MONITORING WORKING GROUP ON ASSESSMENT OF SOCIAL IMPACTS OF BTC PIPELINE DURING THE CONSTRUCTION PHASE

Transcription

1 NATIONAL NGO MONITORING OF AZERBAIJAN SECTION OF BAKU-TBILISI CEYHAN (BTC) OIL PIPELINE MONITORING WORKING GROUP ON ASSESSMENT OF SOCIAL IMPACTS OF BTC PIPELINE DURING THE CONSTRUCTION PHASE F I N A L R E P O R T Members of the Monitoring Group: Gulaya Guliyeva, Ilham Huseynli, Mirvari Gahramanly, Zohrab Ismayilov, Shahin Ramazanov, Tamkin Eminli, Coordinator, Merhemet (Charity) Foundation Evaluator, Public Union for Socio-Strategic Studies and Analytical Research Group Member, Committee for the Protection of Oil Workers Rights Group Member, Free Economy Group Member, Ojag Public Union Group Member, Azerbaijan Diabetes League Baku-2005

2 DISCLAIMER The contents of this report should be treated as the opinions and conclusions of the monitoring group members. In no way does this report reflect the policies or views of the project sponsor or any other organisation concerned. The authors are solely responsible for any mistakes in this report. The report reflects the results of the monitoring conducted by various means. However, for reasons beyond our will, in some cases, it was not possible to learn the views of all of the parties concerned. All group members signatory hereto are in agreement with the contents of this report. Signatures: Gulaya Guliyeva Ilham Huseynli Zohrab Ismayilov Mirvari Gahramanly Shahin Ramazanov Tamkin Eminli Gulaye Guliyeva Coordinator Ilham Huseynli Evaluator Zohrab Ismayilov Group Member Mirvari Gahramanly Group Member Shahin Ramazanov Group Member Tamkin Eminli Group Member 2

3 Experts: Ehtiram Soltanoglu, Scientific-Technological Progress and Education Foundation Azad Aliyev, Public Union for Socio-Economic Research Mushfig Huseynov, Himayadar Relief Organisation Ehtiram Soltanoglu Expert Azad Aliyev Expert Mushfig Huseynov Sociologist 3

4 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ACHIEVEMENTS FINDINGS PROPOSALS AND RECOMMENDATION EVALUATOR S STATEMENT INTRODUCTION METHODOLOGY MONITORING IMPLEMENTATION STRATEGY RESULTS OF SURVEYS AND INTERVIEWS RESULTS OF QUESTIONNAIRE SURVEYS REGARDING THE FULFILMENT OF COMMITMENTS OF THE COMMUNITY INVESTMENT PROGRAMME (CIP) RESULTS OF QUESTIONNAIRE SURVEYS ON IMPACTS OF BTC CONSTRUCTION ACTIVITIES ON THE LOCAL COMMUNITIES AND INFRASTRUCTURE ANALYSIS OF MONITORING FINDINGS ACHIEVEMENTS FINDINGS... ERROR! BOOKMARK NOT DEFINED PROPOSALS AND RECOMMENDATIONS: RESULTS OF MONITORING FINDINGS AND RECOMMENDATIONS: ACKNOWLEDGEMENTS ANNEX AND REFERENCES...1 APPENDIX 1: BRIEF DESCRIPTION OF 2004 ACTIVITIES CONDUCTED ON BEHALF OF BTC IN VARIOUS COMMUNITIES UNDER CIP PROJECTS:...1

5 1. Executive Summary This present report sponsored by the Open Society Institute-Assistance Foundation (OSI-AF). It reflects the activities conducted within the framework of the project on Monitoring Social Impact of Baku-Tbilisi-Ceyhan (BTC) Pipeline on Local Communities Residing along the Pipeline Route. Objectives of monitoring: 1. Study and assessment of the implementation of Community Investment Programme (CIP) in compliance with BP/BTC commitments 2. Study and assessment of the impacts of BTC construction activities on the local communities and infrastructure 3. Study and assessment of the working conditions and social status of local workers currently and previously involved in BTC pipeline construction The purpose of the CIP is to make a positive contribution to the sustainable socio-economic development of affected communities along the Azeri section of the BTC oil pipeline. In order to achieve the goal, the CIP sets up the following objectives (Reference: BP presentation materials on the CIP): Improvement of social welfare and business opportunities of communities affected by BTC/SCP projects Supporting community access to improved social infrastructure Support for raising awareness on issues related to health and sanitation Assistance to agricultural development in the regions along the pipeline route Prior to the monitoring, the working group held discussions with BP/BTC representatives from the relevant departments and listened to comprehensive presentations on BTC s social commitments and Community Investment Programmer (CIP) strategy. These discussions addressed BTC activities aimed at fulfilling the obligations, as well as the company s achievements and constraints. The working group also conducted a number of meetings with the BTC Social Performance and Social Investment Manager and numerous other responsible individuals, thus familiarising themselves with CIP goals and objectives and the strategy of its implementation. It was a concern to the group that although the monitoring was implemented during the last quarter of 2004, BP provided the monitoring group with information regarding the budget of the CIP implementing partners, namely four international NGOs, which related primarily to the first quarter of The monitoring of both CIP and the impact of construction activities were implemented through the use of three major components: questionnaire survey, interviews (discussion) and observation (including photography and video filming). The group spent 60 days implementing the monitoring procedures. Firstly, group members conducted pilot monitoring lasting eight days. The monitoring aimed to define methodology and a unified approach for group members, as well as to make preparations for conducting the core section of the monitoring. After analysing the results of the pilot monitoring, group members split into three subgroups, with each group identifying its target areas and communities. The monitoring executed by each subgroup lasted for 16 days, totalling 48 days of monitoring. In addition, the working group monitored CCIC and Spie Capag-Petrofac operations for four days, two days per company.

6 The monitoring statistics include: Number of companies and organisations involved in discussions and questionnaire surveys (NGOs and companies directly or indirectly participating in BTC CIP) 9 Number of communities visited 86 (in 11 regions) Number of people contacted during the monitoring period up to 3,000; including Expats 60, Citizens of Azerbaijan up to 2,940 Males up to 2,400, females up to 600 Representatives of municipalities 153 Members of community groups 328 Representatives of organisations implementing CIP 36 Representatives of companies involved in BTC pipeline construction 75; and, Respondents involved in questionnaire survey 600 Number of interviewees 338 Audio recording 28 hours Video filming 6 hours Number of photos 202 We would like to note that although there were 600 respondents involved in the questionnaire survey, only 479 questionnaires were valid. This is for the reason that 19 questionnaires were left almost entirely blank and 102 were incomplete or completed improperly without observing survey procedures. Consequently, it was impossible to summarise the results of these questionnaires. We would like to d stress that, due to a shortage of time and other reasons beyond our control, it was impossible to undertake a classical, random selection of respondents. In other words, the working group maintained a balance among communities and involved those community members in the questionnaire survey, with whom the working group had met and who had agreed to participate. This method can be considered to be a mixture of quota sampling and opportunistic sampling. Due to lack of information and certain technical restraints the working group was not able to reach the third objective as outlined above. A primary reason for this was that the monitoring was implemented during the final stage of construction. Alternatively, BP Azerbaijan delayed construction site surveys. In addition, BP/BTC, together with its contractors, did not fully comply with the agreement envisaging information exchange. It is worth mentioning that this agreement is reflected in the Memorandum of Understanding signed between BP and OSI-AF on April 22, Despite the working group s frequent requests, it was not possible to obtain a list of workers currently and formerly employed by CCIC -- a company undertaking pipeline construction activities in Azerbaijan. The labour rights of workers involved in BTC construction were investigated by the Human Rights Monitoring Working Group within the frameworks of the monitoring programme. You may refer to the report submitted by the Human Rights Monitoring Working Group for detailed information on the labour rights of employees involved in BTC construction. In order to assess the level to which commitments were fulfilled, group members analysed the monitoring findings and discussed them with experts and consultants. As a result, group members arrived at the following conclusions. 2

7 1.1 Successes Improvement of Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects The first attempt to launch the process of community mobilisation for CIP implementation has been made, as well as the identification of community priorities and involvement of community members in problem resolution Community Groups have been formed to represent communities. These groups enjoyed effective capacity-building training and advice on Community Development Programmes. Community Groups acquired certain skills for representing their community The initiative to build a business relationship among communities, municipalities and local authorities has been established. Municipalities have become more active and cooperation has materialised between municipalities and communities Temporary workplaces and Community Funds have been created. The community has been provided with Financial Management Guidelines A number of local NGOs have been involved in CIP implementation. They delivered training that made an impact on the development of community skills Supporting Community Access to Improved Social Infrastructure: At least one priority problem with regard to improvement of social infrastructure has been identified in each community and resolved to a considerable extent, e.g. road construction, construction of classrooms, renovation of medical facilities and other social facilities, artesian well, drilling, etc According to information received by the working group, although CCIC does not have any obligation it has implemented social projects amounting to $1,650,958 not only in the areas crossed by BTC, but also other regions of Azerbaijan. According to information that the working group has received, 7,500 internally displaced persons families (IDP) have been provided with tents totalling $300,000. Seventy homes, a water reservoir, sport yard, power systems and other facilities have been constructed for IDPs in the Saatli region. As the monitoring term was short, the working group did not assess the projects conducted by CCIC Although Spie Capag-Petrofac has not made any commitments, the company has implemented social projects amounting to $110,000, including the reconstruction of roads and schools and water supply projects Support for Raising Awareness on Issues Related to Health and Sanitation: Various activities aimed at the modification of medical services and facilities have been held in several communities that had prioritised these problems. Medical facilities and hospitals have been provided with equipment The e Organization has provided community to training programs on First Medical Aid Reproductive Health, Family Planning Some community members suffering from eye disease underwent free medical eye surgery Support for Agricultural Development in Regions Along the Pipeline Route: At least one agricultural specialist has been selected in each community along the route of the BTC pipeline. These communities have been provided with training and advice on various issues and acquired appropriate skills. As a result of the training, community 3

8 members and farmers were provided with counselling services on development of agricultural sector Spie Capag-Petrofac successfully implemented sustainable agricultural development project and provided several villages with combine and tractor 1.2 Opportunities for Improvement Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects The process of community mobilisation within the frameworks of the CIP is not very effective in a number of communities. The maximum participation of the local communities in Community Group elections was not ensured. Links between organisations implementing the project and communities are weak. There are conflicts between some Community Groups. Most community members have very little information about the community and projects being conducted in the area (See: Results of CIP monitoring commitments answer to second question; Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004) CIP has not covered all of the communities along the BTC pipeline. For instance, despite the establishment of a unified community comprising two villages in Agdash and Kurdamir, only one village has benefited from the project has been poor at establishing links with Community Groups. Instead of giving preference to Community Groups and community members in the process of issuing loans, has built up its business mostly in markets (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004) s interest rates are higher than those of Azeri banks and other micro-loan organisations. This fact increases project risks and impedes the creation of sustainable business structures.( source; interviews and video footages) Support for Community Access to Improved Social Infrastructure: There is an uncertainty in the handover policy of transferring authority to the appropriate bodies for using the facilities launched and financed by CIP. For instance, the Community of Borsunlu in Goranboy is now being used as a canteen by the Community Leader Funds allocated for the implementation of community projects are sufficient for partly resolving a priority problem identified by the communities. (see: Results of CIP monitoring commitments answer to eighth question). Moreover, the principle of the 25% community contribution does not consider the level of community mobilisation. For instance, members of the Garagemerli community in Shamkir could not collect the 25% community contribution and, therefore, children are still studying at school under poor conditions. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews) Occasionally, the dominance of a certain group was evident in identifying community problems within the frameworks of the CIP. This impeded the identification of a real priority. The majority of respondents in the communities have indicated problems with gas and electricity as the major issues. However, only a few projects have been conducted to partly resolve the problems with electricity. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004) The sustainability of micro-projects has not been properly considered. Thus, there is no control mechanism over the implementation of project sustainability plans in some 4

9 communities. Examples of this are the reconstructed roads in the Saritepe village of Shamkir, the artesian well project in Akstafa ( See: Photo and interviews regarding the shortcomings) Support for Agricultural Development in Regions along the Pipeline Route: Loans are not favourable for agricultural development in a number of regions along the pipeline given high interest rates and timeframes. Therefore, the number of people receiving loans from for agricultural projects is extremely low. People who have received loans for agricultural projects are reluctant to do so again. For instance, during interviews held in Shamkir, farmers expressed their concern with regard to loan process and interest rate (Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews) CIP implementation Strategy and Efficiency of the CIP The implementation of the CIP mostly by four international NGOs is not economically efficient. A significant amount of the funds allocated to international NGOs is spent on office maintenance, salaries and transportation and travel expenses. At most, the amount allocated to national NGOs constitutes 10% of the total project budget at most. In some cases, only several employees of local NGOs have been contracted while, on the whole, the organisations themselves have been left out of the process. The procedures for selecting NGOs for the programme were mostly dependent on international organisations (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004; Results of CIP commitments monitoring answer to the third question) In some cases, there is a discrepancy between the expenditures envisaged in the micro-project budget and real market prices. This creates the impression that funds allocated for micro-projects sometimes are being spent carelessly (See: Photos 10,11 ) The process of drafting, assessing, approving and implementing micro-projects sometimes takes several months and there is no flexibility in this process. This causes discrepancies between the budget of the expenditure and real market prices during the period when the price rises. Eventually, it has a negative impact on the quality of construction (Source: Interviews, video filming) Impact of BTC Construction Activities on the Local Communities and Infrastructures 76% (188 respondents) of those involved in the questionnaire survey stated their disturbed by heavy equipment and machinery. The list included five factors stated as causing a disturbance. 49% (119 respondents) explained this disturbance as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained primarily about the noise created during the day 38% (95 respondents) are concerned with the behaviour of expatriates employed in construction outside of the camp. 47% of the complainants are disturbed by their clamour while 40% are concerned with their fast driving 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance caused directly and indirectly by pipeline construction. 61% of the complaints have been addressed to local authorities while 10% to BP and its associates. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received nothing whatsoever. Overall, only 28% (23 complainants) were to some extent satisfied with the responses Roads in most villages and settlements located along the route of the BTC pipeline have been affected due to the movement of heavy machinery and large-tonnage lorries 5

10 during construction activities. For instance, roads in Shamkir, the Muzdurlar community in Goranboy, the Garadagli and Shikhimli communities in Ujar and the Armali community in Kurdamir sustained significant damage during the construction activities. Overall, the majority of the roads used for construction purposes sustained damage (See: Photos reflecting the impact) In a number of communities, homes located within the vicinity of the roads that were crossed by heavy machinery and lorry traffic endured cracks and damage. Among the communities visited by the monitoring group, up to 50 homes in the Girag Kasaman community in Akstafa and Shikhimli community in Ujar have been damaged Irrigation systems, which were utilised by the communities, sustained damage during construction activities (See: Photos reflecting the damage) 1.3 Proposals and Recommendation Improvement of Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects Mobilisation of communities to participate in several welfare and business development initiatives should be enhanced and promoted. New techniques should be widely applied. It is important to strengthen the links between the organisations implementing projects and local communities Micro-projects must be implemented in communities that should have been covered by the CIP, but actually have not. The method for prioritising community projects should be improved and preference should be given to projects that will equally benefit several communities s mechanism for interacting with communities should be improved and a control mechanism needs to be established over this process. should be influenced to collaborate with communities in the process of issuing loans and give preference to sustainable projects s interest rate policy regarding CIP funds should be revised Support of Community Access to Improved Social Infrastructure: The status of each facility constructed or rehabilitated within the frameworks of the CIP should be determined and transferred to the appropriate bodies for task oriented use with all necessary documentation (i.e. municipality and other communities) Funds allocated for community projects should be increased. Community contribution terms should be lowered in poorly mobilised communities. A model for quick fix project for stimulating public involvement in this process should be created The future policy of the CIP should focus specifically on projects related to accessing energy resources and elaborating task-oriented activities aimed at resolving this problem as communities consider this to be the most problematic issue Closer cooperation should be maintained with communities for project sustainability and to develop sustainability plans on infrastructure development Support for Agricultural Development in Regions along the Pipeline Route: More efficient and long-term loans should be created for agricultural development: The aim should be to establish control over a stable turnover of funds allocated for within the 4-km corridor CIP implementation Strategy and Efficiency of the CIP: More national NGOs should have an increased role in CIP implementation 6

11 It is important to audit the financial activities of certain international NGOs, particularly, IRC and IMC, with the aim of increasing the efficiency and task-oriented fashion of spending the funds allocated for the implementation of CIP projects More flexibility should be introduced in the process of drafting, assessing, approving and implementing micro-project Impact on Social Environment and Infrastructure during BTC construction: Local communities should be better informed in advance about the progress and movement of construction activities and places where heavy equipment and machinery is to be used to allow them to know when noise or other temporary disturbance will occur in construction areas. Prior to commencement of the project it is important to develop guidelines for increasing the awareness of expatriates on local culture and behaviour and maintaining positive relations with the communities It is important to establish a hot line service to create the opportunity for the BTC affected local communities to lodge their complaints on social problems to BP/BTC. At the same time the companies Community Liaison Officers should closely acquaint the local communities with grievance management procedure to assist them to address their complaints to appropriate bodies. The claim of those whose homes have been damaged by BTC construction should be investigated, and alleged damage to the personal property should be indemnified. The concrete addresses of claimers have been presented to BP/BTC. Micro-projects should be implemented in all communities which have been affected by BTC in order to eliminate negative impact. Note: Other proposals and recommendations for eliminating impacts on social infrastructure have been presented by the report of the Working Group on the Use of Local Resources entitled, Assessment of BTC Pipeline Impact on Economic conditions of the Regions. For detailed information, you may refer to this report. 7

12 2. Evaluator s Statement Prior to the monitoring, members of the working group participated in project-related training and consultations and acquired professional skills. Both local and foreign experts contributed to this process. As a result of the training and consultations, group members displayed high operational capability during the implementation of the monitoring project: Group members developed their own monitoring strategy prior to the commencement of the monitoring, which they subsequently followed throughout the project. The methodology used during the monitoring was decided on the basis of the monitoring strategy Over the term of the project, the monitoring group worked as an organised team. Nevertheless, it is undeniable that the group encountered certain difficulties during the course of the activities. This could be explained by their lack of monitoring experience Thinking realistically, group members refrained from using the random selection method and gave priorities to the local communities, with whom they had met and who had expressed their willingness to participate in the questionnaire survey. However, a balance between regions and communities was maintained Questions asked by group members to interviewees were impartial and neutral. Undertaking the questionnaire survey and interviews, members of the working group were successful in establishing a sense of confidence among respondents. This was an extremely crucial factor. When making contact with community members, BTC employees and representatives of international organisations implementing the CIP, group members strictly adhered to ethical norms and completely relied on the cooperation factor Monitoring findings were analysed through several stages with the involvement of local and foreign experts. After taking into consideration the monitoring findings, proposals and recommendations, the working group s activity can be assessed as satisfactory POTENTIAL CONFLICT OF INTEREST OF TWO MEMBERS OF THE SOCIAL ISSUES MONITORING GROUP The Memorandum of Understanding between OSI and BP dated 22 nd April 2004, Exhibit 2, Page 3, states that To avoid conflict of interest among stakeholders the NGOs directly or indirectly implementing the work under the financial support of Projects operated by BP cannot be involved in the monitoring activities, however they will be able to participate and contribute to the discussions. Two organisations with members represented in the Social Issues Monitoring Group submitted proposals to BTC to participate in the BTC Community Investment Programme (CIP) in November These organisations were the Social & Strategic Research (represented in the Monitoring Group by Ilham Huseynli, Evaluator) and Ojag Public Union (represented in the Monitoring Group by Shahin Ramazanov). Monitoring activity of the Social Issues Monitoring Group started in September 2004 and all fieldwork, data collation and analysis was completed in February The final report was submitted to OSI in April OSI was informally advised by Mr. Ilham Huseynli that the proposal to BTC CIP from the Social & Strategic Research had been successful. Following the announcement that the applications to BTC CIP by the Social & Strategic Research and Ocak Humanitarian Organization had been successful, members of other Working 8

13 Groups raised concerns with OSI about the continued participation in the monitoring of organisations awarded CIP projects. The OSI Project Consultant Dr Clive Morgan discussed the issue of conflict of interest with members of the Social Issues Monitoring Group. Members of the group who participated in the discussion expressed their unanimous support for retaining Ilham Huseynli and Shahin Ramazanov as Evaluator and member of the Social Issues Monitoring Group respectively while allowing them to participate in the BTC CIP projects awarded to their organisations. The Social Issues Monitoring Group justified this position on the grounds that Ilham Huseynli and Shahin Ramazanov were an integral part of the Social Issues Monitoring Group and excluding them would compromise the ability of the group to complete their final report. This position was accepted by OSI on condition that the Social Issues Monitoring Group record their decision and endorse it in the final report. We, the undersigned, members of the Social Issues Monitoring Group, acknowledge our decision to retain Ilham Huseynli, Evaluator, representing the Social & Strategic Research, and Shahin Ramazanov, representing Ocak Humanitarian Organization, as active members of the group notwithstanding the participation of them and their organisations in BTC CIP projects awarded after the start of social issues monitoring. 1. Gulaya Guliyeva 2. Mirvari Gahramanly 3. Tamkin Eminli 9

14 3. Introduction The BTC Export Pipeline Consortium consists of BP, the State Oil Company of the Azerbaijan Republic (SOCAR), Unocal, Statoil, Total Finna Elf, Itochu, INPECS, Amerada Hess and ConocoPhilips. Oil pipeline construction was officially launched on September 18, The pipeline, with a total length of 1,769 km (42 inches=1m) and capacity of 1,000,000 barrels/day, is capable of transporting 50 mln tonnes of oil annually. Eleven local and foreign companies have been implementing the project s construction, which is currently nearing completion. The project operator BP is the largest shareholder (30.1%). The shareholder holding the smallest share is the Saudi Canadian alliance Delta-Hess (2.36%). SOCAR holds a 25% share. 30% of the project construction is financed by oil companies according to their share in the sponsors group; 70% is allocated by international financial institutions as credit. A minimum of 40 mln and maximum of 60 mln tonnes of oil are intended to be exported annually via BTC. The pipeline s lifespan is 40 years. The signing of The Contract of the Century opened a new chapter in the history of Azerbaijan s energy industry and promoted the development of yet another world-scale project the Shah Deniz Gas Project. Upon the sanctioning of the Shah Deniz Gas Project in February 2003 with the participation of BP and its partners, the construction of a new infrastructure began. This infrastructure is designed to deliver the gas produced from this field to Turkey. The 690km-long South Caucasus Pipeline (SCP) is scheduled for construction parallel to the BTC pipeline and is located within the same corridor. The Azeri section of BTC and SCP pipeline are being constructed by CCIC and Spie Capag-Petrofac ( USA France Joint Enterprise). The BTC and SCP pipelines project envisaged a preliminary environmental and social impact assessment study. To that end, the project identified communities and a surveyed territory. The 443-km-long Azeri section of the pipeline covers 137 villages and settlements (257.3 thousand people) in 13 regions. As an operator, BP on behalf of its partners has made commitments to enhance the socioeconomic living standards of affected communities for the elimination of risks and impact during BTC and SCP pipelines construction. Therefore, the Community Investment Program (CIP) along the pipeline facilities has been financed by the BTC and SCP investors. The main goals of the CIP are to have a positive influence on the social welfare of the local communities affected by project construction, to contribute to the establishment of the most appropriate and effective way to manage expected revenues and to facilitate poverty reduction in the BTC and SCP regions. In order to assess the honouring of these commitments to assess findings and to make the appropriate recommendations to relevant companies for the elimination of shortcomings OSI and BP signed a Memorandum of Understanding on BTC pipeline monitoring to be conducted by national NGOs. Approximately 90 NGOs have participated in the process. Hence, there was a wider opportunity to execute multi-faceted BTC monitoring. The monitoring covered five fields. The social sphere was among them. The participation civil society in the monitoring of BTC construction is considered to be immensely important by the members of Social Issues working group. It explains why BTC Co., BP, CCIC, Spie Capag-Petrofac and four CIP implementing partners displayed a particular interest in the monitoring activities. Group members have explored the following issues established during project: 1. Current status of mobilisation of communities concerning CIP implementation, capacity building and technical support 2. Issues related to infrastructural development along the BTC pipeline route 3. Improvement of healthcare services, refurbishment and renovation of medical facilities 4. Impacts of BTC on agricultural and entrepreneurial development 5. Impact of BTC construction activities on the local communities. 6. BTC construction impact on working condition of local communities 10

15 4. Methodology Throughout the course of the monitoring, the working group used various methods for collecting the maximum possible amount of data and applied diversified methodological principles, which allowed the group to make the information more demonstrative and tangible. The basic principle of the group was to investigate and evaluate the subjective opinions of the local communities in an objective manner and to impartially protect the interest of involved parties. Table 1 shows the techniques and indicators used during the monitoring. Table 1. Methods and Indicators Fields Indicators Techniques 1 CIP implementation strategy, mobilisation of communities, capacity building and technical support Quantitative Indicators 2 Support access to social infrastructure along the BTC pipeline route 3 Support for entrepreneurial and agricultural development 4 Issues related to CIP efficiency 5 Impacts of BTC construction on communities 6 BTC construction moral and psychological impact on local communities Quantitative and Qualitative Indicators Physical Indicators Quantitative and Qualitative Indicators Qualitative Indicators Indicators of Social Impact Indicators of moral and psychological impact Determining the number of visited communities Determining the number of community members, who had participated in training Interviews and discussions Determining the number of newly constructed or rehabilitated objects Summarising information provided by local executives Interviews Photography and video filming Determining the number of trained agricultural experts Determining the number of people, who had acquired loans (BTC figures) Interviews Studying the latest status of the projects implemented within the frameworks of the CIP Analysis of financial indicators Interviews Photography and video filming Questionnaire Interviews and observations Photography and video filming Questionnaire Interviews and observations Our group benefited from the following methodological principles while working to attain its monitoring objectives: 1. Allegations brought forth by various individuals were investigated in a practical manner to ensure maximum objectivity. For reasons beyond the working group s will, in some cases, it was impossible to double-check the information. These reasons include restraints imposed on the monitoring process by concerned organisations 2. Learning the views of all of the parties concerned. In some cases, it was not possible to fully adhere to this principle as parties either ignored working group questions or provided inefficient responses 3. Reaching a consensus within the group regarding all of the conclusions made Note: Group members signed a memorandum aimed at ensuring confidentiality and regulating a code of conduct during the course of the project. 11

16 5. Monitoring Implementation Strategy A segment of the activities envisaged by the monitoring had been performed by the working group before the project s official commencement date. Project implementation was provisionally divided into four stages comprising of the following activities: 1. Definition of roles and responsibilities 2. Preparation of questionnaires and other materials 3. Pilot monitoring to be conducted by the entire team in one of the regions along the route of the pipeline 4. Establishment of three subgroups and identification of the target area for each group 5. Implementation of questionnaire survey 6. Data collection and analysis, evaluation of results and development of monitoring report According to the project action plan, the first stage had to be completed before the commencement of the official segment. Prior to the main monitoring process, group members made a joint pilot trip with the aim of establishing a working mechanism, system of time management and appropriate and unified approach. Such tactics enabled us to further verify and standardise questions for subsequent interviews. This approach was also helpful in data analysis and summarising results. Since the process of accommodating visits to BTC construction sites was complicated and the visits were short-term, the working group made additional trips to conduct the questionnaire survey among the workers. All of the material collected during the monitoring, including questionnaires, interview contents, photos, official documents, etc. was promptly submitted to the group coordinator for storage in a safe. This material was used by all of the group members for data analysis and drafting the report. 12

17 6. Results of Surveys and Interviews As mentioned above, in order to mitigate and eliminate the risks the purpose of the CIP is to make a positive contribution to the sustainable socio-economic development of affected communities along the Azeri section of the BTC pipeline. To this end, the CIP establishes the following objectives (reference: BP/BTC presentation materials on the CIP): Improvement of social welfare and business opportunities of communities affected by BTC/SCP projects Supporting community access to improved social infrastructure Support for raising awareness of issues related to health and sanitation Assisting agricultural development in the regions along the pipeline route These priorities have been identified on the basis of the conclusions of consultations held at a local level and reflected in BTC/SCP Environmental and Social Impact Assessment (ESIA) document. The CIP programme is due to be conducted along the route of the BTC and SCP pipelines within the 4-km-wide corridor, 2 km on both sides of the pipeline. Four international NGOs have won tenders organised within the framework of the CIP. The budget of the CIP in Azerbaijan is $8mln, roughly $5.5mln of which is being spent by these NGOs for the implementation of social projects (Reference: BP/BTC 2004 presentation materials on the CIP): 1. Community Development Project ($3mln): Western regions of Azerbaijan Save the Children Eastern regions of Azerbaijan Rescue Committee 2. Health Project ($1.5mln): 3. Micro-Financing Project ($1mln): Foundation for Community Assistance () The objectives of the NGO monitoring are: 1. Study and assessment of the implementation of Community Investment Programme (CIP) in compliance with BP/BTC commitments 2. Study and assessment of the impacts of BTC construction activities on the local communities and infrastructure 3. Study and assessment of the working conditions and social status of local workers currently and previously involved in BTC pipeline construction Therefore extensive activities were conducted within the frameworks of the monitoring process. Six hundred respondents participated in the questionnaire survey. The working group has enclosed relevant tables and diagrams reflecting the survey results. In addition, group members have monitored CIP implementation in 86 communities. The group spent 60 days implementing the monitoring procedures. Firstly, group members conducted pilot monitoring lasting eight days. The monitoring aimed to define methodology and a unified approach for group members, as well as to make preparations for conducting the core section of the monitoring. After analysing the results of the pilot monitoring, group members split into three subgroups, with each group identifying its target areas and communities. The monitoring executed by each subgroup lasted for 16 days, totalling 48 days of monitoring. In addition, the working group monitored CCIC and Spie Capag-Petrofac operations for four days, two days per company. 13

18 The monitoring statistics include: Number of companies and organisations involved in discussions and questionnaire surveys (NGOs and companies directly or indirectly participating in BTC CIP) 9 Number of communities visited 86 (in 11 regions) Number of people contacted during the monitoring period up to 3,000; including Expats 60, Citizens of Azerbaijan up to 2,940 Males up to 2,400, females up to 600 Representatives of municipalities 153 Members of community groups 328 Representatives of organisations implementing CIP 36 Representatives of companies involved in BTC pipeline construction 75; and, Respondents involved in questionnaire survey 600 Number of interviewees 338 Audio recording 28 hours Video filming 6 hours Number of photos 202 We would like to note that although there were 600 respondents involved in the questionnaire survey, only 479 questionnaires were valid. This is for the reason that 19 questionnaires were left almost entirely blank and 102 were incomplete or completed improperly without observing survey procedures. Consequently, it was impossible to summarise the results of these questionnaires. We would like to d stress that, due to a shortage of time and other reasons beyond our control, it was impossible to undertake a classical, random selection of respondents. In other words, the working group maintained a balance among communities and involved those community members in the questionnaire survey, with whom the working group had met and who had agreed to participate. This method can be considered to be a mixture of quota sampling and opportunistic sampling. Monitoring group members have assessed the status of CIP implementation in communities affected by BTC pipeline construction. Additionally, the working group has surveyed the social status of a group of local workers employed in pipeline construction and the process of recruiting individuals from affected communities. Monitoring group members have held meetings with community members living in areas covered by the social investment projects, familiarised themselves with the key problems of the communities and taken other relevant actions. The working group visited the local offices of contractors involved in BTC pipeline construction, CCIC and Spie Capag-Petrofac, to observe the social problems faced by local employees at workplaces and camps. In addition, the monitoring group became acquainted with the CIPs of these companies. The activities of various organisations within the frameworks of the CIP and outside of the programme have been reflected in the separate interviews and surveys conducted in the communities. The information provided below has been collected via the monitoring activities and is based on the principles reflected in the Executive Summary and Methodology sections. 14

19 6.1. Results of Questionnaire Surveys Regarding the Fulfilment of Commitments of the Community Investment Programme (CIP) Overall, 300 respondents were invited to participate in the questionnaire survey. However, only 234 questionnaires were valid for summarisation as 11 questionnaires were left almost entirely blank and 55 were incomplete or completed improperly breaking survey protocol. Thus, it was impossible to summarise the results of these questionnaires. The working group maintained a balance among communities and involved those community members, with whom the working group had met and who had agreed to participate in the survey. Thus, the survey was conducted according to a method, which may be considered to be a mixture of quota sampling and opportunistic sampling. Composition of Respondents: Females 98 42% Males % Including: Age group of % Those over the age of % Including: Those with higher education 45 19% Those with secondary education % Summary of the questionnaire survey were as follows: 32% (75 respondents) indicated that they had information on the CIP 18% (43 respondents) indicated that they had participated in meetings aimed at establishing the Community Group In terms of the community awareness of organisations operating within the framework of the CIP, respondents indicated the names of six organisations in the questionnaire forms. was at the top of the list with 75% (165 respondents). Local organisations UMID and were also indicated with 10-11% representing fifth and sixth positions respectively (20-21 respondents) 19% (44 respondents) stated that they participated in training sessions within the frameworks of the CIP, while 72% (169 respondents) had no information in this regard. The vast majority of training participants, namely 43% (19 respondents), only once participated in training sessions. 84% (37 respondents) were able to recall the training topics. 75% said that they were satisfied to a certain extent with the training In terms of community problems, the majority of respondents indicated mostly power, gas and electricity issues, which proved even more important for the community than unemployment. But CIP projects, road construction and school construction and renovation took the top two places on the list with 19% and 18%, respectively On the whole, 75% (175 respondents) were aware of the projects being implemented in the communities. 42% (98 respondents) had some information regarding the amount of funds allocated for these projects. 18% (41 respondents) said that the funds were adequate, while 58% had difficulty answering this question. 36% (85 respondents) underlined a transparent and task-oriented fashion of spending these funds. 65% (152 respondents) would like these projects to be sustainable, subject to a transparent and taskoriented spending of funds 15

20 Summary information has been derived from the following questionnaire results: 1. Are you aware of the BTC Community Investment Programme? 1. Yes 75 32% 2. No % 3. I refrained from joining it 37 16% Total % Did you participate in the meeting dedicated to establishing the Community Group in your village or settlement? 1. Yes 43 18% 2. No % 3. I refrained 46 20% Total % What CIP-implementing partner organisations do you know of? Please enumerate several organisations? 1. Save the Children Rescue Committee information UMID Organisation Did CIP-implementing organisations conduct training sessions in your community? 1. Yes 44 19% 2. No 21 9% 3. I do not know % Total % a) If the answer is yes, please indicate the topics of the training 1. Health issues Agriculture development Project and proposal development 3 4. Creation of the Community Fund 6 5. I do not remember 7 Total 44 b) If the answer is yes, please indicate how many times you participated in the training 1. Once Twice Three times and more 10 Total 44 16

21 c) Were you satisfied with the quality of these training sessions? 1. Yes No Partly 19 Total What are the major problems in your community, village or settlement? Please indicate several problems that concern you. 1. Problems with electric power % 2. Problems with gas supply % 3. Unemployment % 4. Conditions of schools 62 26% 5. Health issues 41 18% 6. Roads % 7. Problem with water supply % Note: Percentage ratio has been calculated in accordance with the number of respondents 6. Which problems have been addressed by the projects implemented by your community? 1. Construction of a community centre 24 10% 2. School construction or refurbishment 43 18% 3. Solution of water supply problem 21 9% 4. Construction or refurbishment of medical facilities 36 15% 5. Solution of power problem 6 3% 6. Road construction 45 19% 7. I do not know 59 25% Total % Do you know the amount of funds allocated for the implementation of these projects? 1. Yes 25 11% 2. No % 3. Partially 73 31% Total % 8. Do you think that this amount is adequate for resolving priority problems? 1. Yes 18 8% 2. No 57 24% 3. Partially 23 10% 4. It is hard to answer % Total %

22 9. Do you think that these funds have been spent in a transparent and practical way? 1. Yes 31 13% 2. Most likely, yes 54 23% 3. No 12 5% 4. Most likely, no 72 31% 5. It is difficult to answer 65 28% Total % Would you like the CIP projects to be sustainable? 1. Yes, it is important 53 23% 2. Yes, but subject to a % transparent and practical spending of funds 3. No, it is of no importance 11 5% 4. No, they just pull the wool 3 1% over our eyes 5. It is difficult to answer 15 6% Total % Results of Questionnaire Surveys on Impacts of BTC Construction Activities on the Local communities and Infrastructure Three hundred respondents were invited to participate in the questionnaire survey regarding impact of BTC construction and etc. Only 245 out of 300 questionnaires were valid for summarisation as eight questionnaires were left almost entirely blank and 47 were incomplete or completed improperly without observing survey processes. Thus, it was impossible to summarise the results of these questionnaires. We would like to stress that, due to time restraints and several other reasons beyond the working group s control, it was impossible to undertake a classical, random selection of respondents. In other words, the working group maintained a balance among communities and involved those community members, with whom the group members had met and who had agreed to participate in the survey. This method can be considered to be a mixture of quota sampling and opportunistic sampling. Composition of Respondents Having Completed 245 Valid Questionnaires: Females % Males % Including: Those in the age group % Those over the age of % Including: Those with higher education % Those with secondary education % Results of the questionnaire survey were as follows: 89% of respondents have received information regarding the construction of camps and facilities related to the BTC pipeline project 76% (188 respondents) are concerned about problems and disturbance created by heavy equipment and machinery used BTC construction activities. The list included five factors 18

23 stated as reasons for disturbance. 49% (119 respondents) explained these disturbances as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained about the noise made primarily during the day 38% (95 respondents) are concerned with the behaviour of expatriates employed in construction outside of the camp. 47% of the complainants are disturbed by their clamour while 40% are concerned with their fast driving Eight factors have been listed regarding the negative impacts of pipeline construction on local infrastructure. 51% (125 respondents) stated damaged roads as the most negative 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance directly and indirectly caused by pipeline construction. Overall, there have been 141 such complaints. These complaints touched upon six factors, of which five were related to negative impacts on local infrastructure and one to noise. Most complaints (i.e. 30%) were related to cracks in homes. 61% of the complaints have been addressed to local authorities while 10% to BP and its associates. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received unsatisfactory response. Overall, only 28% (23 complainants) were to some extent satisfied with the responses Conclusions regarding this section are derived from the following data: 1. What camps and facilities related to BTC pipeline construction are (were) located in the vicinity of your community (village or settlement)? 1 Construction camp 41 17% 2 Heavy machinery storage and parking % 3 Facilities related to pipeline construction 62 25% 4 I do not know 28 11% Total % 2. Are (were) you disturbed by noise or any other activities caused by facilities or machinery used during pipeline construction? 1 Yes, very much 67 27% 2 To some extent % 3 Not at all 14 6% 4 Not considerably 43 18% Total % a) If you answered yes, please indicate what disturbed you and your family. You may indicate several 1 Movements of heavy machinery and lorries 90 2 Noise made by heavy machinery, generators and other equipment Effects of safety lights 16 Other effects 4 Dust 44 5 Whistle 29 Total

24 b) If you answered yes, please indicate the part of the day when they disturbed you and your family 1 Early in the morning 42 2 In the daytime, during work hours 94 3 At sunset 38 4 At night 14 Total Are (were) you and your family disturbed by the behaviour of expat workers outside of the camp? 1 Yes, very much % 2 Yes, to some extent % 3 Not at all % 4 Not considerably % Total % a) If you answered yes, please indicate the negative impacts on the local community 1 They drive fast 38 2 They get drunk and scuffle with local people 0 3 They insult local people 0 4 They clamour 45 Other possibilities: 5 They lead women astray 9 6 Their behaviour tempts young people to drink 29 Total What other impacts does the pipeline construction have on communities, villages and settlements? Please indicate several? 1 Roads undergo further destruction % 2 Houses are damaged by vibration % 3 Irrigation channels sustained damage % 4 Access to pastures and sown areas has become difficult 21 6% 5 Small bridges sustained damage % 6 Children get scared 9 2.6% 7 Farm animals get frightened 8 2.3% 8 Yards are covered with dust 4 1.1% Note: Percentage ratio has been calculated in accordance with the number of respondents 5. Have you complained about any problems or disturbances connected with pipeline construction that directly or indirectly affected you or your family? 1 Yes 81 33% 2 No % Total %

25 a) If you answered yes, please indicate what you were complaining about. You can indicate several causes 1 House cracks 41 2 Damage caused to irrigation channels 35 3 Difficulties with access to pastures and sown areas 31 4 Damage caused to roads 24 5 Noise made by heavy machinery 3 6 Damage caused to small bridges 2 Total 136 b) To whom have you complained? 1 Representative of the executive 47 2 Head of regional executive authorities 39 3 Head of municipality 31 4 BP and its subcontractors 14 5 President of the country 6 6 Human rights champions 2 7 Regional Land Department 2 Total 141 c) What responses did you receive? 1 They promised to tackle the problem 37 2 No response 41 3 They said that the issue was difficult 3 Total 81 d) Were you satisfied with the responses? 1 Absolutely 2 2 Partly 21 3 No 58 Total 81 21

26 7. Analysis of Monitoring Findings Monitoring results have been analysed by group members and discussed with experts and consultants. Conclusions made by the monitoring group are outlined below: 7.1. Successes Improvement of Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects The first attempt to launch the process of community mobilisation for CIP implementation has been made, as well as the identification of community priorities and involvement of community members in problem resolution Community Groups have been formed to represent communities. These groups enjoyed effective capacity-building training and advice on Community Development Programmes. Community Groups acquired certain skills for representing their community The initiative to build a business relationship among communities, municipalities and local authorities has been established. Municipalities have become more active and cooperation has materialised between municipalities and communities Temporary workplaces and Community Funds have been created. The community has been provided with Financial Management Guidelines A number of local NGOs have been involved in CIP implementation. They delivered training that made an impact on the development of community skills Supporting Community Access to Improved Social Infrastructure At least one priority problem with regard to improvement of social infrastructure has been identified in each community and resolved to a considerable extent, e.g. road construction, construction of classrooms, renovation of medical facilities and other social facilities, artesian well drilling, etc According to information received by the working group, although CCIC does not have any obligation it has implemented social projects amounting $1,650,958 not only in the areas crossed by BTC, but also other regions of Azerbaijan. According to information that the working group has received, 7,500 IDP families have been provided with tents totalling $300,000. Seventy homes, a water reservoir, sport yard, power systems and other facilities have been constructed for IDPs in the Saatli region. As the monitoring term was short, the working group did not assess the projects conducted by CCIC Although Spie Capag-Petrofac has not made any commitments, the company has implemented social projects amounting to $110,000, including the reconstruction of roads and schools and water supply projects Support for Raising Awareness on Issues Related to Health and Sanitation Various activities aimed at the modification of medical services and facilities have been held in several communities that had prioritised these problems. Medical facilities and hospitals have been provided with equipment The e Organization has provided community to training programs on First Medical Aid Reproductive Health, Family Planning Some community members suffering from eye disease underwent free medical eye surgery 22

27 7.1.4 Support for Agricultural Development in Regions Along the Pipeline Route: At least one agricultural specialist has been selected in each community along the route of the BTC pipeline. These communities have been provided with training and advice on various issues and acquired appropriate skills. As a result of the training, community members and farmers were provided with counselling services on development of agricultural sector Spie Capag-Petrofac successfully implemented sustainable agricultural development project and provided several villages with combine and tractor 23

28 Photos Reflecting Activities that is Regarded as Positive Photo 1 Shamkir region, Deller Chirdakhan community The renovation of a medical facility is fairly good Photo 2 Goranboy region, Yolpag community The construction of new classrooms is underway 24

29 Photo 3 Akstafa region, Boyuk Kasik community Local communities are satisfied with road repairs Photo 4 Samukh region, Seyidlar community Assembly hall construction is underway 25

30 7.2 Opportunities for Improvement Social Welfare and Business Opportunities of Communities Affected by BTC/SCP Projects The process of community mobilisation within the frameworks of the CIP is not very effective in a number of communities. The maximum participation of the local communities in Community Group elections was not ensured. Links between organisations implementing the project and communities are weak. There are conflicts between some Community Groups. Most community members have very little information about the community and projects being conducted in the area (See: Results of CIP monitoring commitments answer to second question; Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004) CIP has not covered all the communities along the BTC pipeline. For instance, despite the establishment of a unified community comprising two villages in Agdash and Kurdamir, only one village has benefited from the project has been poor at establishing links with Community Groups. Instead of giving preference to Community Groups and community members in the process of issuing loans, has built up its business mostly in markets (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004) s interest rates are higher than those of Azeri banks and other micro-loan organisations. This fact increases project risks and impedes the creation of sustainable business structures.( source; interviews and video footages) Support for Community Access to Improved Social Infrastructure: There is an uncertainty in the handover policy of transferring authority to the appropriate bodies for using the facilities launched and financed by CIP. For instance, the Community of Borsunlu in Goranboy is now being used as a canteen by the Community Leader Funds allocated for the implementation of community projects are sufficient for partly resolving a priority problem identified by the communities. (see: Results of CIP monitoring commitments answer to eighth question). Moreover, the principle of the 25% community contribution does not consider the level of community mobilisation. For instance, members of the Garagemerli community in Shamkir could not collect the 25% community contribution and, therefore, children are still studying at school under poor conditions. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews) Occasionally, the dominance of a certain group was evident in identifying community problems within the frameworks of the CIP. This impeded the identification of a real priority. The majority of respondents in the communities have indicated problems with gas and electricity as the major issues. However, only a few projects have been conducted to partly resolve the problems with electricity. (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004) The sustainability of micro-projects has not been properly considered. Thus, there is no control mechanism over the implementation of project sustainability plans in some communities. Examples of this are the reconstructed roads in the Saritepe village of Shamkir, the artesian well project in Akstafa (See: Photo and interviews regarding the shortcomings) 26

31 7.2.3 Support for Agricultural Development in Regions along the Pipeline Route: Loans are not favourable for agricultural development in a number of regions along the pipeline given high interest rates and timeframes. Therefore, the number of people receiving loans from for agricultural projects is extremely low. People who have received loans for agricultural projects are reluctant to do so again. For instance, during interviews held in Shamkir, farmers expressed their concern with regard to loan process and interest rate (Brief overview of activities conducted in various communities within the frameworks of the CIP 2004 and the interviews) CIP implementation Strategy and Efficiency of the CIP The implementation of the CIP mostly by four international NGOs is not economically efficient. A significant amount of the funds allocated to international NGOs is spent on office maintenance, salaries and transportation and travel expenses. At most, the amount allocated to national NGOs constitutes 10% of the total project budget at most. In some cases, only several employees of local NGOs have been contracted while, on the whole, the organisations themselves have been left out of the process. The procedures for selecting NGOs for the programme were mostly dependent on international organisations (See: Annex 1. Brief overview of activities conducted in various communities within the frameworks of the CIP 2004; Results of CIP commitments monitoring answer to the third question) In some cases, there is a discrepancy between the expenditures envisaged in the micro-project budget and real market prices. This creates the impression that funds allocated for micro-projects sometimes are being spent carelessly (See: Photos 10,11 ) The process of drafting, assessing, approving and implementing micro-projects sometimes takes several months and there is no flexibility in this process. This causes discrepancies between the budget of the expenditure and real market prices during the period when the price rises. Eventually, it has a negative impact on the quality of construction (Source: Interviews, video filming) Impact of BTC Construction Activities on the Local Communities and Infrastructures 76% (188 respondents) of those involved in the questionnaire survey stated their disturbed heavy equipment and machinery. The list included five factors stated as causing a disturbance. 49% (119 respondents) explained this disturbance as being primarily related to noise produced by heavy machinery and other equipment. 50% (136 respondents) complained primarily about the noise created during the day 38% (95 respondents) are concerned with the behaviour of expatriates employed in construction outside of the camp. 47% of the complainants are disturbed by their clamour while 40% are concerned with their fast driving 33% (81 respondents) lodged complaints up to seven authorities and organizations about problems and disturbance directly and indirectly caused by pipeline construction 61% of the complaints have been addressed to local authorities while 10% to BP and its associate. 46% of the complainants (37 persons) received a positive response while 51% (41 complainants) indicated that they had received nothing whatsoever. Overall, only 28% (23 complainants) were to some extent satisfied with the responses Roads in most villages and settlements located along the route of the BTC pipeline have been affected due to the movement of heavy machinery and large-tonnage lorries during construction activities. For instance, roads in Shamkir, the Muzdurlar community in Goranboy, the Garadagli and Shikhimli communities in Ujar and the Armali community in Kurdamir sustained significant damage during the construction activities 27

32 Overall, the majority of the roads used for construction purposes sustained damage (See: Photos reflecting the impact) In a number of communities, homes located within the vicinity of the roads that were crossed by heavy machinery and lorry traffic endured cracks and damage. Among the communities visited by the monitoring group, up to 50 homes in the Girag Kasaman community in Akstafa and Shikhimli community in Ujar have been damaged Irrigation systems, which were utilised by the communities, sustained damage during construction activities (See: Photos reflecting the damage) 28

33 Photos Reflecting Shortcomings: Photo 5 Shamkir region, Saritepe village The condition of the repaired road Photo 6 Shamkir region, Kechili community The evening arrival of the monitoring group to the community prompted an overnight foundation of classrooms Photo 7 The Community of Borsunlu community in Goranboy is now being used as a canteen 29

34 Photo 8 Shamkir region, Garagemerli community Due to a failure to collect the 25% community contribution for the refurbishment project, children are still obliged to study under these conditions Photo 9 Shamkir region, Bayramli community Medical facility refurbishment proceeds normally. However, the project does not envisage re-roofing, which may lead to further damage of a renovated building 30

35 Photo 10 Tovuz region, Ashagi Ayibli medical facility Each of these chandeliers has been documented as amounting to 220,000AzM, which is different from the market price Photo 11 Tovuz region, Khatinli medical facility This sink has been documented as amounting to 80,000AzM, which seems to be different from the market price 31

36 Photos Reflecting Alleged Damage Inflicted on Communities during Construction: Photo Girag Kasaman village in Akstafa Houses located along the road where heavy machinery and lorries regularly moved during the construction activities Photo 14 Muzdurlar village in Goranboy A schoolgirl points to damage inflicted on the village road by heavy lorries used during construction 32

37 Photo 15 Roads in the Armali village in Kurdamir have been damaged by BTC pipeline construction Photo 16 Goranboy region The irrigation system has sustained damage in the course of construction 33