Energy Transit Institution Building Project

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The Energy Transit Institution Building Project will enhance the country's capacity to negotiate, and implement oil, and gas transit agreements, maximizing economic benefits, while minimizing social, and environmental costs. The components include: 1) consulting services, and technical advice to assist the Government in fulfilling its obligations under oil, and gas pipeline transit agreements. These services will focus on reviewing environmental, and social impact assessments, as well as strengthening environmental management capacity; 2) specialized legal advice concerning implementation of the various transit agreements negotiated, as well as revision of Georgian legislation as necessary. Financial, and fiscal management advice would complement the legal advisory services, under precise, and ad hoc terms of reference; 3) financial audits, to be conducted annually on company operations, but only partly financed, i.e., during the first year of operation; 4) non-pipeline oil spill prevention, and mitigation, addressing risks related to marine, and rail transportation of oil, by financing essential equipment to facilitate spill response, monitoring, and enforcement by the Ministry of the Environment. Consulting services, and training provision should complement this component; and, 5) project management expenses, through the provision of office equipment, project auditing, and incremental operating costs.