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Group: CODEFF Date: May 12, 1997
Introduction"The principle environmental controversy in post-dictatorship Chile" declared the Goldman Foundation for the Environment, referring to the hydroelectric-electric projects on the Alto Bío Bío river. This occurred in California on April 14, in the delivery speech of the 1997 Goldman award to Juan Pablo Orrego, president of the Action Group for the Bío Bío, GABB, and member of the national directory of CODEFF.This important annual award is granted to the "heroes" of the world's grass roots organizations from each of the six continents. The award came at a crucial moment for the Alto Bío Bío ecosystem, located in Chile's VIII region and the ancestral home of the Pehuenche, an indigenous group that until recently has inhabited this Andean foothill region in relative isolation. In a few weeks, the National Environmental Commission (CONAMA) will deliver its decision to approve or reject the environmental impact statement for the area's second dam, Ralco. Ralco is planned to be constructed 30 km upstream of the Pangue dam, also in the Alto Bío Bío (see box below for technical data). In total, ENDESA (a privately owned electricity utility) plans to build six dams in the Alto Bío Bío. According to ENDESA, the electricity demand in Chile grows 8.4% annually, which implies doubling the total capacity every nine years. President Gives Public BackingRalco's environmental evaluation is taking place amidst strong political and economic pressure. In March during the inauguration of the first dam -Pangue- the President of the Republic, Eduardo Frei, made public his backing of the construction of Ralco. He did so despite the lack of an evaluation of the social and environmental impacts, which are the legal responsibility of respective government organizations. On the same occasion the President blamed environmental groups for impeding the development of the country by opposing the hydroelectric-electric projects in the Alto Bío Bío.This presidential speech provoked a strong rejection by environmental organizations which was expressed by CODEFF in a open letter to the President (see below). Conflict with the World BankThe conflict came to a head in February of this year when the World Bank accused ENDESA of not complying with the environmental clauses established in Pangue's financial contract between the company and the World Bank's International Finance Corporation (IFC). On this occasion, the World Bank informed Chile's Minister of the Economy that differences existed with ENDESA concerning the displacement of Pehuenche communities and the accumulative environmental impacts of Pangue and the second dam, Ralco.In reaction, ENDESA undertook a series of steps to ensure the construction of Ralco. In order to free itself from the obligations to the World Bank, the company prepaid all credit that it had solicited from the IFC for the Pangue dam. Along with this payment of US$ 150 million, ENDESA, publicly announced that it had obtained a better loan from Germany's Dresdner Bank. At the same time, in March, ENDESA began a million dollar publicity campaign in Chile. The company began to publish two page advertisements in all newspapers promoting the relocation of the Pehuenche affected by the project. It also ran a television spot promoting hydroelectric-electric energy, calling it "our energy" by stating that it is cleaner than gas energy and safer than nuclear energy. Illegal- According to the Indigenous LawENDESA is emphasizing the supposed agreement of the Pehuenche concerning their relocation, ignoring that according to the indigenous law it is illegal to requisition indigenous lands. According to The National Corporation of Indigenous Development (CONADI) "it is an illegal project, which the state cannot (according to law) permit."Technical Data of Ralco
Open Letter to the President of the RepublicThe following is an extract from the letter CODEFF sent to Eduardo Frei Ruiz-Tagle in reaction to the presidential HIS speech at the inauguration of the Pangue dam on March 6, 1997:
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