Veolia likely to abandon rail project

Abbas Al Lawati | Gulf News

9 June 2009

Dubai: One of the two transport companies facing a lawsuit in France for their involvement in a controversial Israeli rail project in occupied East Jerusalem has reportedly planned to withdraw from the project.

French company Veolia Transport is considering the sale of its five per cent stake in the Citypass consortium which is tasked with building the occupied Jerusalem rail link, the Israeli daily Haaretz reported. The other French company involved in the project is Alstom Transport.

The paper cited observers attributing the move to pressure on the company in Europe and the loss of potential revenue due to its involvement in the occupied Palestinian Territories.

When completed, the Jerusalem Light Rail is expected to link occupied Jerusalem to Jewish colonies in the occupied West Bank that are considered illegal under international law.

A spokesperson from Veolia said the company could not confirm or deny the reports in Haaretz.

Ambassador Hind Khoury, former Palestinian minister of Jerusalem affairs and representative of the Palestinian Liberation Organisation in Paris, whose office was involved in taking Veolia and Alstom to court with advocacy group Association France-Palestine Solidarité, welcomed the move but said it was premature to call it a victory.

“This is certainly a positive development and a success, but we can’t declare victory while the infrastructure of this tramway sits on occupied Palestinian land,” she said.

Hind attributed the reported withdrawal to “a change in the international political climate” led by a new US administration “that respects international law”.

She said that it was time to put pressure on Alstom to abandon the project “because it plays a bigger role in the tramway”.

Veolia and Alstom had been under mounting pressure by advocacy groups to abandon the project in occupied Jerusalem. European companies have in the recent past refrained from investing in or giving contracts to both companies.

Omar Barghouthi, founding member of the Palestinian civil society Boycott, Divestment, Sanctions (BDS) campaign, said the movement’s pressure in the Derail Veolia and Alstom campaign “played a key role in denying Veolia major contracts, totalling about $7 billion [Dh25.6 billion], in Sweden, Britain and France”.

“Alstom will feel lonely now as the remaining French company that is still complicit in the colonising project of the Jerusalem Light Rail. But they will not withdraw unless, like Veolia, they are made to pay a heavy price that their shareholders cannot swallow,” he added.

Alstom spokesperson Eric Lenoir said the company was not thinking about withdrawing from Jerusalem Light Rail project. He added that the controversy over the project had never been brought up in any tenders Alstom Transport has been involved in, a number of which are in Gulf states.

When contacted by Gulf News, Sylvan Hijazi, Alstom’s president in the Gulf, said he could not comment.

Alain Gresh, editor of Le Monde Diplomatique, said that Alstom is now going to be “exposed” as pressure for the project was previously concentrated on Veolia.

He said, however, that companies withdrawing from the project are unlikely to publicly admit to giving into pressure.

“This decision can boost the BDS movement in France and Europe,” he said.

The Palestinian National Authority has since 2005 been trying to push France to intervene in order to stop the two companies’ involvement in the project, and has more recently been asking Arab states to get involved.

Gulf News reported earlier that the Palestinian foreign ministry was in talks with Saudi Arabia to withdraw a $1.8 billion civil works contract awarded to Alstom for the Haramain Express railway linking Makkah and Madinah.

Barghouthi said his movement hopes that states like Saudi Arabia and Iran, which have granted Alstom contracts, will take action against it.

Jerusalem rail operator jumps ship, Tel Aviv group isn’t even responding

Ha’aretz

8 June 2009

The light rail projects for Jerusalem and Tel Aviv are both facing difficulties. In a body-blow to the future Jerusalem light rail, the French company Veolia, which was supposed to run the train system after its construction, is abandoning the project.

Moving on to Tel Aviv, the city can’t even get a response to the compromise it offered MTS, the consortium supposed to build an urban train system, in order to settle issues in dispute. It’s waited a month and gotten no answer, causing not a little consternation in government circles.

As for the Jerusalem system, Veolia not only wants out of running the future train; it’s trying to sell its 5% stake in Citypass, the light rail consortium.

In recent days Veolia has been sending feelers to the Egged or Dan bus consortiums, to potentially replace it as project operator.

Any change in the ownership structure of Citypass, or in the identity of the project operator, requires the permission of the state. Also, the attempt to add Egged to the consortium could arouse opposition at the Antitrust Authority.

Veolia has had to contend not only with the delays and difficulties in building the light rail project itself, but with political pressure at home as well. Two months ago a French court heard a lawsuit by a pro-Palestinian group, demanding that the light rail project be halted.

The organization based itself on an article in French law that allows the court to void business agreements, signed by French companies, that violate international law.

The political pressure on Veolia has been mounting in another direction. According to various reports abroad, the French firm had been losing major projects in Europe because of its involvement in the Jerusalem job. Observers claim that’s the real reason Veolia opted out.

Also, for two years the Jerusalem project has been held up by battles between Citypass, the city of Jerusalem and various ministries. (The disputes even include whose fault the delays are.)

Last week the spat between Citypass and the state reached a new low, after the group admitted it couldn’t meet the new deadline for the Jerusalem light rail project. It expects to run nine months behind schedule, the consortium said. The state then accused the business consortium of deliberately dragging its feet and of effecting “a hostile takeover of the streets of Jerusalem.”

Sources in Israel’s transportation sector called Citypass’s announcement “chutzpah,” on the grounds that it and the state had agreed on a new schedule only a year earlier. And that was a month after an arbitration process during which the new schedule was ratified.

In response to Citypass’ announcement, the state contacted the arbitrators accompanying the process, asking them to enforce the franchise agreement and force Citypass to finish the works as set in the new schedule, by September 2010, “finally restoring normalcy to Jerusalem.”

The state also asked for permission to stop paying Citypass, including the upcoming installment of NIS 32.5 million.

Citypass can meet the agreed-on schedule, the state insists: “This isn’t inability to complete the project on time. At most it’s a crude attempt to squeeze more money from the state,” wrote the state in its letter to the arbitrators. “[Citypass] already advised the state and the arbitrators that it doesn’t intend to finish the works on time, but it doesn’t settle for words: It is making sure to work at a pace that assures it won’t meet the agreed-on deadline for completion.”

In summation, the state accuses Citypass of making life in Jerusalem intolerable.

Citypass denies the allegations, which it called “absurd,” and claims the state is indulging in baseless legal gambits in response to the lawsuit Citypass filed against it because of the delays.

Sources in the know suspect that the delays ruined the project’s business model. The cost of the works grew, and there were delays in the transfer of state funding for the companies involved in the project, while the companies needed the money to return their own loans. The upshot, if so, was heightened tensions between the partners in Citypass, mainly between equipment provider Alstom, operator Veolia and the Israeli contractor Ashtrom.

After some changes, the partners in Citypass are Ashtrom (27.5%), Alstom (20%), Polar Investments (17.5%), Israel Infrastructures Fund (10%) and Veolia (5%).

The Jerusalem project involves building eight lines. Only the first one has passed the tender process, which Citypass won. The line is supposed to start in Pisgat Zeev, pass along Jaffa Street and end at Mount Herzl. The cost of that line alone is projected at NIS 2.4 billion. The state is providing NIS 1.4 billion.

Royal Ontario Museum proceeds with unlawful exhibit

Canadians for Justice and Peace in the Middle East

7 June 2009

Dear Friends,

Later this month, the Royal Ontario Museum (ROM) will be showcasing artifacts illegally seized by Israel in 1967 after it occupied East Jerusalem. In cooperating with the Israel Antiquities Authority to import and exhibit the Dead Sea Scrolls, the ROM would be in violation of Canada’s obligations under UNESCO legal conventions and protocols, and its own obligations as a member of the Canadian Museums Association (CMA).

Please click here to send an email to officials at the ROM, the CMA as well as provincial and Federal party leaders.

More Info

The Dead Sea Scrolls were largely excavated from Qumran (see map below) in the West Bank between 1947 and 1956 by the Palestine Archaeological Museum with the Department of Antiquities of Jordan and the École Biblique Française. The Scrolls were in East Jerusalem until 1967.

Map of Qumran

As a signatory to the UNESCO Convention for the Protection of Cultural Property in the Event of Armed Conflict (1954), as well as the Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property (1970), Canada cannot import cultural property from an occupied territory, and must, if it can, take the cultural property into custody and return it to the competent authorities of the territory previously occupied at the end of hostilities. The Palestinian Authority objects to the exhibition of the Dead Sea Scrolls because they were illegally obtained.

The CMA sets out in its Ethical Guidelines that museums “must avoid even the remotest suspicion of compliance in any illegal activity,” and that “museums must guard against any direct or indirect participation in the illicit traffic in cultural and natural objects; this may include natural or cultural objects that are: stolen; illegally imported or exported from another state, including those that are occupied or war-stricken; illegally or unscientifically excavated or collected in the field.”

Considering its legal obligations, the ROM should not under any circumstance import the Dead Sea Scrolls until they have been returned to the competent authorities in the West Bank.

Warmest thanks,

The CJPME Leadership
CJPME Website

Prevent Alstom from building the Haramain Express Railway

Saudi Arabia awarded French company Alstom a multi-million dollar contract for the construction of Haramain Express Railway, to link the holy cities of Makkah and Madina. Alstom is in violation of international law for its part in the construction of the Jerusalem Light Rail, which will link illegal Israeli settlements in the occupied Palestinian territory (including East Jerusalem) with the city of Jerusalem. The construction of the light rail is part of a wider Israeli policy to ethnically cleanse the Palestinians from Jerusalem and turn permanent the illegal occupation of the city.

The decision by the Saudi Arabian authorities is in violation of its own international commitments. The Arab League barred member states from dealing with companies involved in the construction of Jerusalem Light Rail project. The Saudi contract sends a signal of approval for Alstom’s actions in Jerusalem and highlights the lack of integrity of the Haramain project: the Saudi Arabian government has chosen to link two of Islam’s holiest cities by sponsoring the colonization of another.

Across the world a divestment campaign is taking pace against Alstom and its partner company Veolia, with victories in Sweden and France. In 2006, Dutch ASN Bank took the responsible decision to divest from the project. Alstom and Veolia are accused by Palestinian civil society, represented by the BDS National Committee, BNC, of complicity in grave violation of international law and Palestinian rights for their role in the JLR project. Despite the pressure, the two companies have refused to end their participation in the project. With construction at an advanced stage, Alstom and Veolia are guilty of actively colluding with Israeli apartheid.

  1. Write to the Saudi Railway Organization and to the Saudi Arabian diplomatic representation in your country demanding immediate cancellation of the contract with Alstom.

    karni@saudirailways.org (Vice President)
    shafqatrabbani@sro.org.sa (Project Manager)
    salim@sro.org.sa (Project Manager)
    sohail@sro.org.sa (Project Engineer)

    Please bcc us on your correspondence: saudialstomdivestment@gmail.com

  2. Sign the petition: http://www.petitiononline.com/BDSaudi/petition.html
  3. Write about this issue in your local media. Discuss it in your local mosque and community centers. Participate in actions for boycott, divestment and sanctions of Israel.

Find Out More!

The Case Against Veolia and Alstrom:

The Ethnic Cleansing of Palestinians From Jerusalem:

Israeli plans for East Jerusalem hotel raise U.S. ire

Akiva Eldar | Ha’aretz

2 June 2009

Washington is furious over the Interior Ministry’s anticipated approval of a plan to build a new hotel in East Jerusalem, just 100 meters from the Old City’s walls. The plan, which would see the demolition of a wholesale market and kindergarten, is slated to be approved today.

In conversations with Israeli officials, senior American officials have made it clear that they want Israel to freeze all plans for expanding the Jewish presence in East Jerusalem, and especially in the Holy Basin – the area adjacent to the Old City.

The regional planning and building committee for Jerusalem will discuss the plan today. It was submitted by the Jerusalem municipality, which owns the land on which the hotel is slated to be built, and the state-owned Jerusalem Economic Corporation, which will actually construct it.

The site in question is in the wholesale market, just east of the Rockefeller Museum.

The Interior Ministry’s district planning office told Haaretz that it will recommend the plan’s approval.

The plan calls for a 200-room hotel that will be nine stories tall on its eastern face (where the ground is lower). It will also include a commercial building, which will be five stories tall on its eastern face, plus another three stories underground.

The plan will require the existing wholesale market to be demolished, along with a Palestinian kindergarten.

The hotel plan is only one of several proposals for expanding the Jewish presence in East Jerusalem. Another, which would involve evicting hundreds of Palestinians from King’s Valley, on the outskirts of Silwan, was approved yesterday by the Jerusalem municipality’s planning committee despite the opposition of the city’s legal advisor, Yossi Havilio.