----- Kozloff Keith From ent C I · ubject Andrew Velthaus AVELTHAUS@CONSERVATION ORG Wednesday September 25 2002 10 56 AM 'keith kozloff@do treas gov' FW OCP ocp_asses_report_ 0209 zip 525 Below is an article about a pipeline in Ecuador that has come under criticism It is interesting to note that in this case as well the environmental assessment was conducted after construction had begun which seems to be unexpectedly common with MOB financed projects We at CI will be trying to work with the IDB to get some environmental additionality to the Camisea pipeline project but I am not very optimistic since the IDB has not seemed interested to date I'll send you an e-mail later giving further background -----Original Message----From Greg Love Sent Tuesday September 24 2002 5 13 PM To Antonio Telesca Roberto Roca Luis Suarez •Cc Assheton Carter Nigel Asquith Julie Bourns Maria Sanchez Andrew Velthaus Subject OCP Estimados colegas 1Informaci6n interesante sabre el proyecto OCP incluso el reporte par Robert Goodland ocp asses report 0209 zip Banks urged to drop Ecuador pipeline By Nancy Dunne and Guy Hedgecoe Published September 19 2002 5 00 Financial Times OLE Obj Financiers of an oil pipeline under construction in Ecuador are coming under pressure to withdraw their backing after the release of a report on its environmental consequences The report by Robert Goodland a retired World Bank environmental adviser says the Oleoducto de Crudos Pesados OCP pipeline fails to meet World Bank environmental and social standards At least two of the international banks supporting the project have insisted the pipeline must meet those guidelines Retiring President Gustavo Noboa sees the 503km heavy crude line as vital to Ecuador's economy and one of the main achievements of his term of office - it is a project in which several of his predecessors failed Mr Noboa has been outspoken in his criticism of environmentalists accusing them of sabotaging the country's economic development Oil is by far Ecuador's largest industry generating $1 7bn in export revenue in 2001 over a third of total exports It already has a transport capacity of 390 000 barrels per day along the Trans-Ecuadorean Pipeline SOTE In Germany the Green party has joined the campaign calling on Westdeutsche Landesbank of Dusseldorf WestLB which leads a consortium of international banks funding the pipeline to withdraw from the project and call in the loan A bank spokesma said the Goodland report would be studied The World Bank is not financing the $1 3bn pipeline but its route passes ·-·- through a conservation project funded by the Global Environment Facility r · · ' the international initiative that emerged from the 1992 Earth Summit and · is administered by the World Bank - WestLB partly owned by the government of North-Rhine Westphalia has repeatedly insisted that compliance with World Bank guidelines is an U 1 · indispensable prerequisite to its financing J Italy's Banca Nazionale del Lavoro a member of the financing syndicate has also said the guidelines were fulfilled and respected Mr Goodland was hired by German US and Italian non-governmental organisations and some unions to determine if the guidelines - many of which he wrote when at the World Bank - were being met He said the pipeline had begun with a fla½ed environmental assessment process undertaken after initial construction work had begun Routing is paramount in pipelines Mr Goodland said The OCP could have been constructed along an already established southern pipeline route which would have limited the impact yet it chose to cut paths through the Amazon through parks and regions which have been attracting eco-tourists Andy Patterson interim chief executive of the pipeline strongly denied ma ny of the report's charges and insisted that work had not begun until the government issued an environmental permit on June 7 last year He said OCP had gone to great lengths to comply with World Bank guidelines and had chosen a route that would have the least possible impact on the environment and the population Protesters have frequently disrupted construction They include indigenous people and poor farmers whose lands have been bisected by the project or whose water has been polluted by oil drilling To finance the pipeline oil drilling will be doubled heightening the risk of further damage to the environment say protesters Mr Goodland said OCP's environmental assessment failed to address critical issues of minimising habitat loss or to provide for an indigenous peoples' development plan as the World Bank requires from its own projects Mr Patterson released a list of more than 100 meetings with farmers and non-governmental organisations He said 97 per cent of the 2 000 landowners along the route had accepted financial settlements the remainder had unrealistic expectations of land values A sub-committee of the Ecuadorean Congress investigating complaints by some landowners reported last May that there had been violence by police exclusively under the orders of the OCP according to families in Lago _- Agrio _ ·s_ _ _ - •It fo1 1nd people who were brutally attacked by the r iolic iz icluding some •yf who did not have the 1 r teeth as a consequence of being h 1 t w 1 th a gun '•c•• f There were also women and children present who were attacked by the police Heffa Schilcking of the German environmental group Urgewald one of the report's sponsors said the international campaign against the pipeline was spreading to Canada Spain and Argentina where Greens are being urged to p ess banks who are part of the syndicate The members of the syndicate also include Banco Bilbao Vizcaya Argentaria Banca Nazionale del Lavoro Caja de Madrid Banco Espirito Santo Unicredito and JP Morgan Chase Ms Schucking said Greg Love Manager for Field Engagement Energy Mining Program Center for Environmental Leadership in Business Conservation International 1919 M Street NW Suite 600 Washington DC 20036 Phone 202-912-1427 Fax 202-912-1047 E-mail g love@celb org http www conservation org 2