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DAM-L LS: Endesa Close to Ralco Agreement - Chile (fwd)



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Date: Mon, 08 Oct 2001 17:21:16 -0700
To: irn-biobio@netvista.net
From: Monti Aguirre <monti@irn.org>
Subject: LS: Endesa Close to Ralco Agreement - Chile
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Oct. 8, 2001

CHIP NEWS

Endesa Close to Ralco Agreement - Chile
Thursday, October 04, 2001
A definitive agreement to solve the problems surrounding Endesa Chile's 
570MW Ralco hydroelectric project is close at hand, a source linked to the 
project told BNamericas.com.
Progress has been made in negotiations between Endesa, the seven indigenous 
families who are refusing to leave their land and representatives of the 
Chilean government, and a compromise settlement is being analyzed.

The proposal is for the construction of a wall that would modify the 
original extension of the reservoir and prevent the flooding of the 
Pehuenche families' land, in the upper Bio Bio basin in southern Chile's 
Region VIII.

The proposal would allow Endesa Chile to finish construction of the plant 
by December 2003, thereby adding 570MW to the network, while avoiding the 
politically sensitive issue of relocating indigenous people from their 
ancestral lands.

Endesa has already reached an agreement with the other 86 Pehuenche 
families who lived in the reservoir site; they have been relocated to land 
in the same region, Endesa said.

Lawyers of the seven families consider the new proposal to be acceptable, 
the source said, while from the government's point of view it would comply 
with the country's indigenous laws and set a precedent that indigenous 
lands may not be flooded without the consent and relocation of their owners.

"This alternative would also avoid the case going to court, where the 
electricity laws take precedent over indigenous laws, which would expose 
the ineffectiveness of the indigenous laws in this instance, and have a 
negative political impact for the government," the source said.

To date Endesa has invested US$200mn in the project, bringing construction 
to 40% completion.

Meanwhile, Endesa started proceedings at the appeals court of Region VIII 
capital Concepcion on Thursday (Oct.4) to request greater security and 
police presence at the site after construction equipment was attacked and 
burnt last weekend.
BNamericas.com




^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Monti Aguirre
Latin American Campaigns
International Rivers Network


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