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Home › Dodgy Deals ›
Dodgy Deal
Barro Blanco dam projectPanama

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Last update: 2018-11-19 15:04:35
The Barro Blanco Dam. Photo: Anna van Ojik, Both Ends), 2017 (used with permission)

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Last update: 2018-11-19 15:04:35
Why this profile?

What must happen

GENISA is in violation of the banks policies and of international human rights standards. The banks should make sure this is not acceptable. They should pressure their client to stop operating the project until proper compensation has been provided and FPIC has been obtained. FMO should learn from this case that the process of engaging local communities is crucial in the projects it finances and that without the free prior and informed consent of Indigenous Peoples affected by a project, this leads to serious conflicts. They should implement a zero tolerance FPIC policy.

About
Sectors Hydroelectric Power Generation
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
Website http://www.genisa.com.pa/en/barro-blanco/
This project has been identified as an Equator Project

The Barro Blanco dam is under construction in the Tabasara river, in the Chiriqui Provence of Panama. The dam will have a capacity of 28.85 megawatts and a reservoir surface of 2.58 square kilometres. It is being built by the Honduran owned special purpose company Genisa and is being financed by FMO, DEG and CABEI. Construction has been completed, except for testing of the facilities. As agreed upon in August 2015, operations would not start until a final agreement had been reached with the local indigenous communities.

On 22 August 2016, this agreement between the government of Panama and the representatives of the indigenous Ngabe-Bugle communities was signed. The agreement states Genisa will be removed as the dam's operator. Instead, the dam will be operated by a group of professionals, of which at least 50% is part of the local indigenous or farmer communities. However, multiple groups do not support the agreement and were not properly informed about the implications.

Impacts

Social and human rights impacts

The reservoir of the dam will flood 6.7 hectares of the indigenous territory (Annex to the Comarca) of the Ngäbe-Buglé people, Panama's largest indigenous group. The villages of Nuevo Palomar, Quebrada Caña and Kiad, with approximately 538 people, will be directly affected. Six houses, including a school, will be flooded and their inhabitants are being forcefully resettled.

The Ngäbe depend on the river for their physical and spiritual survival. They use the water for drinking and washing as well as for swimming and leisure activities. The river beds supply fertile lands which are used for agriculture, as well as for the collection of medicinal plants. Along the river cementaries and traditional sacred places, including three petroglyphes, will be flooded.

The dam will convert the Tabasará River from a running river to a stagnant lake ecosystem, resulting in significant changes to the Ngäbe’s diet and their landscape. Forced relocation of some indigenous families is expected.

There is a long-standing conflict between the Ngäbe people and the government concerning mining and the construction of dams for hydropower generation in or near their territory. The Changuinola Dam (223 MW) in the neighboring province of Bocas del Toro was completed in 2011 and resulted in numerous Ngäbe villages being flooded, with no compensation provided. Another large dam, Tabarasá 2, is planned further downstream on the Tabarasá River.

In August 2016 the testing continued and the water reached its maximum level (103m above sea level). People living in the communities at the shore of the river were again not informed of this. This means that literally from one day to the other their land and several houses were inundated. This had severe impactse: less food, no houses, more mosquitos, for a while the river was inaccessible so no drinking water, no fishing, no washing etc.

In January and February 2017 the testing was stopped and the water levels came down again. Leaving a destroyed, dirty mud surface: meaning to access to the river, destroyed land and houses.

The Environmental Impact Assessment failed to include the Ngäbe-Buglé Comarca and did not properly consult the Ngäbe communities that will be directly affected by the dam. Let alone ask for their consent. When the Ngäbe protested and requested to be heard by the president, they were instead received with bullets from the police.

As such, the State of Panama has not fulfilled its national and international obligations with respect to (i) free, prior and informed consent of indigenous communities who will be affected by development projects; (ii) protection of indigenous lands, territories, and natural resources; and (iii) protection from state-sponsored violence. Panama’s human rights failure to act include the rights to culture, physical security and integrity, land, health, subsistence, and freedom of movement and residence, as well as access to information, public participation, and justice.


Environmental and climate impacts

The environmental impact study made a very superficial analysis of the impacts on biodiversity. It failed to include the endemic Blue Tabasara rain frog, as well as several other CITES listed species, whose habitat will be flooded by the dam. The dam will also be a barrier to migrating fish and shrimps. The capacity of the plant and the surface of the lake were increased after the EIA was released, and no further studies were done to evaluate the impact of this. This project resorts under CDM, the Clean Development Mechanism, claiming a CO2 reduction of 66,750 ton equivalent. It was approved without attending to the letters of concern of the Ngäbe.


Other impacts

The construction of this dam will cause the flooding of petroglyphs and three ancestral cemeteries.

Financiers
Institution type
Finance type
Year

The project is expected to cost USD 78.3 million. In 2010, GENISA, which already had financing for Barro Blanco approved by a German (DEG) and a Dutch Development bank (FMO), withdrew their application for funding from the European Investment Bank (EIB) after learning that bank officials planned to visit the affected area themselves. Instead, it received funding from the Central American Bank of Economic Integration.

 

 

Companies

Genisa

Panama
Website
Genisa - Generadora del Istmo S. A is a Panamanian special purpose company created to build the Barro Blanco Dam.
No companies
Governance
Norms & standards

Applicable norms and standards

Equator Principles
IFC Performance Standard 7: Indigenous Peoples
International Finance Corporation Performance Standards - 2006 Edition
International Finance Corporation Performance Standards - 2012 Edition
International Labour Organization Convention 169
United Nations Declaration on the Rights of Indigenous Peoples
World Commission on Dams
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Dam Lies: Despite Promises, an Indigenous Community’s Land Is Flooded

2018-03-05 | Pulitzer Center
BankTrack news BankTrack blog Partner news Partner blog

Panama trial of three Ngäbe leaders “a pattern” of intimidation and criminalization

2017-08-14 | Intercontinental Cry
BankTrack news BankTrack blog Partner news Partner blog

Barro Blanco floodings: enormous damage

2017-04-06 | Both ENDS
BankTrack news BankTrack blog Partner news Partner blog

Panama's Barro Blanco dam to begin operation, indigenous pleas refused

2017-03-24 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

Worrying new developments around Barro Blanco

2016-08-30 | Both ENDS
BankTrack news BankTrack blog Partner news Partner blog

Indigenous lands in Panama under threat from hydroelectric dam

2016-08-03 | Land Rights Now
BankTrack news BankTrack blog Partner news Partner blog

Barro Blanco: flooding suspended, international lenders pressured to act

2016-07-14 | Carbon Market Watch
BankTrack news BankTrack blog Partner news Partner blog

Illegal closing Barro Blanco dam puts native lands under water

2016-06-08 | SOMO
BankTrack news BankTrack blog Partner news Partner blog

Barro Blanco: Flooding begins on UN approved hydro dam as indigenous defenders are forcefully removed

2016-05-25
BankTrack news BankTrack blog Partner news Partner blog

Barro Blanco protesters injured and arrested during crackdown in Panama

2015-07-29 | intercontinentalcry.org
Blog
BankTrack news BankTrack blog Partner news Partner blog

Independent report: Dutch and German development banks failed to comply with environmental and human rights standards in financing the Barro Blanco dam in Panama

Indigenous communities and civil society shocked by bank's inadequate response to findings
2015-06-01 | Kiad, Panama/Amsterdam/Bogota | SOMO
BankTrack news BankTrack blog Partner news Partner blog

Dutch FMO pushed Panama to continue construction Barro Blanco dam

2015-05-18 | Amsterdam | Both ENDS
BankTrack news BankTrack blog Partner news Partner blog

Nederlandse druk op Panama om bouw dam

2015-05-17 | Volkskrant
Blog
BankTrack news BankTrack blog Partner news Partner blog

Panama Suspends Construction of FMO-funded Barro Blanco hydroelectric dam over environmental and human rights abuses

Panamanian indigenous community celebrates the decision
2015-02-11 | Panama | SOMO
BankTrack news BankTrack blog Partner news Partner blog

UN registered Barro Blanco hydroelectric dam temporarily suspended over non-compliance with environmental impact assessment

2015-02-10 | intercontinentalcry.org
Blog
BankTrack news BankTrack blog Partner news Partner blog

First complaint to Dutch development bank FMO admitted

The Independent Complaints Mechanism of the FMO will examine the Barro Blanco dam in Panama.
2014-06-13 | Kiad, Panama / Amsterdam, Netherlands | Centre for Research on Multinational Corporations (SOMO) & Both ENDS
BankTrack news BankTrack blog Partner news Partner blog

Complaint filed against Dutch development bank FMO for funding the Barro Blanco dam in Panama

2014-05-07 | Netherlands
Blog
BankTrack news BankTrack blog Partner news Partner blog

Complaint filed against Dutch development bank FMO for funding the Barro Blanco dam in Panama

Panamanian indigenous community submits complaint to FMO’s independent grievance mechanism
2014-05-07 | Kiad, Panama / Amsterdam | SOMO, Both ENDS
BankTrack news BankTrack blog Partner news Partner blog

Confrontatie dreigt bij Barro Blanco dam in Panama

2014-02-18 | Both Ends
BankTrack news BankTrack blog Partner news Partner blog

Panama: Indigenous communities face imminent eviction

2014-02-17 | Intercontinental Cry
BankTrack news BankTrack blog Partner news Partner blog

Panama: Dam Promises or Dam Lies?

2014-02-07
BankTrack news BankTrack blog Partner news Partner blog

UN Asked to Investigate Human Rights Violations Caused by Panama’s Barro Blanco Dam

2013-06-18 | Earth Justice
BankTrack news BankTrack blog Partner news Partner blog

Panama: Time is running out for Tabasara communities

2013-03-10 | Intercontinental Cry
BankTrack news BankTrack blog Partner news Partner blog

Hidroelectricas en la comarca

2012-02-08 | La Prensa
Resources
Documents
Videos
Links
2017-08-07 00:00:00

Questions and Answers on the Barro Blanco Hydropower Project in Panama

Other bank document
2017-08-07 00:00:00 | FMO
2016-08-26 00:00:00

FMO welcomes agreement on Barro Blanco

Other bank document
2016-08-26 00:00:00 | FMO
2016-08-22 00:00:00

Acuerdo de la Mesa de Dialogo del Proyecto Hidroelectrico de Barro Blanco

Final Agreement (Spanish)
Other document
2016-08-22 00:00:00 | Government of Panama and the Representatives of the Ngabe-Bugle community
2016-06-01 00:00:00

Open Letter to the President of Panama: Immediate suspension of test flooding in Barro Blanco

Correspondence
2016-06-01 00:00:00 | Group of NGOs
2016-05-24 00:00:00

FMO statement on filling of reservoir Barro Blanco

Other bank document
2016-05-24 00:00:00 | FMO
2015-11-10 00:00:00

Beantwoording Kamervragen over de Barro Blanco dam in Panama

Other document
2015-11-10 00:00:00 | Minister Ploumen
2015-08-10 00:00:00

2015 Agreements between Government of Panama and indigenous leaders

Other document
2015-08-10 00:00:00
2015-05-29 00:00:00

DEG and FMO Management Response to the Independent Expert Panel’s Compliance Review Report regarding the Complaint on the Investment in the Barro Blanco Hydroelectric Project

Other bank document
2015-05-29 00:00:00 | FMO/DEG
2015-05-29 00:00:00

Report on Barro Blanco Hydroelectric Project Panama

Other bank document
2015-05-29 00:00:00 | FMO-DEG Independent Complaints Mechanism
2015-05-18 00:00:00

FMO' s reaction to article in De Volkskrant

Other bank document
2015-05-18 00:00:00 | FMO
2014-02-18 00:00:00

Urgent Appeal to UN Special Rapporteurs on imminent forced eviction of indigenous people

Other document
2014-02-18 00:00:00 | M10, Earthjustice, AIDA, CIEL
2014-02-09 00:00:00

Open letter from the M10 to bank representatives

Other document
2014-02-09 00:00:00
2013-09-06 00:00:00

Peritaje independiente al proyecto hidroeléctrico Barro Blanco

Other document
2013-09-06 00:00:00 | UNDP
2013-07-26 00:00:00

Declaración del Relator Especial sobre los derechos de los pueblos indígenas al concluir su visita oficial a Panamá

Other document
2013-07-26 00:00:00 | United Nations Special Rapporteur on the Rights of Indigenous People
2012-10-31 00:00:00

Beantwoording Kamervragen over door FMO gefinancierde dam in Panama

Other document
2012-10-31 00:00:00 | Staatssecretaris van Buitenlandse Zaken

Video links

http://www.soclosetothesky.com/kiad#title
Documentary of ten homes to be destroyed by the Barro Blanco dam.
http://www.aljazeera.com/programmes/peopleandpower/2012/03/20123208464402131.html
Documentary and article on the Barro Blanco dam by Al Jazeera

Carbon Market Watch on Barro Blanco and CDM

Barro Blanco Genisa

Genisa

Barro Blanco

FMO's webpage on Barro Blanco

UNFCCC: Barro Blanco

UNFCCC page on the Barro Blanco Dam project

Panama: Village of the damned

Documentary by Aljazeera

Chiriqui Natural

Social and Environmental news from the Ngäbe Buglé Region, Chiriquí Province and the Republic of Panama. 

International Rivers' webpage on Barro Blanco

Chronology of Events for Barro Blanco Dam.

Earth Justice page on Barro Blanco

Both ENDS' page on Barro Blanco

Updates

2017

2017-03-24 00:00:00 | Barro Blanco dam begins operations while indigenous pleas are refused

The contentious Barro Blanco hydroelectric dam is set to begin operations within the next few weeks, defying both the relentless opposition by affected communities and the rejection last September by local indigenous authorities of a government proposed project completion agreement. According to Roberto Meana, General Administrator of Panama’s National Authority for Public Services (ASEP), the 28-megawatt gravity dam in western Panama could begin operation within days once necessary tests are finalized. The reservoir’s waters have been rising since August of last year, gradually flooding Ngäbe communities and land (Mongabay.com).

2016

2016-05-27 00:00:00 | Panamanian Minister confirms affected communities were not informed about test flooding

On 27th May 2016, Panama's Minister of Internal Affairs Milton Henríquez confirmed that the Ngäbe communities had not been properly informed about the test flooding that started three days earlier. On behalf of the National Government, the Minister apologized to the local communities for any situation that has inflicted confusion.

2016-05-25 00:00:00 | Flooding of reservoir begins, Indigenous territories to be inundated

On 24th May 2016, Barro Blanco's floodgates were closed. As part of a testing procedure the reservoir will be filled up to 103 metres above sea level, resulting in the inundation of more than six hectares of Ngäbe-Buglé territory. The flooding is in conflict with the agreements made by the Round Table in August 2015. Silvia Carrera, director of the Ngäbe Buglé General Congress, declared she has not been informed about the flooding.

2015

2015-08-10 00:00:00 | Government signs agreement with indigenous communities on Barro Blanco

The Panamanian government signed an agreement with the indigenous communities that are affected by the Barro Blanco project. The government committed itself to not flooding the reservoir or to initiate operations of the project until a final agreement has been reached between the conflicting parties.

2015-02-10 00:00:00 | Barro Blanco temporarily suspended over non-compliance with environmental impact assessment

In a landmark decision, Panama's National Environmental Authority (ANAM) temporarily suspended the construction of the Barro Blanco hydroelectric dam yesterday over non-compliance with its Environmental Impact Assessment (EIA). "We urge the banks to halt disbursement of any remaining funds until all problems are solved and the affected indigenous communities agree to the project," commented Kathrin Petz of Urgewald. - Read more.

2014

2014-06-19 00:00:00 | Complaint to FMO

The complaint to FMO's grievance mechanism has been judged as meeting the admissibility criteria and will move on to the next phase.

2014-05-07 00:00:00 | Complaint submitted

Panamanian Indigenous community submits complaint to the FMO’s recently established independent grievance mechanism. For more information read the press release.

2013

2013-07-30 00:00:00 | UN report

In July James Anaya, UN special rapporteur on the rights of indigenous people visited Panama and spoke to the Ngäbe. In his report he concludes that there is a strong opposition against the dam among the Ngäbe, and that they were not properly consulted. He also said that the Barro Blanco dam is symbolic for the way indigenous people are treated in Panama when it comes to mining and hydroelectric projects.

2012

2012-03-15 00:00:00 | Parliament passes mining law

Parliament passed a modified version of the mining law that prohibits mining in the indigenous territory and requires the approval of the Ngäbe-Buglé General Congress for any future hydroelectric projects.

2012-02-28 00:00:00 | Ngabe protest

The Ngäbe blocked the Interamericana highway. Two people died in clashes with the police and many more were injured.

 

2011

2011-08-25 00:00:00 | Agreement between Genisa and congress of the Kadiri

A compensation and benefits agreement was signed between Genisa and the regional congress of the Kadiri. But this agreement is contested as the whole congress was not present at that meeting. Moreover, consent by the General Congress has never been publicly obtained.

2011-03-31 00:00:00 | M10 movement protests

In 2011 new legislation provided foreign companies new rights for the exploitation and acquisition of minerals in the country, including the copper reserves in the Ngäbe territories. Just days after beginning construction in March 2011, the M10 movement, representing the directly affected communities of the Barro Blanco dam, blocked the entrance to the construction site and effectively delayed the project for two months before the project was militarized and protestors forcibly displaced.

2010

2010-12-31 00:00:00 | Complaint filed

In 2010 a complaint was filed at the Environmental Advocacy Center (CIAM) against the EIA of the Tabasará II project. Late 2010, GENISA, which already had financing for Barro Blanco approved for funding by a German (DEG) and a Dutch Development bank (FMO), withdrew their application for funding from the European Investment Bank after learning that bank officials planned to visit the affected area themselves. Instead, it received funding from the Central American Bank of Economic Integration.

2008

2008-12-13 00:00:00 | Genisa signes agreement on leasing of Ngabe land

Genisa signed an agreement on leasing terms of Ngäbe land, with the Cacique. However, the Cacique was not backed by the Ngäbe General Congress, which makes the agreement invalid.

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