STOP
K2R4
EBRD shifts mission: European Bank for
Radiation Development founded
=================================
More information:
www.bankwatch.org/k2r4
=================================
A joint press release of CEE Bankwatch
Network, National Ecological Centre of
Ukraine and Friends of the Earth
International.
Prague, Kiev, Amsterdam, December 7th
2000.
Today, the Board of Directors of the
European Bank for Reconstruction and
Development decided to support the completion
of two nuclear reactors in Ukraine, the so
called Khmelnitsky 2 and Rivne 4 (K2/R4)
project. The Bank will make available a loan
of 215 million US $, albeit with a whole
string of conditions attached.
Apparently the decision was a close call,
with only 63,7 % of shareholding countries
supporting the project. CEE Bankwatch
Network, Friends of the Earth International
and National Ecological Centre of Ukraine are
deeply disappointed that the EBRD gave in to
the blackmailing efforts of Ukraine, which
threatened to delay the closure of the last
remaining reactor at Chernobyl. This was the
reason for some of the larger members voting
in favour of the project despite the
reservations they have made in the past about
K2/R4.
Khmelnitsky 2 and Rivne 4 (K2/R4) are two
partially built, Russian designed 1000 MW
VVER nuclear units in Ukraine, which the
government has not been able to complete on
its own. Ukraine has therefore been seeking
the necessary 1,48 billion USD from other
sources to complete the plants. The EBRD is
to provide 215 million US$, the remaining
funds will come from EU and bilateral
sources.
"We cannot trust to the EBRD anymore.
Under the French President Lemierre the bank
has become a representative of the nuclear
lobby. Instead of playing a lead role in
fostering sustainable development in the CEE
region, as is so proudly stated in the Banks
mission statement, it has now become involved
in providing funding for the moribund nuclear
industry. Today this institution became a
bank for radiation development", said Yury
Urbansky from National Ecological Centre of
Ukraine. "Ukrainians have already suffered
from the accident in Chernobyl. Now the EBRD
expects our people to be a source of funding
for this inherently unsafe and uneconomic
project."
CEE Bankwatch Network, National Ecological
Centre of Ukraine and Friends of the Earth
share the view of countries who voted against
the project (e.g. Netherlands), that: the
financial basis of the proposed loan is
absolutely insufficient; alternative
financing arrangements have not been
investigated; the Environmental Impact
Assessment of the project shows gaps; and
(non nuclear) alternatives for the project
have not been seriously investigated.
"Today s decision is a sad one, but it is
not the end of this story. Our organisations
are going to continue to oppose the project,"
said Johan Frijns from Friends of the Earth
International. "Let it be clear that
countries and directors who supported this
project today will be held liable for this
decision and any disaster that might derive
from it. We are going to ensure that everyone
knows their names".
The EBRD loan is based on conditions that
additional funding is raised from other
sources e.g. from the EU and a number of
Export Credit Agencies. To date this
additional funding has not been secured.
Furthermore other conditions have to be met
before the loan is effective. This includes
substantial changes to the energy sector in
Ukraine which will have large social impacts.
"We are going to support the Ukrainian public
who oppose K2/R4, we will fight it until this
insane project is finally stopped" said Petr
Hlobil from CEE Bankwatch Network.
Notes for Editors
The EBRD project was supported only by
63.7 % of shareholding countries, 9 countries
were against it and 11 abstained from
voting.
Expected funding (in US$): EBRD 215 mil.,
EURATOM 585 mil., Russian Gov. 124 mil.,
Ukrainian government 50 mil., and Energoatom
(the project sponsor) 159 mil. the rest of
the construction would be financed through
Export Credit Agencies (UK 28 mil., Czech
Republic 16 mil., France 136 mil., Spain 23
mil., Switzerland 14 mil. and USA 131
mil.).
More information: Johan Frijns, Friends of
the Earth International 31-20-6221369-
Petr Hlobil, CEE Bankwatch Network at
mobile: -420-603-154 349
Yury Urbansky, National Ecological Centre
of Ukraine, t/f: -380-44- 238 62 60, m:
-380-50-51 23 222
Background materials and other documents
can be found at
www.bankwatch.org/k2r4
The official EBRD press release can
be found at
www.ebrd.org
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