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dam-l LS: Work at Ralco Suspended Indefinitely
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CHIP NEWS
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Date: 9/23/99
Subject: Work at Ralco Suspended Indefinitely
Source: El Mercurio
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WORK AT RALCO DAM SUSPENDED INDEFINITELY
Appeal To Higher Court Could Take Months
--Santiago judge Mario Carroza upheld a Sept. 8 decision halting
construction at the US$540 million Ralco Dam on the Bio Bio River
late Tuesday afternoon, ruling that if the work were allowed to proceed
before courts had a chance to investigate the merits of a case brought
by two Pehuenche indigenous opponents of the dam, "the environmental
damage would be irreversible and create numerous difficulties for the
residents of the area." The rejection of the appeal made by state
environmental authorities and energy company Endesa Espana (EE)
has the effect of indefinitely postponing construction of the 570 MW
hydroelectric project because the appeals court which will review t
he ruling has no prescribed time in which it must act. The two Pehuenche
opponents of the dam, Berta and Nicolasa Quintreman, filed their lawsuit
in June 1997, asking the courts to set aside a National Environmental
Council (Conama) determination that the Ralco Dam project was
"environmentally viable" and, as a precautionary measure, that all
work at the dam site be stopped until the case was adjudicated
on its merits. It was this second part of the Pehuenche's petition
that was ruled on favorably by Judge Carroza. The controversial
dam is the second of a series of dams proposed for construction
on the Bio Bio River in southern Region VIII to assure Chile's
energy requirements into the next century. Opponents of the project,
however, say the arrival of inexpensive natural gas from Argentina
changes the economic need and viability of additional hydroelectric
power. They further argue that local indigenous cultures will be
destroyed as a result of the dam's construction, as will eco-tourism
development possibilities. The Bio Bio is renowned in sporting circles
as one of the world's top kayak and float-trip rivers. Further complicating
the issue were statements made by EE executives in early September
that it was re-evaluating the Ralco Dam's viability. On Sept. 17,
however, executives reconfirmed EE's commitment to the project,
saying there had never been any serious doubt about their desire to
see it completed. US$130 million has already been spent on the
dam's construction. While Ralco's construction has generated temporary
jobs for 1,500 locals, including 240 Pehuenche indigenous people,
not all of the 100 indigenous families that would be displaced by the
dam's reservoir have agreed to property swap proposals made by
the energy company. Chile's indigenous peoples law, passed in the
early 1990s and designed to respect community land arrangements
unique to the indigenous culture, requires that all Pehuenche community
members unanimously agree to the sale or swap of commonly held
property before the land transaction may go forward. EE's efforts
to secure approval for their project sparked tremendous controversy
in the National Indigenous Peoples Board (Conadi), ultimately leading
to the removal of two successive Conadi executive directors who sided
with the Pehuenche after finding that the company had over-reached in
its effort to secure the community- wide backing. Que Pasa magazine in
its Sept. 18 edition said EE had never seriously considered abandoning
Ralco, suggesting instead that such hints were really a veiled threat aimed
at Chile's energy regulation authorities, who are currently reviewing the
tax structure for energy companies for the November 1999 to April 2000
time period. By threatening a delay in the project, and thus continuing
Chile's vulnerability to energy shortfalls, EE hopes to force regulators to
go lightly with proposed tax hikes on energy. Que Pasa suggested the
gambit has been successful, although regulators have yet to officially
announce the new tariffs. In related news, environmentalists, Pehuenche
activists and "green bloc" national legislators traveled last week to
Spain to lobby against the dam's construction and to file a lawsuit
against EE, alleging that the dam's construction amounts to "genocide"
for the Pehuenche culture. * Chip News*
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Monti Aguirre
Latin American Campaigns
International Rivers Network
1847 Berkeley Way
Berkeley, CA. 94703 USA
Phone: 510 . 848.11.55 and 707 . 591 .91.49
Fax: 510 . 848.10.08
e-mail: monti @irn.org
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