Archived press release

Protesters blow whistle on amec agm

8 May 2002

Shareholders, including TV comedian Mark Thomas, blew the whistle on AMEC’s continued involvement in the Yusufeli Dam project in Turkey at the company’s AGM this morning, holding up red cards in protest at the company’s action.

The shareholders, representing campaign groups Friends of the Earth, Cornerhouse, the Ilisu Dam Campaign and the Kurdish Human Rights Project, were objecting to AMEC’s 46 per cent share in French company SPIE, which is leading the construction consortium planning on building the dam [1].

Protesters from the environmental and human rights groups also demonstrated outside the Radisson SAS Portman Hotel in London, with placards and posters exposing the construction giant’s activities.

AMEC withdrew from the Yusufeli construction consortium in March 2002, following a commercial review of the project [2]. Shareholders asked the board why the project was considered to be commercially viable via SPIE, but not viable via AMEC during the meeting, and also raised questions about a range of AMEC projects which have given the campaign groups cause for concern [3].

An international fact finding mission [4] to the Yusufeli region in Turkey earlier this month, found that the Yusufeli project violates all the relevant World Bank standards on dams and resettlement [5]. SPIE has confirmed that their involvement in the project is conditional on it meeting these minimal standards. In the light of this, Friends of the Earth, The Ilisu Dam Campaign, The Cornerhouse and The Kurdish Human Rights Project are calling on AMEC to review their participation in the project through the SPIE group.

Following the meeting Hannah Griffiths, Corporates Campaigner at Friends of the Earth, said:
"AMEC has completely refused to take responsibility for their 46 per cent involvement in SPIE and the impacts of their investment in SPIE’s dam building activities. It is completely irresponsible behaviour from a UK corporate. They are involved in a range of environmentally damaging schemes, and they should be accountable for the damage they will cause.”

Nicholas Hildyard, Director of the Ilisu Dam Campaign, said:
"The fact finding mission has established that the Yusufeli Dam is a social and environmental disaster. As AMEC says, there is a fundamental link between any company's economic, environmental and social performance. The financial benefits for shareholders are questionable given the social and environmental impacts and implications for reputational risk. Shareholders in AMEC may feel confused about why this project is not commercially viable for them under AMEC's name, but is under SPIE's name."

Kerim Yildliz, Director of the Kurdish Human Rights Project said:
"AMEC - SPIE are trampling over communities' rights in pushing forward with this project. We urge them to uphold the standards they have set for themselves and not to support this destructive dam."

PHOTOS OF THE EVENT ARE AVAILABLE FROM WWW.PAPICSELECT.COM - see Friends of the Earth's folder in the charities section of the site.

Notes

[1] AMEC has the option to purchase the remainder of SPIE in July 2002.
[2] AMEC had applied to the UK Government for ,68 million of public funds to underwrite the project. The Export Credits Guarantee Department (ECGD) is currently considering this application. The international construction consortium also involves French company Spie. AMEC owns 46% of Spie, and has an option to buy the remainder this year.
[3] Other AMEC projects include:

• two controversial new roads in the UK - the Birmingham Northern Relief Road and the Bingley Bypass – which are destroying miles of countryside including protected areas and which have faced strong local opposition;
• fuelling rainforest destruction by building the world’s biggest pulp mill in Indonesia ;
• carrying out a controversial Environmental Impact Assessment for the destructive Chalillo Dam in Belize.

[4] The fact finding mission consisted of representatives of Friends of the Earth (England Wales and Northern Ireland), The Ilisu Dam Campaign, The Cornerhouse, Amis de la Terre (Friends of the Earth France) and France Libertes.
[5] A preliminary report of the fact finding mission is available from FOE. The mission found that, if built, the Yusufeli Dam would flood 18 towns and villages. The project would drown the homes of 15,000 people and displace a further 15,000. Affected communities have not been properly consulted and adequate plans for resettlement have not been made. Currently undisturbed habitat - home to endangered species such as the brown bear - will also be lost.

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Published by Friends of the Earth Trust