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YUSEFELI DAM PROJECT TOTTERS AS SPIE PULLS OUT

20 Dec 2002

From Friends of the Earth, the Ilisu Dam Campaign, and the Cornerhouse

The future of the town of Yusufeli in Turkey will be looking far brighter in 2003 as the French Ministry of Finance has stated [1] that lead contractor Spie has withdrawn from the controversial Yusufeli Dam [2]. Spanish and Belgian companies of the civil works group have also withdrawn - a major blow to the project, whose future now looks uncertain.

French company Spie has been under pressure from campaign groups and civil society in France, and in the UK because the company is owned by British construction giant AMEC. After a five year relationship and months of negotiations, AMEC increased its shareholding in Spie from 46% to 100% on 5 December this year.

Spie has also withdrawn its application from COFACE, the French export credit agency. COFACE had made support for the project conditional on it meeting World Bank standards. Spie's withdrawal means that COFACE will not have to act on this condition.

French-British company Alstom is still pushing ahead with the project.

Hannah Griffiths, Friends of the Earth Corporates Campaigner, said:
"This is a festive present for the people and communities whose future would been damaged by this destructive project. It would be an even better present if AMEC-Spie now adopted the World Commission on Dams guidelines, so that it can be sure it doesn't get involved in any more projects of this kind. And on my Christmas list from the UK Government are new laws to make companies legally answerable for their actions. This might stop Alstom from pushing ahead with the project too."

Nicholas Hildyard from the Cornerhouse said:
"We are delighted that AMEC has kept its promise to review Spie's involvement in the project and that COFACE will not be using French public money to subside the project. But once again export credit agencies are left without having to introduce robust rules about what they will and will not fund. It is high time EU governments turned their export credit agencies around so that it is only possible for them to fund projects that meet the highest standards."

Notes

[1] In a letter dated 17/12/02 to Amis de la Terre (Friends of the Earth France)
[2] If built, the Yusufeli Dam would flood 18 towns and villages drowning the homes of 15,000 people and affecting a further 15,000. An international Fact Finding Mission to the region earlier this year found that the dam does not meet the international standards and guidelines set by the World Bank and by the World Commission on Dams. These standards relate to all elements of dam building including consultation with affected people, adequate compensation for affected people, protection of natural habitats and proper consideration and analysis of alternatives.
A copy of the Fact Finding Mission's report is available at: www.foe.co.uk/resource/reports/damning_indictment.pdf (PDF† 3.17MB)
Pictures of Yusufeli are available from Friends of the Earth

†To view PDF files you will need to download Adobe Acrobat Reader. Visually impaired users can get extra help with these documents from access.adobe.com.

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