Oy MetsOy Metsä-Botniaä-BotniaOrion Pulp Mill Project - Orion Pulp Mill Project - UruguayUruguay

Presented by J. Daniel TaillantPresented by J. Daniel TaillantCenter for Human Rights and Environment (CEDHA)jdtaillant@cedha.org.ar

Argentina Uruguay

Rio

Uru

guay

Botnia

Ence

Argentina

Apparition of foreign papermill - & aware of experiences in Misiones Apparition of foreign papermill - & aware of experiences in Misiones (Arg), Chile, Brazil) – all ECF technology), results in Argentina and (Arg), Chile, Brazil) – all ECF technology), results in Argentina and Uruguay opposition (before ENCE mill – 1996)Uruguay opposition (before ENCE mill – 1996)

Uruguayan stakeholders seek collaboration with Argentines Uruguayan stakeholders seek collaboration with Argentines Botnia appears and magnifies problem (tripling ENCE production)Botnia appears and magnifies problem (tripling ENCE production) Assembly meets 2 times weekly to discuss opposition strategyAssembly meets 2 times weekly to discuss opposition strategy Legal Actions considered, fervent protest, and other methodsLegal Actions considered, fervent protest, and other methods Assembly links up with CEDHA and files CAO complaint in 9/2005, Assembly links up with CEDHA and files CAO complaint in 9/2005,

then othersthen others Nearly 40,000 people sign complaint (with Power of Attorney)Nearly 40,000 people sign complaint (with Power of Attorney) Assembly Intensifies Opposition to DateAssembly Intensifies Opposition to Date Promises to Oppose Until Botnia LeavesPromises to Oppose Until Botnia Leaves

Nascence of Social-Environmental Movement

IFC Sends OK Signal to EDsIFC Sends OK Signal to EDs

““Consultations to date Consultations to date indicate that the project indicate that the project enjoys broad public support”enjoys broad public support”

IFC’s Environmental Impact Assessment (EIA) Summary

Published April 20, 2005

Is this “BROAD COMMUNITY SUPPORT”?!

CAO CAO Audit Audit FindingsFindings

““IFC’s due diligence to satisfy itself that the EAs were IFC’s due diligence to satisfy itself that the EAs were complete in all material respects was inadequate and not complete in all material respects was inadequate and not incompliance with the organization’s Disclosure Policy”incompliance with the organization’s Disclosure Policy”

Insufficient evidence that proper consultation has Insufficient evidence that proper consultation has occurredoccurred

Need to generate transboundary trust in Local Need to generate transboundary trust in Local CommunitiesCommunities

Botnia’s beginning construction undermines legitimacyBotnia’s beginning construction undermines legitimacy Special Efforts must be made to legitimize future studiesSpecial Efforts must be made to legitimize future studies Must study impacts of eucalyptus tree farming on waterMust study impacts of eucalyptus tree farming on water Must examine International Law Obligations; MIGA says Must examine International Law Obligations; MIGA says

not needed!not needed! Establishes legitimacy of Establishes legitimacy of

(Gualeguaychú Assembly)(Gualeguaychú Assembly) IFC Fails to Give Clarity on how it will address Study IFC Fails to Give Clarity on how it will address Study

FlawsFlaws

““Further technical information and facts will not Further technical information and facts will not be sufficient to address the lack of trust that be sufficient to address the lack of trust that currently exists … More fact, without efforts to currently exists … More fact, without efforts to build trust and address questions of integrity of build trust and address questions of integrity of process, will not be helpful”process, will not be helpful”

IFC Systematically Tries to Cover IFC Systematically Tries to Cover ErrorsErrors

IFC Ignores CAO Recommendations and IFC Ignores CAO Recommendations and Fails to do consultation before terms of Fails to do consultation before terms of reference for study (violating OP - 12a) reference for study (violating OP - 12a)

IFC Designs 60-day consultation period IFC Designs 60-day consultation period during holiday season; boycotted by during holiday season; boycotted by Assembly, Argentina and UruguayAssembly, Argentina and Uruguay

IFC leaves 1000 residents waiting … IFC leaves 1000 residents waiting … Consultation Concludes Fruitlessly, CAO Consultation Concludes Fruitlessly, CAO

warns of rushed “fait accompli” attitudewarns of rushed “fait accompli” attitude CAO Publishes Critical Audit of IFC CAO Publishes Critical Audit of IFC

FaultsFaults Hatfield Report notes missing elementsHatfield Report notes missing elements

(many in original CAO complaint)(many in original CAO complaint) Ecometrix Report Published Erroneously Ecometrix Report Published Erroneously

and not removed from Websiteand not removed from Website Conclusions Insult Stakeholders Conclusions Insult Stakeholders

(public will become accustomed to (public will become accustomed to mills)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 EcometrixFindings by Ecometrix““The change to the landscape is a permanent impact, The change to the landscape is a permanent impact,

however the however the public’s response public’s response to these new to these new industrial features industrial features is subjective is subjective and may potentially and may potentially change over time change over time as the public becomes as the public becomes accustomed to the new landscapeaccustomed to the new landscape. Case studies . Case studies have shown that tourism can co-exist with pulp have shown that tourism can co-exist with pulp mills”.mills”.

Argentina

Botnia Strikes Last Minute Secret Deal with Uruguay, over ENCEBotnia Strikes Last Minute Secret Deal with Uruguay, over ENCE No Cumulative Impact Study of MillsNo Cumulative Impact Study of Mills No site study showing environment/social adequacy (12/1200pp.)No site study showing environment/social adequacy (12/1200pp.) No evidence showing proper use of BATNo evidence showing proper use of BAT No EIA for Chemical OperationsNo EIA for Chemical Operations No convincing data on impacts on water, air, land, etc.No convincing data on impacts on water, air, land, etc. No Consideration of Reflows and Proper Info on Wind Patters No Consideration of Reflows and Proper Info on Wind Patters No Reliable Information on Tourism/Agro RisksNo Reliable Information on Tourism/Agro Risks No Prior and Informed Consultation or DisclosureNo Prior and Informed Consultation or Disclosure Failure to obtain Social License to OperateFailure to obtain Social License to Operate No review of International Law Obligations of Uruguay/ArgentinaNo review of International Law Obligations of Uruguay/Argentina Failure to help project hosts (Arg/Uru) to resolve problemFailure to help project hosts (Arg/Uru) to resolve problem Failure to guide sponsors to negotiate with stakeholdersFailure to guide sponsors to negotiate with stakeholders

Trail of Unacceptable Errors

Argentina

IFC was Negligent and Irresponsible fostering 2 Projects that were not in IFC was Negligent and Irresponsible fostering 2 Projects that were not in compliance with its own environmental and social policiescompliance with its own environmental and social policies

CAO reports were conclusive indicating the many IFC faultsCAO reports were conclusive indicating the many IFC faults IFC and Botnia ignored social tensions and the international conflict that have IFC and Botnia ignored social tensions and the international conflict that have

been mounting for nearly 3 years and continued on schedulebeen mounting for nearly 3 years and continued on schedule IFC misjudged as early as April of 2005 regarding supposed “broad public IFC misjudged as early as April of 2005 regarding supposed “broad public

support” for these projectssupport” for these projects The proposed investment is the focus of numerous legal claims, including at The proposed investment is the focus of numerous legal claims, including at

International Tribunals and filings in local courts in Arg/URUInternational Tribunals and filings in local courts in Arg/URU The project sponsor and IFC failed to make efforts to help resolve the conflict The project sponsor and IFC failed to make efforts to help resolve the conflict

that they fueled and instead have worsened the situationthat they fueled and instead have worsened the situation IFC must not provoke or worsen the conflictIFC must not provoke or worsen the conflict This investment project is the focus of one of the largest recorded local 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 oppositions ever for a Bank sponsored project and is causing dangerous levels of intolerance and hatred between brotherly communities and an open dispute of intolerance and hatred between brotherly communities and an open dispute between member government of the World Bankbetween member government of the World Bank

The IFC must abandon its consideration of loans to Botnia at the present site, 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 and should, if anything, help work with project sponsors to study possible relocations, as the SPANISH ENCE is considering.relocations, as the SPANISH ENCE is considering.

Summary and Conclusions

Argentina

Specific InstanceSpecific InstanceOy MetsOy Metsä-Botniaä-BotniaOrion Pulp Mill Project - Orion Pulp Mill Project - UruguayUruguay

Contact InformationContact Information

Jorge Daniel TaillantJorge Daniel TaillantCenter for Human Rights and Environment (CEDHA)jdtaillant@cedha.org.ar Tel. 0054 9 116 182 3172

Oscar BargasCitizens Assembly of Gualeguaychú - Argentinaoscarbargas@arnet.com.ar

Liliana Medina CocaroMOVITDES – UruguayMoviemiento por la Vida el Trabajo y un Desarrollo Sustentablemovitdes@gmail.com