WRITTEN QUESTION E-3665/01

by Didier Rod (Verts/ALE) to the Commission

(15 January 2002)

Subject: Construction of a hydro-electric dam in Belize

The Government of Belize, Central America, has announced its support for construction of a hydro-electric dam in the Macal River Valley, proposed by Fortis Incorporated, based in Canada. The builder's own wildlife consultants, the Natural History Museum of London, have shown that the dam would cause a significant and irreversible reduction in biodiversity, fragment the MesoAmerican biological corridor and lead to the destruction of habitat for rare and endangered species, including the jaguar, the tapir, and the scarlet macaw. The dam would also flood unexplored Maya archaeological sites.

The EU currently has 18 projects in Belize, worth EUR 21 118 929,49. Many of these projects will be directly or indirectly affected by the construction of this dam, including the Maya Archaeological Sites Development Programme (ACP.RPR.544) which is intended to further the understanding of the Maya heritage in the region. The proposed dam would flood an important part of the archaeological record forever and undermine the value of our investment.

Projects to preserve biodiversity would also be affected, including a 1 million project focussed on management of the Crooked Tree and Cockscomb Basin reserves (B7-6200/1999-41). As one prominent expert noted, the dam could definitely affect jaguar dispersal patterns and genetic exchange into and out from the Cockscomb Basin, currently recognised as one of the world's premier sites for jaguar conservation. (Dr. Alan Rabinowitz, Director of Science, Wildlife Conservation Society, March 22, 1999.)

Has the EU approached the Belize Government on the problems the project will cause to its own projects? If not, when and in which context does it intend to do so?

As the project contradicts the principles of the Biodiversity Convention, has the EU approached the secretariat of the Biodiversity Convention regarding this project? Does it intend to do so?

This dam's capacity is only 7 megawatts of power. Would the EU be willing to assist in financing less harmful energy projects in Belize such as cogeneration using biomasse?

Answer given by Mr Nielson on behalf of the Commission

(28 February 2002)

The Commission is aware of the proposal by Fortis Incorporated, a Canadian Company, to construct a hydro-electric dam with a large reservoir in Chalillo on the Macal River.

The Government of Belize has indeed announced its support for this project, which went through a series of prefeasibility studies, feasibility studies including environmental and social impact assessments.

The support of the Government is a result of a no objection statement made by the National Environmental Appraisal Committee (NEAC) which reviewed all project documents including the Environmental Impact Assessment (EIA).

The construction of this hydro-electric dam is still raising a lot of controversy between the Government of Belize, local and international non-governmental organisations (NGOs) concerned by the possible adverse environmental impact of the project.

The Office of the Commission in Belize has never received nor been consulted by the Government during the appraisal phase of the project, the initiative of which comes from the private sector.

Without having full knowledge of the content of the EIA, it is difficult for the Commission to advocate for, or against, this project.

Referring to the Maya Archaelogical Site Development Programme funded by the sixth European Development Fund (EDF), two maya sites in Lubantuum and Nim Li Punit mainly benefited. Both sites are located in the Southern part of the country in an area that is not downstream of the Macal River Valley. The proposed dam would therefore not specifically undermine the value of the investment made with the contribution of the Community. The projects funded from the environmental budget line and focusing on the management of the Crooked Tree and Cockscomb Basin reserves are implemented by the Belize Audubon Society which is a member of the NEAC. According to Commission's information the Belze Audubon Society is not advocating against the construction of the dam. The Society is fully aware of the EIA documents and is known to insist on a strict implementation of the environmental management and mitigation plan.

The proposed dam will only have a capacity of seven megawatts of power. Belize Electricity Ltd. would most certainly have to consider alternative sources of energy to meet an increasing electricity demand in the country. The Belize sugar industry had the intention to approach the EIB to seek a financial contribution for the implementation of a bagasse co-generation plant, according to the Commission's knowledge.

The focal area of the ninth EDF will be poverty alleviation with emphasis on rural development and agricultural production. Given the limited amounts available for Belize under the programmable ninth EDF resources ( 7,8 million) it is not possible to consider funding for activities outside the above-mentioned focal sector of intervention. Subject to availability of funds and high quality project proposals it is however possible to approve NGO-projects in the field of environmental protection under the available budget lines on the basis of the annual Call for Proposals.

On the basis of the above information, the Commission does not intend to raise this matter with the Secretariat of the Convention on Biological Diversity (CBD). Moreover, under the CBD, the Secretariat has no regulatory role in controlling the implementation of the Convention, nor is there any Compliance or Implementation Body. As far as the Commission is aware, Belize has not yet submitted its second National Report on the implementation of the Convention, which is supposed to be available before the next Conference of the Parties (The Hague, 8/19 April 2002). The report might provide a basis for informed peer review of Belize's approach on this case if the authorities so desired. When available, such reports are posted on the Website of the Convention (http://www.biodiv.org/world/reports.asp?t=s).