The Export Credits Guarantee Department (ECGD) is to provide cover for a USD$150million line of credit to finance UK contractors involved in the BTC Pipeline Project subject to various conditions being met by the project sponsor the Baku Tbilisi Ceyhan Pipeline Company – a consortium led by BP plc.

ECGD has carried out a rigorous assessment of the environmental, social and human rights impacts and financial and project risks of the BTC pipeline project before coming to this decision.  However, this finance which will only become available when the Department approves the project sponsor’s Environmental and Social Action Plan and other key documents including the General Oil Spill Response Plan.

The project involves the development and construction of a pipeline capable of transporting one million barrels per day of crude oil and other liquid hydrocarbons over approximately 1760 kilometres from Baku, Azerbaijan, through Georgia to Ceyhan, Turkey.

The pipeline is being developed as the primary export route for new production from the Azeri, Chirag and deep-water portion of the Gunashli fields in the Caspian Sea.  The total cost of the pipeline will be some US$3.4 billion.

NOTES TO EDITORS

1. A note outlining ECGD’s decision can be found at http://www.ecgd.gov.uk/btc_-_note_of_decision.doc .

2. The project sponsor is aiming to have all loan agreements by the participating banks signed by 16 January 2004 (Financial Closure).  

3. In carrying out its assessment of the project, ECGD assessed the project using World Bank and EU environmental guidelines and standards.  The Department studied 11,000 pages of documentation covering the environmental and social impacts of the project and carried out a thorough site visit. Independent environmental consultants were also employed by the Department to assess the project

4. The Department for International Development has recently endorsed decisions by the International Finance Corporation and European Bank for Reconstruction and Development to support the BTC project, bringing many of the same international standards and guidelines to bear on its assessment.

5. The consortium sponsoring the project is made up of 11 companies and includes BP Plc, the State Oil Company of the Azerbaijan Republic, Unocal Corporation (USA), Statoil ASA (Norway), Türkiye Petrolleri A.O. (Turkey), ENI SpA (Italy) and TotalFinaElf (France).

6. For further details about the BTC Pipeline Project visit www.caspiandevelopmentandexport.com

7. ECGD, the Export Credits Guarantee Department, is the UK’s export credit agency. A separate Government Department reporting to the Secretary of State for Trade and Industry, it has more than 80 years’ experience of working closely with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services. We do this by providing:

·Insurance against non-payment to UK exporters;

·Help in arranging finance packages for buyers of UK goods by guaranteeing bank loans; and,

·Overseas Investment Insurance - a facility that gives UK investors up to 15 years’ insurance against political risks.

8. Further information on ECGD’s products, along with other press releases, is available at www.ecgd.gov.uk

Press Enquiries:

Matthew Trainer, ECGD Press Office, Tel: 020 7512 7421

(Out of Hours: 07790 887852)