Canada
Did you know?
Export Development Canada (EDC), the Canadian ECA, insures projects in heavily indebted countries which often contribute significantly to their financial problems. The EDC lacks transparency on which projects it is considering and the results of these projects' EIAs. The EDC is not subject to Canada's Access to Information Act.
"Because others are making investments in cleaner
and cheaper forms of energy, Three Gorges may not have customers for its power, which will cost two to three times more than the competition. As a result, the Three Gorges dam will saddle Canadian and Chinese taxpayers with the biggest boondoggle the world's energy industry has ever seen."
- Threegorgesprobe.org |
Mudslides are frequent around the dam site.
Photo Credit: Threegorgesprobe.org
|
Important Background Documents:
Useful Documents on ECAs and Canada 1999-2004 by the Halifax Initiative
This is a race to the bottom! Export Development Corporation 'will do anything' March 21, 2000 by Patricia Adams, Executive Director, Probe International
Probe International Submission to the Export Development Act Review December 21, 1998 by Patricia Adams, Executive Director, Probe International
EDC Projects Summary:
The two most prominent projects with EDC backing are the Three Gorges Dam in China and the Cernavoda 2 nuclear reactor in Romania. The EDC has lent the Chinese government Cdn $189M to finance the dam. They are supporting Canadian companies which provide the Chinese government with generators and a supercomputer to organize the dam’s construction. The EDC supports the dam even though construction has turned out to cost well over what was projected, and it is causing the displacement of over a million people. The EDC is providing a guarantee for the installment of a Candian CANDU nuclear reactor in Romania. The Romanian government is being forced into debt by the purchase of energy from Atomic Energy of Canada Limited (AECL) which is leading construction on the plant. The construction of a nuclear facility is an unnecessary addition to the amount of power available in Romania and is a step in the opposite direction from the elimination of nuclear energy occurring in several European countries. Additionally, CANDU reactors have a history of being involved in controversial situations. Their presence in India helped escalate tensions between India and its neighbors, particularly Pakistan. Malfunctions with CANDU reactors in Argentina and Mexico have required these countries to spend a lot of money on repairs. While the EDC has made contributions to its share of developing-world debt, the government of Canada is involved in the steps being taken to relieve the debt.
Many other projects guaranteed by the EDC often lead to destruction of the homelands and violation of the human rights of indigenous people. Construction of the Ralco Dam in Chile required the removal of 93 families of the Pehuenche people. The Pehuenche people are believed to have inhabited the Bio Bio Valley where the dam is located since the 1200s. The Embera Katio people are losing their property to the Urrá dam in Colombia. Several leaders of the Embera people were assassinated by paramilitary forces. Some projects pollute the land of the local people to dangerous levels. The Mae Moh power project in Thailand creates a sulphur dioxide cloud in the fall months which covers the homes of 42,000 people who subsequently suffer from respiratory illnesses and skin conditions. The EDC provided USD $163M for the Omai Gold Mine in Guyana which filled the Guyanese Amazon with cyanide and heavy metals in 1995 after a dam blocking a waste pond burst. All industries which made use of the river could not sell their products after exposure to the chemicals. A similar event occurred at the Kumtor Gold Mine in Kyrgystan in 1998. Public disclosure of the EIAs of projects which the EDC plans to sponsor before they make their final decision would force the EDC to be more responsible about guaranteeing projects which are likely to lead to environmental disaster. The EDC is not subject to the Access to Information Act and is allowed to decide its own disclosure policy. The EDC has made strides in disclosure of its activities but still has a way to go.
EDC and Project-Related Links:
Halifax Initiative: an Overview on EDC and Other Policy Recommendations October 2004 by Fraser Reilly-King, Halifax Initiative's Coordinator of the NGO Working Group on EDC; includes analyses of EDC policies with regards to accountability, corruption, disclosure, environment, and human rights.
Probe International submission to the Export Development Act Review December 21, 1998 by Patricia Adams, Executive Director, Probe International; includes an exhaustive (to 1998) historical list of EDC projects, with analysis.
Debt-Related Links:
Debts to Canada's export credit agency form the bulk of debts owed to Canada by developing countries 2000 by the Halifax Initiative
Canada’s position on Third World debt September 2003 by the Halifax Initiative
News 2004-2005:
 Canada at Bottom of OECD-- New Suzuki Foundation Report October 18, 2005 Canada is one of the worst environmental performers in the industrialized world, according to the David Suzuki Foundation report The Maple Leaf in the OECD: Comparing progress toward sustainability [PDF] . The report ranks Canada 28th out of the 30 member countries of the Organization for Economic Cooperation and Development (OECD) based on 29 environmental indicators.
Canada's ECA Continues to Withhold Key Environmental Information March 29, 2005
Russian Vneshtorgbank Makes Agreement with Korean ECA and with Canadian ECA November 28, 2004
Canada’s ECA Funds SUAL Russian Aluminium Project October 15, 2004
Algerian Energy Sector to Receive Boost from Canada’s ECA September 26, 2004
Canadian ECA Chief Environmental Advisor's Report Shows Small Step Toward Accountability September 16, 2004
Canada’s ECA Plans to Continue to Work with Company Convicted in Lesotho Corruption Case July 30, 2004
Canada’s ECA Creates Ecology Pact with Confederation of Indian Industry May 26, 2004
NGO Discussion Paper and Final Report on Human Rights Impacts of Trade and Project Finance May 3-4, 2004
Russian Diamond Monopoly and Canada's EDC Sign US$15 Million Deal February 8, 2004
News 2002-2003:
Three Gorges Dam reservoir flooding, with help from Canadian ECA April 15, 2003
Financial
Sinkhole (Editorial) October 25, 2002 National Post
EDC's pain could soon
be yours How safe are loans to Bombardier Nortel customers?
October 18, 2002 Financial Post, By Derek DeCloet
Billions at risk after
Ottawa's EDC funded Nortel, Bombardier customer loans October 18, 2002 The Canadian Press
Canadian firm convicted of bribery for Lesotho Highlands Water Project September 2002
EXPORT DEVELOPMENT CANADA-BACKED MINE LEAVES A SEA OF CYANIDE: Groups call on G8 Environment Ministers to Improve Environmental Standards of Export Credit Agencies April 10, 2002
In Defence of the EDC: Responding to a critical Post article, EDC chairman Patrick Lavelle says the Crown export corp is considered a model for other countries, and is moving to address its shortcomings June 6, 2000
Export Agency Head Seeks Flexible Standards March 16, 2000
Dusting the Cobwebs off Canada's Conscience February 4, 1999
A Chance to Practice What We Preach January28, 1999
For more information, contact the ECA Watch Facilitator.
ECA Watch Campaign Member Links:
Halifax Initiative, Fraser Reilly-King, tel +1 613 789 4447, fax: +1 613 241 4170 - www.halifaxinitiative.org
Probe International's Stop EDC Campaign - www.probeinternational.org/pi/edc
|
