News about withdrawal of Balfour Beatty och Impregilo from Ilisu project
 

Ilisu dam in jeopardy as Balfour drops out
Mortal blow for controversial £1.25bn project flooding Kurds' land

Paul Brown
environment correspondent
The Guardian, November 14, 2001

The controversial Ilisu dam project in Turkey, personally backed by Tony Blair, has been dropped by Balfour Beatty, the company that led the international consortium which would have
drowned the Kurdish homelands.

The £1.25bn project to dam the Tigris, first revealed in the Guardian in March 1999, needed the backing of the export credit departments of nine countries to make it viable, with the UK in the lead.

The giant construction firm said yesterday it had decided to pull out because the "commercial, social and environmental" issues were unlikely to be resolved soon.

Balfour Beatty's Italian partner, Impregilo, also abandoned the project yesterday. Environmental and human rights groups were jubilant.

The surprise announcement follows speculation last week that the prime minister was resolutely behind the Ilisu dam, partly because of pressure from the Turkish government, which wanted a reward for its help in providing bases for the bombing of Afghanistan.

Robin Cook, who at the time of the original proposal was foreign secretary, was among cabinet members reportedly opposed to it.

The project had provoked an international outcry by
environmental and human rights groups, and diplomatic
objections from Syria and Iraq, which claimed it interferred with their rights to water from the river Tigris and that they had not been consulted.

The Arab League warned the British government against backing the project.

In response to pressure, the government set four conditions before it would back the project to the tune of £300m. These were a proper resettlement programme for 50,000 displaced Kurds, consultation with Syria and Iraq, archaeology rescue plans for the 2,000-year-old city of Hasankeyf and preservation of the 100,000 years of history in the region, and environmental
improvements including sewage works.

After the independent World Commission on Dams report earlier this year, which set high standards for building similar projects, Skanska, the Swedish member of the consortium, pulled out.

Stephen Byers, then at the Department of Trade and Industry, dropped strong hints that the government was also to abandon the project but was overruled by No 10. Balfour Beatty is involved in a number of private finance initiatives with the government.

A report on Ilisu this July on how the four conditions were being met, said the human rights issues and consultations with downstream neighbours were still unresolved.

Mike Welton, chief executive of Balfour Beatty, yesterday said that with the issues still unsecured and no early resolution likely, it was not in the best interests of the company to continue. It believed the project could only proceed with substantial extra work and expense and it would suffer considerable further delay.

Kerim Yildiz, spokesman for the Kurdish Human Rights Project, said: "We are delighted. We were not expecting this, because Balfour Beatty was fighting hard for the dam.

"This Ilisu campaign is a great example of environment and human rights groups fighting together to be effective."

Charles Secrett, director of Friends of the Earth, said: "This is a tremendous win against a disastrous project. The story of the Ilisu dam shows the need for laws which require British firms to´adopt clear ethical and environmental standards in their work abroad as well as at home."

The Department of Trade and Industry and the export credit guarantee department were saying little yesterday. The official line was that the "decision is a commercial matter for the company". But it was clear there will be relief that such a potential political disaster has gone. The government faced a judicial review over human rights and breaches of international law if it had gone ahead.

Though this means the scheme is now effectively dead, the Turkish government has always said it would continue with the project whether or not it got the foreign backing. It intends to issue a statement.

Turkey Determined To Go On With Ilisu Dam Despite Italian, UK Firms' Withdrawal

Anatolia, November 14, 2001

ANKARA, LONDON - The Foreign Affairs Ministry said on
Tuesday that the Turkish government`s determination to construct Ilisu Dam on the Tigris continued.

Releasing a written statement, the Foreign Affairs Ministry noted that the withdrawal of the British civil engineering firm Balfour Beatty PLC and Italian builder Impregilo from the Swiss-led consortium was regrettable.

"The Tigris accounts for 15 percent of Turkey`s total water potential. We will be able to put this potential to better use with the Ilisu Dam. The dam will produce 55 percent of the energy produced by the Ataturk Dam and Hydroelectric power plant, and 5 percent of total electricity energy of Turkey. The dam constitutes one
of the most important factors of the Southeastern Anatolia Project, the greatest project of the history of the Republic. The withdrawal of the British and Italian firms is regrettable.   Nevertheless, the Turkish
government`s determination to construct the Ilisu Dam continues," it said.

Meanwhile, the Turkish Embassy in British capital London
said on Tuesday that it was British civil engineering firm Balfour Beatty PLC`s commercial preference to withdraw from the Swiss-led consortium which holds the contract to build the Ilisu dam on the Tigris.

Releasing a statement, the Turkish Embassy in London said that Balfour Beatty had taken a decision in line with its views and preferences as an institution of private sector.

The statement stressed that Turkey attributed great importance to finalization the Ilisu Dam, an important part of the Southeastern Anatolia Project (GAP).

Underlining importance of GAP in the fields of economy, energy and social life, the statement said that the residents in the region extended full support to the project.

The statement noted that the GAP with its parts like the Ilisu Dam, aimed at increasing welfare in under-developed regions of Turkey, and rising living standards of local people.

It said that the Ilisu Dam was planned to produce hydroelectric energy to meet Turkey`s increasing energy requirement.

The statement added that the Turkish government was determined to finalize this regional integration development project that would increase living standards of its citizens.

No dam, but plenty of  energy
Where Ilisu would be built: Renewable energy could replace it - in time

Alex Kirby
BBC News, 14 November, 2001

Dams are often seen as the ideal way to generate energy without burning fossil fuels and adding to global warming.

But if the Ilisu dam is not built, Turkey should still eventually find environmentally friendly energy sources.

It can improve the efficiency with which it uses energy, and it can turn to renewables. Solutions like these would cost Turkey far less in many ways.

A year ago the World Commission on Dams published its final report. It was chaired by the South African Education Minister, Professor Kader Asmal.

He said: "It means nothing to build billion-dollar dams if your monuments alienate the weak. It means nothing to stop all dams if your protests only entrench poverty."

The commission said dams worldwide had provided many benefits, but often at too high a price.

Wind potential

It said rotting vegetation trapped under water released carbon dioxide and methane, both potent greenhouse gases, and this could cause more pollution than production of electricity from fossil fuels.

The commission concluded that there was far greater scope for using alternative ways of meeting people's needs, including renewable energy, recycling, better irrigation, and reducing water losses.

Aegean Tech is a Turkish technology and renewable energy  group. It says: "It is estimated that in 2023 Turkey will need 600  billion kWh a year.

"If we pursue an intelligent policy, then in 2023 about one-third of the energy need of the country could theoretically be  harvested from the wind."

Dr Smail Khennas is senior energy specialist at the Intermediate Technology Development Group (ITDG).

He told BBC News Online: "In Turkey's case, renewables would not be able to fill the gap in the short term, over the next five years or so.

Twice the average

"Ilisu would produce so much energy it will be quite a lot longer than that before renewables can provide the answer. But in the meantime, Turkey could work on improving its energy efficiency."

Greenpeace says: "The potential for Turkey to reduce its energy usage is massive. It uses twice as much energy per unit of gross national product (GNP) as the European average.

"In the last three decades European countries have increased their energy efficiency. However International Energy Agency figures show that Turkey's energy efficiency actually decreased during this period.

"In 1996 the cost of wasted energy was $4.5bn, roughly equivalent to the amount that Turkey spent the previous year on imported energy.

"The Turkish Chamber of Electrical Engineers estimates that up to 30% of the electricity generated in Turkey is lost during transmission and distribution from power stations to end users. The international standard is 6-6.5%."

Thinking small

Hannah Griffiths of Friends of the Earth (FoE) told BBC News Online: "Turkey is ideally placed to exploit its solar energy potential.

"It doesn't need centralised generators, but mini-power stations on the roofs of homes and other buildings.

"They could feed current into the grid by day, and the users could take electricity from it when the sunlight wasn't enough to meet their needs."

Blow to Turkish dam project

BBC, November 13, 2001

LONDON, England -- British engineering group Balfour Beatty said it was pulling out of a controversial dam project in Turkey.

The u-turn has delighted environmentalists who had opposed the scheme in southeast Turkey, saying it would flood towns and make homeless large numbers
of Kurds.

There were also fears that the Ilisu dam would control water flow along the River Tigris threatening a 'water war' with other countries which rely on the river for
water.

Balfour denied that the protests and controversy surrounding the project had forced their hand.

"The decision follows a thorough and extensive evaluation of the commercial, environmental and social issues inherent in the project," Balfour Beatty said in a
statement.

Company spokesman Tim Sharp told Reuters news agency: "Our withdrawal does not mean that the dam won't happen."

Balfour has been targeted by environmental groups like Friends of the Earth and human rights organisations over its leadership of the dam engineering consortium.

The $2 billion project is designed to boost regional power and electricity supplies.

Leading companies involved in a separate dam power consortium include France's Alstom and Swiss firm Sulzer, and Balfour spokesman Sharp said he believed those
companies were still committed to the project.

It was unclear however whether the other members of the engineering consortium were going ahead with the project.

Friends of the Earth has warned that the Turkish government's scheme would displace over 30,000 local Kurdish citizens and flood towns.

FoE said Balfour's withdrawal was a victory for their organisation.

The pressure group acquired a small shareholding in the company, enabling it to attend Balfour's annual general meeting in May and fire questions at management
over their ininvolvementn the Ilisu Dam scheme.

"This is a tremendous win for campaigners against a disastrous dam project," said Friends of the Earth director Charles Secrett in a statement.

"Balfour Beatty's very welcome decision to drop out of the project shows the power of shareholder pressure and publicity campaigns by groups like Friends of the Earth and the Ilisu Dam Campaign."

A spokesman for the London-based Kurdish Human Rights Project, which had also protested against the scheme, also welcomed Balfour's withdrawal.

"If you bring the human rights and environmental issues together, you can win," the spokesman told Reuters.

Dam opponents welcome Balfour decision

BBC, 13 November, 2001

News that UK company Balfour Beatty is to pull out of the Ilisu dam project has been welcomed by opponents of the project.

The dam has attracted years of controversy because of claims that damming of the River Tigres could displace thousands of people and have a damaging impact on political stability in the region.

The British government had said that, subject to certain conditions, it would have been prepared to offer credit insurance to Balfour's contract.

But Trade Secretary Patricia Hewitt, and her predecessor Stephen Byers, had stressed that export credit support would only be extended if they were satisfied that the environmental and social impacts were being properly addressed.

Those conditions meant the Turkish government had to draw up an internationally acceptable resettlement programme, take steps to maintain the quality of the water and ensure an adequate supply of water downstream.

Manipulation fears

There are fears that the water supply into both Iraq and Syria could have been manipulated by the Turkish
government.

In July Ms Hewitt announced a public consultation on a report that suggested that up to 60,000 people could be affected if the dam went ahead.

The director of Friends of the Earth, Charles Secrett, said Balfour's decision to pull out of the project was a "tremendous win" for campaigners against the dam.

"However, the government has managed to avoid ever taking a clear decision on this scheme," he said.

"That means that companies seeking future export credits can argue that no clear ethical precedent has been set.

"Balfour Beatty have helped Mr Blair slip off the hook."

He said the whole Ilisu dam saga showed there was a need for laws requiring British companies to adopt "clear ethical and environmental standards in their work abroad as well as at home".

Credits

"Certainly, backing such as export credits should never even be considered in cases which involve such obvious environmental destruction and abuse of human rights," Mr Secrett added.

Labour MP Ann Clwyd, who has been an outspoken campaigner against the dam, was also quick to welcome the news that Balfour had pulled out of the project.

"I hope the British Government will now withdraw from its consideration of support for the project and that it will make the announcement this week," she said.

Ms Clwyd also referred to the fact that many of the people that would be affected by the dam would Kurds.

"The Ilisu Dam is bad for human rights, bad for the environment, bad for regional peace and bad for Britain.

"The government should make its views clear that there can be no British backing for such a controversial project," she said.

Environmental impact

According to the environmental impact assessment report commissioned by the consortium running the project, the dam would create a reservoir covering 300 square kilometres, of which around a quarter is currently first-rate agricultural land.

In all, 183 towns, villages and hamlets would be affected - 82 totally and 101 partially flooded.

Liberal Democrat international development spokeswomen Dr Jenny Tonge pronounced herself delighted that Balfour were pulling out of the project.

"We have been waiting for the government's decision regarding the Ilisu dam for far too long and now it seems that Balfour Beatty have made that decision for them," she said.

"This was a flawed project from start to finish and it is a shame that it has taken so long for this to be realised."

Balfour Beatty withdraws support for the Ilisu Dam project

Kurdish Human Rights Project
Press Release
13 November 2001

Following vehement campaigns from environmentalists and human rights groups, Balfour Beatty has today announced its withdrawal from the Ilisu Dam project.

The proposed Dam was set to destroy the town of Hasankeyf in Southeast Turkey, an area of significant cultural heritage, leaving 78,000 local residents homeless. Many believed the Dam was part of the Turkish government's wider plan to ethnically cleanse the area of its Kurdish population. Those involved in the Ilisu Dam Campaign (KHRP, Cornerhouse, Friends of the Earth and Mark Thomas), also condemned the Dam for its disastrous environmental implications.

KHRP hopes the sustained campaign against the Ilisu Dam has sent a strong message to British companies and the government about the ethics of export credit guarantee dealings with regimes that have as appalling a human rights record as Turkey.

Executive Director of the Kurdish Human Rights Project and Chairman of the Ilisu Dam Campaign, Kerim Yildiz, expressed his delight at the news;

"There have always been very strong human rights and environmental grounds why this project should not go ahead. Following Balfour Beatty's decision we now call on the UK government to confirm that it will not back the
controversial Ilisu Dam."

Contact details:

Sally Eberhardt
Public Relations Officer
Kurdish Human Rights Project
Suite 319 Linen Hall
162-168 Regent Street
London W1B 5TG
Tel: +44 20 7287 2772
Fax: +44 20 7734 4927
E-mail: khrp@khrp.demon.co.uk

Dam decision takes Turkey by surprise

Tabitha Morgan, Istanbul

BBC, 13 November, 2001

The decision by UK construction firm Balfour Beatty to pull out of the controversial Ilisu dam project has caused as much surprise in Turkey  as it has in Britain.

The move comes at a time when the UK was widely expected to approve export credits for the $1.5bn deal, as a gesture of good will to shore up relations with Nato's only Islamic member state.

The Turkish Government has made no secret of the fact that it hopes its involvement in the coalition against terrorism may lead to much-needed foreign investment in the economy.

Turkey recently committed 90 special forces troops to the ground war in Afghanistan, and its airbases in the south of the country would play a vital role if the war was to expand to include Iraq.

So this announcement by Balfour Beatty will certainly be regarded as a setback by the Turkish authorities.

Balfour Beatty was part of a consortium made up of two other European firms and three Turkish construction companies which together hoped to secure the contract
for the dam - Turkey's biggest-ever infrastructure project.

Another of the two European companies pulled out at the same time Balfour Beatty.

The Turkish Government claims that the proposed 1,200-megawatt dam, which would stem the River Tigris less than 40 miles from the border with Syria, would provide irrigation and hydro-electric power to the impoverished south-east of the country.

Britain's involvement in the scheme has long been the subject of considerable controversy.

Kurdish concerns

Opponents claimed its construction would have disastrous environmental and social consequences and would involve the displacement of 36,000 Kurds from the region.

They argue that as many as 25,000 people would be made homeless and a further 11,0000 Kurds would be forced from their lands.

Last month a report on the dam's environmental impact commissioned by Balfour Beatty was attacked by a number of leading development agencies.

They claimed the report failed to address key issues surrounding the resettlement of local people and criticised the Turkish Government for making minimal efforts to consult local inhabitants.

Balfour Beatty's withdrawal from the project will be viewed with some relief by Syria and Iraq.

Both countries, which rely on the Tigris and Euphrates for their water supplies, had been growing increasingly uneasy about the expansion of Turkish control over the rivers.

Now that Balfour Beatty has withdrawn from the project, Turkey is likely to look for other partners to build the Ilisu dam - part of a much wider $32bn scheme to bring water to the arid south-east.

These news are collected by:

Added at Kurdforum: 18 November 2001