Sr. Carlos Francisco Theodoro Machado de Lessa
MD. President, Banco Nacional de Desenvolvimento Econômico e Social.
BNDES
Av. República do Chile, 100 - 19º andar
Centro - Rio de Janeiro - RJ.
March, 2004.
Sr. President.
The Brazilian Environment and Development Forum of NGOs and Social Movements (FBOMS), the Rios Vivos Coalition, and other civil society organizations that have signed below are writing to you, Sir, to express our disagreement with some of the policies and programs of the National Economic and Social Development Bank related to large-scale infrastructure projects in Brazil and in other countries. Many of these projects have caused and will continue to cause irreversible environmental and social damage unless the Bank promotes significant changes in its strategies. We also are in disagreement with the Bank regarding its failure to comply with laws, recommendations, and internal norms for approval of projects presented, with the lack of transparency regarding its actions, and with its lack of response to questions raised by civil society organizations.
We are particularly concerned with the presence of the BNDES, together with the Inter-American Development Bank (IDB) and the Andean Development Corporation (CAF) in planning the program called the "South American Initiative for Regional Infrastructure Integration" (IIRSA). As you are aware, infrastructure projects are being planned for the Paraguay River, the Pantanal, and the Amazon, among other regions. In the Paraguay River and Pantanal, the program attempts to resuscitate the old proposal for construction of the Paraná-Paraguay Hidrovia industrial waterway project, which, if carried out, would provoke economic, social, and environmental alterations, with negative consequences for local economic activities which intensively generate employment and income such as tourism and fishing. Prior official environmental impact studies, prepared under the coordination of the Inter-governmental Committee on the Hidrovia were rejected by renowned specialists as inadequate. The new studies, in preparation, which aim for financial investment under IIRSA, lack the necessary civil society participation, and fail to consider, according to the information we have been able to obtain, the opinions of independent specialists.
In the Amazon region, the implementation of the IIRSA program will exert strong pressure on the best-preserved parts of the rainforest and the savanna, promoting a new and disastrous surge of predatory occupation by loggers, cattle ranchers, and soy plantations. Within this context is complex of hydroelectric dams and industrial waterway on the Madeira River, which you defended in your closing remarks of the "International Seminar for BNDES-CAF Co-financing: Prospective Projects for South American Physical Integration" held in August, 2003, saying "I do not know whether the energy from these dams (Madeira River) will go to Manaus or in the other direction, but I am absolutely certain that the 4,800 kilometers of aquavias, and the planting (with soy and other grains) of 30 million hectares in Brazil and Peru ? represent for our history ? what was the occupation of the old west of the North American continent". We are all aware of the results for indigenous peoples of the model of occupation applied in the American West. Along these same lines, BNDES´s Senior Vice President, Darc Costa, called the Andes, the Pantanal, and the Amazon regions barriers to be overcome by what he termed "the civilizatory process". These positions come into direct conflict with the environmental policies of the current Brazilian government. The public is well aware that last year an interministerial workgroup was created exactly to avoid the
deforestation that you propose for the Amazon.
It is unacceptable to finance more and more hydroelectric dams without being interested in where the energy is destined. A correct energy policy, in accord with the country´s best interests, should prioritize energy efficiency and conservation. It has been technically proven that it is possible to increase production using the same quantity of energy currently generated. Last year, following the threat of "blackouts", it was widely reported that there was a surplus of 7,000 MW available, without cuts in industrial production and in other sectors of the economy. The country has advanced greatly in terms of conservation and energy efficiency but, unfortunately, subsequent governmental actions provided incentives instead for increased energy consumption.
It is necessary to redirect part of those investments planned in energy generation toward technological development - support for adequate production systems; substitution of obsolete electric motors with more efficient motors; new lighting systems and minimizing losses in electricity transmission, considering that in this case the Brazilian indices are much higher than those accepted internationally. Part of this new policy we propose should include the retrofitting of older dams. Studies indicate that this measure would permit a 20% growth in the quantity of energy available. Another alternative worth pursuing is incentives for "new" energies through renewable sources with lesser impacts, particularly wind, solar, and biomass.
Why spend billions and billions of dollars on destructive and unnecessary dams such as Belo Monte on the Xingu River and Peixe Angical on the Tocantins River. It is worth remembering that BNDES is ignoring directives of the Environment Ministry when it decides to finance dams without carrying out prior studies to identify impacts of hydroelectric dams on the basin-wide level. In fact, a "Strategic Environmental Assessment" should be urgently carried out in the Araguaia and Tocantins basin, considering the large number of dams constructed and being planned, the advance of the agribusiness frontier, and the proposal for constructing the Araguaia-Tocantins hidrovia industrial waterway. The terms of this study should follow those proposed by the Rios Vivos Coalition and the Savanna (Cerrado) region NGO Network to the National Water Agency (ANA) and the IDB in September, 2002.
In terms of social issues, the financing of large dams has shown the Bank´s fragility in failing to apply its own guidelines, as in the case of Barra Grande and Campos Novos dams, in the Uruguay River basin. In the case of these dams, the Bank´s directive for "social inclusion", presented as the most important of the new directives announced in May, 2003, appears to have not considered the conflicts provoked by the intransigence of the companies building the dams regarding the demands of the affected populations. In these cases, thousands of families are facing a precarious future following the loss of their homes and rural lands.
Internationally, BNDES has financed projects of enormous economic, social, and environmental impacts without being concerned with the Bank´s lack of capacity to evaluate and monitor the projects´ consequences. Among these problem projects are the Bolivia - Brazil Gas Pipeline, San Francisco dam in Ecuador and Three Gorges dam in China. Three Gorges is an obvious example - more than one million people forcibly removed from their lands and homes without any right to question the authoritarian Chinese regime, and the Bank´s failure, as financier, to guarantee even minimal rights for the affected populations. In January, 2003, dozens of organizations from Brazil and various other countries sent you a letter regarding this situation. Unfortunately, more than a year later, they are still awaiting your response. In order that we not witness the repetition of what happened in China, we would hope that the Bank abandon negotiations for financing Son La dam in Vietnam, which, if constructed, would displace about 100,000 people.
In terms of transparency and governability, we observe that rules and norms for BNDES, established by the National Congress, by Executive Decrees, and by the Bank´s own Directors appear to generally guarantee transparency and responsibility in the decision making process on loans. However, the reality is that these requirements are not being followed by BNDES, particularly as regards large-scale infrastructure projects. Concerns have increased following your recent declarations regarding the reduction of the timeframe for Project approval, a clear sign that analyses of proposals may further lose rigor and depth, fundamental conditions for identifying and establishing mechanisms for minimal economic, social, and environmental conditionality, including those in the "Green Protocol" document, which is intended to orient the Bank´s actions, but which has been largely ignored by the Bank.
Under the curtain of "bank confidentiality", BNDES has failed to provide clear information on the results of its operations, beyond their financial aspects. Beyond this, the Bank has refused to provide information on its participation in specific projects when questioned. An example is the Bank´s failure to respond to letters from civil society groups, as in the case of Three Gorges.
As a financial institution operating with public resources, BNDES should, as a first step, furnish complete and readily accessible information to society regarding projects already funded or considered for funding by the institution. This procedure is followed by international institutions such as the Inter-American Development Bank and the World Bank and should be seen as a minimal requirement for promoting transparency in the institution.
The organizations signing this document intend to promote a broad and democratic debate with BNDES, opening channels for the presence of society in its evaluations and decisions. We understand that it is necessary to re-orient actions so that the Bank may strategically attend other logics of interest to Brazil and other countries where it operates, and so that it may be transformed into a supporter of socially, economically, and environmentally sustainable development.
As a basic agenda for discussion, we propose that BNDES re-evaluate:
•its support for South American integration through infrastructure works in the IIRSA program and that it seek other possibilities for developing actions to integrate the countries.
•its financing for large-scale projects in the Amazon and Savanna region, and the resulting social, economic, and environmental impacts, and that it analyze other possibilities for increasing production in already-deforested areas.
•its policies for financing initiatives and projects in energy, including hydroelectric dams, and that it consider increased funding for efficiency, conservation, and renewable resources.
•its mechanisms for consultation with populations affected by projects financed by the Bank and the role of companies which refuse to negotiate with organizations that represent these populations.
•the need for increased specialized in order to permit a broader analysis of the impacts of its financing.
• its guidelines for external financing, considering the right to free expression and access to information by populations affected by BNDES-financed projects, as well as their basic human rights.
As an important step, and trusting in your understanding and in the commitments made by the current Brazilian government, as well as the urgency that a solution be found for the themes presented, we ask for a meeting with you as soon as possible. We propose that six civil society representatives chosen by the Brazilian NGO and Social Movements Forum and the Rios Vivos Coalition take part.
Sincerely,
Fórum Brasileiro de ONGs e Movimentos Sociais para o Meio Ambiente e o Desenvolvimento (FBOMS)
Temístocles Marcelos
Secretário Executivo
Rua General Jardim, 660 - 8°andar, sala 81
Vila Buarque
01223-010 São Paulo - SP
Fone: (11) 3159-5071
Coalizão Rios Vivos
Alcides Faria
Secretário Executivo
Rua 14 de Julho 3169
79002 – 333 - Campo Grande MS
(67) 324 3230.
Rede Brasil sobre Instituições Financeiras Multilaterais
Marcus Faro - Secretario Executivo
Fone: (61) 321-61-08
Grupo de Trabalho Energia do FBOMS**
Lúcia Schild Ortiz
Coordenadora
APEDEMA-RJ - Assembléia Permanente de Entidades de Defesa do Meio Ambiente do Estado do Rio de Janeiro
Ivan Marcelo Neves
Secretaria Executiva Estadual
Rede Pantanal
Alessandro Menezes
Secretario Executivo
Rede Cerrado
Rosane Bastos
Rede Mata Atlantica
Miriam Prochnow
Instituto Vitae Civilis
Délcio Rodrigues
SAPÊ - Sociedade Angrense de Proteção Ecológica
José Antônio dos Remédios
Grupo Ambientalista da Bahia - Gambá
Renato Cunha
Instituto de Estudos Sócio-econômicos – INESC
Ricardo Verdum.
Instituto Terrazul
Fernando Avelino
Esplar- Centro de Pesquisa e Assesssoria
Magnólia Azevedo Said
Núcleo Amigos da Terra / Brasil
Elisangela Paim
GESTA - Grupo de Estudos em Temáticas Ambientais (UFMG)
Andrea Zhouri
A Comissão Pastoral da Terra - CPT XINGU
Tarcísio Feitosa da Silva
Movimento Pelo Desenvolvimento da Transamazônica e Xingu – MDTX
Tarcísio Feitosa da Silva
Fórum de Debates sobre Energia de Rondônia – FOREN
Artur Moret
Instituto Sociedade, População e Natureza (ISPN)
Donald Sawyer.
Instituto Ambiental Vidágua
Rodrigo Antonio de Agostinho Mendonça
4 Cantos do Mundo
André Teixeira Sampaio
FASE- Programa Amazônia Sustentável e Democrática.
Maria Emília L.Pacheco
Fundação Cebrac
Mauricio Galinkin
Ecoa – Ecologia e Ação
Alessandro Menezes.
Sindicato dos Eletricitários do Ceará - SINDELETRO
Fernando Avelino
Terrazul Ceará e Sindeletro
Amigos da Terra Amazonia
Roberto Smeraldi
FASE - Espirito Santo
Marcelo Calazans
Fórum Carajás
Mayron Régis
Urgewald – Alemanha
Bárbara Happe.
International Rivers Network - EUA - Programa América Latina
Glenn Switkes
W E E D - World Economy, Ecology & Development - Germany
Carole Werner
Campagna per la riforma della Banca mondiale - Italia
Antonio Tricarico
Proyecto Gato - Belgica
Jan Cappelle
Foro Ecologista Del Paraná - Argentina
Jorge Daneri
Sustainable Energy and Economy Network (SEEN)
Institute for Policy Studies
Nadia Martinez
International Program Environmental Defense
Bruce Rich
Director
Friends of the Earth - US
Jon Sohn
Friends of the Earth - Japan
Ikuko Matsumoto
Director of Development Finance and Environment Program
Friends of the Earth - Canada
Beatrice Olivastri
Chief Executive Officer
Amigos de la Tierra Internacional - Holanda
Janneke Bruil
Coordinadora Programa Instituciones Financieras Internacionales
COECOCeiba - Amigos de la Tierra Costa Rica
Isaac Rojas
Friends of the Earth - Slovakia
Stefan Janco
Coordinator
Bund für Umwelt und Naturschutz Deutschland e. V.
Amigos da Terra - Alemanha
Klemens Laschefski
Center for International Environmental Law (CIEL)
Marcos A. Orellana
Senior Attorney
Sustainable Energy & Economy Network
Daphne Wysham
Director
Mineral Policy Institute - Australia
Techa Beaumont
AID/WATCH - Monitoring the development dollar
Kate Walsh
Campaigner
EURONATURA - Portugal
Renato Roldao
BankTrack
Johan Frijns
Coordinator
REGENWALD
László Maraz
Director
The Corner House
Nicholas Hildyard
Halifax Initiative Coalition - CANADA
Fraser Reilly-King
Coordinator
CEADES Bolivia
Jorge Cortés
Doug Norlen
Policy Director
Pacific Environment
ARA (Working Group on Rainforests and Biodiversity)
Wolfgang Kuhlmann
Berne Declaration - Private Finance Program
Andreas Missbach
KoBra - Kooperation Brasilien e.V.
Bundesweiter Zusammenschluß der Brasiliensolidaritätsgruppen
União Nacional de Grupos de Solidariedade ao Brasil
Kirsten Bredenbeck
Society for the peoples of the rainforest
John Kunzli
secretary
MANDACARU
Menschen leisten Widerstand - O povo resiste
Heinz Peter Vetten
BanglaPraxis - Bangladesh
Zakir Kibria
Executive Director
Rettet den Regenwald e. V.
Reinhard Behrend
Forests.org, Inc.
Glen Barry
President
ILSA - Instituto Latinoamericano de Sevicios Legales Alterantivos - Colombia
Margarita Flores
Grupo Semillas - Colombia
Margarita Flores
Center for Environmental Law and Community Rights Inc
Ruth Pune
Adocacy/Campaign Coordinator
Center for Environmental and Public Advocacy - Slovakia
Juraj Zamkovsky
Executive Director
Za Zemiata (For the Earth)
Anelia Stefanova
Rainforest Foundation - UK
Simon Counsell
Executive Director
Rainforest Foundation - USA
Christine Halvorson
Interim Executive Director
Bund fuer Naturvoelker e.V. - Germany
Michael Kreuzberg
Alianza Aisén Reserva de Vida
Juan Pablo Orrego
Campañista Internacional
Global Village Cameroon
Akong Charles Ndika
Both ENDS
Sjef Langeveld
Director
Netherlands
Instituto de Ecologìa Polìtica
Manuel Baquedano
Presidente
Kurdish Human Rights Project
Kerim Yildiz
Executive Director
Univ Metropolitana - Mexico
Depto Antropologia
Scott S. Robinson
COECOCeiba - Amigos de la Tierra Costa Rica
Isaac Rojas
Nicaragua Center for Community Action (NICCA)
Diana Bohn
Co-Coordinator
Jubilee Treasurer
Natabuk Federation, Inc. - Philippines
Wilmar Ampuan
Chairperson
Foundation HELP - Tanzania
Benedict Chacha
Southeast Asia Rivers Networks
Chainarong Sretthachau
Directot
* O Fórum Brasileiro de ONGs e Movimentos Sociais para o Meio Ambiente e o Desenvolvimento (FBOMS) foi criado em 1990 por ocasião do início do ciclo de conferências da ONU sobre desenvolvimento sustentável. Por mais de uma década tem articulado ONGs ambientalistas, sindicatos e movimentos sociais na formulação de modelos alternativos a serem incorporados nas políticas públicas para um Brasil sustentável.
A Coalizão Rios Vivos reúne mais de 400 organizações do Brasil, América Latina e Estados Unidos. Tem como temas centrais: Água, Energia, Agricultura e Financiamento para o Desenvolvimento
**Compõe o GT Energia do FBOMS as seguintes organizações: AGAPAN (RS), Amigos da Terra – Amazônia Brasileira (SP), Assembléia Permanente de Entidades de Defesa do Meio Ambiente do Estado do Rio de Janeiro - APEDEMA/RJ (RJ), CEIPAC (SC), CEPEPO/FAOR (PA), Coalizão Rios Vivos, Comissão de Meio Ambiente da CUT/RJ (RJ), CPI (SP), Ecoa – Ecologia e Ação (MS), Federação dos Órgãos para Assistência Social e Educacional – FASE/PA (PA), Federação dos Órgãos para Assistência Social e Educacional – FASE/RJ (RJ), Fórum Carajás (MA), Fórum da Amazônia Oriental - FAOR (PA), Fórum de Debates de Energia de Rondônia – FOREN (RO), Fundação SOS Mata Atlântica (SP), GESTA – UFMG (MG), Greenpeace, Grupo Ambientalista da Bahia – GAMBA (BA), Grupo de Recomposição Ambiental – GERMEN/BA (BA), Ingá (RS), Instituto Ambiental Vidágua (SP), Instituto Ipanema (RJ), Instituto Terrazul (CE), Instituto Vitae Civilis (SP), International Rivers Network - IRN, Instituto Socioambiental - ISA (SP), Movimento Contra Termelétricas (SP), Movimento de Ecologia Social - Os Verdes (RJ), Movimento Nacional dos Atingidos por Barragens – MAB, Movimento pelo Desenvolvimento na Transamazônica e Xingu - MDTX (PA), Núcleo Amigos da Terra / Brasil (RS), Pangea/Agirazul (RS), Projeto Brasil Sustentável e Democrático – PBSD, Rede Brasil sobre Instituições Financeiras Multilaterais (DF), Sindicato dos Trabalhadores na Eletricidade - SINDELETRO/CE (CE), Sindicato dos Trabalhadores Petroleiros – SINDIPETROS/SP (SP), Sociedade Angrense de Proteção Ecológica –SAPÊ (RJ), Sócios da Natureza / FEEC (SC), WWF Brasil (DF).