2 June 2005
After five years of advocating for adequate compensation for those affected by the Caña Brava Hydroelectric Project, Movement of People Affected by Dams occupies IDB headquarters
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On the afternoon of the 31st of May, more than 300 people affected by the Caña Brava Hydroelectric project occupied the bank’s Brazilian headquarters in the nation’s capital. The occupants of the IDB’s offices are demanding that the bank force Tractebel to pay full and adequate compensation to all those impacted by the construction of the enormous dam.
Caña Brava is a huge dam and energy complex financed by the Inter-American Development Bank and constructed by the transnational giant Tractebel on the river Tocantins near Brasilia. The IDB loaned Tractebel, a Belgium multinational energy conglomerate, $160 million dollars to help fund the project.
Construction of the dam began in 1999 and for 5 years the organization MAB (Movimento dos Atingidos por Barragens or Movement of People Affected by Dams), have petitioned the IDB to conduct better oversight on a project plagued by non-compliance. MAB claims that the resettlement and compensation was conducted in a way that violated the IDB’s own policies and that many affected people received no compensation at all.
In response a number of independent investigations were commissioned by the IDB, but nothing changed. Now in a sudden twist Tractebel has sold shares in order to pay off the remainder of its loan from the IDB, thereby, in its eyes, liberating it from any social responsibilities.
Rede Brasil, a network of civil society organizations that work on IFI issues, has responded to these recent developments with a letter to the IDB and the demand that the Inter-American Development Bank ensure that Tractebel fulfill its social responsibilities, regardless of the status of its loan with the IDB (Link to this letter in "Additional Resources" below). Meanwhile, the occupation of IDB headquarters will continue.
Read the letter of demands MAB issued to IDB President Enrique Iglesias:
Aditional Resources