ACTION ITEM

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Bolivian Pipeline is Destroying Tropical Forests

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12/26/99

OVERVIEW & COMMENTARY

A pipeline is being built in Bolivia through the largest dry tropical

forest areas in the world -- the Chiquitano Tropical Forests, a

globally significant and unique ecosystem.  The U.S. government is

providing some financial aid for the project through the US Overseas

Private Investment Corporation (OPIC).

 

Due to requests from many list subscribers, in addition to passing on

the usual full-blown ACTION ALERTS, I will be passing on ACTION ITEMS

for other stories when appropriate and available.  These will be

opportunities to write to those responsible for global ecological

destruction and voice your concerns.  The contact information will

appear in this overview and commentary section, as below.  Recipients

are welcome to turn this highly general information into more

elaborate action alerts.  ***Please pass on to me names and addresses

of government officials in the major tropical forest countries, major

companies' contact information, and other targets for letter writing

campaigns to shutdown ancient forest loss worldwide.

 

ACTION ITEM: Contact the President of the US Overseas Private

Investment Corporation through their web site http://www.opic.gov/ ,

through email at info@opic.gov , or via snail mail at:

 

George Munoz

President and Chief Executive Officer

US Overseas Private Investment Corporation (OPIC)

1100 New York Avenue, N.W.

Washington, DC 20527

USA

 

Request that funding be immediately halted for the natural gas

pipeline in Bolivia, utilizing information from the press account

below.

g.b.

 

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RELAYED TEXT STARTS HERE:

 

Title:   Environment: Bolivian Pipeline Is Destroying Tropical

         Forests

Source:  InterPress Service

Status:  Copyright 1999, contact source for permission to reprint

Date:    December 22, 1999

 

WASHINGTON, (Dec. 22) IPS - Environmentalists want the US government

to end financial aid for the construction of a natural gas pipeline

in Bolivia which, they charge, is destroying pristine forests and

harming local communities.

 

The 630 km pipeline project is owned by Gas Oriente Boliviano, a

consortium made up of Texas-based Enron International, Shell

International, and the Bolivian company Transredes.

 

The US Overseas Private Investment Corporation (OPIC) provided a $200

million loan agreement for the project in June, when Enron declared

the pipeline would be of "world class" environmental and social

standards and include various safeguards to protect the forest and

local indigenous communities.

 

But Atossa Soltani, executive director of California-based Amazon

Watch, says that since construction began, she and others had

witnessed a "world class disaster."

 

"Enron continuously has demonstrated a clear lack of commitment to

protect the fragile ecosystem and address the concerns of locally-

affected people," she said.

 

OPIC's funding for the project went through in the face of demands

from environmentalists and local communities to have the route

altered to avoid this forested area.

 

The pipeline traverses one of the largest dry tropical forest areas

in the world -- the Chiquitano Tropical Forests listed by the World

Wildlife Fund (WWF) as one of the 200 most important ecosystems

throughout the globe.

 

Nearly 100 mammal, bird and reptile species, including hyacinth macaw

and the ocelot in the Chiquitano are protected under the Convention

on International Trade in Endangered Species (CITES), say

environmentalists.

 

WWF, Amazon Watch and Friends of the Earth have accused Enron --

which heads the construction consortium -- of failing to control

erosion, water and air pollution, illegal hunting and unauthorized

access to the route that runs alongside the pipeline.

 

After visits to the construction site, Soltani and a geology

professor at the University of California said that Enron had

violated several OPIC guidelines as well as Bolivian law.

 

Their report said that, without authorization from Bolivian

authorities, Enron built a new air strip, widened several access

roads, and installed new workers camps close to small towns and in

pristine forest areas.

 

"Of great concern, is Enron's plans to build new access roads through

pristine tropical forests," Soltani said, adding that such roads

would be a violation of the company's loan agreement with OPIC.

 

The report said the ongoing construction had an adverse social impact

on surrounding communities. Funds were never dispersed for land

titling for indigenous communities and an Indigenous Development

Plan.

 

"The company is also failing to adequately enforce the workers code

of conduct," the report said. Between 700 to 1000 workers poured into

small surrounding indigenous and farming towns at weekends, bringing

with them a host of violent crimes, trash, and prostitution.

 

"OPIC has been caught red-handed in violations and broken promises,"

says Jonathan Sohn, an analyst with Friends of the Earth.

 

"It is time that OPIC's Board of Directors, the General Accounting

Office and the US Congress did an investigation of how OPIC is using

tax-dollars to finance tropical forest destruction," he says.

 

OPIC has denied violating environmental and social guidelines. In a

seven-page written response, the agency argued that, based on the

challenges of operating in a tropical ecosystem, the project was

making "good progress" with its environmental and social objectives.

 

OPIC insisted that "No new access roads have been build and none are

planned."

 

The agency said the claims of erosion and other negative

environmental impacts had been based on limited observations that

took place right after the land was cleared and before controls were

put in place.

 

It admitted that a "few incidences" were reported in local

communities regarding misconduct by local workers, but they had no

lasting impact.

 

"Our monitors have spent a considerable amount of time in camps and

local communities and report an atmosphere of mutual respect and good

community relations," OPIC said in its statement.

 

The pipeline project forms part of a $2.1 billion, 3,150 km scheme to

transport natural gas from Bolivia to Sao Paulo, Brazil. Starting in

Ipias, Bolivia, the new project would branch off the existing

Bolivia-Brazil pipeline.

 

It would then run northeast through San Matias to Cuiaba, a small

city in the state of Mato Grosso, Brazil, where Enron is constructing

a 480-megawatt, combined-cycle natural gas power plant.

 

###RELAYED TEXT ENDS### 

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