GIOC promotes the investment climate of Georgia
Giorgi Chanturia was born on March 24, 1957 in Tbilisi. At 1982 year he continued education at Tbilisi State University.
From 1982 to 1985 was faculty member at College of Fine Arts and Tbilisi Academy of Arts. 1985 – 1993 – short-and long-term missions to USA, Israel, Germany and Switzerland. From 1993 to 1995 was personal Advisor to the Head of State of Georgia – HE E. Shevardnadze, foreign affairs. From 1995 to 1998 was Extraordinary and Plenipotentiary Ambassador of Georgia to the Azerbaijan republic. From 1995 to present is Commissioner Extraordinary and Plenipotentiary of President of Georgia, President of the Georgian International Oil Corporation.
Giorgi Chanturia is married. He has a daughter.
The Georgian international Oil Corporation (GIOC) was established by a special Decree of the President of Georgia, HE Eduard Shevarnadze, in 1995. This new entity, in accordance with the tasks defined by the President Decree, was required to ensure that the implementation of the Western Route Pipeline Project, as well as other pipeline and related project, be carried out efficient way.
Among others, GIOC’s goal was to become a western-style company, transparent and professional in its activities, able to co-operate with western companies, and international financial institutions. It is these principles, as stated in the Decree of the President of Georgia that GIOC has strictly adhered to ever since its inception.
Beginning from January 1996, continuing assistance has been provided to GIOC by the United States Agency for International Development (USTDA), the European Union (EU), the World Bank and British Know How Fund. The purpose of this assistance is to provide advice on the establishment of a credible transport system in Georgia.
These efforts resulted in the creation of GIOC; completion of contractual negotiations between GIOC and oil companies working in the Caspian region (including companies within AIOC), and adoption by the Parliament of Georgia to enable legislation covering those agreements. This assistance is now continuing to help GIOC in improving and elaboration its structure, enhancing its abilities to foreign oil companies in implementing projects on the territory of Georgia, and perform its business activities in the most efficient way. Now, one can state with confidence, and this is not just our view, that President Shevarnadze’s idea to establish a specialized entity to facilitate the implementation of pipelines, served as an effective basis to ensure success. GIOC was able to form a professional team and to uphold Georgia’s interest in the course of project implementation, owing to the obtained knowledge and experience. In Addition, as GIOC has always sought to find ways to reduce investment risks to make projects more attractive, it was able to earn the reputation of a transparent, competent and reliable partner.
Over the centuries, the location of Georgia has contributed greatly to its development as a transit country. Located at the crossroads of Europe and Asia, Georgia represents a natural corridor between the two continents. For hundreds of years it has served as a connecting link, a fast which has played an important role in shaping Georgia’s statehood, its outlook, culture, and traditions. Upon regaining its independence, Georgia – being deprived of an opportunity to perform its historical function over a certain period in history- is working hard to reinstate itself in the world community. This aspiration is associated with the idea to revive the fabled Silk Road, by giving it a new dimension, and to develop the Eurasian Corridor.
The 19th century rapid industrial growth generated an enhanced interest toward the Caspian hydrocarbon resources. At that time, renowned oil industrialist- the Nobel brothers- built a pipeline running from Baku to Batumi. The pipeline, a unique project for that time, first served to move kerosene from Azerbaijan, and later on-oil. Now all of this is history, and yet this century-oil project furnishes another convincing proof that the Caucasian Corridor, traversing Georgia, is the most viable alternative, both technically and commercially, for the transportation of Caspian hydrocarbons.
In the early 90’s, almost immediately after independence, Presidents of Azerbaijan and Georgia, HE’s Heidar Aliev and Eduard Shevarnadze set forth an idea to restore the ancient Silk Road, in other words, to develop the Eurasian Transport Corridor. This was a visionary idea, though at that time it aroused a great deal of skepticism. Developments that followed clearly demonstrated the viability of this initiative.
The people of Georgia will always thank the Azerbaijan people and personally, President Heydar Aliev, for making the heroic decision to lay the early oil pipeline through the territory of Georgia. Time has proved that this was the correct decision.
On April 17, 1999, an auspicious event took place on the Georgian Black Sea coast at Supsa, a location hardly known before to anyone. The Azerbaijan oil moved via the newly completed Western Route Pipeline, to beginning to fill the first tanker. This was a historic day marking the onset of the Caspian oil transportation onto the world’s markets through the Western Route.
Presidents of three countries-Azerbaijan, Georgia and Ukraine, HE’s Heydar Aliev, Eduard Shevarnadze and Leonid Kuchma- arrived at Supsa to jointly launch the Baku-Supsa Pipeline and the Supsa On-Shore Terminal. We know the way was difficult to achieve that victory; how hard, and sometimes fatally dangerous, it was to make decisions.
Thus another important move was made towards translating into reality President Aliev’s and President Shevarnadze’s idea to give a new life to the Silk Road, in other words-towards realization of the project to build a transport corridor linking Europe to Asia through the Caucasus, known as TRASECA.
During the implementation of the Baku-Supsa Early Oil Pipeline project, Georgia established, and has successfully maintained, a good working partnership with leading international oil companies. As a consequence of this special consideration by the Georgian authorities and population given to this project, and the regular and constant co-ordination by the President of Georgia, it became possible to establish a close productive co-operation with the investors.
The investment climate in Georgia has so improved that other international corporations and investors now view Georgia as a reliable partner and are considering undertaking the building of even more significant energy transportation facilities through the territory of Georgia. It should be emphasized that the role of the Parliament of Georgia, and personally that of Mr. Zurab Zhvannia, the Chairman of the Parliament, is very important in this process. During the past few years the Parliament of Georgia has adopted more that 700 new laws which contributed to the creation of the attractive and favorable investment climate in Georgia.
The Development of the Eurasian Transport Corridor gives a unique opportunity for close regional co-operation and integration, not only of countries of the region, but of the countries of Europe and Asia. Without this corridor one can hardly imagine the economic development not only of countries of the Caucasus; even the development of countries of the Central Asia would be complicated.
For them this corridor will create an opportunity of shortest guaranteed connection with world markets and potential opportunity for imports and exports. The initiative of the Presidents Aliev and Shewardnadze about a "Peaceful Caucasus» aimed to promote the establishment of peace and prosperity for the countries of the region, can be considered as the guarantee of the development of the corridor and the whole region.
The implementation of the Caspian hydrocarbon transportation projects gives an opportunity to balance problems and interests of the whole region- not only of the Caucasus and Central Asia, but also Russia and countries of the Black Sea basin- Turkey, Ukraine, Moldova, Romania and Bulgaria. Georgia, together with Azerbaijan, is ready and open for cooperation, as well as the development of mutually beneficial businesses. These give guarantees that we will follow all internationally recognized norms and principles in these issues. We believe that Russia as well, will be involved in many projects, which are being developed in the region.
We consider pipeline projects not as separating factors among the peoples and the states of the region; we consider pipeline projects not as a matter of competition; but as a matter of a partnership, which will bring a strong and fair peace to the region. We think the pipelines will help in development of peaceful processes and establishment of stability. This refers to all peoples of the Caucasus. These pipelines must become the guarantees for peace and stability in Caucasus region. We believe that expansion of a range of economic cooperation among the regional countries, especially with Russia, will contribute to settlement of political conflicts and accelerate peace processes in the region. This is in Russia’s interest as well. We are taking certain steps in this direction.
It is very important that the latest meetings of the President of the interested countries at the UN summit in the New York in September gave further stimulus to the regional cooperation processes.
Wee deeply appreciate the fact that the Government of the USA sees the prospects of the regions and contributes greatly to its. The US administration’s ‘East-West Pipeline’ policy, developed by the US President, HE Bill Clinton, the Vice- President, HE Albert Gore and the Secretary of State. He Madlen Albrait, has been very effective in promoting regional pipeline projects. The positive role of Special Advisor to the US President and the Secretary of the State for the Caspian Basin Energy Diplomacy, Mr. John wolf, and his deputy, Mr. Metthew Bryza cannot be overestimated in these processes.
In elaborating Georgia’s strategy regarding the "East-West Pipeline" and Energy Corridor projects, our cooperation with the agencies of the /US administration played a crucial role. In this context, we would like to emphasize especially the invaluable contribution of the Assistant of the President for the National Security Affairs, Mr. Samuel Berger, National Security Adviser of the Vice President, Mr. Leon Fuert; Counselor of the US Department of Commerce, Dr. Jan Kalicki, and Special Adviser to the Secretary for the NIS, Ambassador Stephen Sestanovich. Also, it should be mentioned, that in order to assist Georgia to uphold its interest in the Caspian Hydrocarbon transportation projects, the US Government nominated Mr. Edward Chow, a person who has an extensive experience in the international petroleum business, to be the Strategic Adviser to the President of Georgia on international Oil and Gas Matters.
Georgia considers the multinational transit infrastructure projects, including both the Baku-Supsa Early Oil Pipeline and the Baku-Tbilisi-Ceyhan Main Oil Pipeline (MEP) projects, as the means to strengthen its economic and political independence and thereby become a valuable member of the western community’s free markets.
On November 18 of 1999, an Intergovernmental Agreement among Azerbaijan, Turkey and Georgia was concluded in Istanbul by the President of these countries, HE’s Heydar Aliev, Suleiman Demirel and Eduard Shevarnadze in the presence of President of the USA-Bill Clinton and the US Secretary of Energy, Mr. Bill Richardson. The President of Kazahstan, HE Nursultan Nazarbaev and President Turkmenistan, HE Saparmurat Niazov also attended the ceremony. This showed clearly the firm commitment of the governments of these transit countries to co-operate in, and facilitate the implementation of the Baku-Tbilisi-Ceyhan Main Oil Pipeline. Thereafter, intensive negotiations took place between the Working Groups of the transit countries to prepare a Host Government Agreement with the purpose of creating a sound economic investment basis for the international pipeline investors.
On April 28, 2000 with the completion of the Georgian Host Government Agreement in Washington, the negotiation process with the transit countries was concluded and, thereafter, the entire package of agreements was ratified by the parliaments of the transit countries.
Madlen Albrain, the US State Secretary, who witnessed the initialling of the document, conveyed congratulations from the President of the United States on the successful accomplishment of the negotiations: "Today’s achievement completes this work and brings the pipeline project a critical step closer to fruition", the President said in a written statement.
It is necessary to emphasize that the speech delivered by HE Heydar Aliev, in the Georgian Parliament during his visit to Georgia in March this year, played a key role in the unanimous ratification of the Baku-Tbilisi-Ceyhan Main Oil Pipeline project agreements. In that speech President Aliev gave a detailed picture of all sides of the project, demonstrating its huge economic and political benefits for the whole region, rather than to any single country. It was during this visit that a solution to one of the most important issues for Georgia-the issues of tariffs-was found.
We would like to emphasize the productive and mutually beneficial co-operation between SOCAR and GIOC during the negotiation process on the Baku-Tbilisi-Ceyhan Main Oil Pipeline project. We are thankful to the Azerbaijan Working Group, and especially to the Vice Premier of the Azerbaijan Republic, Mr. Abid Sharifov, the President of SOCAR, Mr. Natik Aliev, and the Head of the Foreign Investment Department of SOCAR, Mr. Valekh Aleskerov, for their understanding and good faith during the negotiations. But, above all, we would particularly like to emphasise the crucial and invaluable role of the First Vice President of SOCAR, Mr. Ilham Aliev, in contributing toward the positive development of these processes and the important decisions made.
We are also very grateful to the Georgian Ambassadors to the USA, HE Tedo Japaridze, HE Zurab Gumberidze to the Azerbaijan Pepublic and HE Tariel Lebanidze to the Republic of Turkey, for their efforts with respect to the successful co-ordination of matters related to the development of the Baku-Tbilisi-Ceyhan Main Oil Pipeline project with the governments of these countries.
Georgia’s position with respect to the Baku-Tbilisi-Ceyhan Main Oil Pipeline project has remained supportive from the beginning. The Baku-Tbilisi-Ceyhan Main Oil Pipeline is the best oil export route for oil producers on both side of the Caspian Sea, not only because it advances the strategic and security objectives of the regional countries, but also because it will be a commercially viable pipeline. This will result from the joint efforts of transit and oil producing countries and international investors.
Once the package of the Baku- Tbilisi- Geyhan Main Oil Pipeline agreements was ratified by the Parliaments of Azerbaijan, Georgia and Turkey. Georgia now is having to plan ahead and do its homework as a reliable, responsible and competent partner in this strategically important project. Georgia has to meet the challenges of the legal, financial, operational and environmental implications of the Baku- Tbilisi- Geyhan Main Oil Pipeline agreements.
We believe that as a result of the future development of transport systems, the Supsa area will have a unique role to play, both in terms of the Caspian oil transit, manufacturing refined petroleum products for export and for the manufacturing goods and raw materials.
We are working on development of a refinery in Supsa together with the US Trade and Development Agency (US TDA). We would like to use this opportunity and thank Mr. Joseph Grandmaison, Director of US TDA, for his continuos assistance in the advancement of this process. The plan envisages the building of an export refinery and related petrochemical industries. GIOC will soon be in a position to invite investors for these projects. This development will also benefit the large potential consumer market of oil products in the Black Sea markets such as Turkey, Ukraine, Moldova, Bulgaria and Romania.
At the threshold of the 21st century, Georgia is facing far more ambitions and demanding challenges. The future development of regional oil and gas pipeline systems largely depends on how successfully co-operation and integration processes proceed within the Caucasus region, regarding the development of he Eurasian energy transportation corridor connecting the Caspian region to the world markets across the territory of Georgia.
Undoubtedly, it is the regional co-operation and that constitute one of the most essential pillars to bolster long-term regional stability and close East-West relations.
We would like to underscore once again Georgia's full commitment to the development of the "East-West corridor" and the "network of Multiple Pipelines". We strongly believe that with the co-operation of the Caspian and the Black Sea region countries, we will achieve our mutual goal and accomplish to the prosperity and democratic development of our countries.