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Expert: Trans-Caspian pipeline project is too politicized

31 January 2013 19:02 (UTC+04:00)
Expert: Trans-Caspian pipeline project is too politicized

The Caspian Gas Pipeline which would ensure Turkmen gas supplies to Europe through the Caspian Sea is too politicized, Managing Director, Head of Business Development of Azerbaijani ASPI Consulting Engineers Inc.,Ibrahim Mammadzade, told Trend news agency.

The ASPI is participating in a tender for the preparation of a report on the environmental and social impact assessment (ESIA) of the Trans-Caspian pipeline. Tender for the ESIA has been announced upon a request of the European Commission to the World Bank, which operates tools like the PPAIF, a public-private partnership fund with sufficient resources.

The tender was announced in May this year. Six consortia led by well-known companies have submitted their participation applications and results are to be announced in late summer or early autumn. Each consortium consists of three or four companies on average. The ASPI is included in one of the consortia as a bidder.

According to Mammadzade, tender results have not been announced yet, as tender procedures are delayed.

"The thing is that this project is becoming too politicized due to the ambitions of certain countries. Turkmenistan itself often changes its opinion on the project," Mammadzade said.

He also did not rule out the possibility of the cancellation of the tender. Continuation of the tender procedure might require budget updates due to high levels of inflation. Accordingly, it will be necessary to introduce relevant updates to tender proposals while maintaining presented technical indicators.
The ESIA's implementation period is three years.

Previously, the Caspian Development Corporation's organization proposal was presented to the European Union and the European Investment Bank for management of the project.

This organization will be responsible for the most difficult parts of the project - Turkmen, Azeri and Georgian.

Trans-Caspian gas pipeline running around 300 kilometers will be laid from the Turkmen coast of the Caspian Sea to Azerbaijan, where it will be linked to the Southern Gas Corridor. Negotiations between Turkmenistan and the EU and other countries on the construction of the Trans-Caspian gas pipeline have been on-going since the late 90s.

There are no direct arrangements for implementation of the Trans-Caspian gas pipeline yet. However, in September 2011, the European Union presented a mandate to start negotiations on preparation of an agreement between the EU, Azerbaijan and Turkmenistan on the Trans-Caspian project, which initiated the start of the process. Russia opposes the project due to unresolved status of the Caspian Sea and environmental risks
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