Project Funding:
As Part of the GAP project that costs upwards of $32 billion, the 2005 EIA estimates the construction of the Ilisu Dam to cost $1.9 billion. Prior to this updated report, proponents of the project, primarily the Turkish government, struggled to find the necessary funding. In 2001, a British led consortium abandoned promised funding in reaction to local and international protest. Most of the controversy around the project at the time was a lack of research and planning for environmental and cultural preservation.
After the updated EIA, the dam was able to secure financial backing, primarily from European banks and NGOs. A European Consortium provided funds including: Andritz, Alstom, Ed. Zublin AG, Stucky, Colenco and Maggia. However, in 2008, construction of the dam came to a halt when concern about the projects inability to adhere to World Bank standards arose. After a 180-day review process, German, Swiss and Austrian companies withdrew $610 million in export credit.
While the construction of the project was delayed, the completion is a major objective for the Turkish government. Construction resumed when three Turkish banks pledged $1.48 billion. The largest of these banks, Akbank, is partially owned by the US bank Citigroup, a 20% shareholder. Additionally, Andritz Hydro of Austria lifted their suspension on supply contracts for the dam. Andritz will equip turkey with $421 million in electro-mechanical equipment.
Although this controversial development project has found funding, the extended construction length will likely increase the budget of the dam. Also, the money sourced from Turkish banks fails to reach the initial estimated cost laid out in the EIA. Consequently, mitigation measures proposed in the EIA will not be able to be carried out without additional financial assistance.
After the updated EIA, the dam was able to secure financial backing, primarily from European banks and NGOs. A European Consortium provided funds including: Andritz, Alstom, Ed. Zublin AG, Stucky, Colenco and Maggia. However, in 2008, construction of the dam came to a halt when concern about the projects inability to adhere to World Bank standards arose. After a 180-day review process, German, Swiss and Austrian companies withdrew $610 million in export credit.
While the construction of the project was delayed, the completion is a major objective for the Turkish government. Construction resumed when three Turkish banks pledged $1.48 billion. The largest of these banks, Akbank, is partially owned by the US bank Citigroup, a 20% shareholder. Additionally, Andritz Hydro of Austria lifted their suspension on supply contracts for the dam. Andritz will equip turkey with $421 million in electro-mechanical equipment.
Although this controversial development project has found funding, the extended construction length will likely increase the budget of the dam. Also, the money sourced from Turkish banks fails to reach the initial estimated cost laid out in the EIA. Consequently, mitigation measures proposed in the EIA will not be able to be carried out without additional financial assistance.