Hilary Benn
Secretary of State for International Development
Department for International Development
1 Palace Street
London
SW1E 5HE

Dear Secretary of State

I am writing to you to express my serious concerns about the proposed Baku-T'bilisi-Ceyhan (BTC) pipeline, planned by a BP-led consortium. I am deeply concerned about the serious impacts the pipeline will have on regional tensions, poverty, human rights and local populations. I understand that the project is to be considered by the IFC, EBRD and the ECGD shortly and would urge you to ensure that no funding is provided from public monies for this project.

In particular, I am concerned about the following issues, which I would urge you to take up with the relevant agencies and your own officials:

• In the public interest? The Inter-governmental Agreement for the BTC pipeline states that the project "…is not intended or required to operate in the service of the public benefit or interest in its Territory". I fail to see how the UK government could justify using public money to support a project that explicitly denies any public interest requirement.

• Meeting international standards? The BP-led consortium has said that the BTC project will comply with World Bank standards. However, NGOs who have visited the region report that there have already been major violations of these standards, including those relating to ethnic minorities – a matter of great concern given that the pipeline passes through Kurdish regions. Will the World Bank’s guidelines covering ethnic minorities be implemented? And if not why not?

• Poverty alleviation? The pipeline threatens to undermine the local economies of Azerbaijan, Georgia and Turkey, which suffer high levels of poverty. For example, the pipeline could destroy Georgia’s main source of export income – the Borjomi mineral water springs. Has a review of the project’s impacts on local and regional economies has been carried out? Will it be made public?

• Corruption concerns. DfID has highlighted the role that corruption plays in exacerbating poverty. Corruption allegations have already been made with regard to the BTC project; for example, a complaint has been made to the World Bank regarding contract-rigging in the award of a contract by th Georgian International Oil Company for work on the Environmental and Social Impact study for BTC. What investigations have been undertaken by DfID to ensure that the project is free of malpractice?

These are but a few of the many issues of concern surrounding this project. I know that these are all issues in which you have a strong interest, and I look forward to hearing your response as to what action you and your department are taking to ensure that they are taken very seriously in the development of this complex and controversial project.