Credit agencies set to decide on Ilısu Dam
Güncelleme Tarihi:
FULYA ÖZERKAN
Oluşturulma Tarihi: Temmuz 03, 2009 00:00
ANKARA - German, Austrian and Swiss institutions will announce Monday whether they will provide financing to build the Ilısu hydroelectric dam on the Tigris River in southeastern Anatolia as the six-month funding suspension expires.
The decision is likely to be a negative one given the Turkish government’s failure to address more than 100 conditions involving environmental and humanitarian concerns. But sources say the amount proposed by the three agencies is low considering the total cost, adding that the decision that will be made by the Turkish government will be the best demonstration of the country’s priorities. The three private agencies had been offering 100 million euros each, out of a total project cost of 1.2 billion euros.
"It is not black and white. This is a decision to be made by the Turkish government. It is up to the people of this country to say what they need more," a source familiar with the project told the Hürriyet Daily News & Economic Review.
"Do they need more agriculture development, energy and water provided to the countries in the whole region, or is it more important to protect the cultural heritage of that region and the rights of the displaced people?" the source asked. "This is a difficult question to answer."
The dam project is part of the government’s plan to boost economic prosperity in the country’s less-developed southeastern region, long troubled by ongoing clashes between security forces and the outlawed Kurdistan Workers’ Party, or PKK. Defying local fears and environmental protests, Environment Minister Veysel Eroğlu on Wednesday announced the government’s plans to resume construction. "We are waiting for export credit agencies to lift the suspension. We would like to start construction as soon as possible," he told reporters at a briefing. "We have the power and money to build the dam."
German, Swiss and Austrian institutions earlier announced they were withholding their financing because the Turkish government had failed to fulfill the criteria by December 2008. The agencies later suspended the loans and gave Turkey a 180-day extension, which expires July 6. "This project has been ongoing for some time amid discussions between the private agencies and the government. Although many things have not been done, some things have been done," the source close to the project told the Daily News. "If the Turkish government decides to go ahead with the project alone, many [cultural and environmental] aspects might be neglected, but on the other hand, there are certainly benefits to this project that nobody can deny."
Once built, the Ilısu dam will flood a wide region that includes the ancient town of Hasankeyf and force the resettlement of up to 80,000 people.
"It is not black and white. This is a decision to be made by the Turkish government. It is up to the people of this country to say what they need more," a source familiar with the project told the Hürriyet Daily News & Economic Review.
"Do they need more agriculture development, energy and water provided to the countries in the whole region, or is it more important to protect the cultural heritage of that region and the rights of the displaced people?" the source asked. "This is a difficult question to answer."
The dam project is part of the government’s plan to boost economic prosperity in the country’s less-developed southeastern region, long troubled by ongoing clashes between security forces and the outlawed Kurdistan Workers’ Party, or PKK. Defying local fears and environmental protests, Environment Minister Veysel Eroğlu on Wednesday announced the government’s plans to resume construction. "We are waiting for export credit agencies to lift the suspension. We would like to start construction as soon as possible," he told reporters at a briefing. "We have the power and money to build the dam."
German, Swiss and Austrian institutions earlier announced they were withholding their financing because the Turkish government had failed to fulfill the criteria by December 2008. The agencies later suspended the loans and gave Turkey a 180-day extension, which expires July 6. "This project has been ongoing for some time amid discussions between the private agencies and the government. Although many things have not been done, some things have been done," the source close to the project told the Daily News. "If the Turkish government decides to go ahead with the project alone, many [cultural and environmental] aspects might be neglected, but on the other hand, there are certainly benefits to this project that nobody can deny."
Once built, the Ilısu dam will flood a wide region that includes the ancient town of Hasankeyf and force the resettlement of up to 80,000 people.