[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

dam-l Two Items on Epupa Dam/LS



Below are two items on Namibia's Epupa Dam. The first is a story that
appeared in Southern Africa on a sign-on letter (sent previously) about the
project; the second is a response from the European Investment Bank, a
recipient of this letter, stating it will not support the project.

07 October 1999

Campaign mounts against Epupa Dam
International groups lobby against Nambian hydropower scheme

Christof Maletsky
WINDHOEK - More than 50 environmental pressure groups and individuals have
teamed up to campaign against the the controversial Epupa hydropower scheme
on the Kunene River in northern Namibia.

The groups have written to several potential funders of the dam, including
the African Development Bank, urging them not to get involved in a high-risk
project.

Among the campaigners are Himba leaders Chief Hikuminue Kapika and
Muatjindika Mutambo from the Epupa Action Committee, and a host of
international organisations and foreign individuals.

They argue that the Epupa scheme involves considerable risks - many of which
would affect the project's bottom line.

"At R2,5bn, the cost of the project is equivalent to one-fifth of Namibia's
1996 gross domestic product. Undertaking this project would increase the
government's annual expenditure on capital investment by more than four
times," the protesters wrote in a letter to all possible funders.

The campaigners said that because of the risks inherent in large
hydroelectric projects, Epupa has a high probability of low economic
returns. In addition there was the probability of cost overruns.
"Namibia has better, cheaper sources of power. SA exports power to Namibia
at less than half the estimated cost of Epupa electricity. The proposed Kudu
gas project will likely produce twice as much electricity as Epupa at a
lower cost.

"Secondly, the feasibility study's calculations do not account for any
amount of efficiency per user of power over time.
" Finally, the tragic fact of AIDS in southern Africa is likely to lower
demand for electricity."

They said the project assumed population growth in Namibia despite the fact
that AIDS was expected to slow such growth.

A 1998 United Nations AIDS/ World Health Organisation report estimates the
HIV infection rate at 19,98%, a rate which will substantially reduce
population growth and have a severe effect on the economically active
section of the population. Other UN reports in 1998 estimated that Namibia's
population would grow at only 2,4% a year between 1995 and 2000 and decrease
further after that.

Another major risk for the Epupa project is drought, which is plaguing the
upstream Ruacana Dam. Ruacana is operating at 13% of its capacity due to
falling water levels in the Kunene River.

"Since Epupa's economic viability depends on the reliability and
predictability of the Kunene River, several decades of stream-flow records
are needed to make reliable predictions about its long-term profitability."
The campaigners claim that the project will also have serious implications
for the Himba pastoralists who live in the area where the dam would be built
and are overwhelmingly opposed to the dam.

"The dam will change their way of life forever, and yet the official
feasibility study does not have a proper social impact assessment.
"Even without a proper assessment, however, there is ample evidence that the
social effect of this project will be great.

"As pastoral herders, the Himba community need extensive lands in order to
raise their cattle, and there is already a shortage of suitable land without
large-scale inundation by a dam," the protesters said in the letter.
To take land away from the Epupa community would put serious pressure on the
Himba livelihoods.

The group said the reservoir would also flood Himba graves, which are focal
points for important religious and cultural rituals.

They also argued that the flooding would bring an end to gardening in the
fertile soils along the riverbank and would destroy the riverine forests on
the riverbanks, a natural resource that is essential to the Himba economy.
"The loss of all these resources are likely to lead to the Epupa community
being increasingly dependent on the government for financial support and
social welfare."

Flooding the Kunene basin at Epupa would result in the loss of an annual
crop of hundreds of tons of the palm nuts which are a crucial food resource
for the community.


-------------------------

Luxembourg, 22 September1999

International Rivers Network/Attn: Mrs. Lori Pottinger

Subject: Namibia: Epupa Hydropower

Dear Mrs. Pottinger,

We refer to your letter dated 24 August 1999 addressed to a number of EIB
board members.

In reply we would like to inform you that the article dated 8 December 1998
in "The Namibian" newspaper contains certain references to EIB which are
misleading and erroneous.

We can confirm that EIB is not considering the possible financing of the
Epupa Hydropower Project. Like the other funding agencies mentioned in the
article, EIB is financing (by means of a EUR 55m loan to Nampower) the
400kV Interconnector between Namibia and South Africa, which is the least
cost solution for providing additional power to Namibia at the present
time. With its substantial capacity the new Interconnector should amply
cover Namibia's energy needs for the next few years.

We trust that clarifies the situation.

Yours Sincerely,
European Investment Bank

(Signed:

F. Carpenter and F. Weber Krebs)


::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
      Lori Pottinger, Director, Southern Africa Program,
        and Editor, World Rivers Review
           International Rivers Network
              1847 Berkeley Way, Berkeley, California 94703, USA
                  Tel. (510) 848 1155   Fax (510) 848 1008
                        http://www.irn.org
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::