What about an Oil Fund for Turkey and Georgia? Will IFC require Revenue Management Plans for all 3 countries? Will BTC "publish what it pays"?
Anticipated revenue is relatively modest compared to the overall Georgian and Turkey government revenues and therefore the added burden of an “oil fund” or other administrative oversight structure in these countries would have no positive impact, i.e. its costs would outweigh benefits.
IFC will not require a Revenue Management Plan for the three countries, because such a plan is already embodied in the countries’ structural reform efforts supported by the IMF, the World Bank and the international donor community. Azerbaijan and Georgia have both adopted Poverty Reduction Strategies that outline in detail the spending priorities of the governments over the medium term with a view to targeting poverty reduction. All BTC-related revenues in both countries will go through the general budget process. The State Oil Fund of Azerbaijan is in fact distinct from the concept of revenue management.
As part of IFC’s ongoing commitment to transparency (especially in the extractive industries), IFC has asked BTC (and BTC has agreed) to “publish what they pay” and Georgia and Azerbaijan have agreed to “publish what they receive." This fiscal transparency together with the commitments made to the entire donor community under the PRSPs is in IFC’s view one of the most effective ways to ensure that revenues will be wisely spent.
