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dam-l ENDESA PROPOSES DYNAMITING NATURE RESERVE

CHIP News for January 27, 1999
Sources: EL MERCURIO; LA TERCERA

ENDESA PROPOSES DYNAMITING NATURE RESERVE

Socialist Deputy Jaime Naranjo denounced Tuesday electricity giant Endesa's
plans to dynamite the El Dial lagoon nature
reserve in order to produce extra energy to avoid rationing in April.

Endesa sent a proposal to the National Energy Commission (CNE) to dynamite
the lake's outlet and use 40 million cubic
meters of water to generate hydroelectric energy.

Naranjo said extracting that amount of water from the lagoon will destroy
it and the surrounding ecosystem, adding that the
country's current energy crisis does not justify destroying the environment.

The El Dial lagoon, located east of Parral in Region VII, is formed by the
Troncoso and Palaleo rivers, and is 8.5 kilometers long and 800 meters
wide.

The CNE has already approved the project's viability and has sent it to the
Public Works Ministry (MOP) for approval. MOP Minister Jaime Toha said the
project would not go forward, however, without an environmental impact
assessment (EIA).

Endesa would not comment on the matter.

In other Endesa-related news, company president Jose Antonio Guzman said
Monday that construction on its US$500 million Ralco dam will begin shortly
in order to be operational by the targeted start up date of 2002.

Although Endesa says the Ralco dam will prevent future energy shortages,
Chamber of Deputies Mining and Energy                           Commission
last week accused Endesa of causing the energy shortage crisis in December
by concealing information about
water levels. Guzman denied the accusations, saying the crisis was caused
continued dry weather and start up delays at
several new natural gas generators.

Chile Information Project

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