E Agrium insists on going ahead with its fertiliser project in Damietta while locals remain opposed to the plant. Mohamed El-Sayed reports on the stand-off Canadian Company E Agrium announced last week that it planned to go ahead with the construction of its fertiliser plant on the island of Ras Al-Barr in Damietta. "The people of Damietta have expressed their concern over the plant's impact on public health and we listened carefully to them... We will not do anything that harms the local community since it's part and parcel of the project," said Craig McGlown, managing director of the company, in the presence of hundreds of local and foreign reporters attending a press conference many had thought was called to announce the relocation the controversial project. McGlown underlined the advantages of the project to the Egyptian economy and the people of Damietta, stressing that "the location in Ras Al-Barr was carefully studied for a couple of years." "We need a location that has access to a deep water port, fresh water, and this location was a perfect one," he told reporters, adding that the plant "cannot be picked up and relocated because this means that we have to start from scratch anew." "E Agrium abides by all rules of transparency and this project is environmentally friendly," insisted Mohamed Ramadan, the consultant in charge of providing an environmental impact study of the project for E Agrium. "We analysed all the components of the project and all the concerned governmental agencies approved it," he said. "The problem is that the people of Damietta misunderstand the whole issue because they lack proper environmental awareness." "The project was agreed in 2007 and construction started the same year," Ramadan pointed out. "But public objections to the plant began only a month ago, fuelled by false and incorrect information." Local community activists, environmentalists and trade union representatives who oppose the project were denied access to the press conference. "The announcers [at the conference] could see us organising a peaceful strike at the planned site of the factory," says Nasser El-Emari, coordinator of the Campaign Against the E Agrium Plant. "The project will go ahead only over the dead bodies of the people of Damietta," he warned. Public outcry against the factory had grown in the weeks before the conference. As time passed and there was no official indication that the plant would be relocated disgruntled locals, NGOs and environmentalists attempted to beef up their campaign. Lawyers in the Mediterranean province even embarked on a limited work stoppage to protest against what they say is official indifference to local concerns. Meanwhile, a petition has been launched in the hope of gathering a million signatures urging President Hosni Mubarak to issue a decree banning the construction of the plant on Ras Al-Barr island and a member of the municipal council of Damietta has filed a lawsuit against the company, claiming that it fraudulently secured approvals for the construction of the plant from Damietta municipal council members. In the absence of a final decision on the project, Damietta Port Authority has decided to stop construction work on the marine terminal that will service the plant. Recent media reports had claimed the project would be relocated to Ain Sukhna in Suez governorate, something officials have repeatedly denied. "If the project might impact negatively on public health in Damietta why should it be moved to Suez where it can harm inhabitants here," said Governor of Suez Seif Galal. Press reports of the possible move led to the creation of a popular committee in Suez opposed to the plant relocating to the governorate. The issue has caused ripples in government and legislative bodies after reports emerged that the company had paid kickbacks to government agencies to secure the necessary approvals. "We abide by all rules of transparency and no commissions were paid to any government body to secure its approval," insisted McGlown. While a fact finding commission has been formed by the People's Assembly to investigate the issue, Amr Assal, head of the General Authority for Industrial Development, proposes a different solution. "The issue should be taken to an international arbitration agency that could then determine, once and for all, whether the project as it stands poses an environmental threat," he said.