[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
dam-l LS: Briefing for Hypovereinsbank Annual Shareholder Meeting
The following briefing for Hypovereinsbank investors was prepared by Urgewald.
++++++++++++++++++++++++++++++++++++++++++++++++++
Briefing for the Annual Shareholder Meeting of the HypoVereinsbank on May
6, 1999
++++++++++++++++++++++++++++++++++++++++++++++++++
White Elephants of the Bayerische Vereinsbank
- Background information regarding the counter proposals No. 11/12/15 -
In 1997, the Bayerische Vereinsbank announced a break-through in the field
of financing of large-scale-projects outside of Germany based on the
negotiation of a 257 US-$ buyers credit for the Maheshwar hydrolectric
power plant for which political risk insurance was obtained through the
state-run German Export Credit Agency, Hermes . The 17- year loan comes at
a base cost of 50 b.p. above Libor and with a grace period of four and a
half years followed by biannual installments. On top of these more than
favorable rates, the loan was approved by the Bank on the basis of Indian
bank guarantees, without any insistence on collateral security. Even the
repayment was not linked to any securitization mechanism involving outside
bodies.
Chances that the Maheshwar dam will be finished are worse than ever before:
* An on-site investigation of Ms. Heffa Schücking from the German
non-profit organization, Urgewald, has revealed a total lack of credible
resettlement planning as well as systematic violations of the rights of
affected people. Urgewald's report also questions the project's economic
viability.
(An English summary of the report can be obtained under: http://www.irn.org)
* The in-principle commitment for export credit guarantees has become
void and it is unlikely that it will be renewed as the new German
Government has made a commitment to introduce environmental, social and
developmental criteria for the approval of export credit guarantees.
(Frankfurter Rundschau: 4/23/99; DIE ZEIT, Süddeutsche Zeitung, Taz, FAZ:
4/29/99)
* The German utilities Bayernwerk and Vereinigte Elektrizitätswerke
Westfalen (VEW) stated this week that they will no longer invest in the
dam. Together they would have aquired 49% of the equity in the project
(Frankfurter
Rundschau: 4/23/99; Financial Times: 4/27/99; DIE ZEIT, Süddeutsche
Zeitung, Taz, FAZ: 4/29/99).
* In Bhopal (India) 500 farmers and fishers have been camped out in front
of the residence of Digvijay Singh, Chief Minister of Madhya Pradesh,
since April 7. On April 12, several community leaders - five from villages
to be drowned by Maheshwar - entered an indefinite hunger strike in protest
against dams in the Narmada Valley.
Staff, management and the supervisory board of the HypoVereinsbank have
been repeatedly informed about the significant flaws in the resettlement
plan of the project. But despite the fact that the lands being offered to
the affected communities either lie in the submergence zone of the dam or
already belong to other communities, they still fiercely defend the project.
The counterproposals No.11/12/15 will be officially filed on May 6th in
Munich. They are meant to initiate a disussion about the ecological and
social responsability of the Hypovereinsbank in its core business
activities.
We would appreciate the opportunity to exchange our views with you
regarding these issues and hope that this suggestion finds your support.
Please get in touch!
Urgewald * Von-Galen-Str.4 * 48336 Sassenberg
Fon: (02583)1031 * Fax (02583) 4220 * email: urgewald@koeln.netsurf.de
*************************************************
URGEWALD URGEWALD URGEWALD
Thielenstrasse 12
50825 Koeln (Germany)
Phone / Fax: +49 (221) 550 3908