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Why does the Federal Government grant export credit guarantees for the Ilisu project?
From the outset of the proceedings the Federal Government made the granting of an export credit guarantee conditional upon strict requirements being met. The most important objective in this context was to minimize the dam's impact on the people living in the region and on the environment and the cultural heritage in accordance with the standards set by the World Bank for such projects. After intensive and positive negotiations with Germany, Austria and Switzerland as well as the international construction consortium Turkey agreed to measures which exceed by far the practice customary so far in connection dam construction projects.
Therefore the Interministerial Committee decided on 24 March 2007 to convert the offer for cover made in November 2006 into a firm commitment to issue an export credit guarantee. Improvements to the project achieved in the meantime played a decisive role in the decision to grant insurance for the German supplies for the planned hydro-electric power plant Ilisu. Additional measures to improve the project have to be implemented as the project progresses and are to ensure that the project will meet international standards.
