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dam-l Epupa story in Namibian/LS
>From THE NAMIBIAN, JANUARY 7, 2000
Campaign against Epupa heats up
CHRISTOF MALETSKY
INTERNATIONAL and local environmental pressure groups have called on South
African President Thabo Mbeki and several potential key funders to not
support the building of the Epupa hydropower project.
The Development Bank of Southern Africa, European Investment Bank and the
African Development Bank have all been urged not to give any financial
backing to the dam project.
Campaigners have also appealed to Mbeki to take up their concerns with his
Namibian counterpart, President Sam Nujoma.
In a letter to Mbeki the Western Cape-based Environmental Monitoring Group
said the project is deeply flawed, violates the minority rights of the
Himba people living in the area, undermines the progressive development of
Namibia and is contrary to SA's own self-interest in the sub-region as a
whole.
They reminded Mbeki that the issue of where to build the dam has had Angola
and Namibia at loggerheads and "thus adds to the potential for conflict in
the sub-region."
"The Himba suffered harshly from the actions of the Portuguese and German
colonialists in Angola and Namibia, and the illegal apartheid government of
South West Africa. They want to contribute to Namibia's growth and
development but not as the victims of oppression and exploitation," the EMG
wrote.
They called on Mbeki to convince Nujoma to halt all further actions on the
dam until the recommendations of the World Commission on Dams which met in
Cape Town last December are released in June this year.
The campaigners argue that the Epupa scheme involves considerable risks -
many of which would affect the project's bottom line.
"At N$2,5 billion, 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," the campaigners said.
"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 Joint AIDS Programme/World Health Organisation report estimates the
HIV infection rate at 19,98 per cent, 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 per cent 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 per cent 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.
The Development Bank of Southern Africa told the group they had had
discussions about the project with both the Namibian Ministry of Mines and
Energy and power utility, NamPower.
They were informed that the project was still under investigation but had
received no enquiry relating to their input or request for funding.
"Should we receive such an application, the DBSA's possible support would
be guided by the outcome of a comprehensive appraisal of the project
proposal. This would be undertaken by a DBSA team of relevant experts. The
project appraisal focuses on, among others, the assessment of
institutional, social, environmental, financial, economic and technical
aspects. The DBSA would not consider funding a project that is not viable,
after taking into consideration the above aspects," the bank's Chief
Executive Dr Ian Goldin wrote back to the group.
The European Investment Bank said they are not considering any possible
financing of the project.
The EIB is financing (by means of a EUR 55 million loan to Nampower) the
400kV Interconnector between Namibia and South Africa, which it regard as
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," the EIB responded.
The African Development Bank's Giorgis Getinet said they have not been
formally approached to finance the project.
"I can assure you that if requested we will look at all aspects of the
project including the issues of concern to you," Getinet said.
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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
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