In the Pipeline: Georgia's Oil and Gas Transit Revenues

16 Pages Posted: 9 Feb 2006

See all articles by Bert van Selm

Bert van Selm

International Monetary Fund (IMF) - Middle East and Central Asia Department

Andreas Billmeier

International Monetary Fund (IMF) - Middle East and Central Asia Department

Jonathan Dunn

International Monetary Fund (IMF) - Middle East and Central Asia Department

Date Written: November 2004

Abstract

Starting in 2005, nontax revenue in Georgia is expected to rise significantly, in the form of transit fees for oil transported through the Baku-Tbilisi-Ceyhan Oil Pipeline. Transit fees for gas transported through the South Caucasus Pipeline are expected to start in 2007. This paper discusses (1) how much additional revenue can be expected, (2) prospects for monetizing gas that could be received as in-kind transit fees, in the light of pervasive nonpayment in the domestic gas sector, (3) the impact of these inflows on external competitiveness, (4) how to put in place appropriate reporting on these additional revenues, and (5) whether these inflows justify the creation of a special natural resource fund.

Keywords: Georgia, Transit fees, fiscal revenue

JEL Classification: O13, P28, Q43

Suggested Citation

van Selm, Bert and Billmeier, Andreas and Dunn, Jonathan, In the Pipeline: Georgia's Oil and Gas Transit Revenues (November 2004). IMF Working Paper No. 04/209. Available at SSRN: https://ssrn.com/abstract=879034

Bert Van Selm

International Monetary Fund (IMF) - Middle East and Central Asia Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Andreas Billmeier

International Monetary Fund (IMF) - Middle East and Central Asia Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Jonathan Dunn

International Monetary Fund (IMF) - Middle East and Central Asia Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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