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Home › Dodgy Deals ›
Dodgy Deal
HidroAysén damChile

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

Kate Ross, International Rivers, United States

Last update: 2015-11-01 14:53:10

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Lead organisation:
BankTrack
Contact:

Kate Ross, International Rivers, United States

Last update: 2015-11-01 14:53:10
Why this profile?

What must happen

Banks approached to provide loans directly to the project or corporate loans to Endesa Chile and Colbún should refrain from support. Banks that are shareholders of HidroAysen's owners should encourage Endesa Chile and Colbun to withdraw from the project and seek alternative and more sustainable energy options for the country. Administrators of Chilean pension funds should withdraw all funds from Endesa Chile to reflect Chilean citizens' opposition to the project.

Financial institutions are advised to take into account potential cost overruns and construction delays, and the reputational risks of being involved in financing such a controversial project. Citibank, as depository of Endesa Chile's American Depository Receipts, should reconsider its role in contributing to the market capitalisation of Endesa Chile.

 

About
Sectors Hydroelectric Power Generation
Location

HidroAysén - owned by European company Endesa and Chilean company Colbun - plans to dam two of Chile's most powerful and pristine rivers, the Baker and Pascua Rivers. Electricity from these dams would be sent 2,000 kilometers north to serve Chile's biggest cities and its mammoth copper industry. The transmission lines for the project would require one of the world's longest clearcuts – much of it through untouched temperate rainforests of a type found nowhere else on the planet outside Patagonia.

The five dams (two on the Baker and three on the Pascua) would displace families, disrupt livelihoods and spoil tourism that brings local income. Transmission lines and reservoirs would destroy temperate rainforests unique to Patagonia. Victims of these dams would include critically endangered species such as the huemul deer, a Chilean national symbol. In response to the dam plans, Chilean and international NGOs have teamed up to wage the biggest environmental campaign in Chile's history: a campaign to keep Patagonia free of dams.

Impacts

Social and human rights impacts

The Baker dams will flood ranching and agricultural lands, displacing communities. The Baker river basin brings sustainable income to Patagonia's local communities through the rapidly growing tourism industry (much of it Chilean). This would be drastically reduced, as eco-tourists do not visit artificial lakes and power-line crossed vistas. Over half of Chile's residents oppose the project due to the environmental impacts. A coalition of at least 40 national and international groups is fighting the dams because of the significant threats to wildlife and local livelihoods.

The World Commission on Dams found that women and ethnic minorities were disproportionately affected by dam projects. As women are often responsible for ensuring the sustainable livelihoods of their families, impacts on these livelihoods through destruction of fisheries, flooding of agricultural land and forests, and displacement often result in women bearing a disproportionate share of the costs. It is women who are often left with the burden of caring for their families, finding alternative land and water sources and alternative livelihoods when these are taken away through the development of destructive dam projects.

There is evidence that women are not provided the training that the companies promise to local people in order to have the employment opportunities that the companies contend would come with this development. As well, there is anecdotal evidence that the company is not hiring women in order to avoid having to pay benefits to employees who later get pregnant.


Environmental and climate impacts

The Baker River has the highest flow of all Chilean rivers. Its ecosystem supports a high degree of biodiversity, including documented populations of the endangered huemul deer. Chilean environmental authorities have characterized the river's entire basin as a biological corridor and have said that the Baker River's conservation should be prioritized. The two dams on the Baker River would create artificial lakes flooding more than 4,300 hectares (10,700 acres). Flooded lands would include some of the best agricultural and ranching lands of the region.

The Pascua River has the third highest flow of all Chilean rivers, and is extremely remote. Especially in its upper reaches, the Pascua river ecosystem includes some of Chile's largest remaining populations of the endangered huemul deer. Chilean environmental authorities have recognized the Pascua for high aquatic biodiversity, have characterized most of the river's basin as a biological corridor and have said that this river's conservation should be prioritized. The three dams on the Pascua River would create artificial lakes flooding more than 1,600 hectares (4,000 acres). Flooded lands would include some of the world's rarest forest types, including the critically endangered guaiteca cipres. Other rare species that would be harmed by the Pascua dams include the huillin river otter and the torrent duck.

-readmore-

The construction activities would bring over 5000 workers into a sparsely populated and ecologically sensitive area, increasing pressure on existing resources and threatening the way of life of the traditional populations of Aysen. New roads would be built and existing ones expanded, opening access to fragile-and previously undisturbed-ecosystems.

The 2450-km transmission line for the project would cut through half of Chile. Thousands of acres of old growth forest would be felled, and the line would cut a 120-meter wide corridor through people's homes and land and numerous protected areas. The risks of the transmission line failing due to an earthquake, volcanic eruption or other natural disaster are high. It could take months to repair the line, particularly if a volcanic eruption necessitates a change in route. Given that around a fifth of Chile's central grid would depend on power from HidroAysen, this could lead to blackouts and power shortages on a grand scale, threatening the stability of the entire grid.

Companies

Colbun

Chile
Website

Endesa

Spain
Website

Enersis

Chile
Website
No companies
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Major Victory in Patagonia - Chile Unanimously Rejects HidroAysén

2014-06-06 | Berkeley | Emily Jovais - International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Another Nail in the Coffin of HidroAysén

2014-03-24 | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

HidroAysén Stalled Again - Decision Goes to Bachelet Administration

2014-02-02 | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Freeze on HidroAysen dam ‘incredible milestone’ for environmentalists

2014-01-08 | Santiago | Santiago Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

Chile Unanimously Rejects HidroAysén

2014 | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

HidroAysén decision delayed in Chile

2013-04-08 | Blog
BankTrack news BankTrack blog Partner news Partner blog

HidroAysén presentaría línea de transmisión a fines de 2014 en escenario más optimista

2013-03-19 | Economía y Negocios
BankTrack news BankTrack blog Partner news Partner blog

Colbún Suspends HidroAysén Transmission Line

2012-05-31 | Berklee Lowery Evans
BankTrack news BankTrack blog Partner news Partner blog

Patagonia Protests Lead Colbun to Backpedal on Chile Dam

2012-05-31 | Bloomberg Business Week
BankTrack news BankTrack blog Partner news Partner blog

Chile court blocks Patagonia dam project

2011-06-21 | Chile | AFP
Blog
BankTrack news BankTrack blog Partner news Partner blog

Legal Roadblock to Damming Patagonia

2011-06-20 | Chile | Berklee Lowrey-Evans, International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Barclays, HSBC and RBS linked to 'dirty financing' for fossil fuels

2011-06-14 | The Ecologist
Blog
BankTrack news BankTrack blog Partner news Partner blog

Brazil and Chile dam projects generate widespread protests

2011-06-02 | Chile | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Keep Chilean Patagonia Wild

2011-05-23 | Chile | The New York Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

Divisive dams approved in Patagonia, Chile

Critics call on Piñera to respect the will of the people and cancel HidroAysén
2011-05-09 | Coyhaique, Chile | International Rivers et al.
BankTrack news BankTrack blog Partner news Partner blog

Patagonia's wild rivers at risk (with photographic essay)

2011-04-15 | Chile | Patagon Journal
BankTrack news BankTrack blog Partner news Partner blog

Dams for Patagonia

2010-07-23 | Coyhaique, Chili | Science Magazine
BankTrack news BankTrack blog Partner news Partner blog

Chilean Bishop at Enel’s Annual General Meeting to Argue Against Big Dams in Patagonia

2010-04-28 | Missionary Oblates of Mary Immaculate
BankTrack news BankTrack blog Partner news Partner blog

Greenwashing Hydropower: The Problems with Big Dams

2010-02-01 | World Watch magazine
Resources
Documents
Images
Videos
Links
2012-12-12 00:00:00

HidroAysén: Investment Risk Advisory

BankTrack publication
2012-12-12 00:00:00 | BankTrack, NRDC, International Rivers, Patagonia Defense Council
2011-05-15 00:00:00

Chile's Energy Future is in Renewables and Energy Efficiency

Other document
2011-05-15 00:00:00 | Roberto Roman and Stephen Hall
2011-04-15 00:00:00

Chile Levelised Cost of Energy

Other document
2011-04-15 00:00:00 | Bloomberg New Energy Finance
2010-11-06 00:00:00

Voluntary approach will not resolve dam conflicts

NGO document
2010-11-06 00:00:00 | International rivers
2010-08-01 00:00:00

Protecting rivers and rights: Ten years after the World Commission on Dams report

Other document
2010-08-01 00:00:00 | International Rivers et. al.
2010-08-01 00:00:00

Protecting rivers and rights: ten years after the World Commission on Dams report

NGO document
2010-08-01 00:00:00 | International Rivers et.al
2009-06-15 00:00:00

European banks financing controversial companies

NGO document
2009-06-15 00:00:00 | Profundo
2009-02-13 00:00:00

EIS Problems Brief

NGO document
2009-02-13 00:00:00
2009-02-01 00:00:00

Patagonia's Wild River's at Risk

NGO document
2009-02-01 00:00:00 | International Rivers
2009-01-05 00:00:00

El Derecho Al Agua

NGO document
2009-01-05 00:00:00
2008-02-24 00:00:00

Manifiesto por una Patagonia Chilena sin Represas

Other document
2008-02-24 00:00:00 | Organizaciones Chilenas y Españolas

Massive Protests Against HidroAysen

2011-06-11
Since April 26, 2011, Chileans have held massive protests around the country and the world to show their opposition to the HidroAysen project.

The Pascua River

2008-11-15
HidroAysén plans to build three dams on the Pascua River

Patagonia - various

2008-06-24
Photographs from the Chilean Patagonia

Wrong Climate for Damming Rivers

2012-01-02 14:55:44

Chile protests against the dam

2011-05-05 12:25:50

Patagonia Rising

Trailer for new movie Patagonia Rising. It tells the story and struggle surrounding two of Chilean Patagonia's most pristine rivers: the Baker and the Pascua. These free-flowing watersheds drive biodiversity and are the life source for Patagonia’s most tenacious residents – Gauchos, the iconic South American cowboys.
2011-05-02 11:12:06

Manifestación contra las represas en la Patagonia chilena

Protests in VALDIVIA against the dam
2011-05-02 10:17:01

Protesta Hidroayse?n / 19.30 PM

Video on the protests on April 26
2011-05-02 10:12:43

The Rivers of Patagonia

The Spanish company Endesa plans to build a series of large hydroelectric dams on the wild rivers of Aysén province, in Chile's Patagonia region. Activists are organizing to stop the destruction of the rivers of Patagonia, Glenn Switkes
2009-03-30 12:07:21

Video links

http://www.internationalrivers.org/node/8022
This four part series of Environmental Dispatches from Patagonia created by film-maker James Q Martin and Rios Libres examines the different aspects of the struggle to protect Patagonia from the destructive HidroAysén project and the potential that exists for a truly sustainable energy future in Chile. Each video is accompanied by a guest blog written by experts and colleagues involved in the campaign to protect Patagonia.

Probe International

Probe Internationals' campaign against the Patagonia dams

International Rivers' Patagonia Campaign

Gary Hughes' Patagonia blog

Gary Hughes is International Rivers' campaigner on the Patagonia dams

Chilean Patagonia Defense Council (Spanish)

Website for the coalition of 40 Chilean organizations involved in fighting plans for dams in Patagonia.
Updates

2014

2014-01-22 00:00:00 | Freeze on HidroAysen dam ‘incredible milestone’ for environmentalists

Environmentalists are one step closer to realizing their goal of permanently shelving the HidroAysén after energy company Endesa dropped the Patagonian mega-dam from its short-to-medium term plans.  Endesa, which owns a 51 percent stake in HidroAysén, removed the Aysén Region project from its most recent project portfolio delivered to investors, according to an El Mercurio article published Tuesday.  The country's largest electric utility company denied any plans, however, to permanently drop the megaproject later that day.

Read more in the Santiago Times.

2013

2013-07-24 00:00:00 | Chile's Bachelet Says Patagonia Dams Not Viable

Chile's leading presidential candidate, Michelle Bachelet, says she opposes the HidroAysén plan, a $7 billion project to power central Chile by damming Patagonian rivers. "It's not viable. It shouldn't go on," Bachelet said late Sunday during a televised debate with other candidates who are competing to represent the center-left coalition in the elections.

Read the full article from The New York Times

2013-07-13 00:00:00 | Anti-Dam Election Campaign Launches in Chile

Campaign urges congressional candidates to make public commitment and reject dams in Patagonia.Launched by the Defense Council of Patagonia, the campaign "Vota Sin Represas (Vote No Dams)," calls for presidential candidates to formally pledge their commitment to keep Patagonia free of dams and invest in renewable energy before this year's election.

Read more from The Santiago Times

2013-03-19 00:00:00 | HidroAysén Will Not Present EIA for Transmission Line Until End of 2014

HidroAysén, the company intending to build a 2,750 megawatt dam project on two rivers in Patagonia, announced that it would not present the environmental impact study for its transmission line until the end of 2014, in the most optimistic scenario.

Read full article in Spanish

2012

2012-05-31 00:00:00 | Colbún Suspends HidroAysén Transmission Line

On May 30, 2012, Colbun – 49% owner of HidroAysen – publicly announced that it "wants to indefinitely suspend plans to seek environmental permission to build transmission lines to the capital"because there's a lack of political agreement in the country around energy development.

Read the full article from Bloomberg Businessweek

2012-04-04 00:00:00 | Chile Supreme Court Ruling

Chile’s Supreme Court rejected an appeal made by environmentalist groups to halt the dam project.  The court’s decision is in line with the October 2011 ruling made by a lower court, which ruled in favor of the project.  The project awaits governmental approval for the building of transmission lines in order for construction to proceed.

2011

2011-06-22 00:00:00 |

According to an IPSOS opinion poll in April 2011, 61% of Chileans oppose the construction of dams in the Aysén region.

On May 9th, the Environmental Impact Assessment for the HidroAysén project was approved, despite flaws and irregularities in the entire process. Much controversy surrounded the vote, as several commissioners excused themselves due to conflicts of interest, while others should have excused themselves but refused to do so.

2011-06-20 00:00:00 |

On June 20, 2011, The Appellate Court in Puerto Montt accepted three recursos de protección- roughly equivalent to injunctions. Thismeans that the project is on hold for up to three months until these issues are resolved.

The injunctions were filed against the approval of the HidroAysén EIA granted on May 9th.The issues to be addressed are: 1. The lack of appropriate baseline information in the environmental impact study; 2. The project doesn't own the water rights to operate under the conditions for which it was approved; and 3. Since the beginning of the environmental review process, the government bodies tasked with environmental oversight signaled that they could not perform a full evaluation due to missing essential information, and therefore the project should have been cancelled.

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