• -· James Mahoney e - ·'· - _ 06 02 2003 11 38 AM ' To Popi Artavanis STFG EXIMBANK@EXIMBANK Karl Kendall STF·G EXIMBANK@EXIMBANK cc Subject FW Response to Camisea Loan Conditions dualing NGO letters - interesting ----- Forwarded by James Mahoney POLICY EXIMBANK on 06 02 2003 11 37 AM----Maria Sanchez m sanchez@conserva tion org 06 02 2003 09 44 AM To Jim Mahoney E-mail james mahoney@exim gov popi artavanis@exim gov cc Subject FW Response to C misea Loan Conditions FYI - For your reading pleasure the message from the other group of NGOs maria -----Original Message----From Jon Sohn mailto jsohn@foe org Sent Monday June 02 2003 9 15 AM To amy@bicusa org jgarrido@bicusa org g love@celb org janlloyd@earthlink net agoldzimer@environmentaldefense org asoltani@igc org CaffreyNittler@msn com tcaffrey@ngonetworks org janlloyd@onetel net uk kslack@oxfamamerica org ihogue@ran org nmartinez@seen org Cc RbtGoodland@aol com m sanchez@CONSERVATION ORG bulfelder@tnc org cfernandez@tnc org francis grant-suttie@wwfus org Subject Response to Camisea Loan Conditions Dear All The attached letter and memo in final signed form were hand deliver€d to WWF TNC and CI on Friday Please let me know if you have any questions Per Greg's previous messages on these issues this information will be available to anybody who wants it as well Thanks Jon Greg Love g love@celb org 05 12 03 10 49AM Final Goodland report - Clarification pdf Dear All I am sending a revised version of the Goodland report with the following added text p 7-8 that was mistakenly omHt ed from the report sent out on 5 8 Clarifying note Although this ind ependent report was contracted specifically for Conservation International The Nature Conservancy World Wildlif-e Fund and the Smithsonian Instituti-on the attached document should be considered publi c and disseminated to all who request a copy The four conservation organizations want to thank Dr Goodland for his work and extend special grati tude t o those who assisted with his visit to the Camisea project and so generously'offered input into the production of the final report This input was invaluable to Dr Goodland and was addressed in this final version The four conservation organizations contracted Dr Goodland to gain additional insights into what actions needed to be taken to address the environmental and social aspects as they relate to biodiversity conservation of the Camisea project This was by necessity a very broad mandate covering many topics In an effort to focus on a few key issues we asked Dr Goodl and not to include his assessment of the training needs environmental assessment procedures and greenhouse gas impacts of the project Exclusion of these issues from t tre report should by no means be interpreted that the four conservation organizations regard these issues as unimportant Rather it reflected the need to focus on fewer issues of higher immediate impact The four conservation organizations believe that Dr Goodland's assessment provides a valuable public resource that all stakeholders can and should use in add i essing the environmental and social aspects of the Camisea project We apologize to Dr Goodland for this omission and request that this version be considered the final report Best regards 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 -----Original Message----From Greg Love Sent Thursday May 08 2003 5 20 PM To 'AlecWat@aol com' 1 afwatson@hillsandco com' •jmoriniere@pluspetrol com ar' 'Brian Swinford' 'Elgegren Jorge' 'Miller Timothy' 'Keith Kozloff@do treas gov' 'popi artavanis@exim gov' 'James Brannan' 1 websterk@state gov 1 'Elgegren Jorge' 'Janet Lloyd' 1 J-0hnston Leslie' 'tcaffrey@ngonetworks org' 'Amy Gray' 'asoltani@igc org' 'CaffreyNittler' 'Ilyse Hogue' 1 janlloyd@earthlink net 1 'Jane Garrido' 'Jon Sohn' 'Keith Slack' 'Nadia Martinez' Cc 'Bill Ulfelder E-mail ' 'Francis Grant-Suttie E-mail ' 'Jaime Cavelier E-mail ' 'Manrique Rojas E-mail ' Maria Sanchez Erick Meneses t Carlos Ponce' 'Eduardo Durand' 'Alfonso Alonso E-mail ' Patricia Zurita 'Carlos Fernandez E-mail ' RbtGoodland@aol com · Subject Camisea recommendations - WWF TNC and CI Dear All Plea-se find attached with this e-mail -the following documents I Letters dated April 25 2003 to Sr Enrique Iglesias President of the Inter-American Development Bank and Mr Philip Merrill President and Chairman of the Export Import Bank of the US signed by Steve McCormick President and CEO The Nature Conservancy Kathryn Fuller President and CEO World Wildlife Fund and Peter Seligmann Chairman and CEO Conservation International Copies of the signed document can be faxed upon request C WWF and CI's Recommended Loan Conditions for the Camisea Natural Gas Project An assessment of Pluspetrol ' s biodiversity scooping study by the Smithsonian CI and WWF TNC WWF and CI ' s proposed Principles and Criteria for a Camisea Trust Fund Dr Robert -Goodland ' s Camisea Natural Gas Project Independent Assessment of the Environmental and Social Priorities Spanish versions of the above documents are being sent to Peruvian stakeholders and are available upon request we thank everyone that assisted in the creation of these documents If there are any questions or comments concerning these documents please contact me Best regards 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 File Letters Conditions zip documents zip D D camisea letter doc camisea memo doc File Accompanying • The Nature Conservancy CONSERVATION INTERNATIONAL SAVING THE LAST GREAT PLACES ON EARTH WWF LOAN CONDITIONS FOR THE C AMISEA PROJECT Presented by Conservation International The Nature Conservancy and World Wildlife Fund with the technical advice of the Smithsonian Institution In October 2002 the four conservation organizations listed above urged two publicly funded banks considering financing portions of the Cami sea Gas Project in Peru namely the Inter-American Development Bank and the Export Import Bank to require as part of their loan agreements concrete actions to mitigate and control negative environmental impacts of the project The conservation organizations specifically recommended three broad categories in which improvements to the project were necessary They are a compliance with world-class environmental standards b independent monitoring and evaluation plans and c creation of a trust fund to promote biodiversity conservation in the region and improve the quality of life and economic development of local · stakeholders Participation of Peruvian civil society in a11 three of these areas was also noted to be of utmost importance in the recommendations After analyzing numerous documents including Dr Robert Goodland's Independent Assessment of the Camisea Gas Project's Environmental and Social Priorities and the biodiversity scoping study prepared for PlusPetrol hiring consultants of our own and direct consultation with Camisea stakeholders we make the following specific recommendations ' I Compliance with World-Class Environmental Standards 1 ROW Closure As part of a loan agreement the right of way ROW for the pipeline from the upstream platforms through the Lower Urubamba region should be deactivated after construction including a11 roads and bridges Without complete deactivation through this particular section the project runs the risk of permitting unauthorized access into areas critical for biodiversity and indigenous communities Only native species should be used to re- vegetate the ROW Monitoring and enforcement plans should be in place to prevent unauthorized incursions into or migration colonization along the ROW zone and in the Lower Urubamba region All appropriate stakeholders Government of Peru the consortia communities and representatives of civil society should work together to 1 Comparable world-class standards can be found in the following World Bank policies and directives OP 4 01- Environmental Management Plan OP 4 02 - Environmental Action Plans OP 4 04 - Natural Habitats and OD 4 2 - Indigenous People • •· define roles and responsibilities for preventing and reporting unauthorized incursions along the ROW For example the consortia and the local communities should play an indispensable role in monitoring the ROW and preventing unauthorized incursions while the Government of Peru needs to firmly commit to enforcing the law Additional protective measures could include construction of physical barriers hiring training and equipping local monitors etc Communal reserve management plans should play a central role in these monitoring and enforcement efforts Erosion and Rehabilitation Efforts Pipeline construction has resulted in significant erosion problems All erosion zones should be stabilized upon completion of pipeline construction Only native species should be used for re-vegetation As part of a loan agreement independent assessments of current erosion and rehabilitation efforts extraction of river materials and pipeline crossings should be completed and the recommendations fully implemented by TGP and its contractors Performance bonds that guarantee the implementation of the recommendations should be established before any loan is granted Paracas National Reserve The process for selecting the Pisco Paracas site for the fractionation plant and subsequent EIA process were problematic They were not sufficiently transparent did not adequately involve affected stakeholders and did not incorporate critical environmental or social factors IDB and Exlm should request that the Government of Peru and the consortium reconsider the site selection especially in light of the fact that a liquefied natural gas LNG plant is under consideration o north and that a single industrial complex could house both facilities ------ - B5 Fractionation'and LNG Plants Regardless of final site selection for the fractionation and LNG plants any loan ----- f agreements should stipulate that a11 vessels transporting liquids from the plants be doubled-hu1led b ater b ated on-land according to the highest standard a n any marine terminals and accomp nying facilities have an EIA completed through a thorough public review process an pproved prior to construction 7 Freshwater Ecosystem Protection In order to protect freshwater ecosystems all drilling muds should be re-injected into -- ----- --- _ project wells Water quality should be set to U S Environmental Protection Agency standards Any produced waters should be monitored for heavy metals and other potentially hazardous material to decide which of the available options to use for its '------- disposal - re-injection waste pits or tanks Monitoring should be carried out on the treatment process of solid residues and the composition of residues Residues should be transported to an adequate off-site processing facility A secure meJhod of transportation 3 s should be employed to prevent accidental spills J 2 Regional Planning Potential negative cumulative impacts of the Cami sea project need to be prevented and mitigated These include potential impacts from the implementation of development plans and projects by local governments that will receive royalties from the project Therefore the public sector division of IDB should provide an additional technical assistance package to those governments This package should address revenue management transparent and participatory regional planning processes local government support to protected areas and the adoption of sustainable development principles into the design and implementation of infrastructure projects Protected Areas and Offsets The IDB has played a positive role in supporting the Peruvian government and civil society in the creation of protected areas and C01l1Il1Una1 reserves adjacent to the Camisea project To support prevent on and mitigation of long-term indirect impacts of the project additional environmental offsets wiJJ be needed Specifica11y the IDB and Exlm should request that the Peruvian Government incJude the Ma hjguenga Megantoni area in Peru's system of protected areas and ensure the final categorization of the Alto Purus Reserved Zone in order to protect both the rights of indigenous communities and the globalJy unique biodiversity in these areas AdditionalJy IDB and Exlm should request the Government of Peru's full implementation of management plans for Otishi National Park the Communal Reserves of Ashaninka and Machiguenga and Paracas National Reserve These areas should be eligible as part of a program to offset the cumulative impacts of-the Camisea project The Nahua-Kugapakori Reserve To protect both biodiversity and indigenous inhabitants the IDB and Exlm should request that the Nahua-Kugapakori Reserve be upgraded to the highest appropriate official category of protection under Peruvian law and sufficient resources -provided for its management All extractive activities within the reserve e g mining fossil fuels and Jogging should be delayed until it is upgraded and its inhabitants consent to such activities taking place Given that local inhabitants include indigenous peoples living in voluntary isolation an independent expert organization such as the International Labor Organization should assist in making a determination regarding the best way to involve them in a participatory decision-making process We commend the Government of Peru's decision to prevent logging concessions from overlapping the Nahua-Kugapakori Reserve However the Government of Peru should enforce the new limits and prohibit illegal extractive activities in the future 3 Financial Resources for Mitigation and Compensation To ensure compliance with environmental standards the IDB and Exlm should require that effective financial surety mechanisms 2 are in place so the project has sufficient resources for environmental mitigation and compensation measures Control of these mechanisms should be placed under an independent board representing all stakeholders These mechanisms can be used to ensure compliance in mitigating potential impacts such as spills erosion closing the right of way etc IDB Environmental Policy The Camisea project i11ustrates the need for more clarity and consistency in how the IDB evaluates projects that impact indigenous peoples and areas of biodiversity importance We recommend that the IDB as part of the development of its environmental policy begin a formal review of its policies· and procedures regarding design evaluation and implementation of projects like Camisea Measures should be taken so that the IDB can ensure that its financing promotes both socio-economic development and protection of natural and cultural resources throughout the Western Hemisphere We offer the collective expertise of our organizations in assisting the IDB in such a process II Project Monitoring and Evaluatiori Independent Expert and mprehensive Monitoring World-class standards are only effective if project impacts can be measured and steps taken to modify operations accordingly A number of monitoring systems are currently in place for distinct portions of the Camisea project but none has the full confidence of all the critical stakeholaers To remedy this the IDB and Exlm should request that the Government of Peru the consortia and civil society develop and implement comprehensive independent transparent and effective biodiversity and socio-economic monitoring systems for th entire Camisea project upstream downstream and · distribution Common monitoring protocols should be established and indicators tied to local management and development plans Biodiversity indicators need to be tied to management plans and include monitoring of natural resources used by local communities Coordination and information should be shared among all those monitoring direct and indirect impacts of the project Civil society should participate in the implementation of the plan air grievances and provide solutions to challenges that arise Recognized panels of experts should periodically assess the project a nd make recommendations for necessary changes Moreover the monitoring program should be implemented throughout the life of the project and beyond Loans should be made contingent upon the development and implementation of the recommended monitoring programs 2 Financial surety mechanisms includes options like environmental performance bonds insurance guarantees etc 4 _ For greater detail on designing and implementing an appropriate monitoring program please see our letter to PlusPetrol regarding their biodiversity scopin g study Capacity Building Even the best monitoring plans will fail without effective enforcement We commend the IDB's $5 million loan and Peruvian government efforts ·to build government capacity in the management of the Camisea project however we believe additional training and resources for government personnel are urgently needed We recommend an evaluation with the participation of the Government of Peru consortia members and civil society of how those funds have been utilized and a determination of unmet needs for additional assistance Any additional identified unmet needs shoul'd be considered for future IDB assistance III Trust Fund The IDB and the Government of Peru have recognized the need for resources to address the environmental and socio-economic impacts of the project and to enhance its potential benefits To strengthen this process our organizations commit their expertise in working with key stakeholders to determine appropriate funding levels to promote positive environmental outcomes for th e Camisea project Moreover we will share our fin dings and expertise with those organizations addressing the project's socio-economic dimensions Our organizations recommend two separate independent funds to address respectively environmental and socio-economic aspects of the Camisea project We strongly recommend the environmental fund be administered by Peru's National Protected Areas Fund PROFONANPE due to its expertise proven management record transparency and low administrative costs Independent oversight committees composed of representatives from government the consortia NGOs and local communities should oversee the administration of both funds Civil society representatives should form the majority on the oversight committees To avoid potential conflicts of interest our organizations will neither serve on the oversight committees nor be eligible to receive funds Key stakeholders need to work together to determine appropriate funding levels for both environmental and social funds and what revenue streams should be used to capitalize the funds royalties revenues project financiers IDB loans donations etc We do not expect the Cami sea consortia or the Government of Peru to provide full capitalization of both funds Rather all relevant stakeholders should engage in a process to determine their respective contributions to the funds We recommend that expert estimates including Peruvian Society of Environmental Law's Spanish acronym SPDA evaluati on of protected area funding needs be an s 1 integral part of the analysis on the appropriate size of the environmental trust fund A technical advisory committee whose members should have no vote in the allocation of the fund's resources should be formed to provide the oversight committee with expert opinion We are willing to serve on the technical advisory committee as non-voting members Please refer to our docum nt Cami sea Environmental and Protected Areas Fund Principles and· Criteria for additional more specific recommendations 6 ·o · RAINFOREST ACTION NETWORK Friends of the·Earth • AMAZON WATCH May 29 2003 Mr Steve McCormick Ms Kathryn Fuller President President The Nature Conservancy World Wildlife Fund 4245 North Fairfax Drive Suite 100 1250 24th St NW Arlington VA 22203-1606 Washington DC 20037 Mr Peter Seligman President 1Conseivation International 1919 M St NW Suite 600 Washington DC 20036 Re Camisea Project Peru Dear Kathryn Steve and Peter We are writing to express our grave concern with the position that The Nature Conservancy World Wildlife Fund and Conservation International are taking with respect to potential Inter-American Development Bank IDB and U S Export-Import Bank Ex-Im support for the Cami sea Fossil Fuel and Pipeline Project in Peru Camisea We are encountering a repeated scenario where your organizations are negotiating th'e approval Qf destructive projects and feel it is vital to come forward directly with this concern We understand that these issues are-complex and crucial environmental impacts are at stake Yet we believe that the path of negotiating approval in these controversial extractive industry projects has a poor track record Mitigation of projects in high conservation value areas at best marginally slows down the rate of global ecological destruction and harm to indigenous peoples We all agree that there are few regions on Earth more ecologically valuable orbiodiverse than those threatened by the Camisea project and that the Lower Urubamba Region affected by the project is also home to some of the most marginalized and vulnerable peoples on Earth Our organizations are concerned that by negotiating loan conditions with these banks and agencies your organizations are giving a green seal of approval to financing of a controversial and destructive project The support of TNC WWF and CI for U S taxpayer financing of Camisea indicates that there may be no fossil fu el project in the world that is so bad as to not deserve financial support from these public institutions no matter the ecological resources or indigenous lives at stake There has to be a better way forward towards a sustainable planet and we we1come further dialogue 1 I I • I with you on how we can jointly work towards a future of clean renewable energy · conservation and respect for the rights of indigenous peoples I I• is • • I' It with these concerns in mind that we would requesuhat your organizations reconsider your position with regards to the Camisea project and oppose IDB and Ex-Im financing for it Our partners in Peru are under tremendous pressure and have urged us to hold a hard line on Camisea Our organizations seek to phase International Financial Institutions IFis out of fossil fuel drilling and pipelin s and are demanding that the Earth's remaining ecologically and socially sensitive areas be no-go zones for such financing immediately We need to send a clear message that development banks and export credit agencies should respect these Hotspots and not finance ventures so risky and destructive that even private commercial banks have been unwilling to participate without public financial support Attached please find a memo with more· specifics on our position and concerns with respect to Camisea Sincerely Dr Brent Blackwelder President Friends of the Earth-US Randy Hayes President Rainforest Action Network John Cavanagh Executive Director Institute for Policy Studies Atossa Soltani Executive Director Amazon Watch 2 I I Memorandum I I TO Steve McCormick The Nature Conservancy Kathryn Fuller World Wildlife Fund Peter Seligman Conservation International FR Dr Brent Blackwelder Friends of the Earth Randy Hayes Rainforest Action Network John Cavanagh Institute for Policy Studies Atossa Soltani Amazon Watch •1 -I DT May 29 2003 RE Loan Conditipns for Camisea vs Public Fina1_1cing For Tropical Forest Destruction Over the course of the past year our organizations have had communications on the subject of Camisea This memorandum presents concerns with the document entitled Loan Conditions for the Cami sea Project loan conditions dr'afted by The Nature Conservancy World Wildlife Fund and Conservation International and currently being used as a basis for negotiations with the IDB and Ex-Im I Negotiating vithout The Prior Informed Consent Of Affected Communities And Indigenous Organizations These loan conditions were released without adequately consulting or coordinating with local indigenous communities and organizations most directly affected by Camisea In a May 9 2003 letter to IDB President Enrique Iglesias from the Amazon Alliance of Indigenous Leaders including indigenous leaders working on behalf of Cami sea-affected communities state The request for the creation of the Fu'nd for 'Conservation' made by The Nature Conservancy Conservation International and World Wildlife Fund has not been consulted with the indigenous people nor with civil society motivating us to declare here that these institutions do not represent the interests of indigenous people nor of the local population with respect to conservation and sustainable development of the area We recognize the issues of working with civil society in Peru are complex and that there is a good faith effort on your part to work in that direction We also appreciate the recent announcement that TNC WWF and CI will no longer seek direct funding for conservation funds from the Camisea Project and its financiers However consensus positions in Peruvian civil society should not be on pressured timelines mandated by oil gas companies and international financial institutions and we encourage your organizat ons to wait on the deliberations ·of civil society in Peru rather than driving these groups towards loan conditions for an environmentally and socially destructive project Additionally several organizations working on Camisea including Environmental Defense Oxfam Amazon Watch Sustainable Energy Economy Network Friends of the Earth and Greenpeace were never invited to these discussions with IDB and Ex-Im to present a more balanced position of the cpmmunity Influential members of Congress and staffers at these very ipternational financial institutions explicitly have stated that the Cami sea consortium u es these divisions • for their benefit in order to extract loan conditions from your· or ganizations and to present our organizations as outsiders 'I I II Problematic History of Failed Loan Conditions on Sensitive Proiects Judging from recent controversial projects approved by public international financial institutions in developing countries including the Chad-Cameroon pipeline World Bank Group Ex-Im and the Cuiaba pipeline running from Bolivia to Brazil approved and later canceUed by the Overseas ·Private Investment Corporation it is clear that loan conditions such as trust funds and mitigation measures simply have not been implemented or have not worked sufficiently in these•sensitive areas In the Cuiaba project the conservation program negotiated by WWF and the indigenous compe sation programs have failed resulting in blockades and company camp takeovers by indigenous communities The pipeline-despite loan conditions promising close control of the pipeline right-of-way has opened up the forest 10 roads hunters loggers and other invaders and their livestock and has lead to plans to tap into the pipeline to supply gas to a mine and other ventures in 'the forest just as the companies and banks involved promised would not happen because ·ofloan conditions Chad-Cameroon faces inspection panel claiµis at 'tqe World Bank and ongoing implementation problems In the Cami sea case the situation on the ground appears to be even worse than at comparable junctures in the two projects noted above even though the IDB project companies and the Government of Peru have for over one year been purportedly taking measures to 'improve' the project IDB Ex-Im and the Government of Peru lack the capacity and will to adequately ensure implementation of all necessary mitigation measures in such a large complex and remote project over its decades-long lifetime ' 4• Ill Potential Non-Compliance With International Law and the Rights of Isolated Indigenous Peoples Regarding the Nahua-Kugapak ori Reserve in the Camisea region the positions have been stated by key indigenous groups and the principles oflnternational Labor Organization ILO Convention 169 require compliapce These positions and principles of international law stem from the knowledge that the future well being of peoples living in voluntary isolation within the Reserve lies in the protection of their internationally recognized rights Basic to these rights is the freedom to choose if when and how to engage with the outside world Instead of explicitly recognizing fundamental rights the loan conditions TNC WWF and CI are negotiating state that these peoples should be involved in a decision-making process to ascertain their level of consent to fossil fuel operations Yet in the unique case of indigenous peoples living in voluntary isolation this type of involvement or consultation is questionable as it necessitates forcing contact upon them The removal of such peoples'control over if how and when contact occurs undermines their right to 2 ' I I choose their own development path ILO Convention 169 Article 7 1 and to have their social and cultural values respected Article 5 All peoples living in voluntary isolation hold the1se rights including groups in the initial stages of contact This loss of control over contact can result in social and cultural dislocation ·Forced contact Itself is a threat to life Past experience clearly indicates that extractive industries in the territories of peoples living in voluntary isolation lead to the introduction of disease to which these peoples have little or no immunity It is well documented in the case of the Nahua people in this region that almost half of their population died from introduced disease during exploratory operations in the 1980s Shepard 1999 ' ' Rather than advocating that the Camisea Project should permanently withdraw from the Nahua-Kugapakori Reserve the loan conditions of TNC WWF and CI affirm that extractive industries should simply be delayed until the Reserve's status is upgraded and the 'consent' of its i nhabitants is obtained We also call for an ILO inspection of the indigenous rights implications of the Camisea Project and related company procedures and practices with respect to indigenous peoples living in voluntary isolation in the Nahua-Kugapakori Reserve However contrary to the suggestion in the proposed loan conditions that the purpose of an ILO inspection would be to determine the be t way to involve peoples living in voluntary isolation in a participatory decision-making process we understand the aims of any Il O inspection to be the identification and assessment of possible indigenous rights violations and the formation of recommendations to prevent future violations IV Unclear Loan Condition on Upgrading Status ofNahuaKugapakori Reserve Insufficient information is given on how the upgrading of the Nahua-Kugapakori Reserve would change the area's protection status and safeguard the internationally recognized rights of peoples living in voluntary isolation Would the change in the Reserve's status be permanent and would it suffice to prevent all extractive industries' activities and intrusion by outsiders into the Reserve V Lack of Transparent Analvsis of Project Pathwav It is our understanding that TNC WWF and CI adhere to the position that Camisea will go ahead regardless given ongoing construction-and that therefore it necessary for IDB and Ex-Im to finance the project in order to be able to demand whatever mitigation measures they can However this position does not transparently address the following factors a only one of the major project sponsors has investment-grade credit meaning that it is questionable that they could finance completion of the project if IDB and Ex-Im do not b if IDB and Ex-Im do not support the project it is likely that the companies will have to sell their stakes or invite in other partners or scale-back the project c this project is only the beginning of expansion and connection plans involving surrounding concession blocks liquefied natural gas export expansions and d approval by IDB and Ex-Im will signal a public seal of approval to financial markets thereby making all of these expansion and connection plans much more likely whereas rejection by IDB and 3 ' Ex-Im would throw the current project i'nto jeopardy and have a much-needed chilling effect on further expansion and connection plans 'These xpansion and connection plans may have impacts equal' to or greater than the current phase of the project-and none of these impacts are bei Qg•assessed in IDB's or Ex-Im's environmental review IDB alternatively could be fimdin•g large-scale investments to protect the environment and indigenous peoples sh'ould the project go forward inste ad of prioritizing loans to oil compames VI International Campaign For No-Go Zones Undermined Friends of the Earth International in 70 countries around the world seeks to phase International Financial Institutions IFis -out of fossil fuel drilling and pipelines and is demanding that the Earth's remaining ecologically and socially sensitive areas be no-go zones for such fin ncing immediately RAN Amazon Watch and SEEN also work towards this goal We need to send a clear message that development banks and e port credit agencies should respect these Hotspots and not fin·ance entures so risky and destructive that even private commercial banks have been unwilling to participate without public financial support ' 4