Oy Metsä-Botnia
Orion Pulp Mill Project - Uruguay
Presented by J. Daniel Taillant
Center for Human Rights and Environment (CEDHA)
jdtaillant@cedha.org.ar
Ence
Botnia
Argentina
Uruguay
Relocation Drivers for Botnia
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Higher Growth Rate of Trees (12-15 vs. 30-40 yrs)
Pulp Costs 50% Less than Cost in Europe
Tax Exemption Haven (30 years)
Lower wages in Uruguay
Exhaustion of Natural Resources at Home
Strengthening of European Legislation
Proximity to Ports (preexisting lands for woodchips)
Proximity to International Roads
Proximity to Natural Resources
More Flexible Environmental Controls
Expanding Cellulose Industry in the Region
International Development Agency Sponsorship
Nascence of Social-Environmental Movement
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Apparition of foreign papermill - & aware of experiences in Misiones (Arg),
Chile, Brazil) – all ECF technology), results in Argentina and Uruguay
opposition (before ENCE mill – 1996)
Uruguayan stakeholders seek collaboration with Argentines
Botnia appears and magnifies problem (tripling ENCE production)
International Protest - April of 2005, 50,000 people to the international bridge
Assembly meets 2 times weekly to discuss opposition strategy
Legal Actions considered, fervent protest, and other methods
Assembly links up with CEDHA and files CAO complaint in 9/2005, then others
Nearly 40,000 people sign complaint (with Power of Attorney)
Assembly Intensifies Opposition to Date
Promises to Oppose Until Botnia Leaves
Argentina
IFC CLAIMS BROAD COMMUNITY SUPPORT!
Botnia’s and IFC’s Trail of Unacceptable Errors
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Botnia Strikes Last Minute Secret Deal with Uruguay
No Cumulative Impact Study of Mills only 5km appart
No site study showing environment/social adequacy (12/1200pp.)
No evidence showing proper use of BAT
No EIA for Chemical Operations
No convincing data on impacts on water, air, land, etc.
No Prior and Informed Consultation or Disclosure
Failure to obtain Social License to Operate
No review of International Law Obligations of Uruguay/Argentina
Open Legal Complaints in Uruguayan and Argentine Courts
IFC and Botnia Ignore CAO Findings and Recommendations
IFC and Botnia Ignore Presidential Accord of April 2006
Spawns Largest Environmental Social Movement in Global History
IFC Goes to Board in April of 2005 saying projects are OK!
Botnia Accelerates construction due to Local Opposition
IFC Goes Back to do further studies, admitting faults
Argentina
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CAO
Audit Findings
Complaint by 40,000 Stakeholders
– “IFC’s due diligence to satisfy itself that the
EAs were complete in all material respects
was inadequate and not incompliance with
the organization’s Disclosure Policy” (CAO, Feb
22, 2006)
– Insufficient evidence that proper consultation has
occurred
– No cumulative impact study; IFC Fosters Separation
of Projects!
– Need to generate transboundary trust in Local
Communities
– Botnia’s beginning construction undermines
legitimacy
– Special Efforts must be made to legitimize future
studies
– Must study impacts of eucalyptus tree farming on
water
– Must examine International Law Obligations; MIGA
says not needed!
– Establishes legitimacy of (Gualeguaychú Assembly)
– IFC Fails to Give Clarity on how it will address Study
Flaws
– “Further technical information and facts will
not be sufficient”
IFC Systematically Tries to Cover Errors
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IFC Ignores CAO Recommendations and
Fails to do consultation before terms of
reference for study (violating OP - 12a)
IFC Designs 60-day consultation period
during holiday season; boycotted by
Assembly, Argentina and Uruguay
IFC leaves 1000 residents waiting …
Consultation Concludes Fruitlessly, CAO
warns of rushed “fait accompli” attitude
CAO Publishes Critical Audit of IFC Faults
Hatfield Report notes missing elements
(many in original CAO complaint)
Ecometrix Report Published Erroneously and
not removed from Website
Conclusions Insult Stakeholders
(public will become accustomed to mills)
Botnia remains silent, but continues construction …
Violent Assembly Members Scare off IFC Consultants in Gualeguaychú
900 Assembly Members wait for IFC Consultation Team Which Never Show up!
Findings by Ecometrix
“The change to the landscape is a permanent impact,
however the public’s response to these new industrial
features is subjective and may potentially change over
time as the public becomes accustomed to the new
landscape. Case studies have shown that tourism can coexist with pulp mills”.
Summary and Conclusions
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IFC was Negligent and Irresponsible fostering 2 Projects that were not in
compliance with its own environmental and social policies
CAO reports were conclusive indicating the many IFC faults
IFC and Botnia ignored social tensions and the international conflict that
have been mounting for nearly 3 years and continued on schedule
IFC misled the Board of Directors as early as April of 2005 regarding
supposed “broad public support” for these projects
The proposed investment is the focus of numerous legal claims,
including at International Tribunals and filings in local courts in Arg/URU
The project sponsor and IFC failed to make efforts to help resolve the
conflict that they fueled and instead have worsened the situation
The World Bank must not provoke or worsen the conflict
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 of intolerance and hatred between brotherly communities and an
open dispute between member government of the World Bank
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 possible relocations, as the SPANISH ENCE is considering.
Argentina
Specific Instance
Oy Metsä-Botnia
Orion Pulp Mill Project - Uruguay
Contact Information
Jorge Daniel Taillant
Center for Human Rights and Environment (CEDHA)
jdtaillant@cedha.org.ar
Tel. 0054 9 116 182 3172
Oscar Bargas
Citizens Assembly of Gualeguaychú - Argentina
oscarbargas@arnet.com.ar
Liliana Medina Cocaro
MOVITDES – Uruguay
Moviemiento por la Vida el Trabajo y un Desarrollo
Sustentable
movitdes@gmail.com
Argentina