The Madeira is the second largest river in the South American Amazon. Currently large infrastructure plans, such as the construction of at least three hydroelectric dams, threaten this main tributary of the Amazon. The future of the Madeira basin, covering close to 25 percent of the Brazilian Amazon, a habitat for countless species of animals and plants, and home to many people dependent on the river, is in danger.

The Madeira project is the cornerstone of the Brazil-Bolivia-Peru hub of IIRSA (the Initiative for the Integration of South American Infrastructure). IIRSA is a blueprint for 335 large-scale infrastructure projects being proposed by the governments of South America, supported by the Inter-American development bank (IDB), the Andean Development Corporation (CAF), and Brazil’s National Bank for Economic and Social Development (BNDES). The main promoter of the Madeira projects is Odebrecht, a Brazilian industrial group in construction, petrochemicals, mining and oil - and one of the EIB’s Brazilian clients.

Environmental and social impacts will be felt across the entire Amazon River basin in the years to come. Some 3000 people will be forced to move from their homes and deforestation is expected to increase. By altering the flow of the Madeira River, the proposed dams would disturb sedimentation patterns, reduce fish biodiversity and create dramatic livelihood, social and health problems for communities that rely on the river. The threat of potential flooding has sparked conflict between Bolivia and Brazil.

The EIB has not yet provided any loans directly for the Madeira projects, but the bank is likely to be involved in some way. It has signed a Memorandum of Understanding with the IDB which notes that the EIB could be a partner for the IDB for the financing of IIRSA-related projects developed by the IDB. The Brazilian private bank Itau, a financial intermediary of the EIB, has also expressed interest in financing part of the project.

NGOs have demanded full disclosure of EIB involvement in the Madeira complex, and are insisting that strict social and environmental standards are applied to any projects that move forward.