Oy Metsä-Botnia
Orion Pulp Mill Project - Uruguay
Presented by J. Daniel Taillant
Center for Human Rights and Environment (CEDHA)
[email protected]
Ence
Botnia
Argentina
Uruguay
Nascence of Social-Environmental Movement
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Apparition of foreign papermill - & aware of experiences in Misiones (Arg),
Chile, Brazil) – all ECF technology), results in Argentina and Uruguay
opposition (before ENCE mill – 1996)
Uruguayan stakeholders seek collaboration with Argentines
Botnia appears and magnifies problem (tripling ENCE production)
Assembly meets 2 times weekly to discuss opposition strategy
Legal Actions considered, fervent protest, and other methods
Assembly links up with CEDHA and files CAO complaint in 9/2005, then others
Nearly 40,000 people sign complaint (with Power of Attorney)
Assembly Intensifies Opposition to Date
Promises to Oppose Until Botnia Leaves
Argentina
IFC Sends OK Signal to EDs
IFC’s Environmental Impact Assessment (EIA) Summary
Published April 20, 2005
“Consultations to date indicate
that the project enjoys broad
public support”
Is this “BROAD COMMUNITY SUPPORT”?!
CAO
Audit Findings
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“IFC’s due diligence to satisfy itself that the EAs were
complete in all material respects was inadequate and not
incompliance with the organization’s Disclosure Policy”
Insufficient evidence that proper consultation has
occurred
Need to generate transboundary trust in Local
Communities
Botnia’s beginning construction undermines legitimacy
Special Efforts must be made to legitimize future studies
Must study impacts of eucalyptus tree farming on water
Must examine International Law Obligations; MIGA says
not needed!
Establishes legitimacy of
(Gualeguaychú Assembly)
IFC Fails to Give Clarity on how it will address Study
Flaws
“Further technical information and facts will not
be sufficient to address the lack of trust that
currently exists … More fact, without efforts to
build trust and address questions of integrity of
process, will not be helpful”
IFC Systematically Tries to Cover Errors
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IFC Ignores CAO Recommendations and
Fails to do consultation before terms of
reference for study (violating OP - 12a)
IFC Designs 60-day consultation period
during holiday season; boycotted by
Assembly, Argentina and Uruguay
IFC leaves 1000 residents waiting …
Consultation Concludes Fruitlessly, CAO
warns of rushed “fait accompli” attitude
CAO Publishes Critical Audit of IFC Faults
Hatfield Report notes missing elements
(many in original CAO complaint)
Ecometrix Report Published Erroneously and
not removed from Website
Conclusions Insult Stakeholders
(public will become accustomed to mills)
Botnia remains silent, but continues construction …
Violent Assembly Members Scare off only IFC Consultation Arranged with Gualeguaychú
900 Assembly Members wait for IFC Consultation Team Which Never Show up!
Findings by Ecometrix
“The change to the landscape is a permanent impact,
however the public’s response to these new industrial
features is subjective and may potentially change over
time as the public becomes accustomed to the new
landscape. Case studies have shown that tourism can coexist with pulp mills”.
Trail of Unacceptable Errors
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Botnia Strikes Last Minute Secret Deal with Uruguay, over ENCE
No Cumulative Impact Study of Mills
No site study showing environment/social adequacy (12/1200pp.)
No evidence showing proper use of BAT
No EIA for Chemical Operations
No convincing data on impacts on water, air, land, etc.
No Consideration of Reflows and Proper Info on Wind Patters
No Reliable Information on Tourism/Agro Risks
No Prior and Informed Consultation or Disclosure
Failure to obtain Social License to Operate
No review of International Law Obligations of Uruguay/Argentina
Failure to help project hosts (Arg/Uru) to resolve problem
Failure to guide sponsors to negotiate with stakeholders
Argentina
Summary and Conclusions
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IFC was Negligent and Irresponsible fostering 2 Projects that were not in
compliance with its own environmental and social policies
CAO reports were conclusive indicating the many IFC faults
IFC and Botnia ignored social tensions and the international conflict that
have been mounting for nearly 3 years and continued on schedule
IFC misjudged as early as April of 2005 regarding supposed “broad
public support” for these projects
The proposed investment is the focus of numerous legal claims,
including at International Tribunals and filings in local courts in Arg/URU
The project sponsor and IFC failed to make efforts to help resolve the
conflict that they fueled and instead have worsened the situation
IFC must not provoke or worsen the conflict
This investment project is the focus of one of the largest recorded local
oppositions ever for a Bank sponsored project and is causing dangerous
levels of intolerance and hatred between brotherly communities and an
open dispute between member government of the World Bank
The IFC must abandon its consideration of loans to Botnia at the present
site, and should, if anything, help work with project sponsors to study
possible relocations, as the SPANISH ENCE is considering.
Argentina
Specific Instance
Oy Metsä-Botnia
Orion Pulp Mill Project - Uruguay
Contact Information
Jorge Daniel Taillant
Center for Human Rights and Environment (CEDHA)
[email protected]
Tel. 0054 9 116 182 3172
Oscar Bargas
Citizens Assembly of Gualeguaychú - Argentina
[email protected]
Liliana Medina Cocaro
MOVITDES – Uruguay
Moviemiento por la Vida el Trabajo y un Desarrollo
Sustentable
[email protected]
Argentina