§ Tom BrakeTo ask the Secretary of State for International Development what safeguards are in place to ensure that revenues received by the countries through which the Baku-Tbilisi-Ceyhan pipeline runs will receive will not be used to finance regional conflicts. [172416]
Mr. Gareth ThomasThe BTC pipeline has the potential to deliver substantial economic benefits to Azerbaijan, Georgia and Turkey and it will strengthen regional co-operation, developing new economic and political links between the three host countries. All the international parties involved in the BTC pipeline (including BTC Co., EBRD and IFC) are keen to make sure that the revenues generated by the project do not exacerbate regional tensions. Mitigation measures are already in place, including an IMF approved oil fund in Azerbaijan, a commitment by BP to publish what it pays to the host Governments and support by the World Bank and IMF on budgeting and public expenditure management. Furthermore, Azerbaijan is in the first wave of countries to begin to implement the Extractive Industries Transparency Initiative (EITI). The EITI aims to increase the transparency of payments by extractives companies to Governments, as well as the transparency of revenues received by those host countries. Increasing transparency is a key component to reducing poverty, corruption, and the potential for conflict. The UK Government are helping Azerbaijan implement EITI, whereby BTC revenues are channelled through the State Oil Fund to ensure that the people of Azerbaijan benefit. We are also in discussions with the Government of Georgia on the possibility of their involvement in the EITI.