NEW PIPELINE IN THE PIPELINE
By Christina Tashkevich

The Messenger, Georgia
Nov 13 2006

As part of the government’s plan to ensure the country’s energy
security, a USD 45 million rehabilitation of the North-South gas
pipeline is about to begin, announced Millennium Challenge Georgia
(MCG) on November 8.

"Preparatory works are over and the actual rehabilitation is about to
begin," CEO of MCG Fund Lasha Shanidze told The Messenger. He said
the overall rehabilitation of the pipeline will be completed within
two years.

The project is part of MCG’s larger USD 49.5 million energy
infrastructure rehabilitation project. In 2005, the board of directors
of the Millennium Challenge Corporation (MCC) approved USD 295.3
million in its compact with Georgia. Other projects in Georgia include
road rehabilitation in Samtskhe-Javakheti, agribusiness development
and development of infrastructure in the provinces.

An Azeri company and two Georgian companies-Didgori and
GeoEngineering-have been selected to repair the pipeline. Shanidze
points out that this is a chance for Georgian companies to "show
their competencies" and gain experience in participating in such a
large-scale project.

The MCG says that the pipeline’s rehabilitation will reduce the amount
of losses through leakage, thus saving approximately USD 30 million
annually. It also will increase the reliability of energy supply,
reduce health hazards to the population from emissions and reduce
environmental hazards. The rehabilitation will also increase the
capacity of the pipeline.

Shanidze says in the beginning, those sections of the pipeline that
are the most hazardous and requiring urgent repair will be fixed.

Minister of Energy Nika Gilauri noted last week that conditions in the
energy sector have dramatically improved and that rehabilitation of
the North-South gas pipeline is an important step forward in Georgia’s
aspiration to achieve energy security.

MCC resident country director Colin Buckley praised Georgia’s
achievements in preparing for implementing MCC projects.

"Georgia has really done a remarkable job in getting the MCC
compact enforced to begin with, and this is the next step, which is
implementation. It’s to Georgia’s credit that things are advancing
on schedule and we look forward to having all of the five projects
under way relatively soon," he said.

The North-South gas pipeline serves as the only gas supply route from
Russia to Armenia. The gas corridor reaches from the Georgian-Russian
border to the Georgian-Armenian and Georgian-Azeri borders with a
total length of 235 km.

From: Emil Lazarian | Ararat NewsPress