media advisory
February 8, 2006
Friends of the Earth International
CEE Bankwatch Network
CRBM
GUE/NGL Group
WEED
new report: 'the european investment bank
in the south: in whose interest?'
can the e.i.b. deliver on development?
BRUSSELS, BELGIUM, February 8, 2006 -- A
day before the European Investment Bank (EIB)
sets up a special trust fund to disburse
European aid to Africa, a new report launched
today in the European Parliament reveals that
the EIB is currently under prepared to
deliver on development.
Available online [1], the report was
authored by Jaroslava Colajacomo on behalf of
four sponsoring NGOs – CRBM, CEE Bankwatch,
Friends of the Earth International and
WEED.
'European Investment Bank in the South. In
whose interest?' evaluates the environmental,
social and development consequences of EIB
operations in Africa, Latin America and Asia
and presents eight case studies [2] of
controversial EIB financed projects in
Zambia, Chad, Cameroon, Brazil, Mexico,
Philippines, Indonesia and Laos and covers
areas such as mining, oil, the pulp industry,
water privatisation and large hydro dams.
The European Commission initiative to
launch the Africa trust fund jointly with the
EIB includes a hoped for start date as early
as June this year.
Following tomorrow's launch the EU executive
and the EIB will need to discuss with
European ministers to convince them to
contribute to the fund, though it has been
reported in the press that there are some
doubts about the new fund among the member
states.
Jaroslava Colajacomo summarises: "Our
report shows that there is a lack of
development strategy in the EIB’s operations
in the South and that its funding is more
directed towards supporting big companies in
sectors such as extractive industries or
water privatisation than towards poverty
alleviation or environmental standards. We
also propose recommendations for necessary
changes in the institution and for the role
of the Commission and the Parliament in
ensuring supervision and coherence."
Gabriele Zimmer MEP said: "Each of the
detailed case studies outlined in this report
– for instance that of a 1.25 billion US-
dollar investment in a Brazilian pulp mill -
are not addressing the Millennium Development
Goals and are not in line with the European
Consensus on Development. This indicates that
EU member states, when extending the EIB's
mandate to become the Union's development
bank, will have to equip the institution with
the tools - procedures and expertise – to
enable it to act as one. Vienna will not be
able to close its eyes to our demand during
its Presidency term."
Magda Stoczkiewicz, of CEE Bankwatch
Network, said: "The EIB is currently a
client-driven institution which readily
finances projects where economic returns are
guaranteed. The Commission wants to make the
EIB a sort of European 'World Bank', but the
institution will have to change profoundly if
it is to deliver positive poverty alleviation
and environmental protection outcomes."
Luisa Morgantini, MEP stated: "The global
credibility of EU is at stake if the EIB, the
largest public bank in the world, undermines
key European development goals and strategies
on lending operations to Africa. The
Commission and the Council must now strive to
establish development coherence among all the
European financial instruments as recommended
by the Development Committee of the European
Parliament last year."
Longgena Ginting, of Friends of the Earth
International, added: "In the country I come
from, Indonesia, the EIB has invested in
water privatisation projects among other
things. These kind of projects have done
nothing to improve the quality of service,
but they have brought increased water costs
to Indonesia’s households."
FOR MORE INFORMATION CONTACT:
Martin Icke (GUE/NGL Press office) Tel:
+32 477 47 00 31
Jaroslava Colajacomo Tel: +39 338
3279035
Antonio Tricarico (CRBM) tel: +39 328
8485448
Magda Stoczkiewicz (CEE Bankwatch Network)
Tel: +32 475 86 76 37
Longgena Ginting (Friends of the Earth
International) Tel: +31 6 18846365
Hannah Ellis (Friends of the Earth) Tel: +44
7952 876 929
Klaus Schilder (WEED) Tel: + 49 177 4341
642
NOTES:
[1] Copies of the report can be downloaded
from:
www.foei.org/publications/pdfs/eibinthesouth.pdf
or
www.bankwatch.org/documents/eib_in_south_3.pdf
[2] The report includes case studies
regarding mining in Zambia (by Peter Sinkamba
of Citizens for a Better Environment,
Zambia), the Chad-Cameroon Oil Project (by
Korinna Horta, of Environmental Defense,
USA), the Mexico Volkswagen Project (by
Domitille Delaplace, of Equipo Pueblo,
Mexico), the Mexi-gas Project (by Domitille
Delaplace, of Equipo Pueblo, Mexico), the
Veracel Pulp Mill in Brazil, (by Chris Lang,
of World Rainforest Movement), water
privatisation in Jakarta (by P. Raja Siregar
of WALHI/ Friends of the Earth Indonesia),
water privatisation in the Philipines (by Mae
Buenaventura and Bubut D. Palattao, of
Freedom from Debt Coalition, Philippines) and
the Nam Theun II Dam in Laos (by Gary Lee of
TERRA, Thailand).
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