SECOND SUPPLEMENTARY MEMORANDUM SUBMITTED
BY THE EXPORT CREDITS GUARANTEE DEPARTMENT
ILISU PROJECT
1. Why is the Stakeholders Report classified
as "confidential"? (Question 4)
We have advised the House of Commons Library
that the Report is not confidential. This was not an official
security classification; it was the author who called it a "Confidential
Report".
2. Who prepared the Stakeholders Report and
what were the arrangements for this? (Question 16)
The report was prepared by Dr Behrooz Morvaridi,
Senior Lecturer in the Department of Planning and Policy Studies
at the University of Bradford. As part of his preparation he spent
10 days in Turkey collecting information and he had access to
Turkish Government documentation. He also has a great deal of
knowledge of the region, having studied it over a 20-year period.
He speaks fluent Turkish and has an understanding of Kurdish;
he was additionally accompanied by an interpreter who spoke fluent
Kurdish and Turkish. He was given every support in gathering information.
It is clear from his report that he had free access to the local
people, and that they spoke freely to him.
3. What is ECGD's understanding of the number
of people who will need to be resettled? (Question 51)
There have been widely varying estimates of
the numbers who will need to be resettled. The surveys of the
area that are now beginning will establish this more precisely.
However, a recent study by Turkish consultants estimates that
the inhabitants of the villages which would be totally submerged
number around 13,000. Others would be partially affected, eg if
part, but not all, of their lands were flooded; it remains to
be seen how many of these will need to be resettled. There are
people who have left the area but who may retain claims. These
could number between 10,000 and 15,000. This may explain the higher
numbers which have been suggested.
DEVELOPING COUNTRIES
4. How do ECGD's cover arrangements for the
low income countries compare with those of other ECAs? (Question
110)
ECGD has taken the initiative in the OECD Export
Credit Working Party to ensure that other countries follow the
lead taken by the UK in applying "productive expenditure"
criteria to projects supported in the Heavily Indebted Poor Countries
(HIPCs). To qualify for support, projects must assist the economic/social
recovery and development of the host country. Although other OECD
Members have not seen the need for a formal agreement, they have
endorsed the principles underlying this initiative and have also
agreed to an annual survey within the OECD Group. This will provide
transparency on the type of projects supported in these markets.
On 11 January 2000, the Chancellor of the Exchequer announced
that the UK's unilateral initiative was to be extended indefinitely
and would be widened to include the so-called "IDA-only"
countries (those which can borrow from the World Bank only on
highly concessional terms), thus increasing the number of applicable
countries by 22 to 63. We are planning to encourage other OECD
countries to extend the principle previously agreed to include
the IDA-only markets on an indefinite basis.
ECAs give broadly comparable cover—when
they are "open" for cover for a particular market. ECGD's
cover position compares favourably with other countries where
the countries are creditworthy, or where "case-by-case"
cover can be offered for well-structured projects. It should be
noted that individual ECAs form their own views on cover availability,
but if cover is provided for a particular country, the premium
rates charged are subject to a harmonised floor. Also, some ECAs
(not including ECGD) often combine with their aid agencies to
offer missed credits (ie loans or grants provided in conjunction
with export credits).
Export Credits Guarantee Department
February 2000
| 
