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Tbilisi, the Georgian capital. |

Monitoring the BTC oil pipeline. |

Dilapidated factory in Georgia. |
When a small, beautiful country has gone through years of political turmoil
and deep economic decline, it would be tempting to allow businesses to run
roughshod over the environment in the name of growth, job creation and
stability.
Georgia wants to avoid this fate. Blessed with the breathtaking vistas of the
Caucasus mountains, the warm waters of the Black Sea, more than 850 lakes and
an abundance of fertile land, the country is an environmental jewel. With
their economy currently growing at a rate of roughly eight per cent, Georgians
want to balance the need for development with that of protecting nature.
The concern is not new. Back in the 1980s there were protests in Georgia
against Soviet plans to build a railway through the high Caucasus, against the
use of the Davit Gareja wilderness area for military training, and to stop a
dam in Svaneti, a UNESCO World Heritage site. Since then, 200 non-governmental
organisations for the protection of environment have been set up, keeping a
close eye on the impact that foreign and local investment, which is booming in
Georgia, is having on nature.
The EBRD, which has been investing in the country since 1994, is involved in
50 projects in Georgia. These range from improving power infrastructure to
refurbishing Tbilisi’s airport. The Bank hasn’t forgotten, however, to pay
attention to the potential environmental impact of each investment.
The Bank has now set itself the task of supporting Georgia’s Ministry of
Environmental Protection and Natural Resources in reforming its environmental
legislation. Further assistance is being provided to strengthen the ministry’s
monitoring capacities so that the bill of economic development doesn’t fall on
the shoulders of environment.
What price growth?
Georgia’s current galloping growth rate is a relief to many Georgians who have
suffered economic hardship for well over a decade. But that is not the view of
Manana Kochladze, Director of the Green Alternative non-governmental
organisation.
Her office in Tbilisi is simple. Pictures of rare animals and picturesque
views of Georgia cover her office walls.
“My country is sacrificing environment for the sake of economic development,”
says Ms Kochladze. “It seems that the government has forgotten about the green
agenda. Environmental legislation is being downgraded as a result of the
aggressive economic liberalisation process. An example is the abolition of tax
on environmental pollution - emissions to air and waste water discharges.”
A law on environmental protection was approved back in 1996, but that doesn’t
seem to be sufficient. Ms Kochaladze is concerned that “the law simply offers
a framework. There is no monitoring system in this country and no incentive
for the investor to improve the environmental standards. They will go to
court, pay the fine and they will emit again and pollute the environment.”
“The EBRD is the main investor in the country and it is important for the Bank
to make sure that environment is being respected. This is part of the Bank’s
Environmental Policy,” explains Dariusz Prasek, Head of Operational Support in
the EBRD’s Environment Department.
“We want to rely on the countries themselves to do the environmental
monitoring and that is why the Bank is assisting the Ministry of Environmental
Protection and Natural Resources to build up its monitoring capacities so it
can enforce its laws.”
With the EBRD’s support an adviser is being hired to help the Ministry reform
the environmental legislation. Grants for this have been provided by donors
supporting the EBRD’s Early Transition Countries fund, created to back
initiatives in the Bank’s seven poorest countries of operations, including
Georgia. Once gaps in the law are filled and tasks are clearly divided between
Ministry staff, the fund will also cover training expenses for those who will
monitor projects.
In the Ministry
Badri Tcatava is supportive of the EBRD programme. He heads the governmental
Environmental Monitoring Division tasked with monitoring projects posing
potentially high environmental risk.
He now dedicates 80 per cent of his time to monitoring the Baku-Tbilisi-Ceyhan
oil pipeline project which has been partially financed by the EBRD. Says Mr
Tcatava: “When the Georgian government approved this project, it also set
conditions for the BP, the main partner in the project. For example, one of
the conditions is that BP shouldn’t dig the soil if it rains because doing so
can damage soil fertility. We have to make sure that every condition is being
respected.”
That’s the hard part. George Jaoshvili, Head of the governmental Centre of
Monitoring and Forecasting says: “The law puts conditions on business activity
but there are not enough people on the ground to monitor and catch any
wrongdoings. Also, our task is to inform the ministry about any unlawful
activity but it is unclear as to who is ultimately responsible for taking
action” when the law is breached.
While the spotlight is usually on foreign-backed projects, who is monitoring
local companies? With water companies being the biggest local polluters thanks
to sewage, the only official guidance is that local companies should monitor
their environmental impact.
“Together with the World Bank, USAID, OECD, the German government and the
Dutch government, the EBRD is putting money and effort into bringing Georgia’s
environmental law into line with international standards and giving public
workers the skills needed to enforce the law,” says Dr Prasek.
Ms Kochladze is supportive of training but having seen changes in the
government all too often believes that “it should be delivered with the
governmental guarantee that civil servants will remain in their jobs even if
governments change. Otherwise the knowledge will be lost.”
By Marjola Xhunga, communications adviser
Photos: David Mdzinarishvili
Contact: Environment Department
30 August 2006
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