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Ilisu dam credit depends on environmental report

BALFOUR Beatty's proposal for a controversial £220 million dam in Turkey depends on the results of a new environmental impact report.

The firm is part of a team, including Swiss firms Sulzer Hydro and ABB, Skanska and three local outfits, which has applied to the Export Credits Guarantee Department to underwrite its contract.

Trade and Industry secretary Stephen Byers said: 'I am minded to grant export credit. This will be conditional on the Turkish authorities agreeing to address the concerns we have about the environmental and social impact of the project.'

The environmental study, which is being prepared by Sulzer and ABB, is due out in March. Mr Byers has indicated to the contractors that he has concerns about resettlement of the local population, disruption of the cultural heritage, reservoir water quality and downstream water flow.

See John Gummer, back page