BTC Pipeline and ACG Phase 1 Projects Environmental and Social Documentation

The International Finance Corporation (IFC) issued this response on October 27, 2003, to address submissions received during a 120-day public comment period regarding the Baku-Tbilisi-Ceyhan (BTC) Pipeline and ACG Phase 1 projects. The document defends the projects' compliance with IFC and World Bank safeguard policies, specifically addressing concerns from NGOs and the World Wildlife Fund (WWF) regarding environmental assessments, involuntary resettlement, and the treatment of vulnerable groups.

• The BTC Pipeline and ACG Phase 1 projects are estimated to cost US$3.6 billion, with the project seeking up to US$2.6 billion in financing from 11 lenders, including the IFC and the European Bank for Reconstruction and Development (EBRD).
• The IFC asserts that the projects' environmental and social documentation, which consists of 46 volumes and over 11,000 pages, is compliant with its safeguard policies, procedures, and guidelines.
• The pipeline route was selected as the 'Modified Central Corridor' after other options were rejected due to security risks in the Akhalkalaki district or environmental and safety risks in the Western and Central Corridors. The route crosses the water catchment area for the Borjomula River for 18 km.
• The IFC maintains that the project complies with the Natural Habitats policy (OP 4.04) by avoiding all IUCN Category I to IV and Ramsar sites. It has allocated US$2.5 million for Offset plans and approximately US$8.75 million for an Environmental Investment Program (EIP).
• The project's Resettlement Action Plans (RAPs) involve over 17,700 parcels of land. The IFC claims compensation rates have been consistently higher than local market rates, and that 100% of affected current land users have been consulted at least once.
• In Turkey, the project utilized Article 27 of the Expropriation Act for 'expedited expropriation' to handle complex land tenure and absentee shareholders. The IFC denies that this constitutes the use of 'emergency powers' to override resettlement policies.
• The IFC concluded that the World Bank's Indigenous Peoples policy (OD 4.20) does not apply to Kurds or any other group along the pipeline, stating that Kurdish communities do not meet the key characteristics of indigenous people as they are not primarily involved in subsistence-oriented production nor solely reliant on natural resources.
• The IFC identified several potentially vulnerable groups, including fishermen at the ACG field landfall and Ceyhan Marine Terminal, seasonal herders at the Sangachal Terminal, and ethnic minorities such as Azeri and Greek communities in Georgia and Kurdish and Alevi Muslim communities in Turkey.

APA

Center for International Environmental Law (2003). BTC Pipeline and ACG Phase 1 Projects Environmental and Social Documentation. https://www.ciel.org/wp-content/uploads/2015/05/BTC_Response_30Oct03.pdf

Chicago

Center for International Environmental Law. BTC Pipeline and ACG Phase 1 Projects Environmental and Social Documentation. 2003. https://www.ciel.org/wp-content/uploads/2015/05/BTC_Response_30Oct03.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=BTC Pipeline and ACG Phase 1 Projects Environmental and Social Documentation |date=27 October 2003 |url=https://www.ciel.org/wp-content/uploads/2015/05/BTC_Response_30Oct03.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2003btc, author = {{Center for International Environmental Law}}, title = {{BTC Pipeline and ACG Phase 1 Projects Environmental and Social Documentation}}, institution = {Center for International Environmental Law}, year = {2003}, month = oct, url = {https://www.ciel.org/wp-content/uploads/2015/05/BTC_Response_30Oct03.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }