Large Dams

Organizations alert the United Nations that construction of the Las Cruces hydropower plant will violate human rights in Nayarit, Mexico

UN Special Rapporteurs are asked to urge the Mexican government to guarantee the rights of indigenous peoples and coastal communities that would be affected by the project.  Mexico City. The Interamerican Association for Environmental Defense (AIDA) has sent an urgent appeal to several United Nations Special Rapporteurs showing that construction of the Las Cruces hydropower plant will violate the human rights of communities in western Mexico. The project will affect coastal communities as well as the Cora, Tepehuano, Huichol and Mexicanero indigenous peoples along the San Pedro Mezquital river basin in the state of Nayarit. We sent the appeal to Special Rapporteurs on the issues of adequate housing, indigenous rights, extreme poverty as well as the rights to food, safe drinking water and sanitation and to the Independent Expert on the enjoyment of a safe, clean, healthy and sustainable environment. We filed the appeal on the behalf of economic, environmental and community organizations in areas that would be affected by the project. These include the Inter-Community Council of the San Pedro River, the Náyeri Indigenous Council, the Nayarit Riverside Federation, Nuiwari, the Mexican Center for Environmental Law (CEMDA), the Ecological Mangrove Group, SuMar and representatives of the town of Boca Camichín. In the appeal, we asked the Special Rapporteurs to urge the Mexican government “to guarantee the rights of the indigenous peoples and coastal communities of the San Pedro Mezquital river to information and participation, consultation and consent, as well as to food, clean water and sanitation, and to the right to enjoy a safe, clean, healthy and sustainable environment.” We also asked the UN experts to visit the site of the proposed hydropower project to find out first hand the damages it will cause on the environment and human rights. The project will affect indigenous lands – mostly those of the Coras – by forcibly evicting inhabitants and damaging sacred sites. This would violate the human rights to adequate housing, water and livelihoods as well as to culture and education. “Our lands and natural resources are the most important aspects of our culture," said Julián López Cánare, coordinator of the Náyeri Indigenous Council and a member of the Intercommunity Council of the San Pedro River. “Every day we fear that our sacred sites will be flooded or damaged.” Ernesto Bolado, director of SuMar, said the appeal to the UN is a demonstration of how the Cora, Huichol, Tepehuana and Mexicanera communities were never consulted on the project as required by Convention 169 of the International Labour Organization (ILO). What is more, consent for the expropriation of land and changing its use was requested at community assemblies under false pretenses, the promise of government benefits and even with bullying. Mexico’s state-owned electric utility Comisión Federal de Electricidad plans to build and operate the Las Cruces hydropower dam on the San Pedro Mezquital river at a location 65 km north of the city of Tepic, Nayarit. The plant will have 240 MW of installed capacity generated by three turbines fed by water from a 188-meter high dam holding a reservoir measuring 5,349 hectares. The project will operate only four months a year at regular output, and it will meeting 0.9% of the energy demand of the West Central Mexico in 2026, equivalent to 0.28% of the total installed capacity in the country[1]. “The urgent appeal is a request for United Nations Rapporteurs to investigate the facts concerning the full enjoyment of human rights of the people and communities that will be affected by the hydroelectric project," said AIDA attorney Sandra Moguel. The environmental assessment report for Las Cruces acknowledges that the project will lead to the substitution of agriculture and small-scale livestock ranching for a dependence on fishing in the reservoir. “It is unthinkable to convert subsistence farmers into fishermen or tour operators,” said Marcos Moreno, an oyster farmer in Boca Camichín and a member of the Intercommunity Council of the San Pedro River. You can read the alert sent to the UN Special Rapporteurs (in Spanish). [1] Las Cruces Environmental Impact Assessment, Chapter II, pages 4-12, 18, 19 and 77.

Belo Monte: Never say never!

By María José Veramendi Villa, senior attorney, AIDA, @MaJoVeramendi  We won’t give up. This is AIDA’s motto for defending the rights of local Brazilians who face forced relocation as construction of the Belo Monte mega-dam moves forward in the Amazon. The Brazilian government is building the world’s third-largest dam on the Xingu River under the guise of meeting a growing demand for energy. One of the costs, according to official estimates, is the displacement of at least 20,000 people from indigenous and river communities. Their traditional lands will be flooded and their ways of life destroyed. But the people of the Xingu won’t be drowned quietly. They have organized to stand up for their rights. The government is so determined that it has hired spies to infiltrate the opposition movement. It has deployed public security forces to patrol the construction site and break up protests. And it plans to beef up controls in June and July, when global attention will focus on Brazil for the World Cup. Now Brazil’s government wants to criminalize protests against infrastructure projects, even if the affected communities are only voicing their dismay that they’ve been denied a basic constitutional and internationally recognized right to have a say in what happens. Throw in the towel? Not us. With your donations, AIDA is working to ensure that the people of the Xingu will be assured the right to be heard, to be consulted, and to live in a healthy environment. One focus of AIDA’s strategy is to tackle a legal instrument called Suspension of Security, which Brazil established during a military dictatorship. Higher courts have used it several times to “protect the public interest” by overruling lower courts, which, in the case of Belo Monte, have halted dam construction until the government consults and provides adequate protection and compensation for affected communities.  At the sessions of the United Nations Human Rights Council in Geneva on March 10, AIDA’s attorney Alexandre Sampaio will explain how Brazil is using Suspension of Security to violate the human rights of Brazil’s indigenous peoples. Additionally, we are advocating, through the preparation and presentation of legal briefs, for the Supreme Court to reject Suspension of Security and determine that the project was illegal from the beginning. We have also asked the Inter-American Commission on Human Rights to analyze the human rights implications of Suspension of Security. AIDA provides all of its work free of charge to the people we help. Your donations through Global Giving provide the critical support that allows AIDA’s attorneys to pursue this challenging and important legal work, which empowers Amazon communities to defend their rights. Please consider making another gift in support of this work, helping in our “never-say-never” fight against Belo Monte. With great appreciation, The AIDA Team      

Lives of no return: Stories behind the construction of Belo Monte

By María José Veramendi Villa, senior attorney, AIDA, @MaJoVeramendi  When you start the descent by plane to the city of Altamira in Pará, Brazil, the darkness of the night is interrupted by the bright lights of worksites a few kilometers outside the city where construction of the Belo Monte dam is underway. That’s when things turn bleak. On a recent trip to the area I was able to see how the situation of thousands of residents – the indigenous, riverine and city dwellers of Altamira - continues to deteriorate. Their communities and livelihoods are being irreversibly affected and their human rights systematically violated by the construction of the hydropower plant. When night becomes day From the plane, the lights from the worksites are just momentary flashes. But for the indigenous and riverine communities closest to them, those lights have brought a radical change to their lifestyles. José Alexandre lives with his family in Arroz Cru, a waterfront community located on the left bank of the Volta Grande, or Big Bend, of the Xingu River in the municipality of Vitória do Xingu. The community is in front of the Pimental worksite. His entire life has been spent in the area, where hunting and fishing are major activities. But everything changed when construction of the dam started.      

The link between international environmental law, human rights and large dams

The article is an update and reissue of two chapters of the report Large Dams in the Americas: Is the Cure Worse than the Disease, written by Jacob Kopas and Astrid Puentes Riaño. The article identifies “the main obligations, standards, decisions and international law applicable to large hydropower plants that our governments should use in the planning, implementation, operation and closure of these projects."   The article is divided into two parts. Chapter I offers an overview of the main standards, the legal framework of international human rights and environmental law as well as the decisions and international jurisprudence applicable to the cases of large dams. In Chapter II, this framework is applied to the cases of human rights abuses caused by the degradation of the environment through the development of a large dam.

Dams, mines threaten indigenous rights: Recommendations from UN human rights expert

By Jessica Lawrence, Earthjustice's research analyst A longstanding goal of Earthjustice and the Interamerican Association for Environmental Defense (AIDA) has been to sound alarms at the United Nations, in national courtrooms and in international fora such as the Inter-American Commission on Human Rights about environmental and human rights violations associated with mines and dams. Indigenous peoples are particularly vulnerable to the harmful effects of such extractive and energy industries in their territories. Last April, Earthjustice and AIDA provided evidence of these harms, as well as recommendations about how to avoid them, to U.N. indigenous rights expert James Anaya, who recently issued a report on extractive and energy industries and indigenous peoples. Comments from Earthjustice and AIDA focused on mine closure, describing how inadequate closure, restoration or monitoring can cause severe, long-term environmental contamination that can violate indigenous and human rights. We identified steps that countries can take to prevent these problems, including enacting strong laws on pabipty of mine operators and requiring operators to provide financial guarantees to ensure adequate clean-up during and after mine closure. Such measures can help protect human rights to health, clean water and a clean environment, as well as indigenous rights to culture, food, a means of subsistence and their lands and natural resources. Anaya’s report includes a number of recommendations with environmental and health imppcations. Key recommendations include: Guaranteeing indigenous communities’ right to oppose extractive and energy projects without fear of reprisals, violence, or coercive consultations. If a government decides to proceed with a project without their consent, indigenous communities should be able to challenge that decision in court. Rigorous environmental impact assessment should be a precondition. Indigenous communities should have the opportunity to participate in these assessments, and have full access to the information gathered. Governments should ensure the objectivity of impact assessments, either through independent review or by ensuring that assessments are not controlled by the project promoters. Measures to prevent environmental impacts, particularly those that impact health or subsistence, should include monitoring with participation from the pubpc, as well as measures to address project closure. If governments and project operators followed Anaya's recommendations, it would substantially reduce the harm caused to indigenous peoples by the often shameful and irresponsible conduct of extractive and energy industries. AIDA, to which Earthjustice provides significant support, works with local communities to address human rights violations from extractive industries throughout the hemisphere, including the Barro Blanco dam in Panama, the Belo Monte dam in Brazil, the La Parota dam in Mexico, and mines in the Andean ecosystems of Colombia.

Letter to the President of the World Bank Group

DR. JIM YONG KIM PRESIDENT THE WORLD BANK GROUP Dear Dr. Kim: We are writing to express our deepest concern regarding the World Bank Group decision to start financing and promoting large hydroelectric projects as “sustainable energy.” We urge you to review the information about negative impacts that large dams have had on the environment and human rights in the Americas, and to reconsider that decision. Large dams commonly cause severe harm to the environment. Underwater decomposition of trees and plants releases major quantities of methane, contributing to climate change. Large dams degrade water quality and sanitation both upstream and downstream from the artificial modification of river systems. Degradation of aquatic ecosystems leads to loss of biodiversity. Seismic instability is another common consequence of dam construction. These environmental harms often violate human rights protected by international legal instruments. These projects repeatedly generate health risks, block access to traditional food sources, and interfere with the ability to earn a livelihood. They displace entire communities, interfering with the human rights to freedom of movement, property, housing, and just compensation. State sponsors of large dams routinely fail to produce comprehensive environmental and social impact assessments, which are required by international law. Access to the information that should be provided by such an assessment is essential to ensuring the human rights to informed consent and prior consultation. Specific international laws and standards that apply to indigenous, afro-descendant and tribal peoples are routinely ignored. In some cases, public protest to ill-considered dam projects is criminalized, contrary to international human rights law. Many organizations and institutions, including the World Commission on Dams, have identified these negative consequences. AIDA has also produced a report analyzing the effects of large dams on the environment and human rights, “Large Dams in the Americas.” The executive summary of the report (in English) and the full version (in Spanish) are attached to this letter. AIDA stands with the World Bank Group in supporting development in Latin America. But that development should be sustainable. It should not come at the expense of the environment and human rights. Promotion of truly renewable resources, including wind, solar, and geothermal energy, can also encourage development that sustains growing economies, thriving environments, and respect for human rights. We insist that the World Bank Group finance only projects that abide by international law and standards, and give due and full consideration to alternative energy sources and efficiency measures. We would be more than happy to help the World Bank Group to drive true, sustainable development and to promote projects that increase human well-being while also protecting the environment and human rights. We hope you find this information useful and incorporate it into World Bank policy.  

Indigenous rights controversies around Belo Monte consume Brazilian judicial system

Dam license could be suspended due to violations of social and environmental conditions. Altamira, Brazil. Recent lawsuits by Brazil’s Federal Public Prosecutors (MPF) concerning the Belo Monte dam are demanding accountability from the dam-building Norte Energia consortium, Brazil’s National Development Bank (BNDES), and the state environmental agency IBAMA for noncompliance with mandated mitigation measures concerning the Juruna and Xikrin Kayapó, two indigenous groups affected by the mega-project. The lawsuits demonstrate that conditions placed upon the dam’s environmental licensing have not been met and call for compensation for socio-environmental impacts of the dam, currently under construction on the Xingu River in the Brazilian Amazon.   The MPF filed a lawsuit in late August showing that Norte Energia was deliberately reneging its obligation to purchase land and provide health services for the Juruna indigenous community Km 17, one of the most vulnerable to the impacts of Belo Monte’s construction due to its proximity to the constant movement of heavy machinery and workers. This lawsuit led the national indigenous foundation FUNAI to issue a complaint to IBAMA, demanding that Norte Energia be held accountable for noncompliance with this formal condition of the environmental licenses for Belo Monte. The Federal Court of Pará State responded this week by giving Norte Energia 60 days to purchase the Juruna land and deliver health care or face daily fines of R$200,000 (US$87,000).   “The situation here has only gotten worse,” said Sheyla Juruna, a member of the Km 17 community known for her local and international activism in defense of her community’s rights. “Belo Monte created the illusion that people would get everything they didn’t have. That’s when the problems began. Support from FUNAI never came and our health conditions are precarious. Civil society thinks that the indigenous have rights, yet our rights are being violated every day.”   Following the ruling in favor of the Juruna community the MPF filed another lawsuit targeting the neglect of BNDES, IBAMA, and Norte Energia stemming from the absence of prior analysis of impacts and associated compensation measures for Xikrin Kayapó communities that are also threatened by Belo Monte. The lawsuit charges that these three institutions violated the rights of the Xikrin Kayapó when they allowed construction to commence on the project without measuring the impacts it would cause to the indigenous group, whose villages are based on the Bacajá River, a tributary to the Xingu directly adjacent to the dam’s most serious impacts.   The MPF has asked the Judiciary to suspend Belo Monte’s installation license, paralyzing the project until Norte Energia can present findings on the project’s impacts and its corresponding compensations for indigenous communities. The lawsuit is unprecedented in its scope as it could force the consortium and BNDES, financier of 80% of the dam’s costs, to indemnify affected indigenous groups of the Xingu for the delay in measuring and mitigating its socio-environmental repercussions.   “We truly have reason to celebrate seeing BNDES is finally being charged as a responsible party in Belo Monte’s disastrous impacts,” said Maíra Irigaray Castro of Amazon Watch. “It is time for financiers to pay for the criminal negligence exemplified by noncompliance with conditionalities, which they should also be monitoring for all projects that they finance.”   Norte Energia’s failure to comply with Belo Monte’s legally mandated conditions is not new. IBAMA released a report in July confirming that the compliance has worsened as the dam’s construction has sped up. The report shows that only four out of 23 conditions concerning local urban populations have been met.   “Last week we had a meeting with representatives of the government and local people and their discontent is clear,” said Antonia Melo, coordinator of the Xingu Alive Forever Movement. “There is no fresh water, no electricity, no health care, no schools and no sanitation. We cannot accept that the conditions, that are fundamental rights guaranteed by our constitution, be undermined in this way. IBAMA must suspend construction, as defined by law, until these conditions are met.”   “These legal actions add to the existing evidence of the severe impacts that the Belo Monte dam is having on human rights and the environment in the Xingu, and of the responsibility of all Brazilian agencies involved in the project,” said María José Veramendi of AIDA. “We look forward to a positive result of these legal actions and that Brazil will effectively comply with applicable national and international laws, as all agencies involved can be legally responsible and the State can be internationally responsible for these human rights violations” pointed out Veramendi.   Per FUNAI’s request, as well as the lawsuits brought by the Public Prosecutors, both IBAMA and the Federal Judges could suspend the dam’s installation license until all the requirements and conditions are met.   “The characterization of Amazonian dams as clean and cheap energy is based on the ability of project proponents, including BNDES, to “externalize” their true social and environmental risks and impacts. These lawsuits are significant in that they’re sending a signal that they are indeed being held accountable for their decisions and the damage that they cause to the environment and indigenous peoples,” said Brent Millikan, Amazon Program Director at International Rivers.

Saving the San Pedro Mezquital River from a destructive large dam

Open letter to the President of BNDES about funding for Belo Monte (Spanish only)

Excmo. Sr. Luciano Coutinho Presidente del Banco Nacional de Desarrollo Económico y Social – BNDES Río de Janeiro, Brasil Las organizaciones de la sociedad civil abajo firmantes, comprometidas con la defensa de los derechos humanos, el desarrollo con responsabilidad socioambiental y el fortalecimiento de la democracia, venimos respetuosamente a presentar las siguientes consideraciones y solicitar medidas urgentes ante el desembolso del préstamo anunciado por el BNDES para financiar el Complejo Hidroeléctrico de Belo Monte, en el Estado de Pará. Considerando que, de conformidad con la amplia documentación y estudios técnicos, existen fuertes evidencias de la inviabilidad económica del Complejo Belo Monte1, con base en factores como: i) el aumento constante de los costos del emprendimiento, que ya se multiplicó en casi 7 veces, de R$ 4.5 billones de reales en 2005 a R$ 19 billones en la época de la licitación en 2010, y actualmente está en aproximadamente R$ 28,9 billones conforme a datos del BNDES, pudiendo llegar a los R$ 32 billones, según analistas; ii) la reducida capacidad de generación de energía a lo largo de un año, aproximadamente apenas un 39% de su capacidad instalada de 11,2 mil MW; y iii) los verdaderos costos económicos asociados a la mitigación y compensación de impactos socioambientales que fueron crónicamente sub-dimensionados, en gran medida, a causa de presiones políticas por la aprobación de licencias ambientales, contrariando informes técnicos del propio IBAMA; Considerando que el BNDES firmó el 16 de junio de 2011 un primer préstamo puente por un valor de R$ 1,1 billones a favor del Consorcio Norte Energía S.A. (NESA), un segundo préstamo puente el 2 de julio de 2012 por un valor total de R$ 1,8 billones utilizando a la Caja Económica Federal (CEF) y al Banco ABC S.A. como prestamistas; y que el BNDES anunció el 26 de noviembre de 2012 la aprobación de un financiamiento por R$ 22,5 billones (el mayor préstamo de su historia) para Belo Monte, con la actuación del CEF y del BTG Pactual como bancos prestamistas de parte de los recursos,2 para sumar un total de R$ 25,4 billones; Considerando que los préstamos del BNDES a favor del consorcio Norte Energía están utilizando recursos públicos, oriundos del Programa de Integración Social y del Programa de Formación de Patrimonio del Funcionario Público (PIS-PASEP) y del Fondo de Garantía por Tiempo de Servicio (FGTS), asignados al Fondo de Amparo al Trabajador (FAT) y de la emisión de bonos del Tesoro Nacional en el mercado internacional (en los que la diferencia entre la tasa de interés pagada por Tesoro es aquella cobrada al BNDES y también cubierta por el contribuyente brasileño); Considerando que para la aprobación de los dos préstamos puente, por un valor total de R$ 2.9 billones, el BNDES exceptuó la realización de análisis de viabilidad económica y de clasificación de riesgo del Complejo Belo Monte, exigidos por la Resolución No. 2.682/99 de Consejo Monetario Nacional – CMN y no cumplió con las determinaciones de la Circular Nº 3547 de 07/07/2011/BACEN (D.O.U. 08/07/2011) en lo relativo a la necesidad de evaluación y cálculo de riesgo resultante de la exposición a los daños socioambientales del emprendimiento; Considerando que, a pesar de las determinaciones de las Resoluciones 2022/10 y 2025/10, aprobadas por la Dirección Ejecutiva, que instituyó la nueva Política de Responsabilidad Social y Ambiental y la nueva Política Socioambiental del Sistema BNDES, el Banco aún no cuenta con una guía socioambiental con directrices para orientar financiamientos para el sector hidroeléctrico, como herramienta para asegurar el cumplimiento de sus objetivos sociales, económicos y ambientales, en el marco de la legislación vigente; Considerando que el BNDES recibió notificaciones extra-judiciales firmadas por diversas organizaciones de la sociedad civil en octubre de 2010 y noviembre de 20113, con advertencias sobre los riesgos financieros, legales y de reputación a raíz de su involucramiento como financiador del Complejo Belo Monte; sin que eso haya provocado cambios efectivos en la postura del banco; Considerando el incumplimiento crónico de las condicionantes de las licencias ambientales (Licencia Previa No. 342/2010 y Licencia de Instalación No. 795/2011), como lo prueban las minutas del seguimiento de IBAMA y de la FUNAI, así como los relatos de organizaciones civiles y poblaciones afectadas, sin que eso haya afectado las decisiones del BNDES en cuanto al financiamiento de Belo Monte; Considerando las graves violaciones a los derechos humanos de los pueblos indígenas y de otras comunidades locales del Xingú y de la legislación ambiental, así como irregularidades en el cumplimiento de la legislación laboral por parte de NESA y empresas tercerizadas; Considerando los impactos socioambientales que la construcción de Belo Monte ya está provocando, como por ejemplo el desplazamiento forzado de agricultores familiares y ribereños sin compensación efectiva, afectación a la calidad del agua, mortalidad de peces y quelonios, aumento de la deforestación ilegal, invasión de tierras y explotación maderera ilegal, invasión de empresas mineras depredadoras (como la multinacional canadiense Belo Sun en la Volta Grande del Xingú), aumento de violencia y prostitución infantil, criminalización de defensores de derechos humanos en la región, así como la sobrecarga de los servicios de salud, saneamiento, educación y seguridad pública en áreas urbanas; sin medidas efectivas de solución a los problemas, en el ámbito de las condicionantes de licencias, el PDRS Xingú y las medidas cautelares solicitadas por la Comisión Interamericana de Derechos Humanos (CIDH); Considerando que el cuadro de ilegalidades de Belo Monte tiene como resultado, hasta el momento, la presentación de 15 acciones del Ministerio Público Federal, 21 acciones de la Defensoría Pública y 18 acciones de organizaciones de la sociedad civil; e internacionalmente la presentación de una petición y el otorgamiento de medidas cautelares por la Comisión Interamericana de Derechos Humanos en favor de las comunidades indígenas de la cuenca del Xingú; Considerando que el BNDES no posee hasta la fecha un sistema de monitoreo y evaluación del cumplimiento de condicionantes de licencias ambientales, de violaciones de derechos humanos y legislación ambiental y de otros impactos socioambientales de emprendimientos como Belo Monte, contradiciendo así el discurso de responsabilidad social y ambiental del banco; Considerando que un nuevo aporte de R$ 22,5 billones del BNDES, en el contexto actual de incumplimiento de obligaciones formales por parte de NESA, genera que el BNDES y otros órganos públicos intensifiquen enormemente los problemas de degradación ambiental y el sufrimiento de las poblaciones afectadas y amenazadas en la región afectada por Belo Monte; Solicitamos que no se realice ningún desembolso del préstamo de R$ 22,5 billones para Norte Energía S.A., anunciado el día 26 de noviembre de 2012 por el BNDES, antes de cumplir con las siguientes medidas urgentes, que constituyen, en su gran mayoría, obligaciones formales preexistentes del Banco: a) Demostración del pleno cumplimiento de las leyes nacionales e internacionales aplicables para hidroeléctricas y las directrices, criterios y demás compromisos del Protocolo de Intenciones para la Responsabilidad Socioambiental (Protocolo Verde) firmado por el BNDES en agosto de 2008; b) Esclarecimiento de los motivos para la inexistencia de una guía socioambiental con directrices para orientar inversiones en el sector hidroeléctrico, conforme a lo previsto en las Resoluciones 2022/10 y 2025/10 que instituyeran la nueva Política de Responsabilidad Social y Ambiental y la nueva Política Socioambiental del Sistema BNDES, así como una explicación sobre las medidas que el banco viene tomando y pretende implementar para que tales resoluciones sean cumplidas para el caso de Belo Monte; c) Criterios y métodos utilizados por el BNDES en el análisis de la viabilidad económica de Belo Monte - especialmente en lo que se refiere a los costos de construcción, producción y venta de energía, y costos de mitigación y compensación de impactos socioambientales – explicando los riesgos de perjuicios para las arcas públicas y el contribuyente brasileño y cómo el banco pretende sanearlos; d) Demostración de cumplimiento efectivo de la Resolución No. 2.682/99 del Consejo Monetario Nacional – CMN, relativa al análisis de viabilidad económica y de clasificación de riesgo del Complejo Belo Monte; e) Cumplimiento pleno de las determinaciones de la Circular Nº 3547 de 07/07/2011/BACEN (D.O.U. 08/07/2011) relativa a la necesidad de evaluación y cálculo de riesgo resultante de la exposición a los daños socioambientales del emprendimiento; f) Muestra de los análisis realizados por el BNDES respecto al grado de cumplimiento de condicionantes de licencias ambientales y sus implicaciones para la aprobación del préstamo principal; g) Esclarecimiento de los análisis realizados por el BNDES sobre el grado de cumplimiento de la legislación vigente en materia laboral y de derechos humanos, inclusive el derecho al consentimiento libre, previo e informado, conforme al artículo 231 de la Constitución Federal, el Convenio 169 de la OIT y la Declaración de los Derechos de los Pueblos Indígenas de las Naciones Unidas y las medidas cautelares otorgadas por la Comisión Interamericana de Derechos Humanos; h) Posicionamiento del BNDES sobre las más de 50 acciones interpuestas relativas a las ilegalidades en el licenciamiento e instalación del Complejo Belo Monte, y sus conclusiones en cuanto a las implicaciones del pasivo jurídico del emprendimiento para la aprobación del préstamo principal; i) Demostración de pleno cumplimiento del artículo 1, § 1º de la Ley 6.938/81, en lo que se refiere a la responsabilidad objetiva de los agentes financieros por los daños ambientales del emprendimiento, inclusive aquellos no previstos o asumidos en la Licencia Previa No. 342/2010. Señor Presidente, considerando la urgencia y relevancia de este asunto, inclusive para asegurar la coherencia entre los objetivos de responsabilidad social y ambiental del BNDES y sus operaciones en la práctica, solicitamos el máximo de atención y empeño en atender esta solicitud. En este sentido, solicitamos la realización de una reunión urgente de una delegación de las organizaciones signatarias de esta carta con Su Excelencia y su equipo, para tratar las cuestiones aquí planteadas y la implementación de las medidas urgentes propuestas.  Altamira-PA, 4 de diciembre de 2012   See the full list of national and international organizations that signed the letter in the attached PDF version (spanish only).

Amidst criticism, BNDES approves unprecedented loan for controversial Belo Monte dam in Brazilian Amazon

FOR IMMEDIATE RELEASE November 29, 2012   Media Contacts: Astrid Puentes, AIDA, [email protected], +52 1-55 2301-6639 Brent Millikan, International Rivers, [email protected] +55 61 8153-7009 Maíra Irigaray, Amazon Watch, [email protected] +1 415 622-8606     Amidst criticism, BNDES approves unprecedented loan for controversial Belo Monte dam in Brazilian Amazon  Financing ignores violations of human rights and environmental safeguards, tarnishing bank’s reputation, critics state   Brasilia—On Monday, November 26, the Brazilian National Development Bank(BNDES) announced approval of an unprecedented loan of BRL 22.5 billion (approximately US$10.8 billion) for construction of the controversial Belo Monte dam project on the Xingu river, a major tributary of the Amazon. It is the largest loan in the bank’s 60-year history. BNDES is slated to be responsible for BRL 13.5 billion of direct finance, while Caixa Econômica Federal (CEF), a public bank, will pass through BRL 7 billion and private investment bank BTG Pactual will administer another BRL 2 billion.   Responding to the BNDES announcement, nine Brazilian civil society organizations filed a petition yesterday with the Federal Public Prosecutor’s Office (Ministério Público Federal) calling for an investigation of apparent violations of legally-binding requirements related to the project’s social and environmental impacts, risks and economic viability. The petition calls on prosecutors to take urgent measures to prevent BNDES from disbursing loan proceeds to the project developer (Norte Energia, S.A.) prior to the completion of a full investigation.   The controversial project has been paralyzed on at least six occasions by affected indigenous communities and fishermen, who have protested over the failures of Norte Energía and government agencies to comply with the project's mandated environmental and social provisions. Eight thousand of the project's own workers also have shut down the dam, recently setting fire to construction camps and machinery and blocking roads, in protest against violations of labor legislation.  “As long as Norte Energia and the Brazilian government, including BNDES, continue to ignore demands by affected peoples, there will be resistance and increased conflict. By approving the massive loan with so much conflict on the ground shows the lack of commitment by BNDES to meet rights and environmental safeguard commitments. It should reconsider the loan approval to avoid any further conflict,” said Maira Irigaray, International Finance Advocate at Amazon Watch.   Belo Monte was suspended twice in 2012 by federal judges for the lack of prior consultations with affected indigenous communities, as required by the Brazilian Constitution and international human rights agreements. The International Labor Organization and the Inter-American Commission on Human Rights (IACHR) have declared that the project places at risk the rights of affected indigenous communities.  Expert and independent analysis has found that Belo Monte is economically, socially and environmentally unviable.   Norte Energía and federal government agencies are facing 15 civil proceedings in the Brazilian courts lodged by the Public Ministry, the Public Defender’s Office and civil society institutions, as well as international suits that question the large number of illegalities and irregularities committed since the start of the project. Despite massive legal, financial and reputational risks surrounding Belo Monte, BNDES has decided to finance the project anyway, apparently under intense pressure from the administration of President Dilma Rousseff. By approving the loan, BNDES makes itself the main financier of a project notorious for violations of environmental legislation and human rights, including the culture integrity of indigenous and river communities. Among its environmental impacts, Belo Monte is expected to cause large emissions of greenhouse gases, including methane, a gas that is 25 times stronger than carbon dioxide.   “The violations of human rights caused by the construction of the Belo Monte dam have been denounced before international organizations for which the State of Brazil and now also BNDES could be responsible,” said Astrid Puentes, Executive Co-Director of the Interamerican Association for Environmental Defense (AIDA), an organization that offers legal support to the affected communities. In 2011, the Inter-American Commission on Human Rights – IACHR, part of the Organization of American States (OAS), called for precautionary measures to protect the life, personal and cultural integrity of the contacted and uncontacted indigenous communities of the Xingu River affected by the construction of the Belo Monte dam. The Brazilian government chose to ignore the Commission’s recommendations.   “No serious social and environmental safeguards were implemented by BNDES prior to the approval of this loan for Belo Monte using the money of Brazilian taxpayers” argued Antonia Melo, coordinator of the Movimento Xingu Vivo para Sempre. “BNDES claims that part of the funds will be used in the mitigation of the impacts of Belo Monte, but this is just talk. No one guarantees that this money is going to minimize the suffering of those affected. To date, virtually none of the promises made to indigenous, river people and fishermen have been met. BNDES already has transferred BRL 2.9 billion to Norte Energia without any serious risk analysis, and you can see the disastrous situation of the people in the region, the deforestation and the lack of infrastructure in Altamira.”   The unprecedented BNDES loan for Belo Monte, slated to be the world’s third largest dam project, is the largest in the bank’s 60-year history. Critics charge that the project is economically unviable, due to factors such as burgeoning construction costs that increased over six fold from BRL 4.5 billion reais in 2005 to current estimated of BRL 28.9 billion. The project is expected to produce only 39% of its installed capacity of 11,233 MW capacity.  According to Brent Millikan, Amazon Program Director at International Rivers, “If the true social and environmental costs, along with the financial, legal and reputational risks of Belo Monte were seriously taken into consideration, BNDES would never get near the project.”   Further information:   www.aida-americas.org/es/project/belomonte www.internationalrivers.org/campaigns/belo-monte-dam www.amazonwatch.org/work/let-the-river-run   www.xinguvivo.org.br