CENN – DECEMBER 9, 2004 DAILY DIGEST
Table of Contents:
1. BTC Construction Preserves
2. Eurasia Foundation Pledges $2 Million in Grants for 2005
3. Authorities Vow To Dismantle Another 15 Illegal Petrol Stations
4. Nuclear and Radiation Safety Armenia’s State Priority
5. Gas alternative guarantees independence
6. Agreement on Sale of Zangezur Plant to be Signed After December 13
7. Gyulkassyan’s Group Implements USDA-CARES -ICAR-CAC Project
8. European regional meeting is being held in Yerevan
9. Award Announced for Young Ec-Heros
1. BTC CONSTRUCTION PRESERVES
Source: The Messenger, December 8, 2004
The construction of the Georgian segment of the BTC pipeline is
scheduled to be finished by March 2005 and despite two recent
business setbacks for the overall pipeline construction in Georgia is
progressing.
After the completion of the Georgian section the pipeline in Turkey must
also be completed and then filled with oil. As soon as BTC
begins operating, construction will begin on the parallel Shah-Deniz
natural gas pipeline project. The implementation of the both
projects is of vital political and energy security spheres.
Although the pipeline is nearing completion – Natik Aliev, head of the
State Oil Company of the Azerbaijan Republic (SOCAR), told
reports in late November, `We expect the Azerbaijani section to be
launched in January and the Georgian section in March,’
problems have also surfaced in the overall business plan.
At the same press conference, Aliev announced that construction costs
have increased over preliminary estimates. He noted, ‘Turkey
assures us that its section will be ready by the end of March, although
BTC shareholders are a little pessimistic.’ Also in November, a
British parliamentary committee held a hearing relating to the
pipeline’s safety standards, though little new revelations or
accusations
were made.
More serious business issues are that last week one of the largest
Italian banks – Banca Intesa announced it was selling its share in the
financing of the pipeline. The Financial Times reported that the bank
was selling hits stake at a loss from the original loan amount.
Another setback came when ExxonMobile announced it was signing contracts
to ship crude oil by rail over next five years. thus
skirting the BTC. UK’s Sunday Times described the move as `American
penny pinching’ that `is as much a political embarrassment
as a financial blow to BP.’
But despite these setbacks, they cannot hinder the successful completion
of the pipe. A solid core of investors – and governments –
are keenly interested in its operation and price increases can be easily
defrayed thanks to the high price of crude in the world market.
In Georgia, the president of GIOC (Georgian International Oil
Corporation) Nika Vashakidze tells the paper Rezonansi that BTC
construction has played an important role in developing the Georgian
economy. Most of the investments have already been made in
connection to the project he states; adding that new jobs were created
and a variety of Georgian companies were involved in its
construction.
The operation of BTC will also deliver budgetary revenues and increased
global importance of Georgia. Once the sister pipeline
Shah-Deniz starts pumping natural gas to Turkey via Georgia, the country
will significantly strengthen the security of its natural gas
supply system. According to current calculation Azeri natural gas could
reach Georgia by the end of 2006, thus giving Georgia a viable
alternative to Russian Gazprom supplies.
2. EURASIA FOUNDATION PLEDGES $2 MILLION IN GRANTS FOR 2005
Source: ArmenPress, December 6, 2004
The director of the Eurasia Foundation Armenia office, Ara Nazinian,
told at the news conference last Friday that the Foundation
plans to provide Armenian non-governmental organizations with around $2
million grants next year. Since its inception in Armenia in
1995 the Foundation has made available some 600 grants totaling $20
million.
The bulk of that money came from the USAID, other major donors were
well-known Armenian Diaspora financial
organizations-Lincy Foundation, Kafesjian and Izmirlian Foundations, as
well as the Open Society Institute.
In the outgoing year the Eurasia Foundation has funded 70 projects with
a total budget of $1.5 million and has approved another 25
new projects worth some $600,000. Almost two third of funding goes to
NGOs working in Armenia’s regions. Ara Nazinian said the
policy of the Foundation is to shift the work and investments from the
capital Yerevan to regions.
He said the main focus of next year’s projects would be on projects of
regional importance, which will cover improvement of business
environment, development of local self-management bodies, improvement of
conditions of local mass media and introduction of high
technology in higher educational system.
Along with that the Eurasia Foundation will fund all other projects that
contain innovations and tend to strengthen of democratic
society.
3. AUTHORITIES VOW TO DISMANTLE ANOTHER 15 ILLEGAL PETROL STATIONS
Source: ArmenPress, December 6, 2004
Yerevan authorities have vowed to dismantle another 15 petrol-filling
stations by the end of the year, which were built in violation of
rules. A municipality official said the authorities started drawing the
overall inventory last spring and have so far closed or dismantled
100 such stations, kiosks, car washing points and other outlets. He said
after a thorough study some other petrol filling stations would
be pulled down.
He said the goal of the inventory is to identify illegally operating
outlets, to dismantle those that were built in violation of the accepted
standards.
4. NUCLEAR AND RADIATION SAFETY ARMENIA’S STATE PRIORITY
Source: ITAR-TASS News Agency, December 6, 2004
Yerevan, December 6 — The nuclear and radiation safety is now among
Armenia’s state priorities. This is defined by amendments to
the republic’s law On Safe Peaceful Uses of Nuclear Energy that was
passed by Armenian parliament and was signed by President
Robert Kocharyan on Monday, Itar-Tass learned from the Armenian
president’s press service.
The Armenian legislation is amended to bring it in accordance with the
safety standards of the International Atomic Energy Agency
(IAEA).
Under the law, only the republic’s citizens can assume the posts that
entail responsibility for the safe functioning of nuclear facilities.
The law requires the tightening of control over nuclear materials and
protection of nuclear power plants. The law on insolvency
(bankruptcy) does not apply to the Armenian nuclear power plant.
The nuclear power plant that went into operation in 1979 was shut down
in 1989, several months after the devastative earthquake.
The plant was reactivated with the participation of Russian specialists
in 1996, and industrial operation of the second reactor was
resumed.
Electricity generated by the nuclear power plant now accounts for 38
percent of Armenia’s energy balance. The European Union
demands that Armenia shut down the plant. The Armenian authorities
believe this could be possible only if there were alternative
sources of energy.
>From last year, the management of the financial and economic activity of
the nuclear power plant went to InterRAO UES, the
subsidiary of RAO UES, the Unified Energy Systems of Russia.
5. GAS ALTERNATIVE GUARANTEES INDEPENDENCE
Source: Yerkir/arm, December 3, 2004
Start of construction of Iran-Armenia gas pipe is now a reality. The
negotiations that started back in 1992 are now in the history and
the 141 km long pipe will now raise the energetic independence of our
country.
The Iran-Armenia gas pipe will be an alternative source in situations,
when our country runs into blind alleys, which was the case in
1992-94. Note that gas provides energy to 35-40 per cent of Armenian
production. Naturally, explosions of the only gas pipelines
cause emergencies, which will be avoided due to the new pipe.
In addition, the new pipe will spur competition with the Russian gas
pipe that will get a grip on the prices. Another way for cheap gas
can be the Turkmenistan gas coming through this new pipe. By 2007
Armenia will import from Iran a quantity of gas equal to what it
now imports from Russia. And the quantity is supposed to double it by
2019.
The expenditures will be 220 million dollars, out of which Armenia will
need to pay 30 million (via a credit from Iranian bank).
Later on, it will be necessary to construct a pipe through
Kajaran-Sisian-Jermuk-Ararat-Yerevan will cost 90 million dollars.
Possible
sponsors are now being negotiated.
Another planned project is construction of a hydro power station on
Araks river, which will also be probably sponsored through
Iranian bank loans.
In addition, it is likely that not only factories will be consuming the
gas from Iran but also the regular population, 70 per cent of which
is now deprived of such facilities.
6. AGREEMENT ON SALE OF ZANGEZUR PLANT TO BE SIGNED AFTER DECEMBER 13
Source: ArmenPress, December 7, 2004
Armenian trade and economic development ministry said the agreement with
Germany’s Cronimet on purchase of 75% of shares in
Armenia’s Zangezur copper and molybdenum plant will be signed after
December 13, 2004. Earlier minister Karen Chshmaritian said
it would be signed by December 5. The ministry said the agreement is
being now finalized. Under the deal the German company will
pay $132 million for 75% of the stock.
Half of the remaining stock (12.5%) will be transferred to Armenian
Molybdenum Production (AMP), set up last year in Yerevan to
process molybdenum; the other 12.5% will go to management company
Zangezur Mining, created recently by the plant’s workforce
and administration.
Cronimet has said it is ready to credit AMP and Zangezur Mining to
enable them to acquire their portion of stock. Cronimet owns
48% of the stock in Yerevan’s Pure Iron, which processes molybdenum
concentrate produced by Zangezur plant.
7. GYULKASSYAN’S GROUP IMPLEMENTS USDA-CARES -ICAR-CAC PROJECT
Source: ArmenPress, December 7, 2004
In May 2004, the Laboratory of Plant Genetic Resources at the Armenian
Agricultural Academy (AAA) was provided with a grant
from USDA CSREES International Cooperation for Agricultural Research
(ICAR) in Central Asia and the Caucasus (CAC) Project
() to implement
its research proposal on “Conservation and utilization in
breeding of wild relatives of cereals in Armenia”.
According to Michael Gyulkhasyan, head of the group, the main goal of
the project is to conserve genetic resources of wild cereal
relatives and save the unique plant gene pool in Armenia. Wild wheat
samples were collected during the expeditions in Ararat and
Vayots Dzor marzes, and Erebuni reservation in Yerevan. Usage of these
wild cereal species as initial breeding materials and crossing
them with cultivated varieties will create new hybrids with economically
important features, such as resistance to diseases, pests, and
drought.
The AAA group collaborates with Kansas State University within the
project. According to Dr. Gyulkhasyan, USDA CSREES ICAR
provides an excellent opportunity for Armenian agrarian research
institutions to achieve breeding improvements and introduce these
achievements into breeding practice. Professor Gyulkhasyan’s project was
one of the three winners from the 125 project proposals.
The project started with a visit by USDA CSREES ICAR, Washington State
University and CYMMIT representatives. It’s a
two-year project and will continue next year.
8. EUROPEAN REGIONAL MEETING IS BEING HELD IN YEREVAN
Source: Azg/arm, December 8, 2004
The convention signed in Iranian Ramsar city in 1971 is the only one
that is directed to preservation of concrete eco-systems, in the
given case, the preservation of wet territories, the dwelling places of
water birds. Armenia joined this convention in 1993, representing
the Lake of Sevan and the Arpi Lake with its neighboring swamps in the
list of preservation and restoration. In the course of the
membership the fund of the convention financed 4 Armenian projects.
A new project was elaborated for the Javakhk areas of special
preservation. KFW bank will allocate $2,2 million for the
implementation of the project.
European regional meeting is being held in Yerevan on December 4-8. 70
foreign ecology experts are participating in the meeting. The
participants of the conference will visit the national part of Sevan,
Ayrivank and Sevan Hydro.
9. AWARD ANNOUNCED FOR YOUNG ECO-HEROES
Are you a Young Eco-Hero? Do you know a Young Eco-Hero?
Action for Nature (AFN) is seeking applications from students from
around the world 8 to 16 years old for its 2005 International
Young Eco-Hero Awards Program. This program recognizes the individual
accomplishments of young people who have carried out
environmental action projects. Projects must concern environmental
action, advocacy, environmental health, research, or protection of
the natural world.
For a printable version of a flyer about Young Eco-Hero Awards Program
click:
Cash prizes up to $500 will be awarded. Applications must be postmarked
by February 28, 2005.
Click on for
guidelines and an application form. There you can also find
information about the 2003 and 2004 award winners.
The 2004 award winners include Janine Licare (14), who helps to save
endangered animals in Costa Rica; Christina Faust (16) of
Georgia, who studies the vegetation around streams to better understand
how plants contribute to the streams ecosystem; and Salaar
Khan (11) of Pakistan, who influences his neighbors to use cloth bags
and eliminate the toxins created when plastic bags are burned.
Action for Nature is an environmental, education and advocacy non-profit
that encourages young people to take personal action to
better the environment, and to foster love and respect for nature.
Based in San Francisco, California, the board and staff of Action for
Nature believe that the long-term health of our planet requires that
young people learn the importance of understanding and caring for
the natural world.
Contact information: (post cards & flyers available from)
Action For Nature, 2269 Chestnut Street, #263, San Francisco, CA 94123,
USA
E-mail: awards@actionfornature.org
Visit us at
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