CENN — Daily Digest – November 15, 2004

CENN — NOVEMBER 15, 2004 DAILY DIGEST
Table of Contents:
1. Tuesday: MPs to Probe Government over BP Pipeline Safety Fears
2. Keeping Tbilisi Clean
3. Minister of Energy Thinks Shah-Deniz Natural Gas not Enough
4. Georgia’s Tumultuous Oil Fortunes
5. Greens Demand Restoration of ecological taxes
6. Society for Democratic Reforms (SDR)
7. Rumors on Earthquake in Armenia are “Information Terror”
8. About 135km of Irrigation Networks to be Restored and Created in
Yerevan in 2005
9. Yerevan’s Municipality Seriously Deal with Reservoirs Pollution
Problem
10. Some 80,000 Tones of Grapes Purchased in Armenia in 2004
11. FAO Provides Armenia with $400,000 for Mountainous Districts
Sustainable Development
12. US Embassy Provides $140 Thousand to Public Organizations of Armenia
for Development of Communities
13. Presentation of Guide “Basis of Human Development” Takes Place in
Yerevan
14. Conflicting Reports About Cause of Elephant’s Death
15. Bush Adds Countries Eligible for US Aid
16. Gas Pipeline from Iran
17. A Toxic Tannery in Garni
18. Mckinsey & Co Unveils Findings of a Research on Armenian Tourism
19. NGOs 2004 Conference and Exhibition
20. NGO AGAINST PESTICIDES
21. Armenia Report Shows Significant Decline in Poverty
22. A Day to Prevent Environmental Causes and Results of War
23. EIA Report Submitted to the Ministry of Environment of Georgia
`Asphalt-concrete Plant in Isan-Samgori, Tbilisi’ by the `Viragi’ Ltd.
24. EIA Reports Submitted to the Ministry of Environment of Georgia

1. TUESDAY: MPS TO PROBE GOVERNMENT OVER BP PIPELINE SAFETY FEARS

Press advisory from the Baku Ceyhan Campaign

Tuesday 16th November:

MPs probe government over BP pipeline safety fears

ECGD quizzed at Parliament Committee hearing

WHAT: Commons Trade & Industry Committee will cross-examine the Export
Credits Guarantee Department (ECGD) over its support for BP’s BTC
pipeline

WHEN: Tuesday 16th November, 9.30am

WHERE: Portcullis House, Thatcher Room

Followed by:

Press conference on evidence of pipeline safety, human rights fears

WHAT: Press conference summarizing evidence presented to Committee – on
safety breaches, and on human rights abuses connected with the project

WHO: Chaired by Simon Thomas MP

Presentations by senior project engineer, by campaigner recently
returned from Turkey, by independent investigator of BP cover-up of
critical internal reports WHERE, WHEN: Portcullis House, Room O,
immediately after the Committee hearing.

A government agency will come under scrutiny tomorrow for its role in a
controversial BP pipeline being built from the Caspian Sea to the
Mediterranean.

MPs will quiz the Export Credits Guarantee Department – which gave a £60
million guarantee to the project – over whether it took safety and human
rights concerns into account. Campaigners have accused the ECGD of
accepting BP claims at face value, and ignoring warnings of dangers.

The Committee, which will be cross-examining the head of the ECGD in
parliament on Tuesday, has received evidence from the Baku Ceyhan
Campaign and others, that ECGD failed to exercise proper supervision of
the project, and ignored internal BP reports of major environmental
risks. Failed design and construction measures could lead to a major oil
spill.

ECGD approved support for the project without even talking to project
staff who had accused the company of cutting corners on safety, and
failed to act on evidence of human rights abuses connected with the
project.

Campaigners and senior professionals who worked on the pipeline will
present their concerns at a press conference, chaired by Simon Thomas
MP, after the Committee hearing.

More information:

Anders Lustgarten, Baku Ceyhan Campaign: 07973 164 363

Greg Muttitt, PLATFORM: 07970 589 611

2. KEEPING TBILISI CLEAN

Source: The Messenger, November 9, 2004

The Sheraton Metechi Palace Hotel joined forces with the Tbilisi
Municipality early Saturday morning November 6, 2004 to assist the local
community in cleaning up Vera Park. The general manager of the hotel
said that the project was intended to be an example to Tbilisi citizens
to keep their city clean and tidy.

About fifty hotel associates and Tbilisi Municipality officials
participated in the project, leading the hotel to comment in its press
release that `the appearance of the Sheraton Metechi Palace staff and
management together with Tbilisi Municipality representatives in the
clean up of the park serves as a role model for Tbilisi community,
demonstrating how easy it is to take care of our surroundings.’

The hotel’s public relations director Tamriko Vardiashvili told The
Messenger that this is not first time the hotel has been involved in
such a project. `Our tradition is to help nature and do such projects
regularly. Our aim this time was to clean Tbilisi’s oldest park — Vera
Park – and we were greatly helped by Tbilisi Municipality to realize our
project,’ stated Vardiashvili.

General Manager of the Sheraton Metechi Hotel Richard Deutl said that
the hotel, along with Sheraton’s mother company Starwood Hotel, feels
greatly responsible for the community and the environment where they are
doing business.

Deutl told The Messenger that their aim was to show the community in
Tbilisi that cleaning parks and preserving the environment is not a
responsibility that can be left solely to the Municipality, or Sheraton
Hotel, but is the responsibility of each and every body.

`We wanted to set an example to our people. The environment concerns all
of us; it does not need a lot of effort or funds to keep a park clean
and tidy. It breaks my heart when I sometimes see people not caring for
their native environment. With today’s projects we want to set an exempt
for those individuals and support the local community,’ said Deutl.

Deutl stated that the hotel’s charitable activities are not limited to
the environment, but also include collecting money for children,
shelters and hospices. `It is very difficult to do in one particular
area because there are so many people in need and so many areas we can
help. We do not want to focus on just one issue. This was the first time
that we did this kind of project, but it will not be; nor will it be the
only kind of activity,’ stated Deutl.

Head of the City Serves Shalva Tskhakaia praised the hotel’s initiative
ad said he hoped it would set an example to others.

`I hope that it will be an example for other private companies and
organizations to similar things perhaps seen once a week. I also hope
that it will be an example for city residents too and that every
Saturday people will clean those places where children walk ad play. Our
main wish is to see such initiatives come from the population itself.
The Mayor’s Office will always support such proposals,’ stated
Tskhakaia, adding that the mayor’s office had helped both physically and
with equipment.

3. MINISTER OF ENERGY THINKS SHAH-DENIZ NATURAL GAS NOT ENOUGH

Source: The Messenger, November 10, 2004

On November 6, 2004 Minister of Energy Nika Gilauri gave an interview
with Prime News in which he skeptically evaluated the importance of
Baku-Erzerum natural gas pipeline for Georgia.

According to Mr. Gilauri, the amount of natural gas that will remain in
Georgia in lieu of transit tax will not fully meet the country’s demands
and so cannot be considered as a cheap alternative source, which can
replace the natural gas imported from Russia.

In his interview, Mr. Gilauri noted that only in 2007 would Georgia
begin receiving its free 5% of Shah-Deniz gas. Georgia will be able to
purchase a further 5% at reduced price of USD 55, but this is only $5
less than gas import from Russia by Gazprom.

Furthermore, as reported in Rezonansi, Mr. Gilauri notes that Georgia
uses approximately one billion cubic meters of natural gas annually and
expects that demand will increase in the future. According to the
schedule, around 200 million cubic meters are expected to pass through
the pipeline in 2006, meaning that Georgia will receive a paltry 20
million cubic meters, only a fraction of its requirements.

This situation leads the minister of energy to argue that the Georgian
side must participate in negotiations to directly import Shah-Deniz
natural gas from Azerbaijan before the project is activated because
otherwise Georgia will only be able to receive more gas in the unlikely
event that Turkey does not want its share. Mr. Gilauri’s comments
undermine the belief of some analysts that the Baku-Erzerum gas pipeline
will allow Georgia to gain energy independence from Russia.

4. GEORGIA’S TUMULTUOUS OIL FORTUNES

Source: The Messenger, November 11, 2004

A sharp increase in oil prices should encourage oil-producing countries,
but in Georgia production has noticeably decreased. Analysts note that
in the 2005 budget draft noting is allotted for oil precondition
Georgia. On the other hand, by next year the construction of the
Baku-Tbilisi-Ceyhan pipeline is scheduled to finish and Caspian oil will
transmit via Georgia to western markets.

Currently, there are 15 oil wells operating in Georgia. According to
geographic studies, the country has potential reserves of 2 billion
tones of oil. The country’s territory is divided into licensed blocks
for exploration. In eastern Georgia, the British-America company Canargo
is leading exploration and production, and in the Black Sea territorial
waters, the British company Anadarko-Georgia is conducting research.

But according to the Georgian newspaper Bankebi da Pinansebi (Banks and
Finances), oil production has markedly reduced in Georgia in the last 4
months. The paper notes that many oilrigs have halted operation.
Canargo’s well in Ninotsminda was closed as well because of a blowout
that damaged nearby villages. `It is said that oil wells are
deliberately closed,’ reports the newspaper, adding that it thinks that
these are `intrigues planned by large banks.’

Meanwhile, Georgia is waiting for the completion of the
Baku-Tbilisi-Ceyhan pipeline set for the mid-2005. Although the pipeline
is very close to being finished, protesters insist that the pipeline
poses a threat to the surrounding nature and on November 8, 2004 the
Academy of Science of Georgia and several NGOs presented a new demand
that the pipe be rerouted to less sensitive areas.

A more serious threat to the project lies outside of Georgia in England,
where The Sunday Times reported on November 7, 2004 `BP is on a
collision course with a parliamentary inquiry that it has misled over
the safety of a strategic international pipeline project baked with ?60m
of public money.’

According to the paper,’ The oil giant is withholding evidence,
including confidential laboratory results that cast serious doubt on the
project’s long term safety and a secret plan to bury the 1,000 mile oil
pipeline without fully testing it for leas.’

If MPs demand an independent audit, the pipeline could face major
construction delays forcing the company to carry the financial burden
that it hopes to transfer to other entities when the pipeline enters
operation.

One positive indicator is a new oil terminal under construction in
Qulevi near port of Poti. The terminal consists of 16 reservoirs and
Georgian analysts point together with the Batumi Oil Terminal. Both of
these terminals rely heavily on rail transit and the ability of the
country to manage and maintain its rail system.

5. GREENS DEMAND RESTORATION OF ECOLOGICAL TAXES

Source: The Messenger, November 12, 2004

Among the critics of the new tax code are Georgina’s Greens. They are
now demanding Parliament to reinstate the 11th clause of the code that
calls for a tax on pollution. The Greens argue that the abolishment of
the tax will only worsen the ecological conditions in Georgia.

According the tax code, already passed its first hearing in Parliament,
taxes on pollution that have been in place since 1993 will be abolished
According to the tax, entrepreneurs had to pay the tax for polluting the
air or water and any polluting material also had to be removed. In 1995
the budget gained USD 130, 000 from these taxes and in 2002 over USD 8
million.

The authors of the new tax code, as they were trying to decrease the
payload for taxpayers, abolished at least eleven taxes including the
ecological tax. Another argument against the tax was that it encouraged
corrupt agreements, but now the Greens claim that the abolishment of the
pollution tax practically frees those entrepreneurs who severely damaged
the environment from the responsibility.

Despite the fact that Georgian industry is practically ground to a halt,
environmental pollution is growing at a high tempo. The fact that many
large factories have shutdown leaving behind decaying hulks with now
environmental controls is one reason. Another is the profusion of micro
industrial on plants that do everything from breakdown scrap metal, to
process chemicals or trade oil products with virtually no outside
controls.

According to the Green’s data, annually 1,2 million tones of dangerous
products are released into Georgia’s skies, 408 billion liters of
tainted water is releases into the water table that then without any
cleaning us used for agricultural purposes and household consumption.

Greens are seeking the government not to allow the abolishment of the
pollution tax because it removes a method of punishment for business
that taint natural resources but it is also against Georgia’s
Environmental Protection drat laws.

Their chances of having any influence are slim but they strike accord
with many Georgians who value the county’s nature. Their only problem is
figuring out how to transform this love of nature into practical steps
to protect it.

6. SOCIETY FOR DEMOCRATIC REFORMS (SDR)

Address: AZ 1117, house 11/103, kvartal 5057-68, Bilajari, Baku,
Azerbaijan

Tel/fax: (+994 12) 441 38 20
Mobile: (+994 50) 323 70 24
E-mail: [email protected]

Date: November 14, 2004
Baku

PRESS RELEASE

The initial stage of the monitoring conducted by the Society for
Democratic Reforms within the project `Monitoring of Socio-Economic
Impacts of the BTC’ in Garadagh, Hajikabul, Agdash, Yevlakh, Ujar,
Kurdamir, Agsu, Kazakh, Tovuz, Goranboy, Samukh, Shamkir, and Agstafa
regions has finished. The first report on this stage has already been
prepared. Monitoring revealed that BTC Co. obligations on the Main
Export Pipeline (BTC MEP) construction, as well as the guidelines of the
World Bank, International Financial Corporation, European Bank of
Reconstruction and Development, and other international financial
institutions had been violated. As a number of important issues on
environmental and social fields were not resolved, it caused
dissatisfactions in the regions.

To see the whole text please see:

7. RUMORS ON EARTHQUAKE IN ARMENIA ARE “INFORMATION TERROR”

Source: ARKA, November 8, 2004

Rumors on earthquake in Armenia are “information terror”, the Head of
National Seismic Protection Service Alvaro Antonian stated today.
According to him, the information does not correspond to the reality
similar events cannot be forecasted.

The Chairman of Association of Armenian Seismology and Earth Physics
Sergey Balasanian noted that similar provocations existed earlier as
well, in 90s after Spitak earthquake. “I can assure that no one can
predict exact date of earthquake”, he said. Note today classes in some
schools were cancelled due to spread information on earthquake in
Armenia.

8. ABOUT 135 KM OF IRRIGATION NETWORKS TO BE RESTORED AND CREATED IN
YEREVAN IN 2005

Source: Arminfo, November 8, 2004

In total about 135 km irrigation networks will be restored and created
in Yerevan in 2005. Head of the Department of Nature Protection of
Yerevan’s municipality Romik Kosemian informed journalists.

According to him, the authorities will need 560 mln drams for
implementation of the program for restoration of irrigation networks.
About 270 mln drams from this amount will be allotted by community
budgets of the capital. “For the remaining amount the authorities of
Yerevan will appeal to the government of Armenia for a help”, Kosemian
noted. According to him, the restoration of the irrigation networks will
promote full irrigation of 600 ha of land areas. Besides, a program has
been elaborated for planting of trees and gardens in Yerevan’s park
Tsitsernakaberd and creation an irrigation network with the 7.5 km
length. According to him, this program will be aimed at prevention of
fires.

9. YEREVAN’S MUNICIPALITY SERIOUSLY DEAL WITH RESERVOIRS POLLUTION
PROBLEM

Source: Arminfo, November 8, 2004

Yerevan’s Municipality in cooperation with Environment Protection
Ministry and State Water Economy Department has drafted a program for
2005 to legislatively control the enterprises whose work directly effect
on the state of the capital’s reservoirs.

The head of the department Romik Kosemyan says that the program
envisages inspections at all the capital’s enterprises. 26 of 35
companies inspected in 2004 had no right for spillway. They were fined
and warned that unless they stop polluting reservoirs they will be
closed down. Process water treatment plants at 10 of 24 enterprises
proved to be inoperative.

There are some 12,000 enterprises in Yerevan.

10. SOME 80,000 TONS OF GRAPES PURCHASED IN ARMENIA IN 2004

Source: Arminfo, November 8, 2004

79.1 thousand tons of grapes were purchased in Armenia in 2004 as
against 50.9 thousand tons in 2003, Head of the Agriservice Department
of the Armenian Agricultural Ministry Mikael Grigoryan told ARMINFO.

He said that the greatest volume of grapes was purchased by Yerevan
Brandy Company (some 19,000 tons). Yerevan brandy-water-vodka plant
“Ararat” purchased 8.820 thousand tons. CJSC Artashat winery 8,000 tons,
AKZ LTD (winery in Ararat region) 6,500 tons, MAP – 5,520 tons. Head of
the department said that Great Valley company purchased insignificant
quantity of grapes and the remaining processing enterprises of the
country numbering two dozens. The average purchase price was 150 drams
per 1 kg, the “Areni” sort was purchased for 250 drams.

11. FAO PROVIDES ARMENIA WITH $400,000 FOR MOUNTAINOUS DISTRICTS
SUSTAINABLE DEVELOPMENT

Source: Arminfo, November 8, 2004

FAO has provided Armenia with almost $400,000 for implementing the
program “Sustainable Development of Mountainous Districts.”

At a working meeting today UN Resident Coordinator, UNDP Resident
representative Lise Grande said that the program is to develop economy,
enhance social equality and protect environment in the country’s
highlands. The program is expected to help the local population to
overcome poverty through optimal and effective use of natural resources.
The illegal felling of trees is leading to land degradation and
deteriorated agriculture. A relevant strategy will make accessible
drinking and irrigation water, key roads, markets and information in the
highlands.

The program director, deputy territorial administration and
infrastructure coordination minister Vache Terteryan says that a pilot
project will be implemented in the village of Aragats, Aragatsotn region
and the village of Brnakot in Syunik. The local residents will be
provided with food and technical assistance. The project will be carried
out for 2 years to provide a methodological basis for a program.

12. US EMBASSY PROVIDES $140 THOUSAND TO PUBLIC ORGANIZATIONS OF ARMENIA
FOR DEVELOPMENT OF COMMUNITIES

Source: ARKA, November 9, 2004

US Embassy provides $140 thousand to public organizations of Armenia for
development of communities in the frames of Community Self-Help Fund. In
the frames of the program 10 projects directed on restoration and
repairs of schools, kindergartens would be selected. At least 10% of the
budget of the project must be the assets of the community. Three-year
program Community Self-Help Fund is conducted by USAID since Nov 2003.

13. PRESENTATION OF GUIDE “BASIS OF HUMAN DEVELOPMENT” TAKES PLACE IN
YEREVAN

Source: ARKA, November 9, 2004

Presentation of guide “Basis of Human Development” took place in
Yerevan. The guide was developed by UNDP and Yerevan State University.
According to the dean of YSU Economic Faculty Haik Sargsian, it is a
unique guide, which represents analysis of principles of human
development and peculiarity of this condition in Armenia. According to
UNDP Regular Representative to Armenia Lise Grande, the idea of “human
development” lays in the base of UN activity. “GDP growth as we see on
the example of Armenia not always means successful human development”,
she said.

According to UNDP research, Armenia is recognized most progressive
country of the region on the index of human development. Armenia placed
82nd in the list of 177 countries. Azerbaijan took 91st position,
Georgia – 97th, Turkey and Iran are at 88th and 101st positions
respectively.

14. CONFLICTING REPORTS ABOUT CAUSE OF ELEPHANT’S DEATH

The Hindu, India
November 9, 2004
Our Staff Correspondent

There have been conflicting reports over the death of the eight-year-old
elephant Komala that was to fly out to Armenia as a Gift of Goodwill.’
The animal died on October 22, 2004 barely a few days before it was to
be gifted to Yerevan Zoo in Armenia.

It is learnt that the Forensic Science Laboratory (FSL) report received
by the Police Department rules out poisoning, while the member-secretary
of the Karnataka Zoo Authority, R.S. Suresh, today claimed that the
report that they received from Institute of Animal Health and Biological
suggested poisoning as the cause of death.

In the light of conflicting reports, the governing council of the zoo
decided to meet the Police Commissioner, Praveen Sood, to find out the
contents of the report submitted by the FSL.

Even as the reports were received by these two agencies, the governing
council of the zoo met here. The meeting was attended by the Principal
Chief Conservator of Forests, R.M. Ray; the executive director the zoo;
Manoj Kumar; the Mayor, Dakshinamurthy; and the zoo authority
chairperson, Susheela Keshavamurthy. While taking stock of the
situation, the meeting took the versions of the employees, who all along
have been demanding action against veterinary doctors for alleged
dereliction of duty. The closed-door meeting discussed steps to be
initiated to protect the animals and other measures to be taken to
improve the situation in the zoo.

Mr. Suresh told presspersons after the meeting that they had received
complaints from the employees against the veterinarians, and that some
had complained even against the zoo Deputy Director, Chandrashekar.
Measures, both administrative and security, had been taken to strengthen
the security at the zoo, and the security officer of the zoo,
Govindaraju’s services had been discontinued already, he said.

Mr. Suresh said that of the three doctors, one had been transferred
already, and measures were being taken to appoint another veterinarian
on contract. Meanwhile, the employees of Sri Chamarajendra Zoological
Gardens demanded action against the doctors in the light of the FSL
report.

15. BUSH ADDS COUNTRIES ELIGIBLE FOR US AID

Source: Agence France Presse – English, November 9, 2004

President George W. Bush has expanded a list of countries eligible for
US aid in 2005 under his Millennium Challenge Account program, White
House spokesman Scott McClellan said in a statement Tuesday.

Bush added Morocco to MCA-eligible nations Armenia, Benin, Bolivia,
Georgia, Ghana, Honduras, Lesotho, Madagascar, Mali, Mongolia,
Mozambique, Nicaragua, Senegal, Sri Lanka and Vanuatu, said McClellan.

Six other countries — Burkina Faso, Guyana, Malawi, Paraguay,
Philippines and Zambia — were declared eligible in 2005 for Threshold
Program grants designed to help them qualify for MCA monies, the
spokesman said.

They will join Timor-Leste, Kenya, Sao Tome, Tanzania, Uganda and Yemen.

To be eligible for money from the so-called Millennium Challenge Account
— expected to total five billion dollars by 2006 — countries must
demonstrate commitment to three standards: ruling justly, investing in
their people and encouraging economic freedom.

16. GAS PIPELINE FROM IRAN

Source: Petroleum Economist, November 9, 2004

The government is discussing co-operating with Gazprom over building the
140-km gas pipeline from Iran. Construction of the Armenian section was
due to begin before the end of October.

17. A TOXIC TANNERY IN GARNI

Source: INVESTIGATIVE JOURNALISTS OF ARMENIA / HETQ ONLINE, November 10,
2004

“When we reached the village, we saw that waste water was flowing
through the village streets; the stench was unbearable. It was an
unsanitary situation, to say the least,” recalled Derenik Mkhitaryan,
the head of the Kotayk Marzpet’s Office’s Department of Agriculture and
Ecology. This stench was emanating from Garni, famous for its
four-thousand-year-old pagan temple. The sewers were blocked, and
chemical waste from the local tannery flooded the village. After the
National Security Service sounded the alarm, officials from the
Marzpet’s Office visited the tannery to find out what was going on.

The tannery, Sazovar Ltd., was established in the early 1990s in a barn
that had been built thirty years earlier. It is owned by Samvel
Harutiunyan, Gagik Yeghiazaryan, and Zorik Grigoryan. When we visited
the factory it looked abandoned; there was a pile of hides on the floor
and some outdated equipment. We were accompanied be a relative of one of
the owners, Garnik Yeghiazaryan. Their accountant, Atom Martirosyan,
answered our questions. “Yes,” he admitted, “Sometimes people here
complain about the smell.” The accountant noted that they were repairing
the blocked sewer. It is possible, meanwhile, that extremely toxic
substances have already mixed with the local drinking water. And the
seepage of contaminated water into farmland may have tragic
consequences.

As long ago as 1999, villagers complained in writing to the local mayor.
The mayor himself confirmed that such an alarm had been raised and
urgent measures had been taken to keep the toxic waste out of the
drinking water supply. That was five years ago, but the problem is still
all too real for the people of Garni.

The head of the Abovyan Inspection Service of the Ministry of Ecology,
Mkrtich Vanoyan, noted that his agency plans to carry out an inspection
of the factory at the end of this year. But the deputy head of the State
Anti-Epidemic Sanitary Inspection of the Ministry, Marietta Basilisyan,
explained, “In the past, a company like that could only be licensed
after they received a positive evaluation from our inspectors. This
procedure has not been in place for a few years now, ‘so as not to
create additional obstacles for producers.’ But a necessary condition
does exist now- when a manufacturer is licensed, it must inform our
agency and be registered by us. Often, businesses conceal the fact that
they have been licensed and operate secretly, underground. We haven’t
been informed about the factory in Garni at all. We haven’t heard of it
or received any complaint in writing.”

The tannery has successfully avoided any control by state agencies,
control that they say “complicates matters.”

The accountant assured us that they have certain documents but didn’t
show them to us, saying, “They are kept by the director and he is not
here.”

We found out that Sazovar, Ltd. received permission from the Agency on
Water Resources Management of the Ministry of Ecology to use water from
the village drinking water network, along with a document outlining
permissible limits of discharge into the local sewer system. This
system, by the way, flows into the Garni Gorge so popular with locals
and tourists alike.

Srbuhi Harutiunyan, chairman of the Social and Ecological Association,
told us that dangerous substances were used in the tanning process.
“6-valent chromium compounds and acids are used. When working with
6-valent chromium, the factory must have a local station with proper
equipment for preliminary purification. The purification station can be
build only after the design has been approved by the corresponding
services of the Ministries of Ecology and Health. In such stations,
hazardous substances must be ‘fished out’ of the waste and salvaged. If
the salvaged substances are dangerous for the environment by their
chemical composition, they must be reprocessed, after which they should
be transported to another location. Permission for this is given by
officials from the sanitary service of the Ministry of Ecology.”

In the past, in order to open a tannery, a company had to submit a
design that included a description of the purification equipment to be
used. The design had to be approved by the local sanitary agency, which
would then supervise construction and be involved in the opening of the
factory. Today, this procedure is no longer followed.

Was Sazovar Ltd. given permission or supervised when it went into
operation years ago?

To find out, we went to the head of the Abovyan branch of the
Anti-Epidemic Sanitary Inspection of the Ministry of Ecology, A.
Melikyan. He told us, “The factory has been in operation for a long
time. I can’t say whether they have permission or not.” It turned out
that years ago, an inspection of the Garni tannery was conducted by the
Department of Ecology of the Kotayk Marzpet’s Office. The inspection
revealed that the factory didn’t meet sanitary and ecological standards.
There was no purification equipment; toxic waste was dumped into the
sewer system, and flowed from there into the Garni Gorge. Following
this inspection, production was shut down and the owners promised to dig
septic pits to purify the waste. We weren’t shown these pits, although
we were assured that they existed.

The fact is, the tannery in Garni violates every safety standard. “Even
if septic pits exists, it doesn’t matter, they represent time bombs not
only for this village, but for the entire population of the republic,”
Srbuhi Harutiunyan warned. “In accordance with existing anti-epidemic
and sanitary standards, the use of ‘absorbing pits’ is forbidden, since
substances that are extremely hazardous to the health mix with
groundwater and penetrate agricultural fields and pastures. They can
penetrate below the earth-crust into deeper layers to reach the Ararat
Valley from Garni, and even farther.”

18. MCKINSEY & CO UNVEILS FINDINGS OF A RESEARCH ON ARMENIAN TOURISM

Source: ArmenPress, November 10, 2004

Funded by 2020 Project, McKinsey and Co consulting agency is developing
a project on prospects of tourism development in Armenia. The agency is
supported by the Armenian Ministry of Economy and Trade and AEPLAC.

Yesterday the head of McKinsey, Andreas Mershner, Moscow office manager
Avetik Chalabian and an adviser Nikolai Shikhvtsov unveiled their
findings in Armenia Mariot hotel. The presentation was attended by
representatives of respective agencies, travel agencies, public and
donor organizations.

According to Shikhovtsov, the rise in the number of tourists from 41,000
in 1999 to 206,000 in 2003 is very impressive. Some 30% of increased
tourist flow was connected with celebrations of Christianity as a state
religion in Armenia. However, this indicator is by three times lower
that Armenian used to have during the Soviet Union. In the words of the
adviser, a concerning fact is that only 15% of the visitors are “true
tourists.”

According to McKinsey research findings, only Yerevan is in the position
to provide proper facilities to international travelers. Other regions
of Armenia lack such. According to A. Chalabian, the size of investment
in tourism industry is not small but it should be coordinated.
Otherwise, they may yield short-term results.

19. NGOs 2004 CONFERENCE AND EXHIBITION

Source: Armenian NGO News in Brief – 10/11/2004

On October 15-17, 2004 the Academy for Educational Development, with
financial support of USAID and in collaboration with World Learning and
the AAA NGO Training and Resource Center, organized the NGOs 2004
Conference and Exhibition. Almost 280 NGOs from all regions of Armenia
participated in this event, introducing their programs and discussing
new ways of networking with stakeholders. Representatives of state
structures, international and donor organizations and experts also
participated in the event, which highlighted various sectors of NGO
activities. NGO representatives shared their experience and knowledge
and discussed common issues. Among the topics addressed during 14
working sessions/roundtables of the conference were NGO Collaboration
with State and Local Governments, NGO Collaboration with International
Donor Organizations and Diaspora, NGO Collaboration with the Business
Community and Mass Media, Developing Regional and Community-Based NGOs,
NGO Code of Conduct, NGO Legislation, NGOs and Poverty Reduction, NGOs
and Fighting Against Corruption. During the conference, NGOC specialists
A. Lazarian, N. Harutiunyan and A. Kurdova spoke respectively on the
Armenian Picture of NGO-Business Cooperation: Analysis and Suggestions;
Strategic Approach to Fundraising; NGO Legislation and Taxation.

Contact: Academy for International Development
10 Aygedzor St.
Tel.: (374-1) 26-69-36; 26-69-87
E-mail: [email protected]
Website:

20. NGO AGAINST PESTICIDES

Source: Armenian NGO News in Brief – 10/11/2004

On October 11, 2004, on the initiative of the Armenian Women for Health
and Healthy Environment NGO, a theatrical performance was held in the
Verin Dvin village school of Ararat marz. The performance, the message
of which was using foods free of pesticides, was part of the NGO’s For A
Toxic-Free Future In Armenia project. Its goal is to reduce the risk of
exposure of pesticides on human health and environment in Ararat marz.
Dissemination of fact sheets, information sheets, posters, newspaper
articles and organizing TV programs and performances are aimed at
raising the awareness of the population of ten villages on pesticides
and their harmful impact on health. To promote cooperation with local
and regional authorities, healthcare institutions and NGOs, seminars,
lectures and other meetings on the topic Preventing Exposure of
Pesticides are organized. The project is implemented with financial
assistance received from AAA NGO Center through USAID.

Contact: Elena Manvelyan
Armenian Women for Health and Healthy Environment NGO
24 Saryan St., #65
Tel.: (374-1) 62-66-20
E-mail: [email protected]

21. ARMENIA: REPORT SHOWS SIGNIFICANT DECLINE IN POVERTY

Source: Eurasianet Organization, November 10, 2004

A recent economic survey in Armenia, showing a significant decline in
the number of citizens living in poverty, has placed President Robert
Kocharian’s administration in a somewhat awkward position. While
Kocharian has been eager to show Armenians that living standards are
improving, the report’s findings could complicate the Armenian
government’s efforts to secure international aid for poverty-reduction
programs.

The annual survey of household incomes by the National Statistical
Service, a non-governmental agency, contained a full range of startling
statistics. Among the most surprising: the percentage of Armenians
living below the poverty line fell from 50 percent in 2002 to 42.9
percent in 2003. Similarly, the number of poorest Armenians – those who
earn less than 7,742 drams (about $15) per month – also took a
surprising plunge — from 13.1 percent of the population in 2002 to 7.4
percent in 2003. At the same time, the survey indicated that the
country’s income gap between rich and poor narrowed slightly.

The statistics reveals that the poverty reduction rate in Armenia far
exceeds the government’s projections as outlined in its Poverty
Reduction Strategic Paper (PRSP) released earlier this year. In the
PRSP, for example, officials estimated that that it would take until
2012 before the so-called “very poor” could be reduced to less than 8
percent of the population. The NSS figures show that this benchmark has
been surpassed a full eight years ahead of the government’s schedule.

Given the NSS findings, questions are already being raised about the
accuracy and potential effectiveness of the government’s anti-poverty
blueprint. While officials have been happy to tout the reduction in
poverty, already one government minister has disputed the NSS findings.
At a recent news conference, Vardan Khachatrian, the minister of finance
and economy, described the results as difficult to trust and too
optimistic.

Some economic experts share Khachatrian’s doubts. “I cannot see the
reasons which could bring about such a drastic change in the percentage
of the population made up by the very poor,” said Ruben Yeganian, a
researcher at Yerevan’s Institute of Economic Problems. The decrease
was particularly improbable for 2003, when Armenia’s inflation rate
soared in response to an increase in foreign grain prices, Yeganian
asserted. That year, bread prices increased by 31 percent between
January and December, causing an overall 8.6 percent increase in the
consumer price index, compared with a 2-percent rise the previous year.

A recent report by the International Crisis Group (ICG) echoes
Yeganian’s assessment. The October 18 study, titled “Armenia:
Instability Ahead,” states that while the market reforms of the 1990s
may mean Armenia is now enjoying a relative boom, relatively few
Armenians have seen a vast improvement in living standards. “The
benefits of economic recovery are not equally shared,” the report found.
“There is little sign of poverty decreasing.” [For additional
information see the Eurasia Insight archive].

Contradicting the NSS, the ICG report cited statistics that show 55
percent of the population lives in poverty, with wealth concentrated in
Yerevan and in “circles close to the government.” Meanwhile, the exodus
of educated, well-trained workers — one of the main obstacles to an
Armenian economic comeback — continues. Favored labor markets include
Russia, Central Europe, Ukraine and Turkey, where potential salaries are
higher than the $78 average monthly salary to be had in Armenia.

The poverty issue has figured prominently in the ongoing power struggle
between Kocharian and opposition political parties. [For background see
the Eurasia Insight archive]. In an attempt to outflank his critics,
Kocharian unveiled a 12-year plan for fighting poverty in June. Yeganian
speculated that the government might have cast doubt on the NSS findings
in order to prevent a decrease in foreign aid programs. An additional
factor feeding official concerns, Yeganian suggested, is the decrease in
value of the US dollar against the Armenian dram over the last year. As
a result, the incomes of Armenians, when denominated in dollars, appear
to have increased.

The Armenian government counts heavily on international aid to promote
economic stabilization efforts, including anti-poverty programs. Armenia
hopes to receive $100 million for various economic development schemes
in 2004 from the US Millennium Challenge Account program, aid monies
that are contingent the country’s record for democratic reform and human
rights. Also in support of Kocharian’s agenda, the World Bank has
pledged to deliver $250 million by November 2004 for work on rural
schools, infrastructure and irrigation systems.

Some representatives of the NSS themselves have admitted to being caught
off guard by the survey’s results. Hovik Hohannisian, head of Food
Security Statistics, raised questions about the criteria used to
determine who is “very poor,” saying that the food basket used to
determine purchasing power was actually more like a “bread basket.”

Meanwhile, one of the country’s main creditors, the World Bank, said it
saw no reason to doubt the NSS data, the Bank’s Yerevan spokesperson,
Vigen Sargsian, told EurasiaNet. Aside from the World Bank, the NSS’s
data is routinely cited by international organizations, including the
International Monetary Fund. The NSS also receives advice from
representatives of the European Union and the US Agency for
International Development.

Editor’s Note: Haroutiun Khachatrian is a Yerevan-based writer
specializing in economic and political affairs.

22. A DAY TO PREVENT ENVIRONMENTAL CAUSES AND RESULTS OF WAR

Source: Environment News Service (ENS), November 13, 2004

“Across the developing world and the countries of the former Soviet
Union, old chemical stockpiles, aging nuclear reactors, damaged and
decaying factories and other assorted environmental time bombs are
ticking,” said Klaus Toepfer, executive director of the United Nations
Environment Programme on Saturday. Marking the third annual
International Day for Preventing the Exploitation of the Environment in
War and Armed Conflicts
<;, Toepfer said
these time bombs create instability between communities and neighboring
countries.

“Many factors” underlie decisions by countries to engage in armed
conflict, said Toepfer, acknowledging “opposing ideologies, ancient
enmities and a scramble to plunder natural resources such as timber,
minerals and oil.”

But, he said, “it is the view of the United Nations Environment
Programme (UNEP), increasingly shared by others, that environmental
degradation and a scarcity of healthy natural capital plays an important
role too.”

If we are to prevent the environment becoming a victim of war, said the
UNEP leader, “then equally we need to ensure that pollution,
contamination and other environmental woes do not play their part in
triggering conflicts in the first place.”

A new report produced by UNEP in collaboration with the United Nations
Development Programme and the Organization for Security and Cooperation
in Europe, focuses on environmental hot spots in the southern Caucasus
countries of Armenia, Azerbaijan and Georgia.

Environmental degradation can undermine local and international security
by “reinforcing and increasing grievances within and between societies,”
the report says.

Eight environment and security priority areas are highlighted – the
Black Sea coastal zone, South Ossetia, the Ararat and Valk valleys, the
Greater Baku region and the Kura River estuary, and southern Caspian sea
coast.

Joint projects to clean up sites, treaties to better share resources
such as rivers and forests, and strengthening cooperation between the
different countries ministries and institutions may hold the key to
building trust, understanding and more stable relations.

“The work could become a blueprint for early warning for environment and
security initiatives elsewhere in the world,” said Toepfer.

Nongovernmental organizations from around the world used the occasion of
the International Day for Preventing the Exploitation of the Environment
in War and Armed Conflict to draw attention to the dangers of depleted
uranium weaponry.

Petition drives, lobbying visits, symposiums, photo exhibits, and
marches took placed in Belgium, England, Italy, Japan, the Netherlands
and the United States.

The petitioners seek an international treaty and Convention banning
depleted uranium weapons.

Depleted uranium is both radioactive and chemically toxic. Evidence of
environmental and human health damage caused by depleted uranium has
increased, despite government assertions that such impacts would not
occur. Depleted uranium weapons cause widespread, long lasting and
severe contamination to the sites of their production, testing and use.

Henk van der Keur of the Laka Foundation in the Netherlands said, “The
numbers of innocent victims exposed is incalculable and in direct
violation of the International Laws of War.”

UN Secretary General Kofi Annan called for environmental rules to govern
the conduct of modern warfare, in his speech marking the the first
observance of the International Day for Preventing the Exploitation of
the Environment in War and Armed Conflict on November 6, 2002.

The United Nations is now regularly invited to assess how conflict
affects the environment, Annan pointed out. “Such missions have
identified a wide range of environmental consequences of war, including
pollution from oil and chemical leaks caused by bombing; the unregulated
plunder of natural resources by armed forces; the danger to land,
livelihoods and lives caused by landmines, unexploded ordnance and other
war debris; and the negative impact of mass population movements on
water, biodiversity and other ecosystem services.”

“International conventions govern nuclear, chemical and biological
weapons, but new technologies – such as depleted uranium ammunition –
pose as yet unknown threats to the environment,” Annan said.

“The lesson to be drawn is that modern warfare needs environmental
rules, just as earlier wars highlighted the need to regulate the impact
of war on civilians and prisoners of war,” said the secretary-general.

The NGOs say their actions and the petition campaign will continue until
the realization of an international treaty banning uranium weapons. The
International Coalition to Ban Uranium Weapons will use the petitions in
an appeal to the European Parliament and other international bodies such
as the United Nations and will use them at forums such as the
Non-Proliferation Treaty meeting in New York and the UN Disarmament
Committee meeting in Geneva next spring.

“It is imperative that the U.S. and the international community
explicitly address DU as unconventional weaponry, and take steps to halt
its proliferation and stop its production and use,” said Tara Thornton
of the Military Toxics Project, a nongovernmental organization based in
the United States.

To prevent environmental problems from becoming causes of war in the
first place, the UNEP initiative is using novel mapping methods that
link environmental problems with factors such as population movements
and socio-ethnic mix in order to pinpoint key areas where tensions could
turn to turmoil.

As part of UNEP’s new science initiative, governments have requested
more in depth studies, and Toepfer said the first of them is likely to
focus on the war-torn Great Lakes region of Africa.

Located in eastern Africa, Africa’s Great Lakes region includes
countries surrounding Lake Kivu, Lake Tanganyika, and Lake Victoria.
Burundi, Kenya, Rwanda, Tanzania, and Uganda have a combined population
of 107 million people.

The climate and rich volcanic soils in the highlands sustain intensely
cultivated croplands, encouraging the growth of human population. This
increased population is competing for habitat used by endangered species
such as the mountain gorilla and the forest elephant.

Toepfer expressed the hope that, “armed with more sound science, we can
use the environment as a new peace policy for the 21st century so that
it emerges as less the passive victim and more the active broker of a
more stable and less war ridden world.”

To find out more visit:

The International Coalition to Ban Uranium Weapons is found at:

23. EIA REPORT OF THE ASPHALT-CONCRETE PLANT IN ISAN-SAMGORI, TBILISI
SUBMITTED BY THE `VIRAGI’ LTD.

Source: `Sakartvelos Respublica’ (`Republic of Georgia’), November 11,
2004

In accordance with the Georgian legislation, `Viragi’ Ltd. submitted EIA
report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of first category — EIA Report
of the Asphalt-concrete Plant in Isan-Samgori, Tbilisi.

EIA report is available at the press-center of the Ministry of
Environment (68, Kostava str., VI floor) and at the Department of
Environmental Permits and State Ecological Expertise (87, Paliashvili
Str., Tel: 25 02 19). Interested stakeholders can analyze the document
and present their comments and considerations until October 26, 2004.

Public hearing will be held on December 28, 2004 at 12:00, at the
conference hall of the Ministry of Environment.

24. EIA REPORTS SUBMITTED TO THE MINISTRY OF ENVIRONMENT OF GEORGIA

Source: `Sakartvelos Respublica’ (`Republic of Georgia’), November 12,
2004

In accordance with the Georgian legislation, `Okhiri’ Ltd. submitted EIA
report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of second category — Project of
the `Lomisi’ Mineral Water Bottling Plant in Akhalgori, Village
Pavliani.

In accordance with the Georgian legislation, `Nori’ Ltd. submitted EIA
report to the Ministry of Environment of Georgia to obtain an
environmental permit for the activity of first category — EIA Report
of the Oil Processing Mini Plant in Gardabani Region, Village Nori..

EIA report is available at the press-center of the Ministry of
Environment (68, Kostava str., VI floor) and at the Department of
Environmental Permits and State Ecological Expertise (87, Paliashvili
Str., Tel: 25 02 19). Interested stakeholders can analyze the document
and present their comments and considerations until December 28, 2004.

Public hearing will be held on December 28, 2004 at 12:00, at the
conference hall of the Ministry of Environment.

*******************************************
CENN INFO
Caucasus Environmental NGO Network (CENN)

Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
URL:

http://www.cenn.org/info/Press-release121_14.11.2004_Eng.doc
http://www.aed.am
http://www.un.org/depts/dhl/environment_war/index.html&gt
http://www.un.org/depts/dhl/environment_war/index.html
http://www.bandepleteduranium.org/
www.cenn.org