Residents of Hasankeyf demonstrate in front of the German Embassy in Ankara against the Ilisu dam project.
Residents of Hasankeyf demonstrate in front of the German Embassy in Ankara against the Ilisu dam project.

Turkey dam risks losing foreign funding



ISTANBUL // In a move that could spell the end of one of the most controversial dam projects in Turkey, western sponsors of the Ilisu dam in southeastern Anatolia have stepped on the "emergency brake", threatening to cancel export guarantees and accusing Ankara of failing to fulfil social and environmental obligations. State-owned export agencies in Germany, Switzerland and Austria earlier this week notified the companies involved in the Ilisu project that Turkey had not done enough to ensure that the relocation of tens of thousands of people in the Ilisu region would be managed in a fair and orderly way, environmental standards upheld and cultural heritage protected.

In a strongly worded statement, Germany's ministry for economic co-operation and development said Turkey had failed on all fronts. "In sending out the environmental failure notice, the export insurance agencies have stepped on the emergency brake," the ministry said. "Turkey has not lived up to its commitments in any way." Turkey now has 60 days to fulfil the demands. There was no reaction from the Turkish government or from the consortium of companies that want to build the dam. The state-backed export guarantees are seen as a necessity for the participation of German, Swiss and Austrian companies in the dam project that is estimated to cost ?1.1 billion (Dh5.5bn) and that the Turkish government said is needed to boost the economy of southeastern Anatolia.

The lake that will be created by the Ilisu dam will contain more than 10 billion cubic metres of water from the Tigris river. Water will cover an area of more than 300 sq km and destroy almost 200 villages, triggering a relocation of up to 65,000 people, while the historic city of Hasankeyf will be partially submerged. Environmentalists in Turkey and abroad have been campaigning against the project for years. As a precondition for giving the export guarantees, the Europeans had presented Turkey with a list of more than 90 demands that dealt with the relocation issue, environmental matters and the preservation of the region's cultural heritage. But a team sent to the region last year found that work on many of those issues had not started. At the time of the visit last December, no consultations with people living in the villages earmarked to be inundated had been held, one of the reports said. The first consultation meeting in the region was held only in mid-April, long after the criticism voiced by the team had been made public. In a second visit this spring, the team concluded that there was hardly any progress on the ground or on the institutional level, with many government agencies still in the dark about what they were supposed to be doing in connection with the project. "The common weakness is a lack of information and awareness in these agencies about the resettlement tasks in Ilisu," said the latest report by the team, dated June 13. "No official communication has been received by these agencies from any central government authority that they have to participate and contribute to the resettlement component of the Ilisu project." Authorities in Ankara now face a final deadline of early December to come up with solutions. "If necessary measures to protect people, environment and cultural goods [in the Ilisu region] are not taken immediately, contracts for deliveries and credits will be cancelled," the German ministry said. Earlier this year, Ankara was warned to speed up the work, but results have been disappointing, the ministry said. "It is not enough to have standards just on paper, they must have the function to protect people, the environment and cultural goods." Environmentalists welcomed the move by the three European states. "It is unlikely that Turkey will do within two months what it has ignored for two years," a lobby group against the dam, Counter-Stream, said in a statement. "The withdrawal from Ilisu has officially begun." Some western diplomats in Ankara have warned that Turkey, determined to continue the Ilisu project with or without backing from Europe, would be looking for other partners. China would be one possibility, one European ambassador said earlier this year. The Ilisu dam is part of the so-called South Anatolian Project, or GAP, a system of 22 dams and 19 hydroelectric plants to be completed by the middle of the next decade. Before the current consortium of western companies signed up for the project, the British company Balfour Beatty withdrew from the Ilisu dam project in 2002, after public and political pressure at home. For the Turkish government, the dam project such as the one in Ilisu are a vital tool to boost energy supplies and reduce the country's dependence on energy imports, especially from Russia. Plans to build nuclear power plants have also been met with protests. tseibert@thenational.ae

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
The winners

Fiction

  • ‘Amreekiya’  by Lena Mahmoud
  •  ‘As Good As True’ by Cheryl Reid

The Evelyn Shakir Non-Fiction Award

  • ‘Syrian and Lebanese Patricios in Sao Paulo’ by Oswaldo Truzzi;  translated by Ramon J Stern
  • ‘The Sound of Listening’ by Philip Metres

The George Ellenbogen Poetry Award

  • ‘Footnotes in the Order  of Disappearance’ by Fady Joudah

Children/Young Adult

  •  ‘I’ve Loved You Since Forever’ by Hoda Kotb 
Profile

Name: Carzaty

Founders: Marwan Chaar and Hassan Jaffar

Launched: 2017

Employees: 22

Based: Dubai and Muscat

Sector: Automobile retail

Funding to date: $5.5 million

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

ICC Women's T20 World Cup Asia Qualifier 2025, Thailand

UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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The years Ramadan fell in May

1987

1954

1921

1888

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Roger Federer's 2018 record

Australian Open Champion

Rotterdam Champion

Indian Wells Runner-up

Miami Second round

Stuttgart Champion

Halle Runner-up

Wimbledon Quarter-finals

Cincinnati Runner-up

US Open Fourth round

Shanghai Semi-finals

Basel Champion

Paris Masters Semi-finals

 

 

How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

Countries offering golden visas

UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.

Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.

Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.

Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.

Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence. 

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