ECA Watch: International NGO Campaign on Export Credit Agencies Export Credit Agencies: A Ball and Chain for People and the Environment
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 PRIVATE PROFITS, PUBLIC RISKS: EXAMPLES OF SOCIAL AND ENVIRONMENTAL IMPACTS OF ECA PROJECTS

III. GULF POWER COAL-FIRED POWER PLANT, THAILAND

Project background and problems: Faced with widespread opposition from local communities and pressure from international environmental groups, the US Export Import Bank (Ex-Im) has backed away from financing a controversial $820 million coal-fired power plant on the Gulf of Thailand for the time being. The Japanese Bank for International Cooperation (JBIC) is also considering support due to the potential involvement of Mitsui and Tokyo Electric Power Corporation (TEPCO).

The Edison Mission/Gulf power plant in Prachuab Khiri Khan would destroy local farming livelihoods, contribute to global climate change and cause irreversible damage to the Sam Roi Yot National Park, a wetland national park home to 200 species including several migratory birds from Europe. The plan set off protests by local farmers, fisherman and community members, who took to the street threatening to burn down the plant if it harmed their traditional way of life: the power plant will be built on fishing dock beaches and transmitted North to more populous parts of the country.

Edison Mission refuses to use best available technology such as smokestack scrubbers that lower sulfur dioxide emissions and acid rain problems. Local community members would like alternatives such as wind and solar to be pursued. According to news reports, the lands that are being used for this proposed Ex-Im project were taken without prior informed consent of local citizens. Citizens were told that an ecologically friendly resort would be built, and found out afterward that Mission was planning a power plant instead.

Due to this growing national and international pressure the project has now been indefinitely delayed in Thailand.

Corporate involvement: Edison Mission, a US company, intends to build the plant and fly ash dumping system near undeveloped beaches. Mitsui and TEPCO of Japan. Recently, local citizen groups of Bo Nok and Friends of the Earth wrote letters to Ex-Im President James Harmon stating opposition to the project. Ex-Im responded by taking the project off their list of major pending transactions. The agency informed Edison Mission that the company must conduct a credible environmental impact assessment of the project.

Ex-Im's decision is an important step in Friends of the Earth International's fight to stop Export Credit Agency support of coal-fired power plants in developing countries where there is local opposition. The US government has said it will not take steps to ratify the Kyoto climate change convention until developing countries commit to reducing greenhouse gas emissions, but actually subsidizes an increase in these countries' emissions through Ex-Im-backed power plants.

For further information: Jon Sohn, FOE US, + 1 (970) 349-0376; www.foe.org

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