Title: ALTO BIO BIO: GROWTH AT THE COST OF THE PEHUENCHE PEOPLE 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 Backing
Ralco'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 Bank
The 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 Law
ENDESA 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
Location: |
Upper watershed of the Bío Bío river in the VIII and IX regions, 120 km from Los Angeles. |
Investment: |
US$ 463 million. |
Scheduled Construction Date: |
Second Half of 1997. |
Scheduled Functioning Date: |
March, 2002. |
Size: |
155 meters in height. |
Reservoir: |
1,222 million cubic meters covering a surface of 9908.81 acres. |
Potential: |
570 MW. |
Electricity Generation: |
3,380 million kwh. |
Affected Population: |
385 Pehuenche living on 98 properties corresponding to the communities of Quepuca- Ralco and Ralco-Lepoy (not to mention to various Pehuenche cemeteries that will be inundated). |
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Open Letter to the President of the Republic
The 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:
Santiago, March 17, 1997 |
Dear Mr. President:
We consider it opportune and necessary to publicly inform you of our extreme concern and annoyance in relation to your statements in the inauguration speech for the Pangue hydroelectric-electric plant that took place March 6 in Santa Barbara county, Alto Bío Bío.
The fact that the government, and moreover, the President himself, polarizes developmental and environmental positions has profoundly called our attention. At present, the primary challenge for countries consists in achieving sustainable development policies that unite the necessity of a better quality of life for all citizens with the conservation of the environment and of our natural resources.
We consider that your statements are unfortunate and clearly reflect the government's incorrect environmental management. It is very disillusioning to realize just how unrealistic are the government's current environmental policies. This is evident both in high political levels, as well as, in public debate related to environmental themes.
The incorporation of existing, legitimate and fundamental differences of opinion is the most adequate style of development for a country and is part of the democratic life of a society. Environmental sustainability is an ethical and economic imperative. This objective will only be reached if the government effectively takes into account public opinion from all sectors without falling prey to political and leadership styles that censor and disqualify different proposals. This implies representing legitimate interests of distinctive societal actors and not only a certain business sector with strong economic and political strength.
The accelerated destruction of our environment and natural resources is an inescapable reality that affects the quality of life of millions of Chileans. It is enough to recall the citizen poll of May, 1996 when 71% of those interviewed gave the opinion that the government did little or nothing for the protection of the environment.
We have observed that environmental decisions are often made either before environmental impact assessments are completed or that they contradict technical opinions of specialists from government agencies, environmental organizations and academic institutions. This renders the state's environmental institution's decisions meaningless, totally inefficient and effectively powerless. With respect to the Pangue and Ralco projects, and in particular the Bío Bío watershed, we cannot understand why we have been cast as opposers of hydroelectric-electric plants, an thus against the development of Chile. CODEFF has opposed this project in particular because of its negative implications on the ecosystem, indigenous communities, and other economic and social uses of the watershed.
We consider that hydroelectric-electric plants are one of the best alternatives for the generation of electricity. This, however, does not signify that we applaud the construction of all plants and reservoirs at whatever environmental and social cost in whichever of Chile's rivers. Furthermore, we believe that the construction of small scale plants with reduced environmental impacts should be an integral part of national energy policies. This is needed, in addition to a national policy of efficient energy use and of the expansion of the use of technological generators of alternate, non-traditional energies.
In other words, we see that the environmental decision making processes that democracy has defined are not being respected. One such example is the public support by the President of the controversial Ralco hydroelectric-electric, in spite of the fact that CONAMA has not completed its evaluation report. This same attitude of political backing in the middle of the environmental evaluation process by the authorities was also evident in the case of the CELCO cellulose plant in the X region.
Through these examples the government is not only sending the direct signal to affect the impartiality of CONAMA or COREMA's final decisions, it is demonstrating that it does not take into account the opinion and work of even its own environmental institution's processes. This pro-project governmental posture without evaluating social and environmental costs, aside from potential damage to the patrimony, could bring consequences to Chile's international image and prejudice international commercial trade negotiations where our country faces requirements to develop and implement a coherent environment policy.
The rapid application of an environmental policy whose principal objective is sustainability and the adoption of development models that guarantee environmentally friendly products is, without a doubt, a solid base for the development of a country to compete in the demanding international markets.
In regards to your public statement referring to the work of environmental organizations and indigenous communities, besides categorically rejecting its content and form, we see ourselves as obligated to demonstrate how your opinion is unfounded and erroneous. We need to point out that since 1988, CODEFF has been working with the Pehuenche communities of the Quinqu‚n valley to aid them in the conflict over legal ownership of their lands, as well as, in the defense of their araucaria forests. This case was resolved positively by the government of Mr. Patricio Aylwin.
Meanwhile, in relation to the Pehuenche communities of the Alto Bío Bío, CODEFF has been involved since the beginning in the discussion over the hydroelectric-electric projects. In 1994, CODEFF, with the support of FOSIS, constructed a mini hydroelectric-electric plant in Nitrao which is presently administered by the Pehuenche community. At present, we are developing a new mini hydroelectric-electric project for the Pehuenche community of Butalelb£n with possibilities of its extension to the community of Trapa Trapa.
Sincerely yours,
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Miguel Stutzin President CODEFF |
Hernan Verscheure Vice President CODEFF |
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