Financing for Peru’s Camisea Project Voted Down by U.S. Ex-Im Bank U.S. Agency Applauded for Upholding Indigenous and Environmental Safeguards in Controversial Amazon Energy Project | Amazon Watch
Amazon Watch

Financing for Peru’s Camisea Project Voted Down by U.S. Ex-Im Bank U.S. Agency Applauded for Upholding Indigenous and Environmental Safeguards in Controversial Amazon Energy Project

August 28, 2003 | For Immediate Release


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Washington, D.C.—Under mounting pressure from environmental and indigenous rights groups and members of Congress, today the board of directors of the Export-Import Bank of the United States (Ex-Im) voted to reject financing for the controversial $1.6 billion Camisea Gas Project in the Peruvian Amazon. The Ex-Im loan would have provided $213 million for the venture led by Hunt Oil and PlusPetrol. Ray Hunt, Chairman of Hunt Oil, is a Bush Pioneer Fundraiser who raised $100,000 for the 2000 Presidential elections.

“Ex-Im board members displayed courage and environmental leadership in the face of considerable pressure, ” said Jon Sohn, international campaigner for Friends of the Earth. “Friends of the Earth applauds Ex-Im’s decision to deny U.S. taxpayer support of Camisea and the massive environmental destruction it would cause.”

Camisea is already scarring the Peruvian Amazon and affecting the Nahua-Kugapakori (N-K) Reserve—home of uncontacted and isolated indigenous populations. Groups are also concerned about an export Terminal for Camisea that will also be built in the Buffer Zone of the Paracas National Marine Reserve, Peru’s only marine sanctuary for endangered birds and mammals.

“Unless the project sponsors make fundamental changes to reduce the project’s environmental and social risks, they can expect to meet obstacles in getting financing,” said Atossa Soltani, Executive Director of Amazon Watch. “Two changes the sponsors must make are: to abandon plans to drill inside the N-K indigenous reserve in the Amazon and to find another location far from the Paracas Marine Reserve on for the fractionation plant.”

Last month, a letter was sent from 13 U.S. senators to the Secretary of U.S. Treasury—the agency that directs U.S. voting decisions at IDB—and to Ex-Im’s President. The letter opposes public support for Camisea at this time, and echoes the concerns of House Democratic Leader Nancy Pelosi (D-Calif.), who also sent a letter.

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A key issue at Ex-Im was the refusal of the Peruvian government and companies involved to loosen 2004 gas delivery deadlines to avoid a continuing pattern of negative, irreversible environmental and social impacts.

Next week, the Inter-American Development Bank is slated to take up the project and the position of the U.S. Government will be a primary factor in the IDB’s vote.

“We hope the board members of the Inter-American Development Bank require that these outstanding environmental and social issues be adequately resolved before making their decision on project financing,” said Amy Gray, Latin America Program Manager for the Bank Information Center.

“We hope this sends a signal to export credit agencies in Europe that the U.S. Export Import Bank is committed to international environmental standards,” said Aaron Goldzimer, of Environmental Defense.

“Public support for Camisea would undermine internationally accepted social and environmental standards, said Nadia Martinez of the Institute for Policy Studies. “We hope other financial institutions in Europe and Latin America will follow ExIm’s lead.

“Our work is not done. Given the extent of Camisea’s impacts in the Amazon and on the coast of Peru, our organizations will continue to support efforts to work with the Peruvian Government and the companies to reduce the project’s troubling impacts,” said Peter Kostishak, co-director of the Amazon Alliance.

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