR). In 2007, we contributed USD 100,000 towards these activities, and in total we have contributed USD 400,000.
