Pipeline Expansion, Azerbajdzjan

The purpose of the expansion is to increase the capacity for gas transport with about 16 million m3 of gas/year from the Caspian Sea in Azerbaijan to the Georgia-Turkey border*.

The project includes:

• An expansion of the South Caucasus Pipeline (SCPX) in Azerbaijan and Georgia.

New pipes will as far as possible be placed in direct connection with the existing pipeline which will also get a short extension. No protected areas will be affected. The pipeline will mostly pass arable land, but also areas where endangered plants and animals might be affected. Management systems and plans have been developed to avoid and minimize impacts on identified species. There is also a risk that construction work could affect the groundwater in some areas.

Actions to mitigate the effects of these risks have been identified such as the construction of a water reservoir. No indigenous peoples have been identified. Consultations have been carried out along the entire route and areas of cultural value have been considered in the planning process. Necessary excavations will be made by experts before construction starts. A "resettlement action plan" is to be developed but not yet available. Working conditions will comply with IFC guidelines. A crisis management plan has been prepared and will be adopted by local authorities. Grievance mechanisms are established, both internally and externally.

The SCPX is classified as a category A-project. Additional information on the environmental and social impacts is available in the following web link:

The attached information was published on EKN's website www.ekn.se on March 9th, 2015.  Comments on the project can be made within 30 days. This procedure is in accordance with the OECD Recommendation on Common Approaches for ECAs.

*The guarantee has been issued in full.