Financial Times puts the record straightI was in england this last week and amongst the storms and
trains not working, i read this excellent f.t. article. everyone do
your own d.d. - but can we now move on please???
topdop
Financial Times
INTERNATIONAL ECONOMY - World Bank arm denies green
claims.
By ALAN BEATTIE and PHELIM MCALEER.
29 October 2002
The International Finance Corporation, the private sector arm of
the World Bank, has disputed claims that it withdrew from a
Romanian mining project because of environmental concerns.
Gabriel Resources, a Canadian company, had applied for
$100m (Euros 102m, £64m) funding for an open cast gold mine
at Rosia Montana, western Romania, but talks with the IFC
ended earlier this month. A World Bank spokesperson said
earlier the decision not to proceed was taken by James
Wolfensohn, the bank's president, in association with Peter
Woicke, the IFC's head. "The decision was in large part driven by
concerns about the project's social and environmental impact,"
the spokesperson said. Non-governmental organisations also
cast the decision as a victory for environmentalists, saying that
local activists appeared to change Mr Wolfensohn's mind when
they spoke directly to him at last month's World Bank
annual meeting. However, the IFC has announced that it is
satisfied with Gabriel Resources' environmental and social
proposals concerning the proposed $400m investment. IFC
officials have said the World Bank had given a misleading
impression that it supported the environmentalists' complaints.
"We chose not to proceed because they had private finance
available for the project, which we are not allowed to compete
against, and also they wanted to proceed more quickly than we
were able to," a spokesperson said. In an unusual move, the
IFC has also released a letter sent by Rashad Kaldany, the
director of the IFC's Oil, Gas, Mining and Chemicals Department,
to Gabriel Resources. "Our withdrawal ... does not reflect the
efforts your team have made in developing the programme's
resettlement, environmental, cultural properties and social
development issues," the letter said. Environmentalists have
made a series of accusations about the project, claiming that it
will cause massive damage, particularly with plans to build a
600ha cyanide storage pond. They also say there is huge
opposition from residents to a "forced resettlement" programme.
But these claims are contradicted at the mine itself. Gabriel
Resources has long since abandoned plans to build the cyanide
storage pond following local concerns. They will install a $4m
cyanide destruction machine which removes the chemical
during production. The resettlement programme has almost full
support in local villages with many welcoming the chance to
move to larger towns or to nearby custom-made houses as part
of a generous compensation package. IFC officials are worried
the controversy could lead to companies losing confidence in it,
bypassing the institution and not adhering to its strict
environmental procedures.