AGT Response to the Foley Hoag Human Rights and Security External Monitoring Assessments in Azerbaijan and Georgia BTC Co and SCP Co (collectively the AGT Projects ) welcome the Human Rights and Security Monitoring Assessments completed by the independent auditor Foley Hoag. The AGT Projects commissioned these assessments to provide an independent view of how effectively the projects are complying with the Voluntary Principles on Security and Human Rights in Azerbaijan and Georgia. This is the third time such a review has been completed in Azerbaijan and the second in Georgia since construction of the pipelines began in 2003. The Voluntary Principles, which cite key international standards on security and human rights, provide a central framework of standards guiding security planning for the AGT Projects. The assessments were completed at a time when the BTC and SCP pipelines had or were nearing the transition from project to operations phase. The BTC pipeline has been fully operational since June 2006, following the first tanker loading from the Ceyhan Marine Terminal. The start-up of SCP operations was announced on 15 December 2006. External monitoring during construction and into the operations phase has served to enhance scrutiny and transparency of the security arrangements for the AGT pipelines, and to provide us with an important source of challenge to improve. Following on from the two previous assessments in Azerbaijan, Foley Hoag notes that during 2006 AGT took a series of important steps to address areas in which it might improve upon efforts to operationalize the Voluntary Principles. These include aspects of training, and strengthening the relationship between public security forces and impacted communities. We take careful note of Foley Hoag s advice that stepping back from its implementation initiatives at this period could lead to a considerable loss of support from stakeholders who currently regard the AGT Projects as a model. We remain of the belief that implementation of the Voluntary Principles should be a continuous process, not a one-off activity. As opposed to stepping back, we are looking to make continuous improvements. In Georgia, where the one previous assessment of AGT compliance with the Voluntary Principles was conducted during 2005, Foley Hoag comments on a number of initiatives undertaken by the Government of Georgia and by AGT that establish models for the industry. We are pleased to note Foley Hoag s recognition of the human rights and security education initiative, designed to 1
ensure that all individuals providing security for the AGT Projects receive practical instruction regarding the provision of security in a manner consistent with respect for the human rights of impacted individuals. Support for training of public security forces is one of the key recommendations of the Voluntary Principles and credit goes to the Government of Georgia for its willingness to engage and cooperate in this field. In both countries, Foley Hoag encourages AGT to institutionalize the processes and procedures developed so far to sustain leadership in putting into operation the Voluntary Principles. Several of the activities championed by the Voluntary Principles are embedded within AGT s approach to business, particularly with respect to working with communities. For example, Foley Hoag notes in Georgia that AGT has taken significant steps to help ensure that, in addition to providing oil transit revenues to the Government, the Projects directly raise living standards for affected individuals and communities. The Community Investment Programme, being implemented in all three host countries, builds on the construction-phase programme to continue promoting sustainable development among pipeline-affected communities. By ensuring that local people see benefits from the Projects, we hope to build a mutually beneficial relationship that will help mitigate potential risks, including security risks. The Community Investment Programme will continue throughout the long-term operations phase of the pipelines. Many of the initiatives undertaken to implement the Voluntary Principles in Azerbaijan and Georgia are based on cooperation with the host governments. This includes such activities as support for training and joint consultation work with local communities. To a great extent these processes are initiated through engaging and influencing public security forces to accept and to participate in the proposals. We are committed to keeping up our close consultation with the relevant public security organizations, and we are grateful for the cooperation we receive. The AGT Projects have considered each of the recommendations made by Foley Hoag to improve compliance with the Voluntary Principles in Azerbaijan and Georgia. This response addresses the most significant of these. The recommendations are grouped under each of the three sections of the Voluntary Principles, and our response is structured in the same way. 2
1. Risk Assessment In line with our commitment to the Voluntary Principles, the AGT Projects believe that the identification of security risks is most effectively and accurately done through assembling of regularly updated, credible information from a broad range of perspectives local and national governments, security firms, other companies, home governments, multilateral institutions and civil society knowledgeable about local conditions. This information may be most effective when shared to the fullest extent possible, bearing in mind confidentiality considerations. In its monitoring assessment for Azerbaijan in 2005, Foley Hoag recommended that consideration might be given to providing Community Liaison Officers (CLOs) with a larger role with respect to sharing and gathering information regarding security and human rights issues. We are pleased to note that in its subsequent Azerbaijan report, Foley Hoag finds that during the course of 2006 steps were taken to enhance teamwork and communication between CLOs, Field Security Officers, and Project Management. Recognizing the important role CLOs play in sharing and gathering information regarding security and human rights issues, training has been provided for the CLOs on the Voluntary Principles on Security and Human Rights. This includes a workshop on the Voluntary Principles held for the CLOs in June 2005 and led by an acknowledged specialist in this field. Closer cooperation between the teams has also been promoted through ensuring joint participation in the Interagency Security Working Groups established in Azerbaijan during 2006. Similarly in Georgia, AGT sought to build awareness of the Voluntary Principles internally among the project teams, by running workshops during 2006 in Tbilisi for CLOs, field security officers and land officers. While noting that AGT is taking appropriate steps to comply with the Voluntary Principles, Foley Hoag recommends that AGT should actively support initiatives to promote the rule of law in both Azerbaijan and Georgia. This recommendation stems from the Voluntary Principles guidance under risk assessment that companies should consider the local prosecuting authority and judiciary s capacity to hold accountable those responsible for human rights abuses and for those responsible for violations of international humanitarian law in a manner that respects the rights of the accused. The monitor also notes that support for effective governance is a theme of the BP Regional Development Initiative and that funds might be made available under this or other activities to, specifically, support training for police, prosecutors and judges. 3
As outlined by Foley Hoag in both the Azerbaijan and Georgia reports, a number of activities are currently being undertaken by the host countries to address rule of law issues, with the support of international organizations and governments. Foley Hoag recognizes that these activities, such as initiatives to help strengthen the capacity of the judiciary, fall outside the purview of AGT responsibilities, but that AGT nonetheless might act within its sphere of influence to promote reform. AGT continues to engage in dialogue with the host governments and international organizations in order to keep abreast of reform initiatives that address rule of law. This is done as part of our ongoing risk assessment process. It is also an opportunity to share our own experience and knowledge gained through supporting local community development programmes and supporting capacity development for the respective public pipeline security organizations. Beyond this activity, we consider that any direct support from AGT for specific rule of law programmes should be initiated at the request of the host governments themselves. AGT appreciates Foley Hoag s recommendation and remains open to considering appropriate opportunities as and when they arise. Under the rule of law section of the assessment, Foley Hoag recommends that in Azerbaijan AGT promote training for members of the National Police with whom individuals providing security for the Projects are likely to interact. AGT has not been invited by the host government to provide specific support for national police training, but notes that the Organization for Security and Cooperation in Europe has established an assistance programme with Azerbaijan that addresses the concern that Foley Hoag highlights over treatment of individuals through the chain of custody. More generally, AGT is pleased to have been able to engage members of the national police on deployment and conduct issues, through the participation of police officers in the first Equity International human rights-based security training programme delivered during 2004 and, on an ongoing basis, through the participation of regional police departments in the Interagency Security Working Groups. As Foley Hoag notes, these AGT-convened forums provide an opportunity for representatives from the projects, the police, the Export Pipelines Protection Department, the executive authority and community leaders to discuss pipeline security and safety issues in an open and inclusive manner. An additional benefit of such interaction is, we hope, the promotion in the long run of a culture of community policing and security in the context of our operations. 4
2. Interactions with Public Security The second section of the Voluntary Principles outlines a series of principles that guide our interaction with public security forces. This relates, to a great extent, to our interaction with the Export Pipelines Protection Department (EPPD) in Azerbaijan and the Strategic Pipelines Protection Department (SPPD) in Georgia. The Voluntary Principles emphasize that whilst governments have the primary role in maintaining law and order, security and respect for human rights, as a responsible company we also have an interest in ensuring that actions taken by governments in providing security for our business are consistent with the protection and promotion of human rights. AGT is encouraged to consult regularly with host governments and local communities regarding the impact of their security arrangements on those communities. We are pleased to note that Foley Hoag finds AGT to be taking appropriate steps to comply with this principle in both Azerbaijan and Georgia. We have also carefully considered the recommendations made to further improve compliance. For example, Foley Hoag advises AGT in Georgia to support the community meetings held by SPPD and assist with extending those meetings to include CLOs, local police, executive authorities and community leaders. Underlying this recommendation is a view that AGT strongly shares of the importance of promoting cooperation and communication regarding pipeline security issues. Our CLOs currently meet community members on a regular basis and as appropriate we will request that our CLOs and/or Field Security Officers (FSOs) be permitted to participate in the SPPD-convened community meetings. We will also encourage the SPPD to continue raising community awareness of the various grievance systems that exist for handling security-related concerns and complaints. In addition, we will seek to raise awareness of those external grievance mechanisms among our own CLOs and field security officers. In Azerbaijan, AGT will continue the work of the Interagency Security Working Groups, which have proved successful since being established early in 2006 in promoting communication between security providers, local communities and the pipeline projects. AGT will also promote and facilitate the establishment of a telephone hotline in Azerbaijan as an additional means by which local community members can raise and register specific security-related concerns, complaints or incidents. 5
Foley Hoag commends AGT and the Government of Georgia for agreeing the Bilateral Security Protocol a new and important standard for the industry with respect to operationalization of the Voluntary Principles and notes the need to develop a similar agreement with the Government of Azerbaijan. AGT continues to give priority to accomplishing this commitment, and having extensively discussed and revised the draft text it has submitted a final document to the government for consideration. The Bilateral Security Protocol, originally envisaged in the Project Security and Human Rights section of the BTC Joint Statement signed in 2003, is intended to provide further guidance to BP and to the Government of Azerbaijan on the implementation of Voluntary Principles objectives. Foley Hoag highlights the importance of completing a parallel Joint Statement for SCP, in order to harmonize the human rights commitments made by the BTC and SCP Projects. AGT agrees that such consistency along project lines is desirable and will continue its efforts to promote this agreement. However, it should be noted that the host governments have made explicit their commitment to comply with the Voluntary Principles in the provision of security for SCP in the Trilateral Security Protocol signed on 23 July 2003. Furthermore, the Bilateral Security Protocols for Georgia and Azerbaijan, which also apply to SCP, elaborate further the measures required to comply with the Voluntary Principles to help ensure human rights standards are upheld in the provision of security. To this extent, the security-related human rights commitments that apply to both BTC and SCP are consistent. The Voluntary Principles encourage participating companies to communicate their policies regarding ethical conduct and human rights to public security providers. AGT s most significant initiative in addressing this recommendation is to have supported extensive human rights-based security training programmes in Azerbaijan and Georgia, which Foley Hoag recognizes as setting the industry benchmark for implementation of the Voluntary Principles with respect to the training of public security forces. In Azerbaijan, the EPPD has participated since May 2004 in a programme run by Equity International, designed to embed a sustainable human rights educational capacity within the organization. Foley Hoag notes that in light of the fact that the EPPD has not requested any further training from Equity International in 2007, the EPPD itself must assume greater responsibility both for continuing the training and maintaining its high calibre. Foley Hoag also recommends to AGT that it provide refresher courses to ensure EPPD trainers are updated 6
regarding evolving international standards and best practices. Following AGT s investment and support for the Equity International programme, we have been pleased to learn that the EPPD has revised its training curriculum to incorporate many of the international standards taught by Equity International. The organization is to be congratulated for this development, which is a positive sign for the integration of human rights standards within training that Foley Hoag urges and AGT itself supports. AGT believes it remains important to continue to consult and engage with the EPPD on training. Through this process we continue to convey our standards and to support them in identifying their training needs. When assistance is requested of us to support refresher human rights-based training in the future, we will readily consider it. In Georgia, AGT has supported training by two organizations aimed at developing the capacity of the SPPD to act in accordance with international standards - including key standards on security and human rights. Equity International taught two training programmes and subsequent training for SPPD has been provided by Bowman Risk Management (BRM), a UK based security training and consulting company. BRM has provided a range of courses, designed to support the development of the operational skills SPPD requires to protect the pipelines. The training has therefore included practical topics such as command and control, tactical surveillance and search operations, winter operations and remote area survival and rescue training. Particular emphasis has been given to international law, human rights and conflict resolution. These modules have included the Universal Declaration of Human Rights, the UN Code of Conduct for Law Enforcement Officials, conflict prevention and management, the use of force and the establishment and application of national rules of engagement. This basic training has been provided by BRM on a train the trainer' basis, with SPPD now taking ownership for delivery of this training to its own staff. In 2007, BRM will continue to work with the SPPD in a coaching and advising role and, as Foley Hoag advises, will specifically refer to the Voluntary Principles in the training provided. Where any suitable opportunities arise for cooperation with other parties to support the training, such as with the ICRC and the OSCE, AGT will consider and discuss them with the host government. Foley Hoag advises engagement with the Georgian Ministry of Internal Affairs (MOIA) on the possibility of MOIA providing SPPD with non-lethal weaponry, and on the ministry s broader plans in relation to training, resources and facilities. Foley Hoag reports a concern raised by one NGO about the open display of AK-47s by SPPD forces in villages and at checkpoints. AGT 7
appreciates this guidance and will seek to discuss the above points with the host government. AGT also expects that the concern about open display of weapons will be alleviated when the construction of the SPPD security base near Tsikhisjvari is completed, thus allowing the SPPD to move out from and close the temporary headquarters in the village. AGT anticipates that the new security base will be completed by the end of 2007. AGT is pleased to note that Foley Hoag finds that the Projects continue to set the industry standard for making security arrangements transparent and accessible to the public. Foley Hoag encourages AGT to urge the governments to follow through with commitments to promote greater fiscal transparency. One contribution made by BP to this goal is to publish payments to the host governments through the annual Sustainability Reports, including taxes and grants paid to the state budgets. In addition, in Georgia BP has published information about the BTC Grant Programme and the Security Agreement and has put in place an audit programme of funds dispersed under these agreements. AGT considers this goal of transparency in security arrangements to be of paramount importance and an ongoing objective. This is being accomplished, for example, through such on-the-ground initiatives as the Interagency Security Working Groups in Azerbaijan, through roundtables, discussions with the press and meetings with NGOs in Georgia, and through publishing information on the security arrangements in both countries. In Georgia, Foley Hoag gives credit to the publication of audits by Deloitte and Touche of the Security Agreement but further encourages AGT to promote the development by SPPD of internationally-recognized reporting procedures. AGT will publish a quarterly statement prepared by BRM on the use of non-lethal and non-dual use equipment that is provided to the SPPD under the Security Agreement. This statement will in future be published alongside the Deloitte and Touche audits. Foley Hoag comments on the efforts by Equity International to help EPPD in Azerbaijan establish a procedure for cases where they are required to handover a suspect to the police to help ensure accountability through the chain of custody. AGT agrees this was an important step and notes Foley Hoag s recommendation to encourage the government to codify such procedures. AGT will seek to engage the government further on this topic. Foley Hoag also stresses the need in Azerbaijan to support training for the EPPD regarding how to interface with community members. During the human rights-based security training programme delivered in 2004, 2005 and 2006, Equity International provided a number of training sessions on approach and 8
communications for officers of the EPPD which focused on effective communication and interpersonal skills with members of the public. AGT has been informed by EPPD that such instruction is now integrated into its revised training syllabus. We will continue to engage with EPPD to urge that training on this and other international standards is sustained. With respect to the Voluntary Principles guidance on consultation between public security organizations, host and home governments and civil society, Foley Hoag recommends in Georgia that AGT document the dates and topics discussed at all information-gathering meetings regarding security and human rights. In Georgia, our dialogue with the government is led by BP senior management, including the head of country, and the government affairs and security managers. We will continue and indeed make additional efforts to document consultations that take place within this framework. In Azerbaijan, Foley Hoag recommends that AGT consider with the host government on whether the Working Group of the Pipeline Security Commission, established in 2002 to facilitate consultation on the security of export pipelines and associated infrastructure, provides sufficient opportunities for exchanges between the parties regarding security and human rights. AGT will engage the host government on this question. Foley Hoag recommends to AGT in both countries that it follow through with respect to the guidelines established under the Bilateral Security Protocol to promote the establishment of a credible system by which allegations of human rights abuses are appropriately investigated and addressed. As part of this engagement, AGT will share with the host governments the Human Rights Response Plan. This has been established by the BP Azerbaijan Strategic Performance Unit to provide guidance for recording and managing allegations of human rights abuses related to BP operations in Azerbaijan and Georgia. 1. Interactions with Private Security As Foley Hoag notes, AGT engages private security contractors to provide unarmed guarding services for our assets, such as for offices, terminals and pump stations. These services are strictly behind the fence i.e. within the physical perimeters of the assets, and serve particularly to control entry and exit from the sites and to help prevent loss of company property. The third and final section of the Voluntary Principles guides our interaction with private security providers. 9
The Voluntary Principles encourage participating companies to use their influence to urge private security contractors to observe international humanitarian law and emerging best industry practice. In Azerbaijan, Foley Hoag finds that AGT is taking appropriate steps to comply with this principle, through such initiatives as ensuring basic human rights-based security training is provided to guards, and stipulating a requirement to comply with the Voluntary Principles within our contract with the service provider. Building on the work done in 2005, AGT will seek to facilitate further training for guards in Azerbaijan during 2007 and will ensure that an AGT representative participates in the course to gain assurance that the relevant human rights guidelines are addressed in sufficient depth. In Azerbaijan, AGT will ensure that a representative of the security contractor participates in the Interagency Security Working Groups. AGT will also work with the contractor to identify any suitable human rights courses that the management might participate in to further their knowledge of international standards that apply to private security. In Georgia, as recommended by Foley Hoag, we will seek to ensure that in 2007 the security provider s guards are provided with formal training regarding human rights and security. Since Foley Hoag s monitoring visit to Georgia in November 2006, AGT has inserted the full text of the Voluntary Principles in the contract with the security provider, covering the BTC, SCP and Western Route export pipelines. We have also included within the contract an assurance checklist for the Voluntary Principles, which is to be completed by the security provider on a bi-annual basis. This checklist provides for, among other measures, guard training with respect to the Voluntary Principles and compliance monitoring. It is similar to the checklist AGT already has in place for the private security contractor in Azerbaijan and we note Foley Hoag s suggestion that we improve this by establishing a more detailed and sophisticated list of expectations and reporting notes. AGT will review the assurance checklists during 2007 to determine areas for improvement. Under the Voluntary Principles, companies are urged to monitor private security providers. Foley Hoag credits AGT in Azerbaijan for establishing a joint Operational Committee to review the private security contractor s performance on a regular basis and recommends a similar process is adopted in Georgia. AGT already holds regular meetings with the contractor in Georgia to address performance issues and we will consider the benefit of creating a more formalized programme of review and assurance. 10
Finally, Foley Hoag notes that AGT is committed under the Bilateral Security Protocols to investigating and reporting any credible allegations of human rights or ethical abuse by private security personnel to the appropriate governmental authorities. In both countries the monitor encourages AGT to work with the contractor to establish a credible system by which allegations of human rights abuses are appropriately investigated and addressed. AGT has carefully considered this recommendation and concludes that such a scenario should be addressed in accordance with national legislation and under the guidance of the established Human Rights Response Plan for the BP Azerbaijan SPU. Consequently, AGT will ensure that management of the private security contractors clearly understand the plan and how it potentially relates to their activities. Conclusion AGT thanks Foley Hoag for its assessments and the recommendations made to strengthen compliance with the Voluntary Principles, to promote respect for human rights and to manage legal and reputational risks. Building on the work of previous years, the AGT Projects will aim to make continuous improvements with respect to implementation of the Voluntary Principles. Foley Hoag s findings and recommendations, notably with respect to encouraging direct dialogue between public security and local communities, expanding and improving training for private security contractors, and promoting ongoing training that accords to international standards by the public pipeline security organizations in Azerbaijan and Georgia, provides an important source of counsel and challenge to accomplish this goal. 11