Friends, The following is a letter from Ecuadorian and social
organizations regarding a law pending before the Ecuadorian
Parliament. The Hydrocarbons law would privitize Petroecuador,
the state-operated and owned oil company. Privitization would
involve the expansion of oil development in the extremely precious
Amazon region. Eight different Indigenous groups will be
threatened by the law, as well as countless species of flora and
fauna.
FROM: Ecuadorian environmental and social organizations
TO: Environment division of the World Bank
SUBJECT: Request for reconsideration of the environmental category
for the loan entitled PUBLIC ENTERPRISE REFORM, ID#6ECUPA103 to
modernize, through privatization, the Ecuadorian hydrocarbon
sector.
The undersigned support the concerns and demands expressed herein
regarding the severe social and environmental impacts that result
from the application of a policy of modernization of petroleum
activities based on their privatization:
1. THE LOAN IS INTENDED TO FACILITATE THE AMPLIFICATION OF THE
ZONE OF EXPLORATION AND EXPLOITATION OF PETROLEUM.
The objective of the State is to extend the petroleum frontier by
opening a new licensing round (set for January, 1994) which will
increase the current area of production and the over-exploitation
of this non-renewable resource.
The reforms of the Hydrocarbons Law, said to facilitate
modernization, have been questioned by many sectors of Ecuadorian
society for both social and environmental reasons.
The new concessions include protected areas and Indigenous
territories. Besides, the process of privatization strengthens
the presence of private companies in that it weakens the State's
capacity to control and sanction the companies, which is in
opposition to national interests.
2. PETROLEUM ACTIVITIES ARE HIGHLY RISKY IN BOTH ENVIRONMENTAL
AND SOCIAL TERMS.
Nearly all petroleum activity in Ecuador is taking place in the
Amazon region (43% of the national territory), despite the fact
that an extremely high level of biodiversity has been registered
there, and that it constitutes the home of eight Indigenous
cultures.
Diverse and numerous reports on the state of ecosystems in the
areas affected by petroleum development-- which include World Bank
sources as well--have acknowledged a process of destruction which
is uncontrolled and irreversible. The Quichua, Cofan, Siona,
Secoya, Huaorani nationalities have suffered the reduction of
their territories and the limitation of their possiblities of
survival, but the threat now extends to the Shuar, Achuar, and
Shiviar.
Parallel to the process of an environmental audit undertaken to
evaluate the impacts caused by the company Texaco during 22 years
of operations in the region, there are now studies underway to
identify the magnitude of the damages caused by their hydrocarbon
activities.
3. ANY TYPE OF REFORM TO PETROLEUM POLICIES MUST PERMIT THE
PARTICIPATION OF THOSE WHO ARE IMPACTED AND OTHER INTERESTED
PARTIES.
In Ecuador petroluem practices hav e been carried out without
environmental or social guarantees. Fundamental decisions were
arbitrarily taken, without consultation with or participation by
diverse sectors of Ecuadorian society. In this way for many years
concessions have been awarded in areas of national parks,
Indigenous reserves and territories--including those legally
recognized.
The proposed process of modernization and the lack of
consideration of its environmental impacts will further weaken
environmental and social policies.
For these reasons, we consider as indispensible the classification
of the loan PUBLIC ENTERPRISE REFORM, ID#6ECUPA103 in envionmental
category A, implying:
--the carrying out of a detailed study of the anticipated severe
social, environmental. and cultural impacts which will result
from the intensification of petroleum activities in Ecuador; and
--the opening of a process of public consultation of those
affected populations, their organizations, and other interested
sectors.
Please act as soon as possible on the above information. The
licensing round to which will accelerate exploitation of the
Amazon, is scheduled to begin in January, 1994.
Please send faxes to:
*The President of the Republic Fax: 593-2-580569
* The President of the Congress Fax: 593-2-509581
* Campana Amazonia por la Vida Fax: 593-2-547516