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

Author/Editor:

Jonathan C Dunn ; Andreas Billmeier ; Bert van Selm

Publication Date:

November 1, 2004

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2004/209

Subject:

Commodities Expenditure International trade National accounts Oil Oil exports Oil, gas and mining taxes Public expenditure review Taxes Transportation

English

Publication Date:

November 1, 2004

ISBN/ISSN:

9781451874785/1018-5941

Stock No:

WPIEA2092004

Pages:

16

Please address any questions about this title to publications@imf.org