The Baku Ceyhan Campaign
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- What is planned

- Colonialism

- Human rights and conflict

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- Climate change

- Environmental impacts

- BP's pipeline record

- The companies and financial institutions involved

- Map of the project

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Financial institutions involved in the pipelines

(Updated April 2005)

BP and its partners secured the US$ 3.3 billion cost of the Baku-Tbilisi-Ceyhan pipeline through 30% equity (capital provided by the oil companies which hold shares in the project), but primarily 70% from debt (loans from banks). A large proportion of this debt was sought from public financial institutions (ie lenders of taxpayers' money), led by the International Finance Corporation (IFC – the part of the World Bank which lends to companies rather than governments) and the European Bank of Reconstruction and Development (EBRD)

[What are these international financial institutions?]

In November 1998, BP boss John Browne stated that the BTC / AGT project would not be possible unless such "'free public money' was offered by government to build the line."

In October 2001, BP and its partner oil companies sent a preliminary informative memorandum on the project's financing requirements to the IFC, the EBRD and leading export credit agencies. Following this, on 11th June 2003, BP and its partner oil companies submitted a formal application for financing to the IFC and the EBRD. They were asked for $300 million each. Both IFC and EBRD approved loans to the project in November 2003, just weeks after an election in Azerbaijan which was described by official observers as “fraudulent”. The loans were widely seen as an effective endorsement of an election in which many of the opposition candidates had not been allowed to stand, opposition leaders and democracy protesters were arrested, and power was handed from Azerbaijan's long-time ruler Heydar Aliyev to his son Ilham – the Former Soviet Union's first dynastic succession.

Loan agreements were signed by the consortium, with IFC and EBRD, seven export credit agencies and fifteen commercial banks, in February 2004.

The project financiers thus comprise:


Multilateral (public) development banks

International Finance Corporation (IFC)

European Bank for Reconstruction & Development (EBRD)


Export Credit Agencies – political risk insurance (with public money)



JBIC ( Japan )

COFACE ( France )

SACE ( Italy )

Hermes ( Germany )



Other public financial institutions

MIGA the Multilateral Investment Guarantee Agency of the World Bank


Commercial banks – lead arrangers

Citigroup (US)

ABN Amro ( Netherlands )

Mizuho ( Japan )

Société Générale ( France )


Other commercial banks

Royal Bank of Scotland

KBC ( Belgium )

Dexia ( Belgium )

West LB ( Germany )

Hypovereinsbank ( Germany )

BNP Paribas (France)

Natexis Banques Populaires ( France )

Calyon (France)

ING ( Netherlands )

San Paulo IMI ( Italy )

Banca Intesa ( Italy )


NOTE: Banca Intesa is selling its stake , over safety concerns. One third of its stake has been sold so far – it is not yet known to whom.


This financial package was largely designed and advised on by Lazards .