Tag Archive for: Infrastructure Financing

The China Factor

What information is available about Chinese investments in Latin-America and the Caribbean? How do these investments affect the natural resources governance in Peru, Colombia, Argentina y Mexico?

El Grupo Regional de Financiamiento e Infraestructura (GREFI) analizó los cambios que se están produciendo en el flujo de inversiones chinas en la región y sus impactos en la gobernanza de los recursos naturales, en un evento en el marco de las Reuniones de Primavera del Banco Mundial y el FMI de este año.

A lo largo de las últimas décadas, las relaciones entre China y América Latina se han intensificado enormemente. Se estima que el intercambio de comercial ha crecido de 12 mil a 169 mil millones de dólares entre los años 2000 al 2014 y el año 2015. En este sentido, Pekín anunció la creación de un fondo de inversión de 10 mil millones de dórales para la cooperación bilateral con Latinoamérica para proyectos de tecnología, energía, minería e infraestructura. Su estrategia de crecimiento en América Latina es bastante clara.

Frente a sus inmensas necesidades de materias primas, llega a competir con otras instituciones financieras que por su larga historia y por el trabajo realizado a partir de grandes movimientos de la sociedad civil de la región, han ido generando mecanismos de acceso a la información y políticas para la protección socioambiental. Estos procesos han sido largos y siguen su curso. Nuevos desafíos como la armonización del derecho a la consulta previa y el cambio climático con las estrategias de crecimiento económico para nuestros países, ha hecho que se sigan exigiendo cambios y mejoras.

Con la llegada de China y una alta canalización de recursos en la región, acompañados de una estrategia clara en cuanto su modelo de crecimiento en la región que necesita de materias primas a un ritmo constante, GREFI trae a la discusión algunas preguntas que creemos fundamentales para nuestros países ¿Qué sucede cuando un actor de estas características llega a nuestros países? ¿Cómo se puede acceder a la información sobre las inversiones procedentes de China en la región? ¿Cómo impactan estas inversiones?

Los conflictos socioambientales relacionados a inversiones extractivas y de infraestructura son una realidad reciente debido a marcos regulatorios débiles, baja capacidad de supervisión de los mismos, conflictos entre diferentes niveles de gobierno e mecanismo de consulta ciudadana inadecuados o inexistentes, entre muchos otros factores. Sumado a esto es importante considerar el poco conocimiento que todavía se tiene sobre las compañías chinas, y sobre todo de los marcos regulatorios nacionales con los que trabajan.

La falta de transparencia, el poco acceso a información relevante sobre financiamiento chino y acuerdos bilaterales firmados, es otro asunto sobre el que todos debemos demandar cambios, antes que nuestra capacidad de exigencia se haga más pequeña en comparación con la creciente influencia de china en las políticas de desarrollo en América Latina.

Sobre GREFI

El Grupo Regional sobre Financiamiento e Infraestructura (GREFI)está integrado por cuatro organizaciones de la sociedad civil de la región de América Latina y el Caribe (ALC): Asociación Ambiente y Sociedad (AAS) de Colombia; Derecho Ambiente y Recursos Naturales (DAR) de Perú; Fundar, Centro de Análisis e Investigación de México; y la Fundación para el Desarrollo de Políticas Sustentables (FUNDEPS) de Argentina.

Fuente: www.grefi.info

 

Contacto:

Juan Carballo – Director Ejecutivo

juanmcarballo@fundeps.org

Gonzalo Roza – Área de Gobernabilidad Global

gon.roza@fundeps.org

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Funding infrastructure in Latin America- COP20, Lima

The frame of activities for the Conference of Parties in the framework convention on the Lima Climate Change Conference, will discuss how international funding and socio environmental safeguards in infrastructure projects in Latin America have an impact on the Amazon jungle.

This event has been jointly organised by FUNDAR, Centre of Analysis and Investigation (Mexico), Foundation for the Development of Sustainable Policies- FUNDEPS (Argentina) Association for Environment and Society AAS (Colombia) and the Right of the Environment and Natural Resources- DAR (Peru) all constituting as the regional group for Funding and Infrastructure.
The discussion forms part of the Conference of Parties in the framework convention on climate change in Lima. The speakers will tackle the actual state of funding for infrastructure in Latin America from traditional banks like the World Bank Group/ International Finance Corporation and the new bank from the BRIC Countries. A comparative analysis of four projects with external funding has been carried out in Ecuador, Colombia, Bolivia and Peru, evaluating the impacts on the Amazon forest and the instruments (safeguards) for the management of social and environmental risks.

It will especially be about the negative example of Brazil and the Brazilian Development Bank (BNDES, its acronym in Portuguese). The BNDES, who also funds projects outside of Brazil, has been accused of its lack of transparency, of described social and environmental norms, which have been clearly defined, and the mechanisms guaranteeing the fulfillment of national laws.
It is feared that the recent creation of the BRICS nations bank will neither put enough emphasis on the norms that protect the environment and society in the process of its application. This reality is affecting the policies of traditional banks, such as the World Bank Group or the Inter-American Development Bank (IADB). Those countries seeking to attract more investment will also react to the changes in the available international funding. Large infrastructure projects that ignore the environmental concerns, such are the cases of CVIS (Peru), Mocoa Pasto (Colombia), Coca Codo Sinclair (Ecuador) and the TIPNIS (Bolivia), are proof of it.

A panel of experts on climate change, megaprojects and governance (transparency, participation, risk management) will debate the key ideas and any advance of the previously mentioned analysis. The session will also give the public the possibility to participate in the debate.

Key questions:

1.How can banks apply safeguards on project funding in Latin America to prevent social conflicts and environmental disasters?
2.What is the role of the new national and regional banks in the funding of regional infrastructure?
3.How the weakening of standards in funding the region affects the countries system? How can these react in front of new challenges?

More information:

– Details on the logistics of the event
– Panorama on the funding for infrastructure in Latin America
– Guideline for the discussion. Implementation of a Freedom of Information Policy for The Brazilian Development Bank
– Paradigmatic cases of BNDES investment in South America. Need and opportunity to improve internal policies

Contact:

Gonzalo Roza / Coordinator of Global Governance
gon.roza@fundeps.org

Translated by: Gisela Quevedo

FUNDEPS co-organizes regional workshop on infrastructure finance trends in Latin America

The event’s agenda revolved around the governance of and trends of investments in infrastructure in Latin America, and on the necessity of improved communication on the part of Latin American civil society in the face of a complicated and challenging regional backdrop.

The regional workshop “Trends in Investments in Infrastructure in the Region: Climate Change and Governance” took place in the city of Lima (Peru) on the 24th and 25th of April. Its objective was to examine and debate the economic and socio-environmental impact of investments in infrastructure financed by the multilateral development bank and by the national development banks of Latin America. The event was organized by AAyS (Environment and Society Association) of Colombia; CDES (Center for Economic and Social Rights) of Ecuador; CEDLA (Center of Studies for Labor and Agrarian Development) of Bolivia; DAR (Environmental Law and Natural Resources) of Peru; IBASE (Brazilian Institute for Social and Economic Analysis) of Brazil; FUNDAR Center for Analysis and Research of Mexico, and FUNDEPS (Foundation for the Development of Sustainable Policy) of Argentina.

The first day of the event was dedicated to the presentation of papers and publications that the organizations of the region have been carrying out in the past few months. These papers covered various topics: the current situation of governance and financing of infrastructure in the region; socio-environmental safeguards and human rights; and climate change.  The presentations revolved around the infrastructure megaprojects in the Amazon, the financing of infrastructure by the multilateral development bank and by the national development banks, Chinese investment in the region, the financing of Climate Change, and the processes of citizen participation in spaces like UNASUR and BNDES, among other topics. Simultaneously, there was a space dedicated to the discussion around the adpotation of a strategy on the part of Latin American civil society in relation to the upcoming COP-20 (Conference of the Parties of the United Nations Framework Convention on Climate Change), to take place in the city of Lima in December of this year.
With these discussions the conference articulated the complex situation of infrastructure finance in the region:
  • Multiplicity of involved actors, be they multilateral international banks like the World Bank or regional multilateral banks like BId and CAF; national development banks like Brazil’s BNDES;
  • More global forums and spaces, like the G-20, the BRICS or UNASUR itself, via its Council on Infrastructure and Planning (COSIPLAN) charged with implementing the criticized IIRSA initiative in the region.
  • Growing Chinese investment in the region
  • Greater participation of the private sector either directly or via public-private partnerships.
  • Weakening of environmental safeguards on the part of the principal institutions offering financing
  • Failure on the part of the states to effectively observe and guarantee human rights when driving development projects.
On the second day of the event, the agenda was centered on a workshop activity in which the participants, members of diverse organizations and civil society network from the majority of the countries of the region, worked to identify priorities and to advance in the development of a strategic agenda that would allow the region to effectively confront such a complex and troublesome situation.
The Lima workshop is an important step in the direction of improved communication and coordination among the diverse organizations of the region, allowing for effective change on issues that would be impossible to deal with individually. Therefore, we invite all interested organizations to join us in the process of communication and collective work to promote a development model for our region that is more sustainable, participative, and respectful of human rights.
Translated by: Savannah Mcdermott