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For Media
Fishing on the Omo River, Ethiopia

4 June 2009

In response to civil society’s pressure, the EIB announced yesterday its decision to not finance the Gilgel Gibe 3 dam in Ethiopia.

The 240 meters high dam project threatens the food security of up to half a million people, mostly tribal marginalised communities both in Kenya and Ethiopia. Moreover, it would destroy the Omo Valley environment, internationally known and recognised for its great biodiversity.

The EUR 1.55 billion hydropower dam is being built by the Italian construction company Salini, the contract was awarded without public tender procedure and the construction started in 2006 violating national legislation and international standards.

Counter Balance, Friends of Lake Turkana, International Rivers and Italy's Reform the World Bank Campaign welcome the decision as a significant breakthrough in the interest of affected communities and the environment. Furthermore, we call on the African Development Bank and the Italian government to stop funding the dam.

Counter Balance coordinator, Desislava Stoyanova said: ”The EIB decision goes in the right direction, we believe this is a fundamental step forward in the bank's external lending standards and we hope this is a sign of the bank' commitment towards the full implementation of the World Commission on Dam's recommendations”.

In March 2009, the NGO Friends of Lake Turkana, a group of affected people in Kenya, urged the EIB not to fund Gibe 3 because the affected communities "could not withstand any more pressure on the little resources that they have". The EIB and Friends of Lake Turkana were scheduled to meet in Nairobi next week. Yesterday, the head of the EIB complaints office cancelled the meeting following the EIB President’s decision not to fund the dam project.

Caterina Amicucci, campaigner of the Campaign to Reform the World Bank in Italy, said: “We encourage other potential financiers, such as the Italian Development Cooperation to follow the EIB decision and to speed up a transition towards environmentally and socially sustainable energy projects in southern countries.  We are ready to take the case up the UN Human Rights council and to instigate legal cases if necessary to stop this dodgy and destructive deal such as the Gibe 3 Dam”.

The EIB involvement in the operation dates back to 2005 when the bank awarded a EUR 50 million loan for the Gilgel Gibe 2 hydropower project on the same river basin, constructed again by Salini Costruttori without competitive bidding.  The EUR 220 million loan of the Italian cooperation for Gilgel Gibe 2 was investigated by the Tribunal of Rome due to alleged violations of national and international legislation.   

More:

Our 2008 Report is available online
Our Video Interview of Ikal Angelei, Friends of Lake Turkana (Kenya)

Contacts:

Desislava Stoyanova, Counter Balance coordinator, + 32(0)2 893 08 61
Caterina Amicucci, Reform the World Bank Campaign (Italy), +39 349 852 0789
Ikal Angelei, Friends of Lake Turkana (Kenya), +254 736 685 118 or +254 722 343 160

 

Tags: gilgel gibe, ethiopia, climate change, kenya, friends of lake turkana

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