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Subject: VUOTOS- WHY and WHY NOT
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Date: 11 Jun 1993 19:57:53 U
From: "Matti Pellinen" <pellinen@sll.fi>
Subject: VUOTOS- WHY and WHY NOT?! (
To: "Matti Pellinen" <pellinen@sll.fi>

VUOTOS: WHY and WHY NOT?! (35kt)




<<<<<< Attached TEXT file follows >>>>>>
For our international readers: Please, download these three articles, 
they are long but by reading them you'll know almost everything about 
this huge reservoir, 240 km2, that will cover a part of Finnish Lapland 
in Europe if it's built. International pressure can be of great help. It 
was asked already in 1992 when the government broke it's promise made in 
1982. Nothing has changed. We need to spread information about this 
reservoir. These articles cover everything:

 1.  WHY VUOTOS
     Written by Kemijoki Oy hydropower company

 2.  THE VUOTOS RESERVOIR WILL POSE A THREAT TO LAPPISH NATURE
     Written by The Finnish Association for Nature Conservation

 3.  THE FIGHT AGAINST THE VUOTOS RESERVOIR IS NOT OVER
     Written by Lassi Karivalo, World Wildlife Fund Finland

ARTICLE 1.
-----------------------------------------------------------------------
ATTENTION! The following information about VUOTOS-reservoir comes from 
the Kemijoki hydropower company.
-----------------------------------------------------------------------


                     WHY VUOTOS...

* Hydropower. Hydropower is an entirely domestic form of energy; it 
boosts employment in Finland and saves foreign currency.

* Clean energy. Cleanly generated hydropower is easy on the environment. 
Its potential adverse effects, which are known and of limited scope, can 
be dealt with through joint action.

* 5-10 per cent increase in the volume of regulation energy. Hydropower 
can be used to generate valuable regulation energy to replace expensive 
gas-turbine regulation energy, and to avoid the use of fossil fuels in 
general. Sulphur, nitrogen and carbon dioxide emissions can thus be 
avoided.

* Capacity for storing the flood energy of the River Kemijoki for use in 
winter; decrease in wasteful diversion and flood risks. The Kemijoki 
watercourse has great variations in flow rates and only a few levelIing 
lake basins.

* Permanent tax revenues for the municipalities of the area and 
employment for a ten-year period: for 300 people in Lapland, and for 200 
people elsewhere in Finland. The present outlook for the economy of 
northern Finland is rather bleak, and the population cannot be guaranteed 
sufficient income. Building new hydropower will bring additional 
investment to northern Finland.

* Limited social impact: only 20 individuals will have to move from the 
area. In spite of energy conservation efforts, more electricity must be 
generated, and with cleaner methods. Rivers in their natural state should 
be kept intact, but it is sensible to make use of rivers that have 
already been harnessed. Compensation procedures have been agreed with 
many of the people who will have to move.

          ALMOST A HUNDRED PEOPLE
               EMPLOYED TODAY

   The Vuotos project includes both the reservoir and a 37-megawatt power 
plant. The planned reservoir will cover an area of 23,800 hectares, which 
is less than 0.5 per cent of the total Kemijoki catchment area.
   In September 1992, Kemijoki Oy had acquired more than 9,100 hectares 
of land in the reservoir area, on the basis of land owners' offers. So 
far, this has resulted in payment of more than FIM 50 million to 
landowners, with more than 80 per cent of these compensation funds 
remaining in Lapland. The landowners have the right to compensation in 
the form of land or money.

Fellings started in the area

   Kemijoki Oy started felling in the Vuotos area in August 1992, in 
accordance with the Act on private forests. The area includes some 10,000 
hectares of productive forest land (annual growth 1 m3/hectare), most of 
which has been cut, ploughed or planted. Since 1982. the forest land has 
been used for forestry purposes, so it was no longer virgin wilderness. 
If all timber in the reservoir area were cut, there would be enough wood 
to operate the Kemijarvi pulp mill for four months.
   In autumn 1992, almost 100 people were working on the Vuotos project 
on a full-time basis, carrying out land surveys, investigations, planning 
and fellings.
   Kemijoki Oy will finance some 90 per cent of the reservoir project. 
The total cost estimate is FIM 1,000 million, and the lead time is 10 
years.



INLANDS MOST EXHAUSTIVELY
STUDIED HYDROPOWER PROJECT

   The Vuotos reservoir project dates back to the 1970s. at which time it 
was known as the Kemihaara basin project. This project was abandoned at 
the beginning of the 1970s for environmental reasons, and the reservoir 
planned today covers the present Vuotos area.
   By 1974, when the general plan for the Vuotos reservoir was completed, 
25 extensive surveys had been carried out on the project, and these 
surveys have been followed up by others. Almost 50 research projects have 
been undertaken to date, and research is continuing. Vuotos has been 
studied more thoroughly than any other hydropower project in Finland's 
history.

KeVe model provides support

   The solid store of experience gained at the Lokka and Porttipahta 
reservoirs over a period of more than 20 years provides a firm basis for 
a reliable assessment of the environmental impact of Vuotos. 
Observations. supplementary research and the Kemijoki watercourse model 
(KeVe) can be used to predict the impact that Vuotos will have on the 
watercourse.
   Although the area's ecology and fishery may undergo considerable 
changes at first, they will be restored to normal within 10-15 years.
   Research has shown that the higher the humus content of the water, the 
higher the mercury level in predatory fish. Thanks to intensive fishing 
and rapid fish growth, since the early 1980s mercury levels in fish from 
the Lokka and Porttipahta reservoirs have been equal to or below those of 
fish from natural lakes with corresponding humus contents. To date, there 
has been no need to restrict sales of fish from these reservoirs.

Progress through cooperation

   The Vuotos reservoir project is proceeding as planned. and the surveys 
carried out so far have revealed no surprises or points likely to prevent 
implementation of the project.
   Kemijoki Oy is continuing to conduct environmental surveys and is 
preparing an assessment of the environmental effects of the project. 
Together with the local authorities of the reservoir area, the provincial 
federation of Lapland and supplier companies, Kemijoki Oy has established 
a comprehensive system for monitoring the progress of the project.
   Profitability calculations, which take into account the overall 
economy, energy supplies and needs of society, will be reviewed by 
various interested parties.
   It is estimated that the project will produce energy worth almost FIM 
100 million, which certainly proves that it meets the profitability 
targets.

PROJECT MILESTONES

1960 It all started with the Kemihaara
     basin project.
1974 The Kemihaara basin project was
     abandoned. General plan for the Vuotos
     reservoir was completed.
1982 The Council of State decided to
     cancel the planning and building of the
     Vuotos reservoir.
1985 Changing attitudes in Lapland
     brought new support for the
     building of Vuotos. Various interested
     parties in the province insisted
     that the Vuotos project
     be reassessed.
1987 New building conditions were
     published for Vuotos, and official
     representatives of the provincial
     federation of Lapland voted on the
     project: 39 for, 5 against.
1990 Kemijoki Oy began to acquire land in
     the Vuotos area on the basis of sales
     offers from landowners.
1992 The Council of State issued a decision in
     principle initiating preparations
     and licensing of the Vuotos
     project.

In September, Kemijoki Oy sought the Water Rights Court's approval for 
the building of the Vuotos reservoir and power plant, and for regulation 
of the watercourse. The interested parties will have a chance to voice 
their opinions and make claims at a hearing scheduled to review the 
regulation plan and to determine the impact of the project. The Water 
Rights Court will review the case and make a ruling on the application. 
Kemijoki Oy will be ordered to pay compensations for possible losses or 
damages. The Court can be expected to approve the project, if the 
benefits of the project are deemed considerably more significant than the 
losses. The project must be approved, if it is judged to be in the public 
interest. The decision of the Water Rights Court can be appealed.

     K E M I J O K I OY

Valtakatu9-1 1,SF-96100 ROVANIEMI
Finland
Puh./Tel. +358-60-32511
Telefax +358-60-3252325

Malminkatu 16,SF00100 HELSINKI
Finland
Puh./Tel. 358-0-6090571
Telefax +358-0-6941846



ARTICLE 2.
------------------------------------------------------------------------
ATTENTION! The following information about VUOTOS-reservoir comes from 
the Finnish Association for Nature Conservation
------------------------------------------------------------------------.

The Finnish Association for Nature Conservation wishes to draw to the 
attention of environmentally conscious people and responsible citizens 
world-wide an affair in which the Finnish government has continually 
broken its promises.


THE VUOTOS RESERVOIR WILL POSE A THREAT TO LAPPISH NATURE
AND DESTROY PART OF IT
 


The Finnish government is once again debating whether to permit the 
construction of a giant reservoir and hydro-electric power station in the 
Finnish part of Lapland.
 
Covering at its maximum around 230 square kilometres, the reservoir would 
inundate one of Scandinavia's larger peatland areas which provides a home 
for many rare or endangered plants and birds. Dozens of families would 
also be evicted from their homesteads. The effect of the reservoir, which 
would be subject to radical water level regulation, would be felt for 
hundreds of kilometres along the water system connected to the reservoir, 
even as far downstream as the Baltic Sea.
 
A battle has been raging over the construction of the Vuotos reservoir 
and its attendant hydro-power station for around 30 years. The plan is to 
site the artificial basin at the headwaters of the River Kemijoki, in 
eastern Lapland. Originally this watercourse was one of Europe's foremost 
salmon rivers. 

Local residents and nature conservationists have protested vociferously 
and constantly against the proposed reservoir. In the autumn of 1982 the 
Finnish government, having reached a decision, stated that no reservoir 
would be built and that the plan would be "relinquished indefinitely". 
The government at that time promised that this decision would be binding 
for future governments. Part of the consequence of the decision was that 
many families moved back into the region and resumed their farming. 
 
GOVERNMENT LOSES NO TIME IN BREAKING PROMISE
 
The government's promise held good until the spring of 1991, when a 
centre party/ right wing coalition government came into power. Almost the 
first thing this new government did was to go back on the previous 
government's word, even though some of its ministers were among those who 
had quashed the plan.
  
The purpose of the Vuotos reservoir would be to collect melt water 
draining in the spring into the River Kemijoki from the wilderness of 
eastern Lapland, and to release the water in appropriate amounts during 
the winter.  The basin would occupy a place covered at the moment by 
mires and wilderness areas, its surface level varying annually, due to 
regulation, by at least eight metres. Because the artificial basin would 
lie on top of low-lying swampy ground and because of the water level 
regulation, the environmental impact would, it is feared, be extremely 
severe.
 
In late winter the surface area of the reservoir would shrink to a 
fraction of its size with the water level at its upper, late spring, 
limit. Due to this marked oscillation, the bed and shores of the 
reservoir would be constantly subject to erosion. Large quantities of 
peat and humus would be freed from the swampy bottom, to be carried into 
Lake Kemijarvi and the River Kemijoki downstream of the reservoir, and 
thence into the upper part of the Baltic, the Bay of Bothnia. Mercury 
bound up in the bottom sediments would also be released in large amounts. 
In an activated form this element would enter the aquatic communities 
both in the reservoir and in the river lower down by way of fish and 
other organisms. As has happened previously in Lapland, the contaminated 
fish would be unfit for human consumption for a long time into the 
future.



NO ATTEMPT TO CARRY OUT EIA ON SITE
 
The Government promised last spring that an environmental impact 
assessment (EIA) of the Vuotos reservoir would be made before a final 
decision, which will possibly be heard later this year, was reached. 
Despite its written assurance, the Government has shown itself to be 
unable to keep even that promise. 
 
The National Coalition Party Minister of the Environment, Ms Sirpa 
Pietikainen, backed by left wing and green opposition groups, has 
demanded an EIA before the final decision is made. Against the bastion of 
the ruling Centre Party, which has aligned itself with the northern 
Finnish power utilities who most steadfastly support the Vuotos plan, 
this has had little effect, however. One of the most eager protagonists 
of the reservoir is the Centre Party's Minister of Trade and Industry, Mr 
Kauko Juhantalo.
 
Green party MPs last summer lodged an interpellation with the Government 
in respect of the Vuotos reservoir construction plan. After the 
Government went back on its word in the autumn, four green party MPs went 
on a hunger strike in protest against the Government's betrayal. The 
Social Democratic and People's Democratic Parties, as well as numerous 
citizens' organisations and influential private persons, have condemned 
the Government's conduct.
 
The ranks of the other government party, the National Coalition Party, 
are split on the issue. MPs belonging to this party are now, however, 
like the opposition, demanding an EIA. 


FINLAND BREAKS INTERNATIONAL AGREEMENTS
 
Finland has signed and ratified an ECE agreement obliging its government 
to carry out an EIA before embarking on a major project liable to have 
ecological consequences outside the country's own borders. It appears 
that even this undertaking means little to Finland's ruling parties. Due 
to the underhand manner in which the Vuotos affair has been handled, 
international faith in the Finnish government in connection with 
environmental issues is being sorely tried.
 

If the Vuotos reservoir is indeed built, it will represent the third 
regulated artificial basin on the Kemijoki watercourse. The mouth of the 
river was dammed immediately after World War II, since when a number of 
hydro-power stations have sprung up along the river, as well as two of 
Europe's largest reservoirs, Lokka 
and Porttipahta. 
 
In 1970 Europe's largest and most ecologically valuable aapa mire was 
flooded by the 40,000 hectare Lokka Reservoir.
 
Vuotos would result in many endangered European species losing their 
habitats or being drowned. Birds like the peregrine (Falco peregrinus) 
habitually nest in the area. The reservoir would also result in the 
destruction of valuable fish stocks in the as-yet undisturbed upper 
reaches of the river, in addition to inundating the traditional nesting 
grounds of birds like the bean goose, crane and whooper swan.
 
Kokonaapa, one of Europe's largest and thus most valuable, aapa mires 
would also lie under water. Aapa mires are a kind of peatland adapted to 
the heavy rainfall of Northwest Europe; they are virtually treeless. Such 
mires are so rare in the world at large that the Finnish term for them  
'aapa'  is virtually international.
 
The reservoir would also have an adverse effect on reindeer husbandry in 
the region. No less than three Reindeer herdsmen's Associations in the 
region would be affected. More directly, the drinking water of tens of 
thousands of people living in the Lake Kemijarvi region would be 
jeopardised, as the pure ground water supplying these people would be 
partially covered by the artificial lake.
 
Along the Kemijoki waterway, only the River Ounasjoki, which is a 
tributary, and the main river's headwaters, remain unharnessed. The 
Ounasjoki was preserved in the 1980s as a result of pressure from private 
citizens. The headwaters constitute the area currently under threat.
 


TO EVEN OUT CONSUMPTION PEAKS AT FIFTH NUCLEAR POWER STATION
 
The Finnish state has a 90 percent holding in Kemijoki Oy, the company 
that owns the River Kemijoki power stations and which is the most eager 
protagonist of the Vuotos reservoir plan. However, in principle all the 
industrial interests in favour of the construction of Finland's fifth 
nuclear power plant also support the Vuotos project. 
 
The power station on the Vuotos reservoir dam would be only a minor, 35 
megawatt, plant. At the same time the reservoir would bring an increase 
of 50-85 megawatts from power stations further down river, so that the 
overall benefit would be in the region of 85-135 megawatts - not much by 
power utility standards.
 
Advocates of the reservoir hold that the power generated by the plant 
would enable electricity consumption peaks at the proposed fifth nuclear 
power station to be levelled out. Finnish environmentalists counteract 
this by pointing out that the energy produced could easily be conserved, 
for instance by altering the electricity tariff policy, and by investing 
in the efficient use of electricity and in energy-saving equipment and 
methods. 
 
It has been calculated that the cost of the Vuotos reservoir would be 
about FIM one billion (DMK 400 billion). The actual costs may rise well 
above this, despite the fact that there is no intention to harvest the 
enormous peat reserves in the area that would be covered by water. 
Moreover, the power company refuses to fell all the trees that would be 
inundated, unless the Finnish State undertakes to foot the bill for the 
work, totalling tens of millions of Finnmarks. 
 
Benefits to the local population would be limited to offers of jobs 
during the construction period. Even the Government's official survey 
team reached the conclusion that the number of permanent jobs lost in 
agriculture, forestry and reindeer husbandry would exceed the number of 
temporary construction jobs.
 
We appeal for your help in saving the upper reaches of the River Kemijoki 
and Lake Kemijarvi!

                          The Vuotos Movement


For up-to-date news on the issue and forwarding of petitions, contact one 
of the coordinators:
 
Pirjo-Riitta Oinaala
The Finnish Association for Nature Conservation
Peramiehenkatu 11 A 8, 
SF-O0150 Helsinki, Finland
tel. +358-0-642881, fax. +358-0-6221815
email: oinaala@sll.fi (Internet)
 
Liisa Kantola
Regional Secretary
Lapin luonnonsuojelupiiri
Maakuntakatu 18,
SF-96200 Rovaniemi, Finland
tel. +358-60-311550, fax. +358-60-317705



ARTICLE 3.
-----------------------------------------------------------------------
ATTENTION! The following information comes from the WWF Baltic Bulletin
-----------------------------------------------------------------------

               THE FIGHT AGAINST THE VUOTOS
                  RESERVOIR IS NOT OVER

                    BY LASSI KARIVALO

THE VUOTOS RESERVOIR WILL HAVE A SERIOUS NEGATIVE IMPACT NOT ONLY ON THE  
ENVIRONMENT OF THE VUOTOS REGION IN FINLAND, BUT ALSO ON A MUCH WIDER 
AREA  REACHING EVEN THE NORTHERN PARTS OF THE GULF OF BOTHNIA. AND THE 
IRONY OF IT  IS THAT THIS HUGE ENERGY-GENERATING CONSTRUCTION WILL NOT 
EVEN BE PROFITABLE.  BUT THE RESERVOIR COULD STILL BE STOPPED.


     In June 1992 Finland's Council of State made a Decision-in-Principle 
not  to build the Vuotos Reservoir (see WWF Baltic Bulletin 2/92, page 
22). The  Reservoir will be used for energy production and is part of the 
Finnish  energy production programme and linked with the building of a 
fifth nuclear  power station in Finland.
      The Finnish Environment Minister voted against the decision. 
Already in  August the powerplant company Kemijoki Oy announced that the 
felling of trees  in the area would start, and at the same time a group 
of Members of  Parliament proposed a motion to the Parliament that the 
Vuotos area should be  protected by Special Law. In September the Finnish 
Government Committee for  the Environment decided to take the motion to 
debate. Now it is up to the  Water Rights Appeal Court to decide.      
WWF Finland, Finnish Association for Nature Conservation and other  
nature conservation and environmental organizations in Finland, Sweden,  
Norway and Germany have previously criticized the Government's plans to 
build  the Vuotos Reservoir and now the actual decision. In this article 
more  detailed arguments are given for the opinion of WWF Finland that 
the  Reservoir should not be built.


                     YEARS BEFORE
                  THE FINAL DECISION

There are already two major water reservoirs - Porttipahta and Lokka - in 
the  catchment area of Kemijoki in the Finnish Lapland. The first plans 
for a  third reservoir, Vuotos, were made public in the 1950s and 
planning started  in the 1960s. The damming-up of Ounasjoki River was 
prevented by Special Law.
      In 1982 the Government decided that the reservoir should, after 
all, not  be built. The decision was decreed as binding to all future 
Finnish  Governments. Funds for the development of the area were granted 
by the state  and people felt safe to move back. But in 1987 Kemijoki Oy 
submitted new  plans for the building of the reservoir, and soon after 
the Government  decided that the 1982 decree would no longer be binding 
for the present  Government. By the recent Decision-in-Principle the 
Government has granted  the Kemijoki Oy the right to appeal to the Water 
Rights Appeal Court for a  building permit. The decision has, in a way, 
cleared up the situation. Only  after the coming legal proceedings will 
we know what will happen. At the  moment the case is lost to neither 
party.
      The time lapse between the Decision-in-Principle and a legally 
binding  decision of the Water Rights Appeal Court will be several years. 
The  proceedings are also very likely to be characterized by severe 
disagreements  and disputes. The Pro Vuotos Group and nature conservation 
organizations are  poised for a delayed struggle to prevent the building 
of the Reservoir.


                    SUBMERGED NATURE
                    CONSERVATION SITES

If the Vuotos Reservoir is built several sites still in their natural 
state,  with considerable national and regional natural values, will be 
submerged.  The water level will be raised enough to cover 240 km2 of 
forests and swamp  land as well as large areas of riverine habitats. An 
extensive land, swamp  and river ecosystem will be destroyed. The 
Rytivaara Palokangas ridge area,  which is part of the Finnish National 
Ridge Protection Programme, would be  included. Only the highest parts of 
the area will be above the water as  detached islands and islets. The 
Reservoir will wipe out geologically  interesting landscapes formed 
during the last Ice Age about 15,000 years ago.
      The Keminsaari Islands will disappear altogether. They were formed 
in an  area where the Kemijoki River flows in several branches through a 
delta  deposit which also dates back to the Ice Age. The vegetation of 
the islands  includes valuable floodplain species. The area has been used 
as pastures for  cattle, and that has benefited the flora. Many 
nationally and regionally  endangered plants grow on the islands. They 
also harbour birds. A colony of  hundreds of sand martins (Riparia 
riparia) nest on the sand bank of the  biggest of the Keminsaari Islands.
      Kokonaapa is classified as a regionally valuable string fen (aapa 
bog).  From a conservation point of view especially its open centre is an 
important  flark bog. It is also a nesting area of the peregrine falcon 
(Falco  peregrinus), which is classified as very endangered in Finland. 
Kokonaapa was  initially to be included in the Finnish National Swamp 
Protection Programme,  but was omitted mainly on the request of the peat 
production industry.
      In the north-eastern part of the planned Vuotos Reservoir is the 
lush  Katosaapa area, which includes several types of fen land. 
Unfortunately the  vegetation of this area has not yet been investigated 
in detail. It is known,  however, that several regionally endangered 
plants can be found here.


                   NUTRIENT INCREASE
                      DOWNSTREAM

The impact of the Vuotos Reservoir on the downstream water system has 
been  forecast by computer models, which only give an overall estimate of 
what will  happen.
      During the first year the oxygen con tent of the water will be 
reduced  to 1-3 mg per litre. Oxygen deficient water from the reservoir 
will then flow  into Kemijoki River, where the present oxygen content is 
about 12 mg per  litre. As a consequence the reduction of the oxygen 
content will be felt all  the way further down to Lake Kemijaervi.     
The phosphorous content of the water in Kemijoki River down to its mouth,  
and in the northern parts of the Gulf of Bothnia, will increase consider  
ably. Lake Kemijaervi will become eutrophicated to such an extent that it  
will cause great damage to the limnological processes in the lake as well 
as  to the quality of the water for various uses.
      There are no natural basins on the way from Vuotos to the Gulf of  
Bothnia, where nutrients can be deposited in sediments. The present input 
of  phosphorous from Kemijoki River to the northern parts of the Gulf of 
Bothnia  is about 400 tonnes per year. If the Vuotos Reservoir is built 
this input  will increase by 1.5 per cent, which is about the same as the 
present  discharge from the industry of this area. This increase will 
affect most of  the water within 10 kilometres from the mouth of the 
river. Such an effect  should be taken most seriously in this specific 
area of the Baltic Sea, where  phosphorous is limiting to growth. 
Increased phosphorous concentrations can  thus cause marine 
eutrophication in the Gulf of Bothnia.
      Like all other countries around the Baltic Finland made a 
commitment at  the HELCOM Ministerial Meeting in 1988 to reduce the 
national emissions of  phosphorous and nitrogen with 50 percent by the 
year 1995. In order to  achieve this drastic water protection measures 
are called for, not the  creation of new sources of nutrients. Further 
more, due to industrial  discharges the surroundings of the town of Kemi 
is already one of the  hotspots indicated in the Joint Comprehensive 
Action Programme.


                 LESS SALMON UPSTREAM?

No investigations of the possible release and environmental impact of 
heavy  metals from the Vuotos Reservoir have been made yet. It is, 
however,  essential that such investigations be made before the start of 
the  proceedings for a construction permit. Based on the experience of 
the Lokka  and Porttipahdas reservoirs there is every reason to assume 
that at least the  mercury load will in crease to such an extent that the 
consumption of fish  from the Vuotos Reservoir must be restricted.
      In the Vuotos area extensive areas of forestland have been ploughed 
to  improve timber yield. If submerged these soils are likely to 
contribute to  the increase of mercury in the food chain.
      The Vuotos Reservoir will also block the way for fish, mainly 
salmon,  on their way up to the spawning grounds in the upper reaches of 
Kemijoki  River. The increased oxygen demand in the reservoir will also 
cause many fish  to have to move further up the river, where they will 
then have to compete  with local trout populations.


                   STRONG LOCAL OPINION

The local inhabitants are strongly against the building of the reservoir. 
To  them it would mean a dramatic and irreversible change in their 
natural  environment. Their home district will have totally new 
characteristics and  their traditional outdoor activities will be 
restricted. Some people will be  forced to move altogether. All these 
fears and negative expectations have  roused the resentment and 
disapproval of the inhabitants of the area.
      Reindeer farming and berry picking, as well as forestry, are 
important  sources of income here. If the reservoir is built these 
activities will be  seriously affected.


                  HUGE - BUT UNPROFITABLE

The Government Institute of Economic Research has prepared a report on 
the  economic profitability of the Vuotos project. According to the 
report the  project is not profitable even if all the costs of 
environmental damage are  left out.
      This conclusion differs greatly from that of the report produced by 
the  Finnish Ministry of Trade and Industry, which estimated the project 
to be  most profitable with an annual revenue of about FIM 5-10 million. 
However, if  one assumes that these figures are correct, the annual 
profit should be  reduced by the costs of environmental damage. This 
would considerably reduce  the estimated profit. It could even reduce it 
so heavily that there might be  nothing left. In any case, the socio-
economic profitability will be much lower  than estimated by the Ministry 
of Trade and Industry, if not non-existent as  calculated by the 
Government Institute of Economic Research.
      Kemijoki Oy tends to understate and invalidate the calculations of 
the  Institute, accusing them of being faulty and prejudiced. Such 
accusations are  groundless, though, since information obtained from the 
company itself and  from the Ministry of Trade and Industry is the very 
basis for the  calculations. Furthermore, the Insitute is not an 
interested party in the  matter, but investigated this project as one of 
many public investments.


                    ALL UP TO THE COURT

The Water Rights Appeal Court will be granting a building permit if the  
Vuotos project is considered a necessary public interest and if the 
benefits  from the projects are considered to be greater than the 
damages, adverse  effects or losses of advantages. This principle leads 
to a comparison of pros  and cons, where not only the applicant's 
justifications are taken into  account. The over all environmental impact 
and socio-economic profitability  will be considered as equally important 
factors in making the final decision.
      In a national perspective the socio-economic profitability of the 
Vuotos  project is so insignificant that the project cannot be claimed to 
be  justified as a national interest. This is even more so as the power  
production company can hardly be said to represent the public interest.  
However, if the Court finds that the principle of public interest can be  
applied to advance the interests of a private company, then the Vuotos  
Reservoir might very well be built.
      The final decision taken by the Court will be the result of the 
opinion  formed within this body. One can in advance only ponder whether 
it will be a  socio-economic or political one. It will be even more 
interesting since there  has not been any case of the same magnitude as 
the Vuotos Reservoir since the  reconstruction of the Water Rights Appeal 
Court in 1987. The Lokka and  Porttipahdas reservoirs were decided and 
built before the renewal of the  legislation.


        -----------------*********************** --------------------- 

                 FINLAND FORCED TO MAKE EIA FOR VUOTOS?

Finland has signed the Espoo Convention, the 1992 Helsinki Convention and 
the  Declaration on the Protection of the Arc tic Environment. These 
three  international agreements should be taken into account when 
considering the  building of the Vuotos Reservoir.

                The Espoo Convention The impact of the Vuotos project in 
the  northern parts of the Gulf of Bothnia calls for the Finnish 
authorities to  negotiate with the Swedish authorities in this matter. If 
Finland does not  take that initiative Sweden should.
      When the ECE General Agreement on EIA - the Espoo Convention - was  
signed in 1991 it was agreed that the principles of the agreement will be  
adopted by the Signatories even before they have ratified it. In Finland 
the  EIA law will be effective from the beginning of 1993. Thus, an 
environmental  impact assessment should be started immediately in the 
Vuotos area. An  evaluation of the natural resources of the area should 
also be included in  that assessment. Presently there is not enough data 
available about the  environmental impact to make a reliable estimate of 
the pros and cons.
      Before the completion of the EIA the Vuotos area should be left in 
its  present state. Any radical changes of the natural environment should 
be  avoided as they would impair the assessment, especially of the 
natural  resources.
      There is also a Finnish-Swedish agreement about the water area 
along the  common border.

               The Helsinki Convention According to Article 7 
(Environmental  Impact Assessment) in the new 1992 Helsinki Convention, 
both HELCOM and the  affected country (countries) should be notified 
'whenever an environmental  impact assessment of a proposed activity that 
is likely to cause a  significant adverse impact on the marine 
environment of the Baltic Sea Area  is required by international law or 
supra-national regulations applicable to  the Contracting Party of 
origin'. In the case of Vuotos this means that  Finland should carry out 
an EIA adequately and in co-operation with  neighbouring countries that 
might be affected by the environmental impact of  the reservoir.

             The Declaration on the Arctic In 1991 Finland and eight 
other  countries signed the Declaration on the Protection of the Arctic 
Environment.  An important part of this Declaration deals with the 
assessment of the impact  on the environment of major projects in this 
area. The Declaration covers all  areas north of the Arctic Circle, i.e. 
also the Vuotos.

           Environment Minister highly critical After the Finnish 
Government's  Decision-in-Principle about Vuotos the Minister of the 
Environment, Ms Sirpa  Pietikaeinen  who voted against the decision - 
issued a sharp and highly  critical press release. It said, among other 
things, that due to the lack of  a proper environmental impact assessment 
the Finnish Government should not  have made its Decision-in-Principle.

  "In accordance with the principles of its international agreements 
Finland  should have had an assessment made in due course before 
submitting the matter  to the Council of State. If the results of such an 
assessment had proved that  the damages of the project exceed its 
benefits the uncertainty of the people  living in the area could have 
been eliminated through legal protection of the  Vuotos area by Special 
Law. - - - The Decision of the Council of State should  at least, by 
imposing a fine, have made Kemijoki Oy abstain from any  preparatory 
measures that would cause irreversible or prolonged effects on  the 
environment or the natural resources of the area prior to the decision by  
the Water Rights Appeal Court. The company should have been forced to 
make  necessary investigations of the natural values before allowed to 
clear any  land in the area. Now the environmental assessment has become 
meaningless  after hundreds of hectares have already been cleared." 


Lassi Karivalo
Head of Conservation
WWF Finland
Uudenmaankatu 40
SFQ00120 HELSINGFORS 12
Finland

Telephone: +358- 0 644 511
Telefax: +358- 0 602 239

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