The transboundary EIA convention in the context of private sector operations co-financed by an International Financial Institution: two case studies from Azerbaijan and Turkmenistan

This paper presents two case studies involving private sector, offshore, oil field developments in the Caspian Sea. Environmental Impact Assessments (EIAs) of these operations indicated that major and unmitigated oil spills could potentially result in transboundary impacts. Both projects were co-financed by the European Bank for Reconstruction and Development (EBRD), an International Financial Institution (IFI). Project review and financing decision by the EBRD occurred when neither country hosting the projects was a Party to the 1991 Convention on EIA in a Transboundary Context (Espoo Convention). Discussions with government agencies during project review highlighted their limited institutional capacity to pursue transboundary notification and consultation activities. However, without being formal Parties or having clearly defined roles under the Convention, the combined presence of the EBRD, the private sector developer and its project needing financing became important drivers to promote the Espoo Convention. Surveying for similar IFI–project combinations in developing and transition economies could provide a ‘bottom up’ input to further optimise the Convention Secretariatʹs awareness raising, intervention design, and alliance-building strategies. The knowledge management model and user-friendly Web site of the 1992 Convention on Biological Diversity highlight approaches that may also prove effective for the Espoo Convention.