Civil society groups argue that public consultation has been minimal to non-existent and that compensation and relocation packages for affected peoples have been inadequate.
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Location |
Argentina, Paraguay
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Dates |
1979
–2000
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Status |
Closed
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The Yacyretá Hydroelectric Project, funded by the Inter-American Development Bank (IDB) and World Bank, centered on the building of a massive dam on the Paraná River, which forms part of the border between Argentina and Paraguay. Originally begun in 1983, the construction of Yacyretá and its associated infrastructure has involved countless delays, billions of dollars of cost overruns, corruption, disputes, and various adverse environmental and social impacts. Because of flooding associated with the impoundment of the reservoir, Yacyretá is expected to directly displace over 50,000 people, and to constrain the livelihoods of countless others concentrated in two major urban areas (Encarnación in Paraguay and Posadas in Argentina). Civil society groups argue that public consultation has been minimal to non-existent and that compensation and relocation packages for affected peoples have been inadequate. Problems continue today as thousands of mainly urban displacees remain without any compensation.
In 1996, the Paraguayan grassroots organization Sobrevivencia, in cooperation with other NGOs, brought the case before the World Bank Inspection Panel and the IDB Independent Investigation Mechanism (IIM). Both inspection mechanisms confirmed that local participation, resettlement compensation, and environmental mitigation programs were insufficient. However, a political rift between Bank Executive Directors representing Northern and Southern countries has prevented the full implementation of suggested project reforms as outlined in the Inspection Panel’s report.
In April of 2000, the Goldman Environmental Prize was awarded to Oscar Rivas and Elias Diaz Pena of Sobrevivencia to honor their struggle to obtain justice for over 50,000 people displaced by the dam. For more information, please see BIC's Goldman Prize announcement.