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

Relocation Drivers for Relocation Drivers for BotniaBotnia

Higher Growth Rate of Trees Higher Growth Rate of Trees (12-15 vs. 30-40 yrs)(12-15 vs. 30-40 yrs) Pulp Costs 50% Less than Cost in EuropePulp Costs 50% Less than Cost in Europe Tax Exemption Haven (30 years)Tax Exemption Haven (30 years) Lower wages in UruguayLower wages in Uruguay Exhaustion of Natural Resources at HomeExhaustion of Natural Resources at Home Strengthening of European LegislationStrengthening of European Legislation Proximity to Ports Proximity to Ports (preexisting lands for woodchips)(preexisting lands for woodchips) Proximity to International RoadsProximity to International Roads Proximity to Natural ResourcesProximity to Natural Resources More Flexible Environmental ControlsMore Flexible Environmental Controls Expanding Cellulose Industry in the RegionExpanding Cellulose Industry in the Region International Development Agency SponsorshipInternational Development Agency Sponsorship

Argentina

Apparition of foreign papermill - & aware of experiences in Misiones (Arg), Apparition of foreign papermill - & aware of experiences in Misiones (Arg), Chile, Brazil) – all ECF technology), results in Argentina and Uruguay Chile, Brazil) – all ECF technology), results in Argentina and Uruguay opposition (before ENCE mill – 1996)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) International Protest - April of 2005, 50,000 people to the international International Protest - April of 2005, 50,000 people to the international

bridge bridge 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, then Assembly links up with CEDHA and files CAO complaint in 9/2005, then

othersothers 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 CLAIMS BROAD COMMUNITY SUPPORT!

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Botnia Strikes Last Minute Secret Deal with UruguayBotnia Strikes Last Minute Secret Deal with Uruguay No Cumulative Impact Study of Mills only 5km appartNo Cumulative Impact Study of Mills only 5km appart 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 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 Open Legal Complaints in Uruguayan and Argentine CourtsOpen Legal Complaints in Uruguayan and Argentine Courts IFC and Botnia Ignore CAO Findings and RecommendationsIFC and Botnia Ignore CAO Findings and Recommendations IFC and Botnia Ignore Presidential Accord of April 2006IFC and Botnia Ignore Presidential Accord of April 2006 Spawns Largest Environmental Social Movement in Global HistorySpawns Largest Environmental Social Movement in Global History IFC Goes to Board in April of 2005 saying projects are OK!IFC Goes to Board in April of 2005 saying projects are OK! Botnia Accelerates construction due to Local OppositionBotnia Accelerates construction due to Local Opposition IFC Goes Back to do further studies, admitting faultsIFC Goes Back to do further studies, admitting faults

Botnia’s and IFC’s Trail of Unacceptable Errors

CAO CAO Audit Audit FindingsFindings

Complaint by 40,000 StakeholdersComplaint by 40,000 Stakeholders – ““IFC’s due diligence to satisfy itself that IFC’s due diligence to satisfy itself that

the EAs were complete in all material the EAs were complete in all material respects was inadequate and not respects was inadequate and not incompliance with the organization’s incompliance with the organization’s Disclosure Policy”Disclosure Policy” (CAO, Feb 22, 2006) (CAO, Feb 22, 2006)

– Insufficient evidence that proper consultation Insufficient evidence that proper consultation has occurredhas occurred

– No cumulative impact study; IFC Fosters No cumulative impact study; IFC Fosters Separation of Projects!Separation of Projects!

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

– Botnia’s beginning construction undermines Botnia’s beginning construction undermines legitimacylegitimacy

– Special Efforts must be made to legitimize Special Efforts must be made to legitimize future studiesfuture studies

– Must study impacts of eucalyptus tree Must study impacts of eucalyptus tree farming on waterfarming on water

– Must examine International Law Obligations; Must examine International Law Obligations; MIGA says not needed!MIGA says not needed!

– Establishes legitimacy of (Gualeguaychú Establishes legitimacy of (Gualeguaychú Assembly)Assembly)

– IFC Fails to Give Clarity on how it will address IFC Fails to Give Clarity on how it will address Study FlawsStudy Flaws

– ““Further technical information and facts Further technical information and facts will not be sufficient”will not be sufficient”

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 FaultsCAO Publishes Critical Audit of IFC Faults 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 mills)(public will become accustomed to mills)

Botnia remains silent, but continues construction …

Violent Assembly Members Scare off IFC Consultants in Gualeguaychú900 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 accustomed as the public becomes accustomed to the new landscapeto the new landscape. Case studies have shown that . Case studies have shown that tourism can co-exist with pulp mills”.tourism can co-exist with pulp mills”.

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 misled the Board of Directors as early as April of 2005 regarding supposed IFC misled the Board of Directors as early as April of 2005 regarding supposed

“broad public support” for these projects“broad public support” 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 The World Bank must not provoke or worsen the conflictThe World Bank 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 World Bank must abandon its consideration of loans to Botnia at the The World Bank must abandon its consideration of loans to Botnia at the present site, and should, if anything, help work with project sponsors to study present site, and should, if anything, help work with project sponsors to study possible relocations, as the SPANISH ENCE is considering.possible 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 InformationJorge 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