Call # 245 March 2002

Last July 2001, the Ecuadorian government accepted the building project of a pipeline, in a weak region (from an ecologic point of view), in which oil production has been intense for several years. The OCP (Oleoductos Crusado Productos), protected by a consortium of foreign oil-producing companies, has to cross the country from East to West. Local communities, which are supported by students, scientifics and Ecuadorian environmentalists, have organized several demonstrations. The last one was harshly punished. Ecuadorian organizations are calling for international solidarity in order to put pressure on the financers of the pipeline and therefore stop the OCP project, which endangers local populations, increases inequalities and threatens ecosystems (which in the long term would lead to the destruction of Ecuadorian National Parks and virgin forests).

4 dead, among which 2 children; more than 300 injured, among which several were shot: that is the consequence of the suppression of the Ecuadorian Army against the demonstrations organized in the provinces of Orellana and Sucumblos, in the North of Ecuador, at the Colombian border.

At the beginning of January 2002, the inhabitants of the region, students and defenders of the environment launched a great protest movement. They occupied the airport and several oil-producing sites, among which the construction site of the OCP pipeline in the middle of the mountains of the Mindo Reserve. Some of them installed platforms on top of the trees, others chained themselves to prevent the machines from moving forward in the Reserve to go on building the pipeline.

At the end of January, at the request of the representative of the consortium of oil-producting companies, the Ecuadorian government mobilized the army. It announced the state of emergency on 22nd February in the province of Sucumbios and on 23rd in the province of Orellana. The two regional capitals Nueva Loja and Coca were therefore under the occupation of the army: journalists were arrested, radios were forbidden and a warrant was launched against Madam the Mayor of Coca.

What about the population ?

In February 2001, several demonstrations took place to require compensations for the damage suffered by the inhabitants because of oil production in the region. The government had then promised to get involved in the " conflict " within 3 months, but nothing was done. However, for 20 years, oil production has accounted for a turnover of 60.000 million dollars in the region even though it is under-equipped and a great part of the population is touched by poverty.

Coffee crisis increased even more the difficulties of the farmers. Its global market price collapsed, but no support was given to the farmers, who were more and more tempted by starting producing coca. Because they are close to Colombia, they are canvassed by the mafia, which tries to convince them to product coca (which could return six times more).

An expensive project

The project of a new pipeline brought things to a head. After having delayed this project for 10 years because of the economic and political instability of Ecuador, the President Gustavo Noboa promted the consortium of oil-producing companies to start the construction of the OCP (Oleoducto Crusados Productos). The 7 multinationals (1) involved in this very expensive project (1,1 billon dollars) need money. Westdeutsche Landesbank, the biggest German public bank is the largest financial resource (2).

The pipeline (500 km long) should be operational in 2003. It will be used to transport crude and heavy oil (unrefined oil) mainly destined for the American market. The great majority of oil will come from the Yasuni National Park, the last oil deposit that was not exploited by oil industry.

Heading for destruction

The government approved the pipeline construction without making any survey on the environmental impact (though the Ecuadorian law demands it). Once the project was adopted, a company was charged to estimate the consequences from an ecologic point of view. The period of 2 months given to make the survey was ridiculously too short if we consider these areas, with very fragile ecosystems and the ten communities that could be touched.

In the project, the OCP crosses 11 protected sites, among which the Mindo Reserve, one of the 3 global areas with the greatest biological variety, where 450 bird species live.

Moreover, in order to make a profit on the project, Ecuador will have to double its oil production and suffer a real "oil boom", which means the building of new road infrastructures in "protected" areas of Amazon (where are remaining ancestral territories of the Achuar, Shuar, Huaorani, Quichua and Zapara peoples).

The risks of water, air and soils pollution and contamination are high.

Contrary to the law, a referendum was not hold. Local populations will therefore be the first victims of the weakening of the ecosystems. Sanitary and medical consequences coulb be serious nearby oil refineries.

Mobilizations

The controversy about the OCP project makes landowners, farmers, local authorities, groups of environment defenders, scientifics, local organizations and eco-tourism operators stand together. They claim for the building of the pipeline to be stopped and want to put an end to 30 years of disastrous oil policy in the country.

They also claim for the opening of negotiations to get indemnities for the populations and the protection of the environment.

Several organizations are supporting their action. Today, Réseau-Solidarité joins them to put pressure on the financer.

1. Especially the Canadian company Alberta Energy and the American company US’s Occidental Petroleum. But also Kerr McGee (USA), AGIP (Italy), Perez Company (Argentina), Repsol-YPF (Spain) and Techint (Argentina).

2. 900 million dollars, ie about 90% of the overall cost of the project.

Main organizations mobilized against the OCP project

Accion Ecologica, Accion por la Vida, Les Amis de la Terre, Amazon Watch, Oil Watch, Green Peace Allemagne, Bird Life, France Amérique Latine, Solidaridad Ecuador...

Write to

Westdeutsche LandesBank

Mr Friedel Neuber - Chief Executive Officer

Herzog Strass 15

40217 Duesseldorf - GERMANY

Fax : 00 49 211 8266121

Text suggected (this text is only a suggestion, you can adapt it to your own style)

Sir,

Through Réseau Solidarité (10 quai de Richemont 35000 RENNES - France) I have been informed that your bank gives financial support to the OCP oil project which is currently led by a seven multinationals consortium in Ecuador.

This project put in danger easily damaged ecosystems, hundreds of villages and could provoke the irreversible destruction of National Parks and virgin forests.

I urgently and earnestly request you to consider the lack of serious studies on the effects of that project and consenquently, to put an end to the financing of OCP.

Yours sincerely

(signature)

FOR MORE INFORMATION ON THE OCP PROJECT

www.amazonwatch.org

www.foei.org

www.solidaridadecuador.org