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	Overview of the Problems
	Highlight: Russia's Sakhalin II
	Highlight: The BTC Pipeline

What's New! Vol. 7, No. 7

July 2008 - What's New! Indices - 2005 2006 2007 2008

"What's New!" is a periodic update to keep you informed of the latest on the ECA Watch website. What's New! features a wide range of materials related to the reform of Export Credit Agencies (ECAs) including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide. If you would like to receive "What's New!" simply add your e-mail to the ECA-Action list at www.eca-watch.org today! Questions? Email info-at-eca-watch.org

1)	UK Law Lords rule termination of BAE/Saudi investigation was legal
2)	Continuing controversy over Turkey's Ilisu Dam
	A.	June 20 2008 ECA meeting with NGOs reveals many serious problems
	B.	Italian lawyers visit to Ilisu area 11-13 July 2008 finds serious problems
	C.	Italian NGOs protest Unibank Ilisu plans at 17 July 2008 demonstration in Milan
3)	More than 50 Spanish NGOs express concerns over reform of Spanish ECA CESCE
4)	UK ECA ECGD to publish greenhouse gas implications of it`s project portfolio
5)	Chinese ECA supported Sudan`s Merowe dam begins flooding out local population
6)	Halifax Initiative submission on Canada`s Export Development Corporation Act
7)	Hong Kong ECA chief resigns over corruption allegations
8)	International Rivers publishes report on new financiers and the environment
—	View Back Issues of What's New

1.	UK Law Lords rule termination of BAE/Saudi investigation was legal
	(The Corner House, Dorset, 30 July 2008) The law lords have ruled that the Director of the Serious Fraud Office acted legally in terminating the SFO's investigation into alleged corruption by BAE Systems in its dealings in Saudi Arabia. The SFO's decision followed lobbying by BAE and threats from Saudi officials to cut off intelligence links with the UK if the investigation proceeded. Nicholas Hildyard of The Corner House said: "Now we know where we are. Under UK law, a supposedly independent prosecutor can do nothing to resist a threat made by someone abroad if the UK government claims that the threat endangers national security." Symon Hill of CAAT said: "BAE and the government will be quickly disappointed if they think that this ruling will bring an end to public criticism. Throughout this case we have been overwhelmed with support from people in all walks of life." [ECA Watch: A negative reaction can be expected from OECD officials and members monitoring the Anti-Bribery Convention as this could seriously undermine international corruption sanctions. Transparency International notes that the decision to stop the criminal investigation raised acute concerns over the United Kingdom's international obligation to combat corruption.]

2.	Continuing controversy over Turkey's Ilisu Dam
	A.	June 20 2008 ECA meeting with NGOs reveals many serious problems (PDF)
		(ECA Watch Austria, Vienna, 20 June 2008) Committee of Experts members and ECA officials met with Ilisu Dam campaigners to update them, confirming many of the problems highlighted in their February 2008 report. Austrian, Swiss and German ECAs believe the project will be built anyway and wish to influence the project positively, despite the almost complete lack of preparation of resettlement, rehabilitation and environmental mitigation plans. NGOs provided evidence of further violations of the project's Terms of Reference since the CoE December 2007 site visit and the March 2008 Financial Times expose of opposition to the dam.
	B.	Italian lawyers visit to Ilisu area 11-13 July 2008 finds serious problems
		(CRBM, Rome, 30 July 2008) During a visit to the Ilisu area, Italian lawyers interviewed local lawyers, community associations and expropriated villagers to gather material for Italian legal action.
	C.	Italian NGOs protest Unibank Ilisu plans at 17 July 2008 demonstration in Milan
		(CRBM, Rome, 29 July 2008) Italian campaigners against the Ilisu dam in Turkish Kurdistan protested 17 July 2008 in the Piazza Cordusio, Milan, in front of the headquarters of Unicredit bank. Extensive media coverage and support from Italian MEP Vittorio Agnoletto convinced Unicredit bank officials to meet with a delegation of activists and they fixed a date for a meeting with their respective lawyers to discuss the reasons why the network is against the Ilisu project.

3	More than 50 Spanish NGOs express concerns over reform of Spanish ECA CESCE
	(Who Owes Who?, Barcelona, 28 July 2008) Spanish NGOs have expessed concern that new legislation governing Spanish ECA CESCE and external debt management favours Spanish companies over the interests of HIPC countries.


4	UK ECA ECGD to publish greenhouse gas implications of it`s project portfolio
4	(UK House of Commons, London, 8 July 2008) In response to an initiative by the WWF, the UK ECA ECGD has agreed to publish the greenhouse gas emissions from its Category A and B projects, subject to various thresholds. MP Nick Hurd (Ruislip-Northwood) noted that "A non-governmental organisation called - believe it or not - ECA Watch has estimated that, worldwide, ECAs support twice the number of oil, gas and mining projects as all the multilateral development banks combined, and half of all new greenhouse gas emitting industrial projects in developing countries have some form of ECA support."

5	Chinese ECA supported Sudan`s Merowe dam begins flooding out local population
5	(Sudan Tribune, Khartoum, 30 July 2008) Villagers complained Tuesday that a massive Chinese-engineered hydropower dam financed by the China Export Import Bank had deliberately flooded seven small villages and left 200 families homeless. Representatives of an executive committee that represents 25 villages around the Merowe dam, 300 kilometers north of Khartoum, said homes had been under water for days and local residents faced food shortages.

6.	Halifax Initiative submission on Canada`s Export Development Corporation Act
6.	(Halifax Initiative, Ottawa, 30 June 2008) The Halifax Initiative submission, focuses on the environmental, social and human rights standards utilized by EDC when it assesses client proposals. It also examines the legislative provisions governing disclosure by the Crown corporation. The Halifax Initiative argues that in several important areas, the standards that EDC employs to assess project acceptability fall significantly short of international “best practice.”


7.	Hong Kong ECA chief resigns over corruption allegations
7.	.(The Standard, Hong Kong, 25 July 2008) Chief Executive Donald Tsang Yam-kuen has expressed deep concern over the scandal surrounding former Hong Kong Export Credit Insurance Corporation commissioner Cheung Kam-kay. Cheung has been accused of using public money for "personal entertainment''

8.	International Rivers publishes report on new financiers and the environment
8.	(IRN, Berkeley, 13 May 2008) Financial institutions from countries such as China, Brazil, India and Thailand are playing an increasingly active role in financing infrastructure and mining projects around the world. With new loan approvals of $36 billion, China Exim Bank for example became the world’s largest export credit agency in 2007. Although they invest in environmentally sensitive sectors, many emerging financiers do not yet apply internationally accepted standards in their projects.