Saving Iceland

I’ts official: the cost estimates of Landsvirkjun, the National Power Company, for Karahnjukar were false and the numerous economists and even the National Planning Agency, who criticized Landsvirkjun for massaging their economic data were dead right. The new cost estimate for Kárahnjúkar was presented by Minister of Industry Össur Skarphedinsson at the Althingi parliament yesterday.

According to Skarphedinsson the total cost of constructing the dams and the hydropower plant at Fljotsdalur has exceeded estimates by ISK 17.7 billion (USD 264 million, EUR 172 million) and is now expected to amount to ISK 133.3 billion (USD 2.0 billion, EUR 1.3 billion). MP for the Left-Greens Álfheidur Ingadóttir said until yesterday people had not been aware of by how much cost estimates were exceeded. Ingadóttir criticized the minister for not taking the cost of agreements with contractors into account. She argued that by including such agreements the original cost estimate is exceeded by an even higher amount, ISK 32.5 billion (USD 484 million, EUR 315 million).

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The worlds third biggest Aluminium corporation, ALCOA is being sued for at least $1 Billion by a Bahraini metals company. Alba (the 10th largest Aliminium producer in the world) claims ‘massive, outrageous fraud’ perpetrated by ALCOA, who bribed officials in an enormous fraudulent scam to overcharge Alba for Alumina by $65 million per year for 15 years. Read More

Is the Energy on the Doorstep?

By Dr. Ragnhildur Sigurðardóttur

Many things have been said and written about plans for ALCOA´s aluminium plant at Bakki near Húsavík. One after another, important men have praised the idea and by now the only political parties not supporting it are the Iceland Movement and the Left Green party.
The propaganda of the supporters follows these lines: “utilise the national energy potential,” “the people of Húsavík have a right to an aluminium plant,” “the plant will only use energy drawn from the land nearby Húsavík, “damming of Skjálfandafljót and Jökulsá á Fjöllum is nothing but environmental propaganda”, “Geothermal energy has a low environmental impact”, “preparation work has been exceptionally well done.”
But how much truth do those slogans contain? Is there something more that needs to be looked into? Are the people of Húsavík, politicians included pushing the issues forward without really having looked at all the facts? Read More