26th Sept 2000 : Swedish Company Pulls Out Of Ilisu Dam

Swedish construction company, Skanska, has backed out of the controversial Ilisu Dam project in Turkey to protect its environmental reputation. The company had held a 24 per cent stake in the project.

The Ilisu Dam Campaign welcomed Skanska's decision, and called on Balfour Beatty, the UK construction company which holds a 31 per cent stake in the project, to follow suit. Balfour Beatty is continuing to seek $200 million backing from the UK Government Export Credit Guarantee Department for its participation in the project.

Nicholas Hildyard, Director of the Ilisu Dam Campaign, said:

"Skanska has already had its fingers burnt over its involvement in past dam projects. It appears that Skanska is now keen to prevent further damage to its reputation by withdrawing from the Ilisu project. Balfour Beatty's shareholders might wonder why their company is less assiduous in protecting their interests."

Tony Juniper, Policy and Campaigns Director at Friends of the Earth and a Director of the Ilisu Dam Campaign, said:

"Skanska's move deals a body blow to this scheme. The UK Government should realise that the Ilisu Dam is rapidly becoming the foreign policy equivalent of the Millenium Dome. It is highly controversial, unlikely to serve any useful purpose and will do more harm than good. Balfour Beatty and the UK Government should withdraw immediately."