ENVIRONMENT-ICELAND: Dam Rises Over Protests

By Lowana Veal Reprint | | Print |

Lowana Veal

REYKJAVIK, Mar 5 2004 (IPS) - The Jokulsa-in-Dal is no more the river it used to be. Its waters have been diverted to make way for construction of a dam.

Flora and fauna around the river in the remote highlands of eastern Iceland have been affected, just as a warning report had said they would be. A dust haze has descended on the area. Environmental warnings were ignored, and the result of that is evident.

The 630 MW Karahnjukar hydroelectric dam is being built to provide power for an aluminium plant to be operated by the multinational company Alcoa. The plant is expected to produce 322,000 tonnes of aluminium per year and will take four years to build.

The Planning Agency, which oversees environmental impact assessment in Iceland, had rejected the dam project at the environmental assessment stage in August 2001. Substantial and irreversible negative environmental impact would outweigh any economic advantages, it had warned.

The Agency said environmental dangers would surface during the first stage of the project when the Halslon reservoir is formed as a result of building the dam in the Hafrahvammagljufur canyon in the Jokulsa-in-Dal river.

The report warned that 925 square kilometres of land in the area would be affected, but independent estimates now suggest that up to 3,000 square kilometres may be affected in some way. The report warned also that soil erosion and wind-borne soil in the area around the Jokulsa-in-Dal river are likely to affect vegetation, birds, reindeer, and seals.

Already, mud and rocky material has been released by the construction works and carried downstream to the Husey area by Heradsfloi Bay to the north of the site. The river has narrowed, the land around is flooded, and seals, birds and vegetation have been affected, local environmentalists say.

As predicted, dust storms have hit towns as a result of the construction.

The reservoir area is a site of high conservation value. It is an important nesting site for pink-footed geese and an important habitat for reindeer.

There is a less specific estimate of effects when the plant is in operation, but a considerable negative impact is likely on plants, small animals and birds, local environmentalists say.

The Iceland Nature Conservation Association and local environment groups opposed the project. The WWF and some bird protection groups also opposed it. But the protests have been unable to stop construction of the dam.

Construction is being carried out by the Italian firm Impregilo. And now employment concerns are rising along with environmental concerns. The project has disappeared from the world’s media – but not from the Icelandic press, which has reported several labour problems at the site.

The dam was cleared on the promise that construction would provide jobs at a time of increasing unemployment. Iceland has a population of 290,000, of whom 4.1 percent, or 6,800, are unemployed. This number may seem insignificant in comparison to unemployment figures in some countries, but it is worrisome to Iceland as unemployment here was almost unknown.

The Icelandic government promised the Confederation of Icelandic Labour (CIL) that the ratio of Icelanders to foreigners would be approximately 80:20. Of Impregilo’s 748 employees, only 30 percent (223) are Icelanders. But there are more Icelanders engaged in work subcontracted to two Icelandic companies.

Although conditions are now improving, accommodation provided by Impregilo for its workers was sub-standard for some time. Two people shared a small room, and there was no communal area. Toilet facilities were not provided at all work stations. Ceilings collapsed at several accommodation centres for workers during extreme weather conditions last month. The CIL had warned Impregilo in August that their buildings were not designed for Icelandic weather conditions. Impregilo ignored the warning.

All workers at power plant sites in Iceland are required to have qualifications approved by Icelandic authorities. But so far only four of the 226 foreign workers at the site have been accredited.