Tag Archive for: Infrastructure Financing

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What the G20 summit in Argentina left us

After a year of meetings and activities, between November 30 and December 1, the G20 Summit was held in the City of Buenos Aires, the first held in South America. It counted with the presence of the main world leaders; and although it was considered a logistical success by the national government, it did not produce great results in multilateral terms.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The G-20 leaders summit organized this year by Argentina as president “pro tempore” of the forum took place in a context marked mainly by the trade war between the United States and China; and the internal difficulties that a large part of the leaders of the countries that make up the group are facing. Among them, undoubtedly highlight the civil protests that check the government of Emmanuel Macron in France, the accusations against Saudi Crown Prince Mohammed Bin Salman for the death of a journalist; and even the economic crisis facing the national government in Argentina, to which were added also the internal and external doubts regarding the capacity of the government of Mauricio Macri to organize an event of the magnitude of the G-20.

In any case, once the summit was concluded, the organization of the summit was considered a success by the government, and a final document was even signed (although its commitments are very lukewarm) despite the few probabilities that existed of achieving a consensus among member countries. The Declaration of the G20 2018 leaders emphasizes equitable and sustainable development as a challenge that all States face. Among the issues mentioned in the Declaration are the pillars on which the summit worked on a priority basis this year, at the decision of the Argentine government itself, namely: the Future of Work, Infrastructure for Development, Food Security and a perspective gender mainstreaming that covered the entire G20 agenda. The Declaration also mentions in certain passages certain international commitments regarding Climate Change and the Paris Agreement (although the United States expressed in the Declaration its decision to withdraw from the Agreement); international financial institutions and the need to strengthen the IMF and the World Bank; gender equality and access to health, among others. Regarding Infrastructure, the Declaration states: “In order to address the persistent infrastructure financing gap, we reaffirm our commitment to attract private capital for investment in infrastructure. To achieve this, we endorsed the Roadmap to Infrastructure As an Asset Class “

Recall that the G20 is an international forum that is composed of 19 states and the European Union: Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, the United States, France, India, Indonesia, Italy, Japan , Mexico, Russia, United Kingdom, South Africa and Turkey. Spain is a permanent guest. In addition, the country that chairs the forum elects other guests, and for this year Argentina invited Chile and the Netherlands.

The work areas of the G-20 are: finance, agriculture, anticorruption, trade and investment, development, digital economy, education, employment, health, climate sustainability and energy transitions.

Although the Summit in Buenos Aires did not produce resonant agreements at the multilateral level, the event was without doubt positive for the national government, which comes out strengthened by the organization without major inconveniences of the event; and above all, by the agenda of meetings and bilateral agreements with other nations that took place in the framework of the Summit. Thus, the government of Cambiemos managed several bilateral meetings and closed a series of investment and commercial agreements with the purpose of promoting the country’s economic development. Thus, of the 17 bilateral meetings that the government carried out and the more than 50 agreements signed, the following stand out:

  • 30 commercial agreements between China and Argentina that represent around 5000 million dollars. The Joint Action Plan signed covers issues related to investments, infrastructure, railways, thermal energy, solar, wind, mining, health, transportation and education, among others. They include the commercial contract to reactivate the San Martín Cargas railroad, whose initial investment will be 1089 million dollars and will be in charge of the Chinese company CRCC (China Railway Construction Corporation Limited); and the signing of protocols for the entry of standing equines, sheep and goats from Patagonia to China and a sanitary protocol to export Argentine cherries.

  • In turn, with China, investment agreements were also signed for projects of Public-Private Partnerships (PPPs) in the area of ​​energy and transport (routes); and it was agreed to expand the swap (exchange) of currencies in the amount of 60 billion yuan (equivalent to 8,600 million dollars) that will be used to strengthen the reserves of the Central Bank.

  • With the United States, the most relevant agreement was reached with the letters of intent signed with the investment agency of the United States, Overseas Private Investment Corporation (OPIC), which is expected to mobilize more than 3 billion dollars. Some of these letters of intent with the OPIC contemplate the financial backing for the PPP project of the C Corridor section (Buenos Aires-Mendoza); and projects on solar energy (the Ullum I, II and III projects); wind energy (North Chubut III and IV); wind energy (Cañadón León wind farm in Santa Cruz); and works for a gas pipeline in Vaca Muerta.

  • With France, a financing agreement for 360 million dollars was made to recover the capacity of maritime naval patrols, and agreements in the cultural and educational field.

  • With the European Investment Bank, it was agreed to finance expansion and improvement works in potable water services for the metropolitan area and the suburbs of Buenos Aires; and the consolidation of the Integral Management of Residues and Energy Valorization in Jujuy.

  • The Heads of State of Japan and Argentina signed a Bilateral Investment Treaty between both countries, which aims to encourage Japanese investments in various sectors of the Argentine economy.

  • With the Russian Federation, a Fisheries and Aquaculture Agreement and a strategic document on the cooperation between Argentina and Russia in the field of the peaceful use of nuclear energy were signed.

Beyond the Summit

It is worth remembering that the Summit held in Buenos Aires was just the end of a much more extensive process that began at the end of November 2017 when Argentina assumed the “pro tempore” presidency of the G-20 at the end of November 2017 and culminated with the transfer of it to Japan. During the course of this year numerous meetings and events were held within the framework of the G20, as well as intense work in each of the affinity groups of the forum: Business 20 (B20, which encompasses the private sector); Civil 20 (C20, which includes civil society); Labor 20 (L20, which includes unions and workers); Science 20 (S20, which encompasses the scientific community) Think 20 (T20, which includes Think Tanks and the academic community); Women 20 (W20, which includes women) and Youth 20 (Y-20, which includes young people).

In the case of FUNDEPS, we actively participate in Civil 20, where we co-coordinate, together with Eurodad, one of the 8 working groups of the C20 for this year: the Investment and Infrastructure group. During the course of the year the group worked virtually and even met twice, both for the meeting of working groups and for the Summit of the C-20 held in Buenos Aires in April and August respectively. The result of the work of the working groups of the C20 was reflected in a document with policy recommendations, which was delivered to President Macri during the C20 Summit and constituted an input from civil society for the discussions that took place in the frame of the G-20.

More information

Declaración de Líderes del G20. Construyendo consenso para un desarrollo equitativo y sostenible

Página oficial del G-20

Página Oficial del C20

Policy Pack: Recomendaciones del C20 al G20 de 2018

Documento del sub-grupo sobre Financiamiento de Infraestructura

Documento del sub-grupo sobre Conducta Empresarial Responsable

La sociedad civil presenta recomendaciones al G20 en la Cumbre del Civil-20 – FUNDEPS – 15/08/2018

La sociedad civil se reunió en el C20 – FUNDEPS – 17/04/2018

G20 dejó acuerdos con intención de inversiones por u$s 8.000 millones – ámbito.com

Expectativa y realidad de los acuerdos económicos de Argentina en el G20 – Noticias

Authors

Macarena Mustafá – Sofía Brocanelli

Contact

Gonzalo Roza / Coordinador del Área de Gobernabilidad Global
gon.roza@fundeps.org

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Concern and uncertainty regarding the progress of the works of the Villa Carlos Paz Environmental Center

The works of the Environmental Center of Villa Carlos Paz show an advance of 90% and estimate that in 30 days it will be in operation. Meanwhile, the concern of the residents of Malagueño continues asking for concrete measures to make effective the differentiated collection of waste as well as awareness campaigns.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The project “Environmental Center of Villa Carlos Paz” is being developed in a municipal area located near the National Route 20, which links it with the city of Córdoba, where the current open-air dump is currently operating. It will process the garbage of more than 100.00 inhabitants of the region that includes Villa Carlos Paz and neighboring localities (Villa Rio Icho Cruz, Mayu Sumaj, Cuesta Blanca, Tala Huasi, Cabalango and Malagueño).

In Centro Ambiental, it is integrated by three works: a sanitary landfill for the disposal of solid urban waste, a separation and treatment plant for leachates (toxic residual waste liquid) and the closure of the existing open-air dump for more than 50 years. years.

The works with a total investment of 188,403,896 pesos are being financed through the Environmental Management Program of Tourist Municipalities, executed by the Ministry of Tourism of the Nation with funds from the IDB (Inter-American Development Bank) and the National State.

The construction of the Environmental Center began in mid-2017 and according to Horacio Pedrone, Secretary of Environmental Urban Development of the Municipality of Carlos Paz: “We think that by the second half of this year, we will have the new Environmental Treatment Center in operation of urban solid waste “.

While the works are advancing rapidly and the authorities of Carlos Paz announce that at the end of August the differentiated waste collection will begin in the city, in charge of the company Cotreco, in Malagueño there is uncertainty and concern.

In this regard, it is stated that although the Municipality of Carlos Paz has announced communication and awareness campaigns to the community on how to proceed when separating and collecting garbage, no concrete measures have yet been observed. The Malagueño authorities for their part say nothing about it, and taking into account that the Environmental Center will be inaugurated soon, the residents of Villa San Nicolás (Malagueño) fear that the place will become a new landfill.

The project foresees that once the construction of the Environmental Center is completed, the definitive closure of the existing open-air dump would begin, solving a problem that takes 58 years. Until recently, even the fire sources in the same one continued, affecting the smoke and the toxic gases emanating from the landfill to the San Nicolás neighborhood and other neighborhoods near the highway.

In addition, during the last months of December and January, the landfill was burning for more than 80 days, and therefore self-appointed neighbors organized protests calling for an environmental emergency to be declared as a result of the toxicity generated by the smoke from the burning garbage.

In short, the environmental damage affects the air that neighbors breathe, and due to the rains – which increase during the summer and tourist seasons – the ashes end in the San Roque dam that supplies water to 70% of the city ​​of Córdoba.

From FUNDEPS we follow this process and accompany the community of Villa San Nicolás to ensure respect for their rights to a healthy environment, health and access to information and citizen participation. Likewise, and as we have been saying for some time, we consider questionable the location of the Environmental Center next to the La Calera Defense Nature Reserve, and meters from San Roque Lake in areas that may have a higher filtration or percolation propensity towards the Napa of water.

More information

http://www.eldiariodecarlospaz.com.ar/sociedad/2018/6/14/en-agosto-comenzaria-la-recoleccion-diferenciada-de-residuos-52986.html

http://www.eldiariodecarlospaz.com.ar/sociedad/2018/5/15/asi-es-el-centro-ambiental-donde-se-procesara-la-basura-de-punilla-51764.html

https://lmdiario.com.ar/noticia/43262/malagueno-denuncian-problemas-respiratorios-por-los-incendios-del-basural

Contact

María Pérez Alsina – mariaperezalsina@fundeps.org

Gonzalo Roza – gon.roza@fundeps.org

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Civil society met in the C20

We were participating in the C20 meeting, a civil society affinity group for the G20 process. In it, we coordinated the discussions of the investment and infrastructure work group, and participated in meetings with authorities.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On the occasion of the Argentine presidency of the G20 -which brings together the governments of the 20 largest economies in the world-, the meeting of the civil society group, called C20, took place on April 4 and 5 in Buenos Aires. It is organized into 8 working groups that address the following agendas: anti-corruption; architecture of the international financial system; education, employment and inclusion; environment, climate and energy; gender; global local; global health; and investment and infrastructure.

Within the working group of investment and infrastructure, the discussion was oriented to elaborate recommendations for the G20 governments, especially for the Argentine government for being leading the forum during 2018. Thus, issues concerning responsible investments were debated, with a focus in the impact of business activity on human rights, and different aspects related to infrastructure projects -financial, environmental, accountability, participation, among others-. These discussions began in March, through the online forum of the working group, and will continue in the same way for the elaboration of the conclusions as a group.

Likewise, during the second day, we participated in a meeting with Matías Mondino, Infrastructure Director of the Ministry of Finance and representative before the G20 infrastructure group. During the meeting, in addition to knowing about the government’s agenda for its G20 presidency on investments, the concerns of the organizations present in this regard were expressed about investments in infrastructure and public-private partnerships.

The result of the discussions held during the two days, will be reflected in a working document to be presented at the C20 summit to be held on August 6 and 7 in Buenos Aires. It is expected that the recommendations made by civil society will be taken by governments and reflected within the commitments of the G20. The purpose of the C20 process is to promote economic and financial policies that are attentive to the duties of the states in the area of ​​human rights, including in their agenda transparency and accountability.

More information

Contact

Gonzalo Roza – gon.roza@fundeps.org

Carolina Tamagnini – carotamagnini@fundeps.org

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What does 2017 leave us in relation to trunk pipelines?

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

The year 2017 began with important and promising news for the Gasification Project of Localities of the Interior of the Province of Córdoba, better known by the people of Córdoba as the “main gas pipeline project”. During the first days of January, the Governor of Córdoba Juan Schiaretti and President Mauricio Macri were present at the inauguration of a Pressure Reducing Plant in La Calera, work carried out by the Brazilian company Odebrecht within the framework of the systems awarded to it after the public tender launched in 2015. The reduction plant constituted the first section inaugurated by the Córdoba-Gran Córdoba Ring System, comprised of 52 kilometers of gas pipelines. reinforcement, and that will benefit 300 thousand inhabitants of both Córdoba and La Calera and of Saldán, Villa Allende, Mendiolaza, Malagueño and Malvinas Argentinas, according to official information.

The presence of Macri at the inauguration of the work represented a gesture of political support for the Schiaretti government. Especially taking into account the strong questions and criticisms received by the provincial government for the involvement in this project of the Brazilian construction company Odebrecht, involved in a corruption scandal in Brazil and other Latin American countries, even in Argentina. Despite these questions, the Schiaretti government always defended the participation of the company by resorting to the debatable argument that the corruption events in which it is involved occurred between 2004 and 2013, while the tender in Córdoba was carried out only in 2015.

However, after a few days the project suffers a major setback: Schiaretti announces that, due to delays in obtaining loans from Chinese banks, 4 stretches of gas pipelines would be re-tendered to avoid postponing the start of the works in said sections, but in this case with the Province’s own financing. Recall that of the 10 trunk systems that were defined in 2015, 4 were awarded to Transitory Business Unions (UTEs) made up of Argentine and Chinese companies and financed by Chinese banks (ICBC and Bank of China); and the remaining 6 were awarded to Odebrecht (at first it was said that the Brazilian company would present its own financing for the start of the work, but finally this was not the case, making the province have to resort to indebtedness to start the works).

Thus, criticisms of the link with Odebrecht in the work will be added to questions about the delays in Chinese financing; the lack of relevant explanations regarding the reasons for the fall in financing; the need to re-tender the work and the decision of the provincial government to go back to the market to borrow to finance the work and even for the substantial increase in the cost of the work, which went from a budget of 8,600 million pesos in 2015 to 12,480 million pesos at the beginning of 2017 (an increase of 45% in almost two years).

After a new call for bids in February, in March the works of the four aforementioned systems were re-awarded to the same UTEs that had won in the first tender. In turn, the government issued a new batch of public securities for 460 million dollars to finance the start of works in the 4 tranches of the project, with the financial agent of Banco de Córdoba (Bancor).

Although in that same month of March advances were announced in the negotiations with the Chinese banks to finish making the committed credits for the work, surprisingly on April 21 the Governor Schiaretti announced the definitive fall of the Chinese financing and the signing of a decree that rendered ineffective the adjudication of the works of the 4 corresponding trunk systems. While Schiaretti himself blamed the Chinese banks for the fall in funding, arguing that they raised conditions “leonine, unacceptable to Cordoba and the national government,” the fact is that the government never made clear the true reasons and reasons that led to the fall of Chinese financing.

In this way, the government of Córdoba decided to launch a new tender for 437 million dollars for the construction of the 4 gas pipeline systems, which now in the new call would become 8 systems (in addition to the 6 remaining systems already awarded to Odebrecht ) and whose financing would come from the same province. In this case, the allocation of the new systems fell to national companies.

In early May, and despite criticism from the opposition, the provincial legislature approves a bill that enables new changes in the pipeline project: the negotiations with Chinese banks to finance 4 of the trunk systems are terminated, and it is approved that it is now the provincial government itself that must obtain the totality of the funds to complete the work (ratifying in this way the authorization granted by law 10,339 that enabled operations to take public credit to carry out the works). Just a few days later, the government made official through a decree published in the Official Gazette, a new debt collection for 450 million dollars to finance the work. By the end of June, Schiaretti himself would announce through his Twitter account that the province had obtained the total financing for the work through the placement of bonds in the international capital market.

In short, this strategic project for Córdoba that was going to have in the beginning with financing provided or managed by international actors (initially through the National Bank of Economic and Social Development of Brazil -BNDES-, then through Chinese banks and own financing provided by the Odebrecht company) to depend exclusively, for its concretion, on the province’s own resources or obtained through debt through the issuance of government securities.

The second half of the year would be marked mainly by the progress of the work (according to the government by the end of the year 14% of the work had been completed and the work was planned to be completed by mid-2019), but also by the constants and recurring questions from sectors of the opposition and civil society in relation to the project. Especially after Córdoba was mentioned in the framework of the Lava Jato case as one of the destinations where the Odebrecht constructure paid bribes in Argentina.

Although the national government of Mauricio Macri began a campaign to review and investigate the possible involvement of Odebrecht in the payment of bribes in numerous public works projects in Argentina (which even led the national government to suspend the company to carry out works at a national level), the gas pipeline project in Córdoba was strangely excluded from said revision and the relevant explanations were never provided to justify such exclusion. Even the company continues to operate in the province despite its suspension at the national level (its main work is precisely that of gas pipelines in Córdoba) and the requirements from the opposition that the same be done at the provincial level. Given the lack of answers at the national level, some opposition legislators traveled to Brazil in October of this year to ask the prosecutors of the Lava Jato case to investigate the link between the Brazilian company in the payment of bribes in the framework of the bidding process in 2008 for the construction of trunk pipelines.

In this way, between marches and counter-marches, the balance of 2017 in relation to the trunk gas pipeline project throws little light and many shadows and suspicions in relation to the transparency and execution of the project. Not only because of the never entirely clear fall of Chinese financing at the beginning of the year but also, and above all, because of the way the provincial government has handled the involvement of the construction company Odebrecht in the work and the numerous causes of corruption that splash throughout Latin America and even in Argentina itself. Although the government of Schiaretti has detached the company from any kind of connection with the possible delivery of bribes and corruption in the bidding of the work (even with the support of the national government of Macri itself that has initiated a kind of “Crusade” against the Brazilian company for its actions in the country during the Kirchner government), the truth is that the year that ends leaves many questions and aspects not clarified about the project.

Undoubtedly, 2017 has left a huge debt outstanding in terms of transparency and accountability in relation to this strategic and emblematic project for Córdoba. From FUNDEPS, we expect this debt to be paid in 2018.

More information

– Working Document: Transparency in the gasification project of localities in the interior of the province of Córdoba by Melanie Mackenzie – December 2017. FUNDEPS.

– Notes and publications of FUNDEPS in relation to trunk gas pipelines.

–  Main gas pipelines in Córdoba: a work that advances in the shadow of corruption by Agustina Palencia – December 2017. El Entramado. FUNDEPS.

Image source

La Voz del Interior

Authors

Macarena Lourdes Mustafa / Voluntaria del Área de Gobernabilidad Global

Gonzalo Roza / Coordinador del Área de Gobernabilidad Global

Contact

Gonzalo Roza / Coordinador del Área de Gobernabilidad Global

gon.roza@fundeps.org

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Claim for higher standards of protection of DD.HH. in infrastructure megaprojects

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

Currently, the Latin American region has witnessed a resounding change in the area of ​​large investments for development. Traditionally, international financial institutions (IFIs) played a fundamental role in supporting development projects in the region. The World Bank Group and the Inter-American Development Bank Group were behind the large investments in the infrastructure area.

This situation has been modified by the increase in the presence of the People’s Republic of China as the main investor in this matter. In this regard, it is necessary to highlight that this situation has brought about a strong discussion regarding social and environmental standards. Traditional IFIs have regulations that, while far from functioning properly in practice, minimally seek to ensure compliance with certain environmental, social and human rights standards in their projects. In the case of Chinese institutions, on the contrary, the situation is more complex, since in most cases these institutions lack transparency or clear and robust regulations in socio-environmental matters.

The consequence of the coexistence of these two groups of institutions – the traditional IFIs and the Chinese ones – has given a negative balance and this has been evidenced in the retreat of the safeguards in organisms such as the World Bank. In this sense, the current financing structure in Latin America has seen its standards fall, generating serious situations of violation of rights when launching large infrastructure projects. During 2016, 200 environmental defenders lost their lives claiming their rights before the advance of major oil and mining projects. 60% of those deaths occurred in Latin America and 40% belonged to indigenous peoples.

From this framework, the Regional Coalition for Transparency and Participation, brought together a group of civil society organizations with the aim of influencing the improvement of socio-environmental standards in infrastructure megaprojects. At the Fourth Regional Meeting on Human Rights, Transparency and Investments, held in Lima on August 30 and 31, the organizations gathered spoke for the urgent need to ensure the rights of environmental defenders. Likewise, the growing cases of corruption around the megaprojects and the lack of access to public information were highlighted.

The statement after the meeting noted that: “several governments have been addressing the right of access to public information as a mere administrative procedure, without taking into account that it is an instrumental human right to other fundamental rights, such as the right to life, to health, to freedom of expression, which contributes to the adequate and timely citizen participation and free and informed prior consultation. In this line, it is worrying that several international initiatives on transparency and access to information can not continue to advance adequately because there is a risk that we seek to lower the standards, as in the case of the Regional Agreement of Principle 10.” The large infrastructure projects then, today remain the scenario for the problematization of issues such as transparency and accountability.

Several governments in Latin America have joined the Open Government Partnership (OGP) and have therefore committed to implementing policies that promote transparency, access to information, accountability and participation. citizen This necessarily implies that these efforts to ‘open the State’ must expand to the environmental and infrastructure branch. Currently this is a pending debt and of the 3000 commitments assumed before OGP, only 54 belong to the field of infrastructure. Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Mexico, Panama and Uruguay are the Latin American and Caribbean nations that have elaborated goals in relation to this matter. However, the problems persist and the situation of human rights around the megaprojects has been getting worse. In addition, after the Fourth Meeting of the Regional Coalition, it was highlighted that “it is important that the processes for the elaboration of the Work Plans of the Alliance for Open Government of the countries be truly participatory and with ambitious, measurable and relevant “. This is especially important when it comes to achieving the involvement and monitoring of society in public works processes (throughout the project cycle).

In Argentina this reality is replicated. Currently, large infrastructure projects are being developed that have been involved in corruption cases and whose information was not shared with citizens. We can mention among them: the hydroelectric dams in the Province of Santa Cruz and the trunk gas pipelines in the province of Córdoba.

The generalized situation of human rights around infrastructure megaprojects is alarming. There continue to be numerous cases in which nearby communities are harmed by this type of work. Added to this, the killing of environmental defenders has worsened in the last two years. In this context, we adhere to the Lima Declaration and urge Latin American governments to move towards more transparent policies on this issue.

More information

– Declaration of Lima

Author

Agustina Palencia, agustinapalencia@fundeps.org

Contact

Gonzalo Roza gon.roza@fundeps.org

Repeated figurine: garbage, conflicts and San Roque lake

The project “Centro Ambiental Carlos Paz” presents serious irregularities and violates environmental regulations and participation. It would affect Lake San Roque and would not be a definitive regional solution to the historical problem related to the integral management of solid urban waste.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

 In the province of Cordoba, our officials continue to fail to provide an adequate and committed response to the problem of solid urban waste management. As in the elaboration of many other public policies deaf ears are made to the recommendations of science, technology and the needs of the citizens.

The management of urban solid waste is considered one of the main environmental problems of our society. And as a consequence of this, Argentina has an Integrated Management Program for Urban Solid Waste (GIRSU) -AR-L1151 financed by the Inter-American Development Bank (IDB).

The Program finances works for the integral management of urban solid waste (MSW) and the recovery of degraded areas due to the poor disposition of such residues. The total cost of the program is 150 million dollars within the same is the Environmental Center Villa Carlos Paz, whose name is already biased since it would be more accurate to talk about a landfill. A landfill is a place destined to the final disposition of trash, in which multiple measures are taken to reduce the impacts to the environment. In short, it seeks to reduce and isolate waste and develop mechanisms to treat liquids and gases produced by the decomposition of organic matter.

The questioned Environmental Center Villa Carlos Paz pretends to be a landfill where there is now an open dump. The autoconvocado neighborhood group, opposes the construction of the landfill in the selected place and approved by the Secretariat of Environment and Climate Change of Cordoba. Since the beginning of this year we are working together with neighbors and neighbors of the area. The reasons why we require the relocation of this project of more than 200 million pesos are varied. The guidelines of science and technology have not been followed for the elaboration and construction of this type of works and are violating environmental norms and citizen participation.

First, the environmental impact study (EIA) presents inconsistencies.

* Probable outdated baseline studies: There is a high probability of a mismatch of baseline description of water quality, soil, air as a function of the behavior of natural and environmental variables and impacts evaluated . The exact date of its elaboration is not known, but the EIA was presented by TecnoMak S.A. On March 30, 2015, had an opinion of the Technical Interdisciplinary Committee on February 29, 2016 and was submitted to a public hearing on April 6 of that year. In this context, both for the instance of citizen participation and for the execution of the work, the study was done in a context that is not the current one.

* Lack of clarity on the basis for the selection of the location of the work: it is objectionable the justification of the choice of the farm to carry out the works. To carry out the project TecnoMak S.A. Considered three possible properties, however it is unknown the fundamentals by which it was chosen for its location in the building of the current open dump. Neither are the reasons why the other two alternatives were ruled out.

* Possible impacts to the lake and a reserve: The situation is aggravated by the fact that it is intended to build a few meters from Lake San Roque on land that may have a greater propensity to seep or leach into the water and adjoining a protected natural area Natural Reserve La Calera).

* Use of outdated census data: The EIA uses data from the 2008 national population census, with one being carried out in 2010, which shows considerable changes in the number of inhabitants of the area.

Secondly, the resolutions of the administration that establish the useful life of the project are not clear. The first opinion of the Interdisciplinary Technical Commission of the Environment Secretariat (February 29, 2016) suggests that “the draft module for the final disposal of MSW will be maximum for a use of six years.” It also recommends that the use of the module for the final disposal of RSU receives only the waste from the town of Villa Carlos Paz. Following the public hearing held on April 6, 2016, and without public prefeasibility studies, a second opinion of the ITC decided to extend the useful life of the project to twenty years, as well as the number of communes reached To the towns of Villa Río Icho Cruz, Mayu Sumaj, Cuesta Blanca, Tala Huasi, Cabalango and Malagueño. In summary, the reasons for which this decision was taken are not known, the plane with the exact coordinates where the Landfill and the total number of projected modules.

Thirdly, the right to participation of citizens living within the area of ​​influence of the project was affected. The art. 67 of Law 10,208 establishes that the public hearing process must be carried out in the area of ​​influence of the project and open participation. In this case, the public hearing was convened only in Villa Carlos Paz (Department of Punilla), and one of the areas most affected by the proximity of the property is the municipality of Malagueño, belonging to the Department of Santa Maria. In addition, the possibility of convening a popular consultation was not foreseen, considering the possible categorization of the project as having a high environmental complexity (article 68, law 10,208).

This alarming project has an environmental license approved by the Ministry of Environment of the Province, and the EIA has not been prepared in strict compliance with the current regulatory framework. Socio-environmental conflict is imminent and works can begin at any time.

The excessive growth in the volume of waste in today’s society is endangering the capacity of nature to maintain our needs and those of future generations. Population and consumption grow, and as a consequence, also the amount of garbage we generate. The problem is that the space does not grow and that we are not giving the right treatment.

We have submitted requests for information to the Secretary of Environment of the Province of Córdoba, the Municipality of Malagueño and the Municipality of Villa Carlos Paz. In addition, on May 8, we approached a note to IDB officials in Argentina responsible for following up on the program by letting us know about these concerns.

We demand transparency, accountability and coherence in government acts. We need integral and long-term solutions for the integral management of solid urban waste. Our officials are obliged to comply with current standards and to ensure that human rights and the environment are respected. It is not possible to make decisions democratically at any cost and regardless of the conditions.

More information

Contact

Male Martinez, malemartinez@fundeps.org

María Victoria Gerbaldo, victoriagerbaldo@fundeps.org

Conflicts over an IADB funded project for an environmental center in Carlos Paz

Neighbors requested the closure of the current open dump and expressed their opposition to the development of the environmental center in Carlos Paz, which has funding from the Inter-American Development Bank.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.”

 

On Sunday, January 29, a local autoconvocatoria took place in the square of Villa San Nicolás (Malagueño), with the objective of informing and organizing itself with regard to the problem that generates in the whole area the presence of the open dump administered by the municipality of Villa Carlos Paz in the property located to the side of the motorway to Cordoba. The neighbors formed an inter-district commission that will work to elaborate the “action plan” that will define the following steps.

Through a statement, neighbors said they will request the closure of the current landfill at the time they anticipated that they disagree with the construction of the Villa Carlos Paz Environmental Center in the sector. This work is financed by the Inter-American Development Bank (IDB) through the Comprehensive Urban Solid Waste Management Program-AR-L1151.

The meeting came after a week in which the wind moved home smoke from the fire in the landfill that the city has on the side of the highway Justiniano Allende Posse, less than 1 km from the entrance to the neighborhood of Villa San Nicolás. “Only now is awareness. The smoke awoke us all and triggered the protest”, said Lucas Bettiol, a neighbor of San Nicolás, in reference to the fire that was unleashed in the landfill and warned that,“we did not know until last week that they wanted to make an Environmental Center in the same place”. They also stated: “Far from remedying the damage generated by the open dump, pollution levels will increase due to the installation of a new landfill that represents five times the size of the current landfill”.

The neighbors expressed an explicit and emphatic rejection of both the current landfill and the establishment of the Villa Carlos Paz Environmental Center. In this sense ensure that if this proposal materializes “the environment will be even more damaged, the quality of air will decrease and groundwater and surface water will be contaminated, being that in the area all neighborhoods consume well water.” Warned about the progress of the Environmental Center project, Bettiol said:
“… it will be a fight similar to what happened with Monsanto (Malvinas Argentinas), or the dumps of Bouwer and Santa Ana neighborhood … We know that it is approved but we have the antecedent of Monsanto that was managed to stop and we hope To be able to stop this. The authorities are not dimensioning the environmental or social impact (…) The population of San Nicolás was not included in the Environmental Impact Study and we are less than 1 km. TierrAlta is closer. The authorities of Carlos Paz and Malagueño minimize what is happening in the landfill “

In April last year the environmental public hearing took place, in August the Ministry of Tourism carried out the national public bidding process and in November the bids for international public bidding were opened. The works are expected to begin in the middle of this year.

In view of the possible environmental and social impacts, compliance with provincial, national and IDB operational policies must be complied with.

In the statement, they affirm that they have not been considered in the environmental impact assessment process of the IDB-financed project and that, far from remedying the damage currently generated by the open pit, the levels of pollution will increase. They demand that the municipality of Malagueño be present and that Carlos Paz recognizes the violation of his rights. They also ask the province of Córdoba to act in the prevention of damage and demand the immediate repair of the damage done in the area.

The autoconvocados neighbors of San Nicolás, TierrAlta, Mariano Moreno, La Arbolada, Lote Joven, Valle del Golf, Causana and the districts Carlospacenses Costa Azul North and South requested a public study of the quality of the air, the soil and the underground beds.

From FUNDEPS we are following this process to ensure that human rights and the environment are respected. The location of the Villa Carlos Paz Environmental Center next to the La Calera Defense Nature Reserve, and meters away from San Roque Lake in areas that may have a higher propensity to seep or leach into the water, is questionable.

More information

Contact

Gonzalo Roza / Coordinator of the Global Governance Area

gon.roza@fundeps.org

Advances and challenges at the Villa Carlos Paz Environmental Center Project

Administrative processes are advancing and it is expected that in May 2017 work will begin for the construction of the Villa Carlos Paz Environmental Center with financing from the Inter-American Development Bank.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.”

 

The IDB’s Integrated Urban Solid Waste Management Program (GIRSU) finances works for the integral management of solid urban waste and the recovery of degraded areas due to the poor disposal of such wastes. The total cost of the program is US $ 150 million and contains two subprograms: on the one hand, GIRSU in national parks and adjacent municipalities and, on the other hand, GIRSU in other tourist municipalities.

Within the second group is the Villa Carlos Paz Environmental Center. The center was designed to receive the urban solid waste from five neighboring municipalities that agreed with the municipal administration of Carlos Paz their joint treatment. The project was developed by TecnoMak S.A. Contracted by the Executing Unit of International Loans under the Ministry of Tourism of the Nation.

TecnoMak S.A. Studied three alternatives for possible locations of the new MSW treatment center. Finally, it was decided to locate it in the building of the current open-air garbage dump bordering the La Calera Natural Reserve.

The project has three groups of works:

Works Group 1: Sanitary Landfill for the disposal of MSW generated in the localities of the Municipality of Villa Carlos Paz and communes of the area of ​​influence of the project; With a useful life of 20 years and an average daily income of 163 Tn / day.

Works Group 2: Separation and Treatment Plant and related logistical and administrative support works.

Works Group 3: Closing and Closing of the Landfill to Open Sky currently existing.

On April 7, 2016, the environmental public hearing was held in which the authorities participated and eleven people registered with it.

The mayor Esteban Avilés explained:

“We are working on a regional project that will give us a definitive solution to the open dump (…), with this public hearing would be closed the administrative situation and then move to the instance of decrees that have to do with the Secretariat of Environment Of the province, and the Ministry of Tourism of the Nation by Gustavo Santos”

Regarding the deadlines stated that “we believe that we will be fairly quick compared to other projects approved at the national level” but did not rule out before the end of the year.

Several objections were raised by María Luz Cammisa (Secretary of the Norman Morandini, Director of the Human Rights Observatory of the Senate of the Nation), related to the relevance of the hearing as “it arrives with a work that is tendered and has been up to Pre-awarded (…) We are here in some way to validate what has already been decided by us” It was also stressed the jurisdictional limitation, since the affected lands are outside the ejido of Carlos Paz:

“It is for us a priority issue that I raised to the governor Juan Schiaretti because we can not advance in a planning with the intermediate institutions of the city always being conditioned to that the province resolves this administrative situation.I see that it is a governor that has this type De la Sota really had no interest for anything, “declared the Intendente and later be endorsed by his collaborators: It is a theme of substance for the Carlospacenses; But that does not determine the continuity of the project.”

More controversial was the mention of Cammisa regarding the deadline stipulated by the Technical Commission for the use of the module:

“…it must have a maximum of six years, and that after the same period, a site outside the San Roque basin (…) should be used to specify the integration of a Comprehensive Waste Management Program in the metropolitan area of Córdoba (CORMECOR) “(…) We do not know if the municipality itself will have a solution for its waste beyond six years. That is to say that the projected environmental center will last less years than the time taken to plan it”

Those who responded to this were the architect Liliana Bina and the secretary of Urban Environmental Development, Horacio Pedrone. They mentioned in this respect that the Interdisciplinary Technical Commission suggested this term in view of the CORMECOR project, of which the city would participate if it materialized. However, “this plant would continue to function exactly the same, but instead of throwing the surplus into the sanitary burial, we would do it in a transfer iron to Cordoba.” Meanwhile, Villa Carlos Paz as the member communes will have buried for that date some 475 thousand tons of garbage.

On the other hand, Pedrone said “to say that the municipalities and communes that have signed intermunicipal agreements with us and that they will not be able to throw the garbage more is absolutely false … The project has been thought from the first minute with the participation Of the eight municipalities and municipalities bordering Villa Carlos Paz and have always treated the subject of garbage together” said in a framework of participation in which were present the community leaders Andrea Jordán (Cuesta Blanca), Adolfo Parizzia (Estancia Vieja) and representatives of Icho Cruz and Cabalango.

Other approaches were related to the territorial organization of the native forest:

“… there is no mention in the environmental impact study of the negative impacts of the reserve. It is an area bordering a protected area, and a project that seeks to be authorized by means of exceptions provided for in the Forests Law (…) The opinion of the Technical Commission itself warns against the location of the project that it would be inadvisable to concentrate in this area more potentially impacting installations against the environment, since it is in the vicinity of the natural area (…) and in areas with drainage at Lake San Roque.”

This point was also raised by environmentalist Juan Carlos Paesani, who for health reasons was not present but made read his statement: “Will it be understood that this reservoir gives drinking to almost two million people in the city of Córdoba? Continue to ignore elementary principles.”

More confrontational was the speech of the President of the Council of Representatives, Walter Gispert, who retorted the remarks when pointing out that:

“Apart from saying, we have to do, our government has spoken to everyone … Beyond the technical issues, the material and environmental debt that the city has and the effort made by all public and private institutions to Solve the problem, for our future, I ask you to approve the project.”

He also suggested that “the Chicana” comes from a member who shares his same political space, Norma Morandini, “whom I spoke to personally to raise the situation, but he never came to Carlos Paz, and she was a legislator for Córdoba.”

In August, the national public bidding process was carried out and in November the tenders for the international public tender were opened. The works will start in May 2017. The current landfill will be replaced by a landfill that will house a waste separation plant and a recycling plant. 222 million will be financed by the Inter-American Development Bank and it is estimated that the work will require around eight months and that by mid-2018 this new plant would be put into operation.

From FUNDEPS we follow these processes to ensure that they respect human rights and the environment. The location of the Villa Carlos Paz Environmental Center next to the La Calera Defense Nature Reserve, and meters away from San Roque Lake on land that may have a higher propensity to seep or leach into the water, is questionable. In this context of possible environmental and social impacts, the municipal and provincial governments must ensure the highest levels of transparency and access to information. From FUNDEPS we will monitor compliance with provincial and national regulations on these issues as well as compliance with the corresponding operational policies of the IDB.

More information

Contact

Gonzalo Roza, gon.roza@fundeps.org

Chinese investments in Argentina: the aqueducts in Entre Ríos

Within the long list of Chinese investments in Argentina, the case of aqueducts in the province of Entre Ríos has been one of the most controversial. Irregularities in the bidding process, approval and execution of the project have aroused the suspicion and the demands of various sectors of civil society.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.”

 

In a changing international context, in which the most important actors have been changing, Argentina has encountered difficulties in accessing traditional sources of financing. Over the last few years, especially since the Kirchner administration, the scenario of foreign investment in Argentina has been marked by the preponderance of the PRC. Several of the major infrastructure projects that are being carried out are behind the backing of Asian companies.

There are two projects that have been working between the Nation and the province of Entre Ríos for some years and had to do with the possibility of building two aqueducts for irrigation in the north of Entre Ríos. For the construction of these, the provincial government and the China State Construction Engineering Corporation (CSCEC) signed a commitment letter for the supply of fresh water, incorporating 200,000 hectares of irrigation.

In mid-June 2013 the CSCEC expressed its interest in investing in infrastructure works in the province of Entre Ríos. During a meeting with representatives of the company, developed at the House of Entre Ríos in Buenos Aires, Governor Sergio Urribarri “proposed three basic lines of action: irrigation works, Paraná-Santa Fe metropolitan link and port development.” According to the governor, the development of the works would be linked to a great extent to increase the productive capacity of the province.

The agreement with China for the construction of the two aqueducts was signed on July 18, 2014. Within the framework of strategic agreements for infrastructure works, signed in the Casa Rosada between Xi Jinping and Cristina Fernadez de Kirchner, meeting in which Urribarri participated.

The aqueducts will have a total length of 546 kilometers between main branch and secondary branches. Two works, the first in the Arroyo Mandisoví basin in the Federation department to implement a collective irrigation system, from the Uruguay River, for rice, citrus and fruit-horticultural production. The second in the department of La Paz to build an aqueduct of the North Entre Ríos, with the contribution of water from the Paraná River and provide a marginal area of ​​access to water for irrigation.

The costs of the works total an amount close to USD 98,000,000, according to the data presented by the “Provincial Agricultural Services Program” in its feasibility reports of which the province should contribute 20%. However, the budget of the CSCEC was USD 430,387,552 awarded without competitive bidding. Funding would come from ICBC, with a credit of USD 366 million at 15 years (with a grace period of 5) with a LIBOR rate of 4.5%. Likewise, the credit agreement provides as applicable law the same as that of England.

The project provoked rejections in some sectors, such as the organizations nucleated within the Multisectoral in Defense of the Heritage of the Entrerrianos, which promoted the nullity of the law that, among other points, enabled the direct granting, without public bidding, of the work to A Chinese capital company, as well as a debt exceeding $ 430 million. The M’biguá Foundation and Environmental Justice also warned about the lack of transparency and information about the project.

The case of aqueducts is the first to reach justice. As discussed above, the Multisectoral for the Defense of the Patrimony of the Entrerrianos presented an unconstitutionality action with respect to the law No. 10.352 that authorized the Provincial Executive to become indebted to the financial institution of China. This action is based on the fact that this law has not fulfilled the formal requirements that the provincial constitution urges for its approval, for example: there was no Environmental Impact Assessment, there is no opinion from the commissions of Finance and Economy, or the prosecution Of state, among other irregularities. The total lack of controls in the legislative process, the treatment on tables of the norm, the absence of debate on the subject and, especially, the secrecy with which the government was managed not to make known the project, is another aspect Demand.

Among the main points of the complete demand are:

– Ineffectiveness of Law 10.352 for irregularities in its processing.

– Non-observance of the principle of reasonableness.

Authorization to the Governor to agree and keep secret the contract with the Chinese Bank.

– Authorization to the Governor to contract with the Chinese Bank ICBC a loan in which Entre Ríos accepts to be governed by the English legislation.

– Violation of the constitutional duty to publicize acts of government.

– Deprivation of information as a human right.

– The previous and precautionary implementation of Environmental Impact Studies and its evaluation processes with the due Public Hearings and the dictating of the Administrative Acts prior to the authorization of contracting of the work and the authorization of the conclusion of investment agreements and / Or indebtedness.

– Violation of the Public Accounting Law. (Arrogating thus the P.E. unconstitutionally own powers of the Legislative Power).

– Violation of the Public Works Law.

– The constitutional guarantees contained in Section II – Economic, Labor and Sustainable Development of the Provincial Constitution were ignored.

According to local media: “From a commission of five million dollars that the provincial state must pay for the operation, up to the costs not calculated of interest, expropriation of land for the work and other costs, contemplating also the implementation of increases Tributary to cover the payment of the credit, the economic questions to the norm are numerous. The first of these, in any case, is the amount of the credit: nobody understands very well how the entrerriano government arrived to calculate both works by more than 430 million dollars when Prosap had budgeted, some months before, less than 100 million” .

According to Jorge Daneri, a member of the M’biguá Foundation, a package of potential mega investments in the region is being formed which, in addition to the aqueducts, would include a hydroelectric dam project between the provinces of Corrientes and Santa Fe on the northern border Of Entre Ríos. According to Dr. Daneri, the mechanism is the same in all projects: there is no parliamentary debate on the projects, let alone in the provinces involved, therefore, the silence of federalism of social consultation and citizen consultation.

From FUNDEPS we have been working on the follow-up of the case of trunk gas pipelines in the province of Cordoba, which also have Chinese funding. Part of the process of approval and execution of this project, can be identified with what happened in Entre Ríos. The lack of transparency in certain issues such as the presentation and publication of the environmental impact study, sound an alarm with respect to environmental standards and DD.HH.

In addition, we consider it of special importance to highlight that the recent importance of the People’s Republic of China in terms of investments in infrastructure projects translates into a need for civil society to monitor the design, approval and implementation processes of these projects. The irregularities mentioned above are the result of policies that still lack transparency and are not part of a accountability paradigm.

More information

A Chinese Agreement

Entre Ríos: “with the pretext of building two aqueducts is to consummate a very large swindle”

Law of aqueducts: filed suit against the “scam” of Urribarri

Law of aqueducts: the Multisectorial will collect signatures to repeal the text

Mid Paraná Dam, aqueducts and China, the spring of hope

Contact

Gonzalo Roza, gon.roza@fundeps.org

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