Tag Archive for: Infrastructure Financing

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