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- Paper Pulp Mills - Uruguay
- Corporate Accountability and Human Rights
- Climate Change and Human Rights
CEDHA Demands that CESCE (the Official Spanish Export Credit Agency) withdraw considerations to finance ENCE, the Spanish Company Projecting a Mega-Papermill in Uruguay
Córdoba Argentina – April 5, 2006. The Center for Human Rights and Environment (CEDHA), commicated today to CESCE (the official Spanish Export Credit Agency) that any eventual financial assistance to ENCE, a mega-papermill project to be constructed in Uruguay on the Argentine-Uruguayan border, would violate international human rights and environmental law, which governs all actions by the Spanish State, including actions by its related agencies.
CESCE indicated last month that it is considering providing financial assistance to ENCE, which had to halt construction of its proyected papermill when CEDHA, the Government of Entre Rios (Argentina), the Environmental Citizens Assembly of Gualeguaychú and Uruguayan Environmental Groups filed a complaint against the IFC for failing to comply with World Bank Social, Environmental and Transparency safeguard policies, violations that have been confirmed by the CAO, the Bank’s own control mechanism for IFC investments.
CEDHA reiterated to CESCE the recent commitment made by the Spanish Government to remain neutral in the Argentine-Uruguayan conflict, which pits two friendly nations, historically in good relations with Spain, against eachother. Support by CESCE to ENCE would violate this commitment, said CEDHA to CESCE.
Stalled by the blocking of international finance from the World Bank, and seeing its nearby rival the finnish Botnia, the other papermill plant currently in construction with Botnia self-financed construction (as they also have had international finance stalled), ENCE is seeking alternative financing for its mills, including from the Spanish state, which finances Spanish companies investing in international private investment through Export Credit Agencies (ECAs) like CESCE and ICO, the state owned loans provider.
CEDHA also warned CESCE that any eventual support to ENCE would trigger an OECD complaint, as well as judicial action before Spanish and/or European tribunals, which conditions public action in private investments under international standards of coporate responsibility and applicable regional and international law. There is already favorable jurisprudence of actions against ECAs in the USA and in Germany for example, for ECA investment which negatively impacts local communities in other countries.
Link to CEDHA letter to CESCE (available only in Spanish).
More Information
For more information contact:
Jorge Daniel Taillant
Center for Human Rights and Environment (CEDHA)
Tel. 54 3541 494 162
Cel. 54 9 351 625 3290
jdtaillant@cedha.org.ar
