15 October, 2010
After losing billions of dollars worth of contracts, largely due to a concerted international BDS campaign against it in many countries, Veolia is bowing to pressure and trying again to get rid of its heavy financial burden by signing a contract to transfer its shares in the illegal Jerusalem Light Rail (JLR) project to an Israeli company over a five year period (mandated by the initial legal contract with the Israeli government).
During these five years, Veolia will still be complicit in this illegal project, and all the concerted international pressure against it in the Derail Veolia and Alstom BDS campaign must continue until it completely ends its complicity.
BDS works when campaigners make complicit corporations suffer in real profits and growth prospects. Veolia learned the hard way that profiting from Israel’s war crimes (all colonial settlements are regarded as war crimes in international law) is PROHIBITIVELY costly, and not just ethically!
Arab governments, particularly in the Gulf region, that still allow both Alstom and Veolia to bid — and win — huge public contracts ought to be ashamed of themselves, especially that Stockholm, Bordeaux, West Midlands, Swansea, and several Irish cities, among many others, have dumped Veolia or are in the process of doing so.
Congratulations to all the dedicated, resourceful and VERY creative BDS activists everywhere in the special BDS Derail Veolia/Alstom Campaign who made this happen. Let’s keep up the pressure against Veolia and let’s intensify efforts against Alstom.
Omar Barghouti
BDS Victory: Veolia Sells Shares in Jerusalem Light Rail
Friday, 15 October 2010 07:38 Alternative Information Center (AIC)
Veolia has signed a principled agreement to sell its shares in the Jerusalem Light Rail to the Israeli transportation cooperative Egged, reports TheMarker[1] today (15 October). This sale marks a substantial victory for the Palestinian-led international campaign for Boycott, Divestment and Sanctions (BDS) against Israel.
According to the agreement, Veolia will receive NIS 45 million (approximately EURO 9 million) for its shares, which will be gradually transferred to Egged over a five year period from the first day of the light rail’s operation. This gradual transfer ensures compliance with conditions of the initial tender, which mandate that the light rail operator must have a minimum of five years experience in operations. Egged will also pay increasing percentages of the sale as the light rail becomes increasingly profitable.
The EUR 9 million to be received by Veolia is miniscule compared to the almost EUR 5 billion of contracts that Veolia has lost around the world due to the BDS movement in the past two years, most prominently a EUR 3 billion tender in Sweden.
Finalisation of the sale requires confirmation of various Israeli authorities and the other partners in the light rail. The biggest threat to finalization of the sale, however, was liable to come from Israel’s anti-trust laws, as this sale would make Egged the monopoly holder of public transportation in Jerusalem. It seems probable, however, that the Israeli Anti-Trust Authority signaled it would approve the sale, most likely due to Israeli concern over the detrimental impact of the BDS campaign on the rail’s burgeoning costs and never-ending delays.
Veolia has been a target [2] of the Palestinian-led international campaign for Boycott, Sanctions and Divestment (BDS) against Israel until the latter recognizes Palestinian human and national rights and fulfills its obligations under international law. Veolia has been trying to find a buyer for two years already, as a result of the boycott pressure. This political pressure has caused numerous delays in operation of the rail, which was supposed to begin functioning in 2008 and now will not begin before 2011.
1. http://www.themarker.com/tmc/article.jhtml?ElementId=skira20101015_1193660
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