Tag: Veolia

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.

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:

Palestine urges withdrawal of rail contract

Abbas Al Lawati | Gulf News

31 May 2009

Dubai: Palestinian officials have intensified diplomatic efforts to persuade Saudi Arabia to withdraw a multibillion dollar rail contract awarded to a firm alleged to be complicit in Israel’s expansion in Occupied East Jerusalem, Gulf News has learnt.

Palestinian National Authority officials have said that they are in talks with the Saudis to find ways to block the Occupied Jerusalem light rail project.

The light rail project will link Occupied West Jerusalem to Occupied East Jerusalem and Jewish colonies in the Occupied West Bank when completed.

It has been described by Israeli leaders as the fulfillment of the Zionist dream and will be partly built by the French firm Alstom.

Alstom is part of a consortium awarded a $1.8 billion (Dh6.6 billion) civil works contract in March for the Makkah-Madinah railway, the Haramain Express.

“Back-channel talks with the Saudis are ongoing.” said a high ranking official at the Palestinian foreign ministry, speaking to Gulf News on condition of anonymity. He refused to divulge further details.

However, while Palestinian officials fear that Alstom’s Makkah contract will undermine their efforts to block the Occupied Jerusalem tramway, they also see it as an opportunity to put pressure on the company through Saudi Arabia.

They say that although the Occupied Jerusalem project is expected to be completed next year, Saudi Arabia could use its influence to derail its further expansion as well as its 30-year maintenance plan.

Palestinian efforts to fight the project started following a 2006 Arab League ministerial decision in Khartoum calling on states and international organisations to “stop the Occupied Jerusalem tram project and refrain from assisting in its execution”.

Since 2007 the Palestinian foreign ministry has been pressing Arab states to use their political and economic weight to pressure France into taking action against the companies that are involved in the Occupied Jerusalem project, but apparently has not had much success.

The foreign ministry requested Saudi Arabia to intervene in the matter in a letter dated December 2007.

“We received a reply from the ministry in early 2008 stating that Saudi officials intend to speak to the French on the matter,” said the Palestinian official.

Since the letter the Saudi government has awarded two contracts to Alstom. The company won a $2.6 billion contract to build a power plant in the kingdom last year.

This was followed by the Haramain Express contract earlier this year by the Saudi Railway Organisation (SRO).

The consortium is now bidding for two more contracts to supply the trains and maintain the stations. The SRO did not respond to Gulf News’ questions.

Alstom, Alstom Transport and Veolia are also facing a lawsuit in France for their involvement in the Occupied Jerusalem project, brought by French advocacy group Association France-Palestine Solidarité, which is working closely with the Palestinian Liberation Organisation’s (PLO) representative office in Paris.

Ambassador Hind Khoury, PLO representative and former minister of Occupied Jerusalem affairs, called the case a ‘breakthrough’. She said she often reminded Arab counterparts of their obligations as per the Arab League decision.

“I have a new mandate from the [Palestinian National Authority] president [Mahmoud Abbas] to pursue this case,” she said.

In an effort to avoid embarrassment, the French government reportedly distanced itself from the project when pressed by the Palestinian National Authority to intervene in 2005. It said it had nothing to do with projects private companies were involved in.

However, Alain Gresh, editor of Le Monde Diplomatique, said that the Occupied Jerusalem contract was signed in the office of the then French ambassador to Israel, Gerard Araud. “They can’t ignore that,” he said.

Such contracts are often politicised, with high level delegations often including heads of governments, being sent to the region to lobby on behalf of the bidding companies.

Palestinian officials have said that their discussions with Saudi Arabia will be based on the 2006 Arab League decision.

Eric Lenoir, communications manager at Alstom Transport said Gulf officials had not cited the Occupied Jerusalem project as a concern.

“Our job is to be compliant with specifications defined by local railway authorities. We don’t make politics,” he added.

Lenoir said that the Gulf region was an attractive market for Alstom due to congestion problems in its cities and a realisation by its governments that rail transport was a viable solution as the countries develop.

The company is currently eyeing projects in Qatar, Abu Dhabi and Dubai, and the planned GCC railway.

The credible case against Alstom

Dubai: Critics of French-based Alstom have accused it of violating international law for what they see as the company’s complicity in Israel’s occupation of Palestinian territory.

The company faces a lawsuit in France brought by French advocacy group Association France-Palestine Solidarité and the Palestine Liberation Organisation for its involvement in the Occupied Jerusalem light rail project which connects Occupied West Jerusalem to Occupied East Jerusalem and Jewish colonies in the West Bank.

Alstom and Veolia have repeatedly come under fire by advocacy groups in Europe for the project.

The Dutch ASN Bank decided in 2006 to exclude Veolia from its investment portfolios, and the Swedish national pension fund AP7 has blacklisted Alstom from its $15 billion (Dh55 billion) portfolio, according to media reports.

While the lawyers for the parties taking Alstom to court have avoided speaking to the media, Dubai based international humanitarian law expert Urs Stirnimann assumed that the Geneva Conventions are the principle basis in taking the company to court in France.

He said Israel’s practice of settling its population on occupied territory is widely considered to be a violation of Article 49 of the Fourth Geneva Convention, which, in accordance with article 147 is a grave violation of international humanitarian law.

“In other words, [it is] a war crime. Article 146 clearly stipulates that it is the responsibility of each country to act against grave breaches of the Geneva Conventions,” he said.

Alain Gresh, editor of Le Monde Diplomatique, said that while it is unlikely that the French court would force the two companies to withdraw from the project, it sets a precedent which will prevent firms from operating in occupied territories for fear of a backlash. Alstom and Veolia have won contracts worth billions in all six Gulf Cooperation Council states.

Adri Nieuwhof, a human rights advocate who has written extensively about the Occupied Jerusalem tramway, says that the project is part of an Israeli “master plan” for Occupied Jerusalem, which includes the confiscation of privately owned Palestinian land.

She said the tramway would consolidate Israel’s hold on occupied Palestinian territory.

“For colonists living in the Occupied West Bank, travel to Occupied Jerusalem can become faster and more efficient with the light rail, so the colonies can become more attractive for colonists to live in, besides being cheap.”

The Israel boycott is biting

Nadia Hijab | Agence Global

30 April 2009

On May 4, protesters will greet Motorola shareholders, already disgruntled by the company’s losses, as they arrive for their annual meeting at the Rosemont Theater in Chicago, Illinois.

The protest, organized by the US Campaign to End the Israeli Occupation, is part of a drive to “Hang Up On Motorola” until it ends sales of communications and other products that support Israel’s military occupation of Palestinian land.

Inside the meeting, the Presbyterian, United Methodist and other churches will urge shareholders to support their resolution, which calls for corporate standards grounded in international law. Doing the right thing could also reduce the risk of “consumer boycotts, divestment campaigns and lawsuits.”

Although Motorola executives deny it, such risks must have played a part in their decision to sell the department making bomb fuses shortly after Human Rights Watch teams found shrapnel with Motorola serial numbers at some of the civilian sites bombed by Israel in its December-January assault on Gaza.

The US protests are part of a growing global movement that has taken international law into its own hands because governments have not. And, especially since the attacks on Gaza, the boycotts have been biting. There are three reasons why.

First, boycotts enable ordinary citizens to take direct action. For instance, the New York group Adalah decided to target diamond merchant Lev Leviev, whose profits are plowed into colonizing the West Bank. During the Christmas season, they sing carols with the words creatively altered to urge shoppers to boycott his Madison Avenue store.

The British group Architects and Planners for Justice in Palestine teamed up with Adalah NY and others to exert public pressure on the British government regarding Leviev. The British Embassy in Tel Aviv recently cancelled plans to rent premises from Leviev’s company Africa-Israel.

There are other results. Activists in Britain have targeted the supermarket chain Tesco to stop the sales of Israeli goods produced in settlements. In a video of one such action — over 38,000 YouTube views to date — Welsh activists load up a trolley with settlement products and push it out of the shop without paying.

All the while, they calmly explain to the camera just what they are doing and why. They talk away as they pour red paint over the produce, and as British Bobbies quietly lead them away to a police van.

The result of such consumer boycotts? A fifth of Israeli producers have reported a drop in demand since the assault on Gaza, particularly in Britain and Scandinavia.

The second reason boycotts are more effective is the visible role of Jewish human rights advocates, making it harder for Israel to argue that these actions are anti-Semitic.

For example, British architect Abe Hayeem, an Iraqi Jew, describes in a passionate column in The Guardian exactly how Leviev tramples on Palestinian rights, and warns Israeli architects involved in settlements that they will be held to account by their international peers.

In the United States, Jewish Voice for Peace has led an ongoing campaign to stop Caterpillar from selling bulldozers to Israel, which militarizes them and uses them in home demolitions and building the separation wall.

The third, key, reason for the growing success of this global movement is the determined leadership of Palestinian civil society. The spark was lit at the world conference against racism in Durban in 2001. In 2004, Palestinian civil society launched an academic and cultural boycott that is having an impact.

In 2005, over 170 Palestinian civil society coalitions, organizations, and unions, from the occupied territories, within Israel, and in exile issued a formal call for an international campaign of boycott, divestment, and sanctions (BDS) until Israel abides by international law. The call sets out clear goals for the movement and provides a framework for action.

In November 2008, Palestinian NGOs helped convene an international BDS conference in Bilbao, Spain, to adopt common actions. This launched a “Derail Veolia” campaign. That French multinational corporation, together with another French company, Alstom, is building a light railway linking East Jerusalem to illegal settlements.

The light rail project was cited by the Swedish national pension fund in its decision to exclude Alstom from its $15 billion portfolio, and by the Sandwell Metropolitan Borough Council in its decision not to consider further Veolia’s bid for a $1.9 billion waste improvement plan. There were active grassroots campaigns in both areas.

Other hits: Veolia lost the contract to operate the city of Stockholm subway and an urban network in Bordeaux. Although these were reportedly “business decisions” there were also activist campaigns in both places. The Galway city council in Ireland decided to follow Stockholm’s example. Meanwhile, Connex, the company that is supposed to operate the light rail, is being targeted by activists in Australia.

The “Derail Veolia” campaign has been the movement’s biggest success to date. Veolia and its subsidiaries are estimated to have lost as much as $7.5 billion.

As one of the BDS movement leaders, Omar Barghouti, put it, “When companies start to lose money, then they listen.” Perhaps governments will too.

Nadia Hijab is a Senior Fellow at the Institute for Palestine Studies in Washington D.C.