§ Mr. JenkinsTo ask the Secretary of State for International Development what vote was recorded by the UK director of the International Finance Corporation at the 4 November 2004 meeting on the approval for a commercial loan for the Baku-Tbilisi-Ceyhan Pipeline. [172504]
Mr. Gareth ThomasA decision to support the approval of a loan for the Baku-Tbilisi-Ceyhan (BTC) pipeline was reached by consensus by the shareholders of the International Finance Corporation at the 4 November 2004 Board meeting. No vote was taken. The UK supported the proposed investment in the BTC pipeline as it was felt that both the IFC and EBRD had fully complied with their polices and procedures. DFID686W also supported the project due to the potential developmental benefits that it will bring to Azerbaijan, Georgia and Turkey.
Although DFID supported the provision of loans for this pipeline, DFID recognises that complex, large-scale projects of this nature raise difficult issues and present risks, including the weak governance environment and the potential social and environmental impacts of the pipeline, which will need to be carefully managed. It is important that both the International Financial Institutions (IFI)s and the international community remain engaged with the implementation of the project going forward so that we can ensure that commitments are delivered. DFID therefore expects the International Finance Corporation (IFC) management to ensure regular independent consultation on monitoring the implementation of the project; encourage enhanced transparency of revenue management; and demonstrate how IFC has learnt from the project.