Internal Bank Report Blasts the Camisea Gas Project U.S. Ex-Im Delays Vote on Loan to Hunt Oil Turning a Blind Eye to Project Risks, IDB to Give Green Light on Wednesday | Amazon Watch
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Internal Bank Report Blasts the Camisea Gas Project U.S. Ex-Im Delays Vote on Loan to Hunt Oil Turning a Blind Eye to Project Risks, IDB to Give Green Light on Wednesday

July 28, 2003 | For Immediate Release


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Amazon Watch Video Released Today Shows Tragedy in the Making: Massive Landslides, Choking Rivers, Rainforest Destruction, Suffering Indigenous Communities

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Washington, D.C. – A U.S. Export Import Bank (Ex-Im) evaluation of the Camisea Gas Project’s impacts, which NGOs obtained following a Freedom of Information Act request, confirms violations of international standards. On Wednesday, the Inter-American Development Bank (IDB) will vote whether to give public monies for Peru’s $2.6 billion Camisea Project. NGOs are working to delay the vote and point to the results of Ex-Im’s evaluation and recent field documentation and video footage showing extensive environmental damage and erosion that is choking pristine rivers and killing off fish stock in primary Amazon Rainforest.

According to Ex-Im’s own evaluation, impact mitigation measures for Camisea are “woefully inadequate” and will result in “irreversible impacts,” “spread of non-indigenous diseases” and has already caused “massive slides.”

“IDB staff offer a lot of bells and whistles as mitigation, but the reality is Camisea equals destruction of primary rainforests and indigenous peoples. The IDB executive directors should delay any vote on Camisea. We are concerned IDB staff may be providing a very filtered version of on the ground reality,” said Jonathan Sohn of Friends of the Earth.

Amazon Watch released a 12-minute video documentary today featuring dramatic footage of environmental damage and local and expert testimonies on the Project’s adverse impacts to date.

“Camisea’s developers make promises on paper but we see a different reality. Our tax dollars should not fund this tragedy in the making,” said Atossa Soltani, executive director of Amazon Watch.

A preliminary report released last week by NGOs Amazon Alliance, Amazon Watch and Environmental Defense also confirms that the Project has begun to cause food shortages and is leading to the spread of disease to indigenous communities in the Urubamba Valley. Health workers and the local Machiguenga indigenous organization warn that children and populations living in isolation are at risk of displacement and disease.

Ex-Im’s support would run counter to its own environmental policies and could undercut the Bank’s leading role within OECD countries to promote higher standards for export credit agencies. It would no doubt damage Bank President Philip Merrill’s record and image as a conservationist. The Washington Post reported today that the U.S. Government has not made a final decision on the Project.

Both Ex-Im and NGO reports point to the project operators’ failure to follow high industry standards. Technical analyses prepared by Jamie Maughan, of Global Village Engineers, further describe massive landslides and soil erosion from the pipeline’s extremely steep route. Erosion during recent heavy rains has washed thousands of tons of soil and vegetation into local rivers.

River siltation has decimated fish stocks. “Above all we are worried about those under 5 years old. It’s true that when they go fishing, they no longer catch a single fish a day. What do they eat? Nothing,” stated a government health worker from Shivankoreni Community.

Critics point to Citigroup and the Overseas Private Investment Corporation, both of which chose not to get involved in the Project. Critics also argue that public monies to Camisea fly in the face of internationally accepted safeguards such as World Bank policies and the recently announced Equator Principles being implemented by a dozen private banks.

Texas-based independent Hunt Oil, head of the two Camisea consortia, has close ties to the Bush administration. Chief Executive Ray L. Hunt contributed to President Bush’s presidential campaign and also sits on the Board of Halliburton, which is conducting studies for Hunt’s plans to ship fuel from Camisea to California markets.

The Camisea Project includes two pipelines to the Peruvian coast cutting through an Amazon biodiversity hotspot described by scientists as “the last place on earth” to drill for fossil fuels. Nearly 75 percent of gas extraction operations are located inside a State Reserve for indigenous peoples living with little or no contact with the outside world, who have been forcibly contacted by the Camisea consortia. Ex-Im is considering over $200 million in financing for drilling operations inside this Reserve. The IDB is considering whether to provide a $75 million loan for pipeline construction. In addition, the IDB would syndicate an additional $320 million in loans from private banks.

Deep-seated concerns led 23 major Peruvian NGOs to release a joint statement in early July outlining serious flaws in the Project and recommending significant changes in location and construction methods to avoid human rights abuses and fulfill international environmental standards. Both Peruvian and U.S. NGOs demand a delay in Bank decisions until these recommendations are fully incorporated into the Project.

Note to Editors:
Interviews with Jamie Maughan of Global Village Engineers and with Aaron Goldzimer of Environmental Defense who participated in this investigation may be arranged by calling (202) 297-2507.

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