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Atradius-DSB refuses support for Setusamudram Shipping Channel Project (India)

Today the Dutch NGO Both ENDS was informed by the Dutch Export Credit Agency (ECA) Atradius-DSB that it decided not to approve the application for an export credit insurance for the financing of the Setusamudram Shipping Channel Project, sponsored by the Tuticorin Port Trust (India). This project aims to dredge a shipping canal through the shallow sea waters between India and Sri Lanka. The project would have serious environmental (and socio-political) consequences. For this reason Atradius-DSB classified the project as a Cat. A project, and made the Environmental Impact Assessment, as well as a more general project assessment available to the public for a period of 30 days before the scheduled decision.

Both ENDS and NGOs in India and Sri Lanka expressed serious concerns about this project. Atradius-DSB decided that the serious environmental impacts of the proposed project prevented them from approving the requested support. ECA-Watch welcomes this decision of Atradius-DSB and hopes that it will contribute to shelving this project.