New Report Says Ecuadorian Pipeline Fails to Comply with World Bank Policies International Groups Call on German Bank to Suspend Project Loan To Protect Critically Endangered Species | Amazon Watch
Amazon Watch

New Report Says Ecuadorian Pipeline Fails to Comply with World Bank Policies International Groups Call on German Bank to Suspend Project Loan To Protect Critically Endangered Species

November 27, 2001 | For Immediate Release


AMAZON WATCH

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Los Angeles, CA – Ecuador’s new heavy crude pipeline project fails to meet the minimal environmental standards established by the World Bank’s environmental policies and guidelines, according to a report released this week by Amazon Watch.

The report which was written by the former head of World Wildlife Fund – Bolivia, was submitted to Westdeutsche Landesbank (WestLB), the lead arranger of the $900 million syndicated pipeline loan as well as to the Parliament of the German State of North Rhine Westphalia (NWR) – -43 percent stakeholder in WestLB.

In public statements WestLB has repeatedly said, “a prerequisite for any financial involvement of WestLB in the project is that the project sponsors adhere to the environmental standards set by the World Bank.”

The report details how the Project including its Environmental Impact Study and the Environmental Management Plan, fail to adhere to World Bank operational policies and guidelines, in particular the “Natural Habitat” Policy (OP 4.04) and the Environmental Assessment Policy (OP 4.01″).

“Given the findings of this report and WestLB’s stated environmental policy, we are urging the Bank and the Parliament of NWR to conduct more thorough due diligence and to suspend the OCP loan at once,” said Atossa Soltani, spokesperson for Amazon Watch.

The controversy over WestLB’s role in the project has been the subject of heated debates in the Parliament of NWR. Yesterday, the parliamentary committee handling foreign development issues met to receive a report on the pipeline controversy from the state Environment and Finance Ministries. The committee criticized the Bank’s handling of the project and scheduled a public hearing on the matter for January 14 in Dusseldorf.

A joint letter from more than 30 Ecuadorian and international NGOs including Greenpeace, Environmental Defense, and Friends of the Earth International, accompanied the Amazon Watch report. The letter’s signatories called for immediate suspension of the loan given that construction crews have begun clearing sensitive ecosystems.

According to environmental observers in Ecuador, the pipeline is threatening critically endangered species and ecosystems in the Mindo Nambillo area. Local eyewitnesses report that in the Serra de Loma region, a catastrophic hillside fire adjacent to the right of way occurred last week during the construction of an access road for the pressure reduction station. This fire destroyed a significant portion of one of only five remaining habitats for the critically endangered hummingbird, the Zamarrito Pechinegro (the Black Breasted Puffleg). Less than 200 pairs of this bird remain in the wild. More than 46 endangered species are found in the Mindo area alone. The arrival of construction crews there has provoked protests and blockades and led to frequent interruption of construction works. Protests have also been held at WestLB offices in more than 10 countries. Last week, Greenpeace Germany held a demonstration in front of WestLB’s headquarters in Dusseldorf capturing press headlines in Europe.

The 300-mile OCP pipeline would extend from the Ecuadorian Amazon to the Pacific Coast and would allow Ecuador to double its oil production in the Amazon. To fill the pipeline, the Ecuadorian government is permitting oil drilling to expand to several national parks and indigenous lands. Groups are calling on WestLB to suspend the loan until it can independently ensure that there are sufficient operating procedures and mitigation measures to address both the immediate and the long-term negative impacts of the pipeline and the associated drilling.

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