Q: During a bilateral meeting in Manaus on June 16, Presidents Alan García of Peru and Luiz Inácio Lula da Silva of Brazil praised the signing of a new electricity supply and export agreement, which they called “an instrument of great strategic interest for both countries.” What are the details of the agreement, and what is its significance? Will electricity exports to Brazil create the same kind of domestic controversy in Peru as has the LNG export project?
A: “President García has agreed to build six mega-dams in the Peruvian Amazon to sell electricity to Brazil. These dams will displace indigenous communities and severely impact the Amazonian ecosystem, yet despite the huge costs to Peruvians, nearly all energy produced will go to Brazil. The agreement fails to consider social wellbeing, environmental impact, and indigenous peoples’ rights. The Pakitzapango Dam would displace over 10,000 Ashaninka, who strongly oppose the project, and the Peruvian environment minister acknowledges that the project poses serious risks. While international law obligates Peru to consult with indigenous communities on projects that affect them, almost no consultation occurred prior to ratification of the agreement. García recently vetoed a law that would have implemented the consultation requirement and brought Peru closer to overdue compliance with its obligations under International Labor Organization (ILO) Convention 169, which establishes the right to consultation. The ILO recommended that Peru ‘suspend the exploration and exploitation of natural resources which are affecting [indigenous peoples]’ until it develops consultation mechanisms. García’s policy of development without meaningful consultation has caused social conflicts, including the tragic clash in Bagua and recent strikes throughout the region. Indigenous peoples aren’t the only ones crying foul over the agreement; human rights organizations have warned Peru’s congress that García illegally sidestepped their authority to review the agreement before ratification. Before García moves to implement the agreement, he needs to involve congress and heed the ILO’s recommendation to develop mechanisms for indigenous peoples’ participation in planning for sustainable development of the Amazon.”
