New homes, highways boost flood risk on Turkey’s northern coast

A residential area partially submerged by floodwaters in the province of Giresun in northern Turkey, where seven people died and others remain missing. (AFP)
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Updated 16 September 2020
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New homes, highways boost flood risk on Turkey’s northern coast

  • Cheap building on streambeds and lowlands sees devastation along Black Sea

ISTANBUL: When Mahmut Talic left his small hardware shop one summer evening, its displays of tools, insulation supplies and window frames were all neatly in their places.

One hour later, floodwaters rampaged through the shop in the town of Dereli, near Turkey’s Black Sea coast, smashing the storefront, filling it with mud and sweeping its contents into the street.

“Everything is gone,” Talic, 28, told the Thomson Reuters Foundation. “I couldn’t get back to the shop that night because the rain was so heavy. But it’s a good thing I didn’t, or I’d be dead now.”

At least 11 people were killed when heavy rain, followed by flash floods and landslides, hit the province of Giresun last month.

Environmentalists and engineers have warned for years about poor urban development in the Black Sea’s coastal cities and the thickly forested mountains that rise up steeply behind them.

Combined with the effects of climate change, they say, this has left the rain-prone region with its population of more than 7 million highly vulnerable to floods.

Four people are still missing after the storm in Dereli, which wrecked dozens of roads and hundreds of buildings.

“This is the first time I’ve seen such a flood,” Turkish Agriculture and Forestry Minister Bekir Pakdemirli said while visiting the area after the disaster.

Just a month earlier, six people had died in two days of storms further east in Rize and Artvin.

“These kinds of disasters cannot occur because of one mistake,” said Mikdat Kadioglu, a meteorological engineer and disaster management expert at Istanbul Technical University.

“All the activities that destroy the area’s natural structure play a role.”

When Kadioglu was growing up in Macka, a mountain town in the Black Sea province of Trabzon, “the older people would tell the younger ones where to build their houses, the places where they would be safe from landslides or floods,” he recalled. “But, once the government began constructing roads through the streambeds, where it was cheaper and easier to build, people started putting their houses there too.” 

The Black Sea region began changing rapidly in the 1980s, a period of economic liberalization in Turkey. State subsidies were eliminated for agriculture and livestock husbandry, encouraging migration to lowland urban centers.

In 1987, construction began on a new 540 kilometer (336 mile) coastal highway from the city of Samsun to the border with Georgia.

Completed two decades later, it cut off access to the sea and facilitated more development along the coast as well as on the streambeds leading up into the mountains.




Turkish Interior Minister Suleyman Soylu inspects the damage after flash floods in Dereli. (Reuters)

“Apartment buildings have been built in the yaylalar (upland mountain plateaus), with highways built up to them, covering the river valleys with asphalt and cement,” said Onder Algedik, a mechanical engineer and independent climate consultant.

While visiting Dereli after the floods in August, Forestry Minister Pakdemirli asserted that the government has “always said that we need to avoid building houses on streambeds.”

But Algedik said in a phone interview that “if people are still constructing buildings in the streambeds, that means there is no regulation, no monitoring, no effective government policy.”

One zoning amnesty for illegal construction announced prior to the country’s 2018 general election drew more than 10 million applications nationwide, according to government data.

“We are seeing much bigger storms because of climate change, and worse floods because all the asphalt and cement prevents water from being absorbed into the soil,” said Algedik.

According to a report by environmental group 350 Ankara, Turkey experienced 328 flood disasters in 2018, a sharp rise from 25 in 2000. During that same period, the amount of asphalt and concrete poured each year nationwide more than doubled.

Recent deluges in Turkey’s two largest cities, Istanbul and Ankara, have created surreal scenes over the past few years of water-logged subways, floating cars and people swimming across the street.

In the Black Sea region, environmental experts say the risks are compounded by the mountainous topography and the hundreds of dams and hydropower stations, quarries, mines and roads built there.

A project to connect the region’s ecologically fragile highlands with a 2,600-km (4,184-mile) highway has continued to move forward despite court rulings against it on environmental grounds, activists and local officials say.

Environmentalists have spoken out against the highway, saying such projects cause deforestation and soil erosion, contributing to the destructiveness of floods and landslides.

Trees help to soak up rainwater, shield the land from heavy rainfall and hold soil in place, they note.

Government officials, including President Recep Tayyip Erdogan, have promised to help Dereli and other affected communities rebuild in a more sustainable way.

A week after the floods, the government announced it would relocate homes and businesses away from the streambed. It also pledged to build 250 houses in a traditional regional style incorporating high stone foundations as part of a province-wide recovery and redevelopment effort that also includes cash grants to residents.

“Thanks to our president, the state has said it will support us. If it doesn’t, I will have to close my business,” said Talic, who estimates that the shop he opened just six months ago has sustained up to $13,500 in damages.

But the country needs to start thinking longer term if it wants to protect its people from flooding in the future, said Kadioglu, the disaster management expert.

“Turkey is very good at response and recovery, but we need to shift from crisis management to risk management,” he said. “We can’t just clean up and keep going as if nothing happened.”


Saudi, US business ties set to reach new heights after high-level meeting

Updated 7 sec ago
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Saudi, US business ties set to reach new heights after high-level meeting

RIYADH: Trade relations between Saudi Arabia and the US are set to further prosper after a senior official from the Kingdom met with prominent business leaders.

Minister of Commerce Majid bin Abdullah Al-Qasabi held talks with representatives from the US Chamber of Commerce and prominent American companies in Washington, in which the robust economic connections between the two countries were emphasized. 

Speaking to attendees, Al-Qasabi, who also serves as chairman of the board of directors of the National Competitiveness Center, highlighted the progress made so far in the Kingdom’s journey to achieve its ambitious plan for 2030, as reported by the Saudi Press Agency.

Al-Qasabi noted the transformations within the Saudi economy have spurred the emergence of new sectors and promising business opportunities.


Saudi Arabia fastest-growing IT market in region, ICT spending to hit $37.5bn in 2024

Updated 52 min 47 sec ago
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Saudi Arabia fastest-growing IT market in region, ICT spending to hit $37.5bn in 2024

RIYADH: Saudi Arabia is the fastest-growing information technology market in the Middle East, Turkey, and the African region, with double-digit growth in technology spending, according to analysts.

Jyoti Lalchandani, regional managing director of research firm IDC, said wider information and communication technology market spending is expected to reach $37.5 billion by the end of 2024.

The comments were made during the ICT Indicators Forum, which was hosted by the Ministry of Communication and Information Technology alongside the Communications, Space, and Technology Commission in Riyadh on April 24. 

It was further noted that spending in this area across the Saudi government sector would exceed $752 million by the end of 2024 as innovative technologies become foundational to building an “experience economy.”

“AI, big data analytics, IoT, and cybersecurity spending is poised for tremendous growth and will account for almost one-third of overall IT spending in Saudi Arabia in 2024. Spending on AI in Saudi Arabia will surpass $720 million in 2024, reaching $1.9 billion by 2027 at a CAGR (compound annual growth rate) of 40 percent—half of that will be on interpretative AI,” Lalchandani said.

“We have seen Saudi Arabia emerge as a hub for the cloud,” he added, with spending on public cloud forecasted to surpass $2.4 billion in 2024 and reach $4.7 billion by 2027. 

Software-as-a-Service will account for more than 50 percent of the 2024 spending.

IDP further highlighted that spending on cybersecurity alone will surpass the $1 billion mark in 2024 and reach $1.6 billion in 2027.

“I do remember a few years ago, the cybersecurity market was estimated at about $500 million. Today, we’re talking about literally double that. We’re talking about $1 billion in the cybersecurity industry, and to hear it be called the fastest growing market in the region is really a testament to our beloved nation,” Salman Faqeeh, CEO of Cisco Saudi Arabia, said while speaking on a panel during the forum.


GCC oil companies can maintain solid credit metrics in net-zero journey: S&P Global 

Updated 24 April 2024
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GCC oil companies can maintain solid credit metrics in net-zero journey: S&P Global 

RIYADH: National oil companies in Gulf Cooperation Council countries could absorb the additional investments needed to transition toward net-zero while maintaining robust credit metrics, said S&P Global. 

In its latest report, the credit rating agency noted that NOCs in the GCC face similar energy transition risks as their global counterparts, but their strong financial positions will help mitigate these impacts. 

Rawan Oueidat, credit analyst at S&P Global Ratings, said: “We expect that GCC NOCs will have sufficient financial buffers and competitive advantages to absorb the incremental investments that are necessary to catch up with global peers and that they can preserve their credit ratios over the next five years.”   

He added: “GCC NOCs’ average low-carbon investments would have to total $15 billion-$25 billion annually at least until 2026 to keep up with those of global listed peers. Even after factoring in these investments, the overall effect on NOCs’ debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) would be below 2.0x on average.”  

According to the report, these firms can fund most of their net zero projects without having to revert to external financing sources.  

S&P Global added that both banks and capital markets will play a role in funding the regional countries’ energy transition.  

“Given the size of the GCC banking systems and their capitalization, we expect they will have the capacity to cater for the funding needs of the NOCs’ low-carbon investments over the next few years if necessary,” stated the agency.  

It added: “However, we observe that NOCs, which are generally among the largest and internally-focused corporates in the GCC countries, are typically financed outside the local banking systems.”  

The report highlighted that while firms in the region benefit from strong balance sheets, they will need to carefully consider investment requirements in relation to dividend distributions. 

It further noted that the majority of NOCs in the GCC have already established net-zero targets, with Saudi Aramco aiming to achieve this by 2050 and Abu Dhabi National Oil Co. targeting a goal by 2045. 

S&P Global further noted that environmental, social, and governance disclosures among oil firms in the region have increased, particularly in disclosing scope 2 emissions, but still lag behind their global counterparts. 

However, the report highlighted that most NOCs in the GCC have not yet disclosed scope 3 emissions. 

Scope 2 refers to emissions released into the atmosphere from the use of purchased energy. 

On the other hand, scope 3 encompasses indirect emissions in a company’s value chain, and it is generally considered complex and challenging to report. 


GCC logistics sector set to expand as Saudi Cabinet approves regional transport law

Updated 24 April 2024
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GCC logistics sector set to expand as Saudi Cabinet approves regional transport law

RIYADH: The logistics sector across the Gulf Cooperation Council region is set to prosper following the Saudi Cabinet’s approval of a land transport law within the region.

Chaired by King Salman, a ministerial session was held in Jeddah, during which the Cabinet reached consensus on several key proposals. Among these was the endorsement of the unified law.

The system is crafted to enhance the organizational environment, simplify procedures, and foster unity. Moreover, it aims to boost road safety, elevate service quality, protect investments, and stimulate growth in the logistics sector throughout the GCC region.


Global airline body calls for release of $720 million in held revenues by Pakistan, Bangladesh

Updated 24 April 2024
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Global airline body calls for release of $720 million in held revenues by Pakistan, Bangladesh

  • IATA asks Pakistan in a statement to simplify the ‘onerous’ repatriation process causing ‘unnecessary delays’
  • The international organization says airlines are unable to repatriate $399 million from the Pakistani market alone

KARACHI: The International Air Transport Association (IATA) on Wednesday asked Pakistan and Bangladesh to release airline revenues amounting to $720 million, saying the two countries were holding it in contravention of international agreements.

IATA, an international organization representing the global airline industry, asked Pakistan to simplify the “onerous” repatriation process involving audit and tax exemption certificates in a statement, pointing out such procedures caused “unnecessary delays.”

Bangladesh, it said, had a more standardized system, though aviation needed to be a higher central bank priority to facilitate access to foreign exchange.

“The situation has become severe with airlines unable to repatriate over $720 million ($399 million in Pakistan and $323 million in Bangladesh) of revenues earned in these markets,” the statement informed.

IATA’s regional vice president for Asia-Pacific Philip Goh emphasized that the timely repatriation of revenues to different countries was critical for payment of dollar denominated expenses such as lease agreements, spare parts, overflight fees and fuel.

“Delaying repatriation contravenes international obligations written into bilateral agreements and increases exchange rate risks for airlines,” he said. “Pakistan and Bangladesh must release the more than $720 million that they are blocking with immediate effect so that airlines can continue to efficiently provide the air connectivity on which both these economies rely.”

Goh maintained that his organization recognized the two governments were facing difficult challenges, making it necessary for them to determine how to utilize foreign currencies strategically.

“Airlines operate on razor-thin margins,” he continued. “They need to prioritize the markets they serve based on the confidence they have in being able to pay their expenses with revenues that are remitted in a timely and efficient fashion.”

He pointed out reduced air connectivity limited the potential for economic growth, foreign investment and exports, adding such large sums of money involved in the Pakistani and Bangladeshi markets necessitated urgent solutions.