The Honorable John Snow
Secretary of the Treasury
Department of the Treasury
1500 Pennsylvania Avenue NW
Washington DC 20220
The Honorable Phillip Merrill
Chairman
United States Export-Import Bank
811 Vermont Ave, NW
Washington DC 20571
Dear Secretary Snow and Chairman Merrill:
We are writing in regard to the Camisea Gas Extraction and Pipeline Project under construction in Peru. We are aware that the Inter-American Development Bank (IDB) and U.S. Export-Import Bank (Ex-Im) are considering financing for the downstream and upstream section of this project, respectively. As supporters of both institutions, we have worked hard over the years to strengthen their policies toward the environment and indigenous people. We are concerned that the Camisea project will set these efforts back significantly by causing irreparable harm to one of the world’s most pristine and bioloigcally diverse ecological areas and to the health and cultural integrity of unique Amazonian Indian communities.
It is our understanding that this project does not meet the environmental guidelines of IDB or Ex-Im Bank. We also understand that URS, the independent consulting firm hired by the Ex-Im Bank to do an environmental and social assessment of this project, identified severe environmental shortcomijngs. The US Agency for International Development has recommended that the U.S. vote no on the project in the IDB because it does not meet the statutory requirement for environmental reviews of multilateral development bank loans. We understand that the Overseas Private Investment Corporation (OPIC) has rejected this project on environmental and social grounds. Serious objections have also been raised by international and Peruvian environmetnal organizations.
Based on the strong concerns that have been raised, we do not believe IDB or Ex-Im financing for this project should be approved at this time.
Before any decision is made to support this project, we urge Ex-Im and Treasury to ensure that the damage to the fragile tropical forest ecosystem of the reigon that has already occurred has been reparied;
-adequate measures are in place to prevent future damage caused by the direct impacts of the project (eg pollution; erosion) and indirect causes such as increases in settlers, illegal loggers, job-seekers, and others who may use the project’s infrastructure and rights of way as future access routes.
-the oil companies involved have the capacity to finance the necessary safeguard and mitigation measures over the project’s extended lifetime.
We recognize the importance the Government of Peru has placed on the Camisea project, and we believe that the United States should remain a partner in Peru’s economic development. We appreciate the potential benefits that the gas would have on the air quality of Lima. We also appreciate that exports of the gas would benefit Peru’s economy, although we are not aware of any analysis of the Peruvian Government’s plans for the use of revenues from such exports. However, this project poses grave threats to unique, natural treasures of global significance.
At a time when the Administration is promoting stronger environmental safeguards in the OECD for export credit agencies- which we strongly endorse- it is imperative that the United States insist on the highest standards for the Camisea Project. Until such time as achievement of those standards can be assured, approval for funding of this project should be withheld.
Thank you for your consideration.
Patrick Leahy Paul S. Sarbanes
Christoper J. Dodd
James M. Jeffords
Edward M. Kennedy
Tom Harkin
Richard J. Durbin
Barbara A. Mikulski
Daniel K. Inouye
