Banks| Policies| Dodgy Deals| Campaigns
About us| Blog| Publications| Successes| Contact us| Donate
About BankTrack
Visit us
Organisation
Our team
Our board
Guiding principles
Team up with us
Jobs at BankTrack
Our annual reports
Funding and finances
History
BankTrack in the media
Our privacy policy
Donate
2023-02-07 00:00:00
What COP15 means for banks: meeting the Global Biodiversity Framework requires protecting Indigenous rights and divesting from harmful industries
2023-01-23 00:00:00
Berta Cáceres: new rules for banks could help stop defender killings
2023-01-16 00:00:00
In the balance: Why European due diligence legislation must cover financial services
2022-12-08 00:00:00
Exposed: Western banks funding Qatar’s carbon bombs
2022-12-14 11:08:26
HSBC announces it will no longer finance new oil and gas fields
2022-10-13 15:56:39
More major banks and insurers refuse to support EACOP
2022-09-16 10:38:48
European Parliament passes emergency resolution against human rights violations & environmental threats linked to EACOP
2022-06-27 09:49:16
Crédit Agricole takes first step to phase out from the oil and gas sector
Connect
2022-11-22 00:00:00
Banking on Thin Ice: Two years in the heat
2022-11-17 00:00:00
BankTrack Global Human Rights Benchmark 2022
2022-10-21 00:00:00
Burning forests in the name of clean energy? How banks are failing to exclude the harmful wood biomass industry from finance
2022-06-28 00:00:00
The East African Crude Oil Pipeline (EACOP): Finance Risk Update No. 3
2022-04-05 00:00:00
The BankTrack Human Rights Benchmark Asia
2022-03-30 00:00:00
Banking on Climate Chaos 2022
See all publications
Browse
Home
Banks
Policies
Dodgy Deals
Campaigns
About
About BankTrack
Donate
Contact BankTrack
Publications
Victories
Follow Us
News
BankTrack blog
Facebook
Twitter Fossil Banks No Thanks Twitter Fossil Banks No Thanks Instagram
Affiliate Websites
Fossil Banks No Thanks
StopEACOP
Forests & Finance
Banks & Biodiversity
Drop JBS
Bank of Coal
Don't Buy into Occupation
Home › News
European banks warned over raid on pension funds to finance disputed coal plant in Dominican Republic
Start
Banks
Dodgy Deals

By: CNLCC, BankTrack, Les Amis de la Terre France
2016-05-27
Santo Domingo, Dominican Republic

Contact:

Enrique de León (Spanish only)
The National Committee to Combat Climate Change
Tel: +1 809 330 0294
Email: enrique.leon05@gmail.com

climate@banktrack.org


Share this page:

Drilling equipment at the Punta Catalina construction site. Photo: BAUER Spezialtiefbau GmbH
Go to:
Start
Related Banks
Related Dodgy Deals

Top European banks including Société Générale, Deutsche Bank and ING have been warned by Dominican Republic NGO the National Committee to Combat Climate Change (CNLCC) about the worrying implications of Dominican government plans to use $600 million of employee pension fund money in order to help finance the controversial - and struggling - $2 billion Punta Catalina coal power plant project, currently under construction on the Caribbean island.

The Dominican government has been forced to initiate the pension fund move owing to the inability of the Brazilian National Development Bank (BNDES) to disburse essential co-financing for the project, a result of ongoing corruption investigations in Brazil into Odebrecht, the company awarded the Punta Catalina construction contract in what campaigners believe to be dubious circumstances.

CNLCC believes that the use of pension funds to finance the construction of the Punta Catalina coal plant is an unacceptable and potentially jeopardising use of public funds for a project originally set up to be financed without any public money involvement. CNLCC also claims that the project would result in significant pollution and carbon emissions, endangering public health and the environment as well as fuelling climate change.

The proposed Punta Catalina project comprises two identical coal-fired units each with 385 megawatt capacity, and the construction of a coal terminal with a capacity of 80,000 tonnes. Project finance for the coal plant was agreed with Société Générale, Deutsche Bank, ING, Santander, UniCredit last summer, alongside a loan guarantee from SACE, Italy's export credit agency.

A first $200 million tranche, out of a planned total of $632.5 million, was disbursed by the European banks at the end of last year. Further disbursement of construction finance from the banks, according to a contract agreement seen by campaign groups, was supposed to have been contingent on the release of co-financing from BNDES, previously scheduled for April this year.

CNLCC is also concerned about the potential use of state pension fund money for a project which would contravene part of the Dominican Republic's National Development Strategy of 2012 which stipulates the promotion of "decarbonization of the national economy through the use of renewable energy sources, the market development of biofuels, energy efficiency and efficient and clean transportation."

Enrique de León of CNLCC commented:

"With the abundance of renewable energy potential which the Dominican Republic possesses, it's been very surprising to see a string of European banks, which all say they are committed to the clean energy transition and fighting climate change, getting behind a project which will require major coal imports to the island, and will lead to considerable environmental and health impacts if the Punta Catalina plant starts firing.

"Now the Dominican government is concocting a scheme, forced upon it because of all kinds of serious irregularities hanging over the project, which it hopes will further lure in the European banks. Such antics would not be tolerated in the countries where these banks are based, and we call on the banks to put principles and the climate before profit and corruption."

Yann Louvel, Climate and energy coordinator at BankTrack, said:

"There is clearly a lot more to the Punta Catalina coal project than meets the eye. Climate considerations don't seem to have deterred some of Europe's top banks from having a punt on Punta Catalina. Now, in what is becoming an increasingly murky deal, $600 million of state pension fund money is being lined up to keep the banks involved in the deal. These institutions need to adopt a strong, no tolerance approach to these proposed shabby financing arrangements, for what is an already very shabby, highly questionable coal investment."

Notes for editors:

1. See the 18 May 2016 NGO letter to Société Générale.

2. See background information on the Punta Catalina project, a BankTrack ‘dodgy deal'.

 

Go to:
Start
Related Banks
Related Dodgy Deals

Related banks

Banco Santander Spain

active

Deutsche Bank Germany

active

ING Netherlands

active

Société Générale France

active

UniCredit Italy

active
Go to:
Start
Related Banks
Related Dodgy Deals

Related Dodgy Deals

Projects

There are no projects active for this item now.
on record

Punta Catalina-Hatillo coal power plant Dominican Republic

Coal Electric Power Generation
Browse
Home
Banks
Policies
Dodgy Deals
Campaigns
About
About BankTrack
Donate
Contact BankTrack
Publications
Victories
Follow Us
News
BankTrack blog
Facebook
Twitter Fossil Banks No Thanks Twitter Fossil Banks No Thanks Instagram
Affiliate Websites
Fossil Banks No Thanks
StopEACOP
Forests & Finance
Banks & Biodiversity
Drop JBS
Bank of Coal
Don't Buy into Occupation
Vismarkt 15
6511 VJ Nijmegen
The Netherlands

Tel: +31 24 324 9220
Contact@banktrack.org
©2016 BankTrack                Webdesign by BankTrack and EASYmind
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted