Ecuador: Chevron contesting US$ 8.6 billion fine for Amazon pollution, calls case an “extortion scheme”

A court in Ecuador has fined US oil multinational Chevron US$ 8.6 billion for polluting a large part of the country’s Amazon region. Speaking to the BBC, company spokesperson Kent Robertson said the case was an “extortion scheme”, blaming Ecuador’s state-run firm Petroecuador for ongoing problems.

“Justice does exist,” said Guillermo Grefa, a Kichwa representative to the Assembly of Affected Communities who brought the class action suit on behalf of 30,000 residents of the Amazon region. “I can now dream of drinking clean water, water with no oil residue, and that the earth will begin to clean and heal.”

The oil firm Texaco, which merged with Chevron in 2001, is accused of dumping toxic waste into local streams and rivers between 1972 and 1992. Campaigners say crops were damaged and farm animals killed, and that local cancer rates increased. Chevron says Texaco spent US$ 40 million cleaning up the area during the 1990s and spent US$ 5 million on community projects. In 1995 Chevron negotiated a settlement with the Ecuadorian government absolving the company of any further responsibility.

Spain Providing $164 Million for Safe Drinking Water Projects in Latin America

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Seven Latin American countries will benefit from contributions approved on the 15th of October by the Spanish government amounting to 117.2 million Euros ($164 million) for projects providing safe drinking water and improving aqueducts and sanitation.

The contributions are intended for projects in Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico and the Dominican Republic and will be managed by the Water and Sanitation Cooperation Fund of Spain’s AECID international development agency. There will also be a complementary contribution of 12.9 million Euros ($18 million) to finance new projects to be carried out in cooperation with the Inter-American Development Bank.

About 120 million people lack access systems for potable water and basic health services in Latin America and the Caribbean, according to figures released earlier this year at the 2nd Latin American Sanitation Conference.

Related news: Guatemala: US$ 100 million from Spain and the IDB to improve water and sanitation services, Source News, 21 January 2010.

EFE Source : Herald Tribune, 18 October 2010.

Ecuador: Interagua will launch consultancy tender for US$120mn wastewater project

Ecuadorian city Guayaquil’s private water utility Interagua will launch an international tender to carry out feasibility studies for a US$120mn wastewater treatment project, the head of Interagua’s treatment division, Angela Castaño, told BNamericas.

Contact: Interagua
Tel: 593 4 2874030
Contact: oficinacentral@interagua.com.ec
Site Interagua: http://www.interagua.com.ec/

Read full article on: BNamericas, [subscription site],  July 1, 2010

Ecuador: lawmakers fail to reach water bill deal

Ecuadorean lawmakers on Thursday [12 May 2010] failed to reach a deal on suspending debate of a contested water bill that has sparked protests by indigenous groups who fear it threatens their rights to natural resources.

President Rafael Correa says the bill will better regulate the water system. But the failure by lawmakers to agree over the bill opens the way for more indigenous protests over an issue that is a political headache for his leftist government.

Lawmakers were ruling on a motion by Congress President Fernando Cordero to postpone debate over the bill for six months while indigenous communities were consulted over the impact of the proposal on their territories.

Opposition and some pro-government lawmakers blocked an attempt to reach a deal on postponement.

“The water law will be voted on the day we can have the consultations,” Cordero said after the vote though no date was set to resume debate on the proposal.

While Ecuador’s indigenous groups were instrumental in toppling previous governments, analysts say Correa has a solid grip on power and indigenous leaders are more splintered than in past protests when thousands descended on Quito.

Indigenous leaders say the water bill will pave the way for privatizations of natural resources and impact their farming and small-scale mining industries. Correa dismisses the protesters as “liars.”

“The government is irresponsible and is playing with the Ecuadorean people,” said Marlon Santi, head of the Indigenous Confederation of Ecuador or CONAIE. “The protests will continue for now.”

Earlier this month police used tear gas to break up protests outside the Congress building and some demonstrators broke into the building but were ejected by security forces.

Correa, a U.S.-trained former finance minister, came to power in 2007 with broad indigenous support after promising to challenge the political old guard many Ecuadoreans blamed for years of instability in the world’s largest banana exporter.

Correa still has more political capital than predecessors after introducing measures such as increased welfare spending for the poor and striking out at foreign investors. But he has seen his popularity wane as the OPEC nation’s economy flagged during the global economic crisis.

Source: Santiago Silva, Reuters, 13 May 2010

Ecuador: CAF loans US$100mn to expand water, sanitation

The Andean Development Corporation (CAF) has approved a US$100mn loan to Ecuador to improve potable water and sanitation services. The funding will partially finance the country’s environmental sanitation for community development program (Promadec), which is run by state bank Banco del Estado (BEDE) and the urban development and housing ministry (Miduvi).

Read full article on: BNamericas.com [subscription site], 10 Feb 2010

Peru: World Bank approves grant to combat glacial melting

The World Bank has approved a grant of US$450,000 for a programme to help mitigate the negative effects of glacial melting in Peru’s tropical Andean region. The grant will be used to gather scientific information on the impact of glacial melting. Andean glaciers, which supply 70mn people with water, have shrunk by 30% over the past three decades and are likely to disappear by 2030.

Read full article on: BNamericas.com [subscription site], 13 Jan 2010

Ecuador, Quito: water only guaranteed up to 2015

Ecuador’s capital Quito is only guaranteed potable water supply up to 2015 due to the accelerated pace of glacier melting, according to several studies. A total of 25m is lost every year on average on the mountain which is the principal source of water for the Mica-Quito Sur potable water system.

Read the full article on: BNamericas.com [subscription site], 04 Jan 2010

Ecuador: housing ministry recommends contracts with water utilities be renegotiated, terminated

Ecuador’s housing ministry (Miduvi) has presented the results of an audit carried out on three water and sewerage concessionaires. It is recommending renegotiating of contracts with the Interagua utility in Guayaquil municipality and that of Amagua, which provides services in Samborondón, also in Guayas province.

In the case of Triple Oro, which serves El Oro province capital Machala, the ministry recommended termination of the contract. Miduvi found “distortions” in the rate calculations made by Interagua which produced excessive charges especially in low-income areas.

“A social tariff does not exist,” said Miduvi minister Walter Solís, adding that the company had also not set any goals for wastewater treatment.

The minister recommended the termination of the Triple Oro contract as the firm has not installed meters to verify water consumption, it does not treat wastewater, it has not installed infrastructure to collect wastewater and the quality of the potable water is not fit for human consumption, the information said.

The results of the audit have been given to the comptroller general for analysis.

Source: BNamericas.com [subscription site], 15 Oct 2009

Ecuador: one dead and dozens injured in water protests

One protester has been killed and many more are injured following clashes between indigenous tribal people and Ecuadorian police over proposed water and land rights laws.

The demonstrations near to Macas in Ecuador saw the indigenous protesters blockade a bridge linking two key provinces.

Actions around the country began on 27 September 2009 over indigenous fears the government’s new water laws would privatise water sources, give priority access to water to [the mining] industry and slash regulations for water contamination.

According to the protesters local police, backed by a helicopter, opened fire on demonstrators armed only with ‘ceremonial’ spears.

The attack has left at least one confirmed dead, Bosco Wisum, a teacher and member of the Shuar nation, and some 49 civilians and police injured.

President of the Confederation of Indigenous Nationalities of the Ecuadorian Amazon [CONFENIAE], Tito Puenchir, called the attack the start of a ‘civil war’ and called on the United Nations to intervene.

President Rafael Correa appealed for calm on national radio calling for ‘dialogue’ with the protesters. ["The problem is not the water law, or the mining, or the autonomy of the region," he said. "I fear that, deeper, there are motives of destabilization", Correa said]

On Monday 5 October, Correa and indigenous leaders met and were able to hammer out an agreement to address their concerns. The meeting produced a six-point agreement, which the President is expected to sign on 13 Ocrober 2009.

Firstly, the parties have agreed to institutionalise a permanent dialogue between the government and the native communities.

There will also be a commission set up to work on the Water bill and try to reach an intermediate agreement between the government’s plans and the indigenous groups.

A thorough analysis of possible modifications to the mining law, will be conducted and, finally, a commission, comprising two delegates each from the government the indigenous groups, will investigate the death last week of protester Bosco Wisum.

Indigenous groups had a leading role in overthrowing two previous Ecuadorian presidents.

A BBC article comments that, even though they are not as powerful as they used to be, native communities have grown stronger from this conflict.

Source: Luke Walsh, ediie, 02 Oct 2009 ; Francisca Pouiller, Mining Weekly, 08 Oct 2009

Ecuador: CAF, Loja sign basic service development agreement

The Andean Development Corporation (CAF) and Ecuadorian city Loja’s mayor Jorge Bailón have signed an agreement to support the improvement of basic services, CAF reported in a release [15 Sep 2009].

The agreement is part of a program for modernizing and improving local management known as Prameg, created by CAF in 2007.

The program aims to increase the efficiency of municipal governments in terms of basic services management and governance.

The city hall of Loja [pop. 180,000], selected for the program in 2008, completed the first phase of the initiative, which consisted of gathering general data to be used to draw up and propose projects.

The city will now obtain urban and rural information to evaluate the financial, economic and social situation, in order to design strategies to improve quality of life.

The basic services provided under the responsibility of Loja’s city hall include potable water and sanitation, and solid waste collection.

Through Prameg, CAF supports municipalities in becoming more efficient in terms of service provision and to meet the demands of their population, said CAF representative in Ecuador Hermann Krützfeldt.

Source: BNamericas.com [subscription site], 17 Sep 2009