Berlin - Germany, Austria and Switzerland on Tuesday
cancelled financing for a controversial hydroelectric dam in south-
east Turkey because of concerns it will harm the environment.
A statement released by the state-run credit agencies for the
three countries said the decision followed the failure of Turkey to
fulfill environmental standards for the 1.2-billion-euro (1.68
billion dollars) Ilisu Dam and hydro lake.
The institutions last year suspended their financing because the
Turkish government had failed to fulfill the criteria by December
2008. They later gave Turkey a 180-day extension, which expired July
6.
The statement by Germany's Euler Hermes Kreditversicherung AG,
Oesterreichische Kontrollbank AG and Schweizerische
Exportrisikoversicherung said that while Turkey had made progress on
meeting many of the standards, others were left unfulfilled.
The dam project is part of the Turkish government's plan to boost
economic prosperity in the country's less-developed south-eastern
region, long troubled by clashes between security forces and the
outlawed Kurdish Workers Party (PKK).
The hydro lake is to have an area of more than 300 square
kilometres. It would flood Hasankeyf, a city with archaeological
remains of major scholarly importance, and force the relocation of
10,000 people.
Germany had originally guaranteed German exporters would be paid
190 million euros. Export credits can be used as a form of project
finance.
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