June 9, 1997
To: Concerned Organizations and Activists
Fm: Atossa Soltani, Amazon Watch
Kari Hamerschlag, Bank Information Center
RE:
As you may know, the IDB, the World Bank and IFC are financing about a third
of the total $2 billion for the 3,200 km pipeline from Santa Cruz gas
fields in Bolivia to markets in Sao Paulo and Porto Alegre in Brazil. The
loan will go to a consortium of private and public companies including
ENRON, Shell, Petrobras and others. The project is scheduled for IDB and
World Bank and International Finance Corporation (IFC) Board Approval
sometime in September or October. The loan was just approved late last week
by the IDB loan committee, an internal management committee that must
approve all loans before they go to the Board.
The initial EIAs were found to be inadequate because they did not consider
secondary impacts associated with the pipeline nor did they provide
sufficient detail about the compensation and the mitigation measures being
planned. The Banks have commissioned follow up studies to develop more
detailed mitigation measures and to carry out a strategic asssessment of the
cumulative impacts of the porject. As far as we know, there are no plans to
consult with groups about the findings of these studies.
Between June 23 and July 3, the IDB and the World Bank are conducting their
final Analysis Mission to the region. Following this mission, the staff
appraisal report and loan agreement is prepared and presented to the Board
of Directors for approval. In other words, now may be the last opportunity
for NGOs and impacted communities to voice their concerns.
This information bulletin contains a summary of key issues, and names and
contact numbers of people to write letters to. We suggest that groups
concerned with the impacts of this project, write letters to IDB and World
Bank officials asking for the postponement of the vote on this project until
the results of the strategic environmental impact assessment and mitigation
and compensation plans have been made available for public comment and the
consultation process has been properly carried out.
Please let us know if you would like an email copy of the the latest
environmental profile summary (Portuguese version only) or a hard copy
version in English (the English version is not on the web). You may order
the Portuguese version from the IDB web site
(http:\\www.iadb.org/doc97//pro/bBRo218.htm). Please send Bank Information
Center copies of any letters you send to the Banks and don't hesitate to
contact us if you want to share concerns, ideas and strategy about this
project or need more information. Our email is karih@igc.apc.org and fax is
202-466-8189. Atossa Soltani, Amazon Watch can be reached at
asoltani@igc.apc.org or fax: 310-456-0388. Thanks.
WHO TO WRITE TO:
IDB
Ricardo Santiago, Director,Regionale Operaciones I
FAX: (202) 623-1291
COPIES (CC's) to:
Walter Arensberg, Division Chief, Environment Department
FAX: (202) 623- 1780
Antonio Carlos T. Holtz, Project Team Leader
FAX: (202) 623- 1428
WORLD BANK
Gobind T. Nankani, Director of Country Departament I
FAX: (202) 522- 3130
Copies (CC's) to :
Constance Bernard, Director of Natural Resources, Environment and Rural
Povery Operations, Country Departament I
FAX: (202) 522- 3132
Nelson de Franco, Gerente del Proyecto
FAX: (202) 676- 0377
Following is contact information of the companies responsible for the EIAs
and consultations:
Carlos Mendez
Dames &Moore
Cochabamba, Bolivia
tel?fono: 591- 42- 860- 40
591- 42- 860- 41
FAX: 591- 42- 860- 42
Aluiso Teles Filho
Departamento del Medio Ambiente
Petrobras
Brazil
tal?fono: 55- 21- 566- 54- 52
FAX: 55- 21- 566- 57- 23
PIPELINE IMPACTS AND KEY ISSUES
1. PIPELINE WILL SUBSTANTIALLY INCREASE OIL AND GAS PRODUCTION THROUGHOUT
THE REGION INCLUDING IN THE AMAZON BASIN -
* The current EIA does not address the environmental impacts associated with
increased gas production in the region. No where in the EIA is a disucssion
about long-term environmental pollution resulting from gas extraction and
processing. The EIA narrowly focuses on the impacts associated with the
construction and maintenance of the pipeline.
* The pipeline is being planned with the capacity to deliver 30 million
cubic meters per day after seven years. The Santa Cruz Gas fields only have
proven reserves of 18 million cubic meters per day. Where will the 12
million cubic meters per day of gas come from? Future imports from Peru and
Argentina are anticipated by the project proponents. The current EIA does
not address the long term impacts of the pipeline in increasing oil and gas
production in the region. Such impacts could be significant especially if
the Bolivia-Brazil pipeline is connected to new gas fields in the Peruvian
Amazon. Given that Shell and Enron are now the main owners of Bolivia's
entire natural gas pipeline system, the connection to Shell's Camisea gas
fields in the Peruvian Amazon is a plausible option but one which will
result inboosting oil and gas development in the fragile tropical rainforest
of the Southern Peruvian Amazon.
* Only the environmental benefits of this gas project are being emphasized.
Although gas consumption may be cleaner than other fuels, the environmental
impacts associated with gas production are very similar to that from oil
production. These impacts should be discussed and addressed especially since
they impact the Amazon rainforest.
2. PIPELINE CONSTRUCTION WILL IMPACT THE PANTANAL, THE CHACO, AND ATLANTIC
RAINFOREST
ON BOLIVIAN SIDE
The gas pipeline will cross 570 km in Bolivian territory starting with a
natural gas Plant of Rio Grande, 40 km from Santa Cruz de la Sierra and runs
to Corumba Brazil. During the construction phase, a 30 meter wide (90 feet)
path will be opened up. Following construction, the right of way will be 17
meters wide (51 feet) and will be buried in a one meter (3 feet) deep
trench. In addition, 508 km of existing roads will be upgraded in the
project area (including access roads along the perimeter of Gran Chaco
National Park and inside the Santa Cruz La Vieja Park).
On the Bolivian side, the gas pipeline will impact:
1. Gran Chaco Park - The largest tract of subtropical dry forest in the
Americas with one of the highest mammalian species diversities on the
continent (3.4 million hectare protected area of great biological diversity
with presence of indigenous populations). The pipeline will follow the
northern boundary of the Park for 75-150 kilometers. Risks include
increased colonization of the area due to establishment of access roads,
increased hunting pressure within the park.
2. the Izozog swamps - are periodically flooded. This area is occupied by
the Zozeno/Guarani indigenous community (some 22 communities)
3. Chiquitos and the Utoquis swamps - are area with palm trees, aquatic
vegetation and not very deep soil which is for the most part is intact.
These areas have been recommended by some Bolivian environmental groups for
protection status.
4. Historical National Park of Santa Cruz la Vieja Park will be impacted by
road improvement work and increased traffic in the area.
5. Indigenous Areas: Three indigenous groups identified including the
Ayereo, the Chiquitano, and the Izozeno/Guarani. The project proponents are
in negotiation with the Izozeno Guarani indigenous groups represented by
Capitania del Alto y Bajo Izozog (CABI) over a compensation and mitigation
package (for example creation of a fund to manage and protect the Gran Chaco
National Park). Over 8000 indigenous people live in over 22 communities.
CABI also is responsible for management of the Gran Chaco National Park. The
final package is not public until after the Final Analysis Mission to the
region (July 1 or 2).
ON THE BRAZILIAN SIDE
The length of the pipeline on the Brazilian side will be 2,315 km starting
in Corumba and passing through Campinas (SP), Curitiba (PR), Florianopolis
(SC), and Porto Alegre (RS). During the construction phase, a 20 meter (60
feet) wide area will be severely impacted along the route of the pipeline.
The study claims that 85% of the area crossed by the pipeline has been
previously impacted by human activity, 15% has not and 7% may not readily
regenerate after the construction phase. This tranlsates to 345 km strip of
pristine areas to be impacted of which 1/2 will be permanently destroyed.
Areas with greatest impact include:
1. The pipeline will cross 70 km the Pantanal in Mato Grosso do sul, the
largest wetlands in the world. The selected route has been changed to
coincide with BR-262 thereby reducing its impacts. Although the project's
area of influence include the Pantanal Arenoso Biological Reserve and the
Pantanal Matogrossense Environmental Protection Area.
2. The pipeline will cross 70-100 km of Mata Atlantica Forest Reserve in the
State of Santa Catarina (to be approved by IBAMA).
3. the Aparrados of the Serra, a legally protected area on the border of
Santa Catarina and Rio Grande do Sul States (steep slopes, high rainfall
with high erosion potential).
4. Various archeological sites especially in the State of Parana.
5. In the State of Sao Paulo, the path will cross the Protected Areas of
Ibitinga and Corumbatati (important transit of migratory birds), and a
section of the National Forest of Ipanema and remnants of the Atlantic
Forest in Serra de Paranapiacaba.
Indigenous Areas:
There are four indigenous communities in the project's area of influence in
Brazil (not directly in the pipeline's right of way). Three communities are
located in the state of Mato Grosso do Sul (Terenas Indigenous Area) with
total population of 3,500 people. One community is located in Santa
Catarina and belongs to the Guarani Nandeva group (this group has a
semi-nomadic lifestyle and depends on fishing, hunting and subsistence
farming).
GENERAL NEGATIVE IMPACTS
* opening of access roads through which squatters, goldminers, and loggers
will be able to enter and which can cause conflict in protected areas
(especially in the Gran Chaco National Park).
* establishment of construction sites and housing for workers (800-1600
workers at a time) (generating sewerage and garbage);
* fragmentation of forest system by the pipeline's right of way, inhibiting
the free movement of some species, opening of trails which bring in poachers
and hunters of alligators, mammals and rare bird;
* destruction of breeding grounds, interruption of the movement f animals
through the gas pipeline's right of way;
* changes in the daily life of residents of small towns due to the influx of
workers and the potential for increase contagious diseases brought by workers;
* eventual destruction of archeological sites;
* risk of accidents due to fire and explosion (especially in the region of
Campinas, SP);
* increase in traffic volume during the construction phase requiring
improvement of the feeder road systems;
* silting of running streams which will be crossed by the pipeline;
* alteration of water course supplying the swap and wetland areas, through
blocking drainage, raised the ground water level, etc;
* excessive use of quality surface and groundwaters to supply workers and to
perform tests on the pipeline;
* acceleration of erosion process in fragile zones, slope instability,
mudslides, sinking of soil in calcareous cave areas;
* permanent elimination of 700 hectares of silviculture and forests remnants;
* elimination of 230 hectares of forests and savannas in the Pantanal and
130 hectares of other forests and 160 hectares of grassy-woody savannas;
* alteration to several protected areas and the Atlantic Forest.
Kari Hamerschlag
Bank Information Center
Latin American and Caribbean Program
2025 I street #400 NW
Washinton DC 20006
Tel: 202-776-0624
fax: 202-466-8189
email:karih@igc.apc.org
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South and Meso American Indian Rights Center (SAIIC)
P.O. Box 28703
Oakland CA, 94604
Phone: (510)834-4263 Fax: (510)834-4264
Email: saiic@igc.apc.org
Office: 1714 Franklin Street, 3rd Floor, Oakland
Home Page: http://www.maxwell.syr.edu/nativeweb/abyayala/orgs/saiic/
For more information about SAIIC, send an empty email message to:
saiic-info@igc.apc.org