Personal tools
You are here: Home english resources link mining Peru - Paradise thrashed - Peru's Camisea Project
contact us

by email

by letter

 

Peru - Paradise thrashed - Peru's Camisea Project

16case
  link
december 2003   

 

paradise thrashed

peru's camisea project
corporates: halliburton [usa], hunt oil [usa], pluspetrol [argentina]

“In the past, Shell worked here and almost all of us died from the diseases. [...] We know that if another company comes here, our rivers and land will be destroyed. The rivers will be polluted, the fish will die and the animals will run away. Minister, we ask you, what will we eat when the rivers are dead and the animals have run away? [...] We do not want companies working here, we wan clean water and a quiet and peaceful life .”
Delegation of Nahua indigenous people to the Peruvian government, from a November 2003 Amazon Watch press release.


A traditional elder from the Shivankoreni indigenous community, Peru.

Peru's Camisea gas project is currently the most damaging project in the Amazon Basin. Located in the remote Urubamba Valley in the southeast Peruvian Amazon, the US$1.6 billion project includes two pipelines to the Peruvian coast that cut through an Amazon biodiversity hotspot considered by ecologists as “the last place on earth” to drill for fossil fuels. Nearly 75 percent of the gas extraction operations are located inside a state reserve for indigenous peoples – living with little or no contact to the outside world – who have been forcibly contacted by the Camisea consortia in violation of their internationally recognized rights. The pipeline will also cut through one of the world’s most pristine tropical rainforests, home to the Nahua, Kirineri, Nanti, Machiguenga and Yine indigenous peoples. A gas processing plant is being built on the Peruvian coast within the buffer zone of a marine reserve of international significance.

The two major US companies involved in the project are Halliburton and Hunt Oil, both of which have longstanding ties to the Bush- Cheney administration. For the final phase of the project, Halliburton is in line to build the gas processing plant, and Texas-based Hunt Oil will construct a plant to liquefy natural gas for export to the United States. Half of Camisea's gas will be shipped to the US to supply West Coast energy markets. This flood of cheap gas could undermine California's renewable energy initiatives.

Awarding a concession for the project was a prerequisite for Peru to receive loans in the 1990s from the International Monetary Fund. Now, the project is racing forward to meet its August 2004 deadline for completion. Led by Argentina’s PlusPetrol, inexperienced companies with poor environmental records have plowed ahead with construction, showing neither the will nor the ability to avoid the serious environmental and social impacts now affecting the entire local population. Government oversight is weak, and project financiers seem unable and unwilling to implement international standards to stop the devastation.

criticizing camisea
In a major campaign victory, the US Export- Import Bank rejected financing for the project in August 2003, marking the first time that a project has ever been turned down by Ex-Im’s Board of Directors on environmental grounds. But just days later, a loan from the Inter- American Development Bank (IDB) went through, despite the project’s failure to meet international standards, to avoid lands of uncontacted indigenous peoples and to remove the proposed export terminal from the Ramsar-protected Paracas Marine Reserve. Along with the Export-Import Bank, the Overseas Private Investment Corporation’s refusal to fund Camisea and Citigroup’s recent withdrawal as financial advisor are further indications that the project is financially, environmentally and socially risky. There are already reports that the project has caused massive erosion and pollution and has made use of divisive community relations tactics. International environmental expert Dr. Robert Goodland has suggested an investigation into allegations that contact initiated by the project is causing harm to isolated indigenous groups, who lack immunity to common respiratory and gastrointestinal diseases.

Camisea has attracted widespread critique, and celebrities and activists including Sting and Bianca Jagger have publicly taken part in the campaign to stop public financing. Civil society will continue to monitor the project, as well as future attempts at development in this pristine part of the world.

more information:
us export-import bank rejects camisea gas project
press release : Inter-American Development Bank blasted for backing risky Camisea Project in Peru, rainforests, indigenous lives and marine reserves at stake
Friends of the Earth United States: www.foe.org/camps/intl/eca/top5.html#1
Amazon Watch: www.amazonwatch.org/amazon/PE/camisea
Bank Information Center: www.bicusa.org



Document Actions