Complex Projects and Issues:Complex Projects and Issues:Implementing the Principles of the Implementing the Principles of the

Espoo ConventionEspoo Convention

Elizabeth SmithElizabeth SmithEBRDEBRD

Types of complex projects / issuesTypes of complex projects / issues

1. Transboundary projects by design, agreed by both parties (e.g., major pipeline)

2. Potential for transboundary incidents (e.g., oil export terminal), where one or more countries involved have not ratified the Convention.

3. Additional Stakeholder interest.

4. Summary recommendations.

1. Baku1. Baku--TbilisiTbilisi--CeyhanCeyhan Pipeline (BTC)Pipeline (BTC)

Transboundary by design

BTC Co. includes BP, the State Oil Company of the Azerbaijan Republic (SOCAR), Unocal, Statoil, TPAO, Itochu, Delta Hess and ENI.

1760 km Oil Pipeline from Caspian to Mediterranean– Azerbaijan = 442km

– Georgia = 248km

– Turkey = 1060km

Route of BTCRoute of BTC

Pipelines across GeorgiaPipelines across Georgia--BTCBTC

BTC TimelineBTC Timeline

1999 Intergovernmental Agreement

2000 Host Government Agreements

2003 EIA and public consultation

2004 Construction

2006 First oil shipment at Ceyhan

Governmental AgreementsGovernmental Agreements--BTCBTC

Intergovernmental Agreement--five years before construction.

Sets uniform and clearly identified technical, safety and environmental standards in accordance with international standards and practices.

Separate Host Government Agreements with each country further elaborate technical, safety, and environmental standards.

All made public.

Included requirements for international ESIA and public consultation.

ESIAsESIAs--BTCBTC

Individual ESIAs for each country (Azerbaijan, Georgia, Turkey).

Information made available in Azeri, Russian, Georgian, Turkish, and English. Some information in Kurdish.

All documents, including governmental agreements, independent reports, put on website for international stakeholders, in capitals, and in primary lenders’ offices.

Documents also made available along pipeline route. Direct consultation with any stakeholders living in proximity of pipeline route.

2. Sakhalin 2 Phase 22. Sakhalin 2 Phase 2

Sakhalin 2 facilitiesSakhalin 2 facilities

LNG, Oil Terminal

Oil platforms

Gas platform

• Off-shore platforms • 800km pipelines • LNG plant (9.6mt/y)• Pumping stations• Tanker facilities

Infrastructure upgrades (Sakhalin 2)Infrastructure upgrades (Sakhalin 2)

Roads

Bridges

Airport

Waste facilities

Hospital

Construction camps

Espoo relevanceEspoo relevance--Sakhalin 2Sakhalin 2

Russia has not ratified Convention.

Japan is not a member of UNECE.

Project Oil Loading facility and LNG plant 40km from coast of Japan.

The project has the commitment to the spirit and principles of the Espoo Convention, regardless of status of signing or ratification.

Meeting the spirit of EspooMeeting the spirit of Espoo----Sakhalin 2 Phase 2Sakhalin 2 Phase 2

Russian EIA

International ESIA

Addenda on a number of issues, including spill response, transboundary impacts

Additional work on migratory species that are considered endangered, such as Western Gray Whale and Steller’sSea Eagles

ESIAs put in libraries on Sakhalin Island, Moscow, in Hokkaido and Tokyo, and notification via newspaper and website in Russia and Japan.

Transboundary ConsultationTransboundary Consultation--Sak2Sak2Stakeholders in Japan identified in Stakeholder Disclosure and Consultation PlanJapanese experts consulted on migratory species (e.g., Steller’s Sea Eagle) and spill response.Public and special topic meetings held on Hokkaido and in Tokyo.Reports on transboundary issues (e.g., spill response) in Japanese, executive summaries. Consultation with authorities in Hokkaido, fishing communities along coast.Complaint mechanism translated into Japanese, hotline includes telephone number to a Japanese speaker.

3. Complex projects attract interest3. Complex projects attract interest

Stakeholders in Country of Origin

Stakeholders in Affected Countrybut also…

International stakeholders regarding specific issues (e.g., extractive industries, nuclear, poverty alleviation, human rights)

Focus can be the countries who support the project, the financers, insurers as well as the project developer.

Stakeholders from regionStakeholders from region

Protest against EBRD financing of Sakhalin 2 Phase 2

Korsakov, Sakhalin Island, 2006

Protest against EBRD financing of Mochovce Nuclear Power Plant in Slovakia. London, 1995

International stakeholdersInternational stakeholders

International StakeholdersInternational Stakeholders

Protest against BTC, London 2004

4. Summary4. SummaryIntergovernmental agreements need to be worked out in advance, and can agree on technical standards, environment, safety.

In our experience, most Espoo notifications do not receive a response from the Affected Country. Formally, the Convention does not require further actions in this situation. However, we often find that the stakeholders in the Affected Country would like to get information and be consulted, particularly on complex projects. We recommend that Stakeholder Engagement Plans, Grievance Procedures should be translated in Affected Country’s language and contacts provided.

Focus of translation and consultation in Affected Country shouldbe on transboundary impacts—the principles can be equivalent, but content will likely differ from that in host country.

Mega-projects will likely attract additional stakeholder groups from international community, NGOs.

Contact detailsContact details

Elizabeth SmithEnvironment and Sustainability Department

EBRD

smithe@ebrd.com

Tel. +44 207 338 6504