BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
    You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
 Monday, 23 December, 2002, 12:18 GMT
French firm gives up on Turkish dam
Map of Yusefeli
Turkey's controversial Yusufeli dam project has edged closer to collapse after the withdrawal of a French construction company.

Spie, which was taken over by Britain's Amec on 5 December, said it was dropping out of the consortium after a "review of its strategic direction".

Amec itself pulled out in March 2002, saying it was unlikely to make a return which would justify the investment and that it preferred to concentrate on "service-related" activities.

But both companies have been subject to heavy lobbying from lobby groups which say the dam would severely damage the lives of local Kurdish people, archaeological sites and the environment.

Turkey's other main dam project, the Ilisu complex in the south east of the country, has seen half a dozen Western companies walk away in the past few years.

Both dams are in areas inhabited by Turkey's Kurdish minority.

On the edge

The Yusufeli project is not dead yet.

Alstom, another French engineering group, is still publicly behind the Turkish government's plans, with banks Barclays and BNP Paribas reportedly offering financing.

And the Turkish government is desperate for ways to prime its economy which is in tatters, thanks to political instability and runaway inflation.

But Alstom's own participation could still be at risk.

Coface, France's export credit agency, had made Spie's application for backing for its Yusufeli involvement conditional on the project meeting World Bank standards for dams.

The same conditions could apply to Alstom.

Friends of the Earth, the international ecological pressure group, says Yusufeli has already fallen foul of that rule.

The project, FoE says, will submerge 15,000 people's homes while affecting the livelihoods of 15,000 more.

See also:

13 Mar 02 | Business
13 Nov 01 | Business
13 Nov 01 | Business
13 Nov 01 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes