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20 april 2001
european bank for reconstruction and
development:
ten years of misinformation, secrecy and
missed opportunities
CEE Bankwatch Network today publishes a
report on the European Bank for
Reconstruction and Development (EBRD). The
report shows that, over the decade since the
EBRD was set up, it has not only failed to
fulfil its mission of promoting democracy and
sustainable development, but has used tactics
of misinformation, secrecy and denial of
public involvement to advance its own agenda
at the expense of the needs of Central and
Eastern European (CEE) countries.
"The EBRD does not serve the interests of
the people in our countries, but rather the
interests of oil, nuclear and other lobby
groups," commented Petr Hlobil of CEE
Bankwatch Network. "Projects such as the
funding of two nuclear reactors in Ukraine
also clearly show that the EBRD is
incompetent as a bank, since the project is
uneconomic."
"Friends of the Earth is appalled at the
EBRD's missed opportunities in the CEE and
CIS," stated Jim Barnes, Counsellor to the
Friends of the Earth International Network.
"Instead of supporting the development of
civil society and democratic institutions,
EBRD has sided with transnational
corporations. Its investment choices in the
crucial energy and transport sector have
largely ignored urban transport and energy
conservation in CEE countries, for
example."
The report - "The EBRD: a Decade of
Misinformation and Secrecy" - looks at five
recent EBRD projects, showing that they have
been forced on people who have not been given
access to project information or the
opportunity to comment and have their wishes
taken into account. Weak national laws have
been exploited so that public participation
is minimized or ignored. EBRD continues to
fail to provide key information in national
languages and projects routinely have late
and incomplete release of documentation.
Often the EBRD underestimates the
environmental and social impacts of its
projects.
Case studies include the funding of two
nuclear reactors in Ukraine (the project is
known as K2/R4 - for which a $215 million
loan was approved by the EBRD Board in
December 2000). The Ukrainian authorities and
EBRD have shown their disregard and contempt
for public participation in environmental
decision-making through actions ranging from
the merely uncooperative to outright
intimidation and coercion.
In the Frontera Project in Azerbaijan and
Georgia, approval was given without any
Environmental Impact Assessment despite the
fact that it aims to extract oil in a strict
Nature Reserve area in Azerbaijan,
established to protect an endangered species
of gazelle. The EBRD subsequently approved
the second phase of the project with a total
loan of $60 million. The public participation
process for the second phase of the project
has been condemned as inadequate by civil
society groups.
CONTACT: Petr Hlobil, CEE Bankwatch
Network or James Barnes, Friends of the Earth
International (mobile +420-603-154 349),
energy@bankwatch.org, www.bankwatch.org
Notes for Editors:
The EBRD was established in 1991 with the
aim of assisting countries of Central and
Eastern Europe (CEE) and the Commonwealth of
Independent States (CIS) with the transition
to market-orientated economies. It is
answerable to its shareholders, which include
58 countries, as well as the EU and the
European Investment Bank. The EBRD provides
loans, equity investments and guarantees for
private and public sector projects in the
areas of finance, infrastructure, industry
and commerce in 28 countries in the CEE and
CIS regions. The nature of financed projects
varies greatly and ranges from nuclear power
generation through to cheese manufacturing.
The EBRD is now the largest foreign investor
in these regions.
CEE Bankwatch Network is an association of
citizens' organisations from 11 countries of
Central and Eastern Europe concerned with the
activities of International Financial
Institutions (IFIs) in the region. One of the
main goals of the Network is to facilitate
informed public dialogue on IFIs policies and
projects.
Friends of the Earth is the world's
largest federation of environmental groups,
uniting close to one million activists
worldwide. FoEI's member organizations in 68
countries and 13 affiliate groups campaign on
the most urgent environmental and social
issues of our day.
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