Issue Papers
[Issue paper] South Ukraine Transmission Project - EBRD AGM Issue Paper
(May 10, 2010)
The European Bank for Reconstruction and Development (EBRD) is considering lending EUR 175 million to the National Energy Company of Ukraine, Ukrenergo, for implementing the South Ukraine Transmission Project. An equal amount of financing was approved by the EIB in October 2009. The project foresees construction of a new 750 kV power transmission line, two 330kV double circuit diversions, and modernisation of an existing 330/220/110 kV substation.
The project sponsor, Ukrenergo, started the public consultations and disclosure process on 4 August 2009. The project was criticised by the local public and Ukrainian NGOs for its negative environmental impact, support for nuclear energy generation and the dire practices in public engagement that Ukrenergo has demonstrated so far.
Read more about the concerns related to project size, environmental impacts and Ukrenergo's qualifications as a client for the EBRD in our issue paper.
[Issue paper] Tbilisi Railway Bypass project - EBRD AGM Issue Paper
(May 10, 2010)
On March 9, 2010, a loan for the Tbilisi Railway Bypass Project, initiated by the Georgian Railway company, was approved by the EBRD. The main goal of this project, rated category A by the EBRD, is to construct a new section of railway that bypasses the central part of Tbilisi in order to avoid the transit of hazardous freight (such as oil and oil products) through the middle of the city.
While this main goal is welcomed, there are several strong concerns that undermine the project goals and may cause a serious threat to Tbilisi’s population.
Read more about those concerns in our issue paper.
[Issue paper] Furshet Group labour conditions research, Ukraine - EBRD AGM Issue Paper
(May 10, 2010)
In 2007 the European Bank for Reconstruction and Development (EBRD) approved a USD 90 million loan to the second largest supermarket operator in Ukraine, the Furshet Group, for the regional expansion of its chain in Ukraine and Moldova. From 58 supermarkets in 2007 the retail network has grown to 98, with four new ones to be opened in the near future in Ukraine, and nine in Moldova.
A research commissioned by Bankwatch aimed to cover issues related to working conditions at Furshet supermarkets such as labour conditions in general, employment conditions, working hours and the system of rewards, discrimination practices (including gender discrimination), labour safety and occupational health, and trade unions at the supermarkets.
The Furshet Group loan from 2007, predating the more stringent Labour and Working Conditions provisions included in the EBRD's current environmental and social policy, must comply with national legislation, as required by the EBRD's 2003 environmental and social policy. Therefore, the main focus of the research was to find out if Furshet is in compliance with national labour legislation, including gender issues.
[Issue paper] Odessa High Voltage Grid Upgrade, Ukraine - EBRD AGM Issue Paper
(May 10, 2010)
In December 2005 the European Bank for Reconstruction and Development (EBRD) approved a EUR 25.8 million loan for the Odessa High Voltage Grid Upgrade project for the state-owned company Ukrenergo. The project, that foresaw construction of a 124 kilometre long 330 kV transmission line between the Adjalyk and Usatove substations in the Odessa region and modernisation of the substations, was Ukrenergo’s first experience with the international financial institutions, and inaugurated a series of further such investments. The project was screened as category A, requiring an environmental impact assessment (EIA) of the transmission line. Along with the EBRD loan the company received a EUR 115 000 technical cooperation grant provided by the German Government and a EUR 100 000 grant for project preparation provided by USAID.
Read more about the disregard of local inhabitants and other problems with the project's implementation in our issue paper.
[Issue paper] What we still have to learn about Nabucco - EBRD AGM Issue Paper
(May 10, 2010)
Although the Nabucco gas pipeline is still nothing more than an idea on the drawing board it has attracted unprecedented political support and managed to swallow millions of euros of EU taxpayer's money without an assessment of its effect on transit and gas supplying countries. CEE Bankwatch network urges the EBRD to properly assess all impacts it may have on societies and the environment and to consider financing alternative ways to ensure energy security, namely by energy efficiency measures.
Read more in our issue paper.
[Issue paper] One Gazela, two Gazelas, three Gazelas... - EBRD AGM Issue Paper on the Gazela resettlement
(May 10, 2010)
The removal and resettlement of the informal Gazela settlement from beneath the Gazela Bridge on highway Corridor X over the Sava River in Belgrade's downtown took place in August 2009. Despite the involvement of international financial institutions (IFIs, the European Bank for Reconstruction and Development and the European Investment Bank) and foreign development agencies (the European Agency for Reconstruction and the UK Department for International Development), the resettlement has not brought satisfactory results.
Outstanding issues such as securing permanent housing and economic livelihood restoration of the former Gazela inhabitants are still to be resolved. It has now become apparent that the Sava River Crossing project will also involve some resettlement. The EBRD and the EIB’s approach to this will act as a test case of how well lessons have been learnt from Gazela.
Read more in our issue paper.
[Issue paper] Financial intermediaries: Do economic, environmental and social benefits lie behind the big numbers? - EBRD AGM Issue Paper
(May 10, 2010)
In order to prevent the collapse of the banking sector in central and eastern Europe following the outbreak of economic crisis conditions in autumn 2008, the European Bank for Reconstruction and Development (EBRD) has provided a large number of loans to private banks in the region. Most of the projects have aimed to provide crisis support via these financial intermediaries (FIs) for small- and medium-sized enterprises with some aimed specifically at energy efficiency and small-scale renewable projects.
Mirroring lending trends at other public development institutions such as the European Investment Bank (EIB) and the International Finance Corporation, the EBRD's FI lending is now reckoned to account for roughly 40 percent of the bank's total lending volumes. Yet even though this form of lending is taking on ever greater importance at the EBRD, next to no concrete details about what it is achieving and who is benefitting from it exist for the public.
Read more in our issue paper.
[Issue paper] D1 motorway Phase I, Slovakia - EBRD AGM Issue Paper
(May 10, 2010)
In April 2010 the EBRD approved a EUR 250 million loan for the Slovak Motorways PPP D1 Phase I project in Slovakia, which seeks to link the economically wealthier western part of Slovakia with the less developed eastern part. The European Investment Bank (EIB) also approved a loan for the project in December 2008, however the EIB has been waiting for clearance for the project by the European Commission, which has not yet been forthcoming. Eighteen commercial banks are expected to provide the remainder of the financing. The project is to be financed through a public-private partnership (PPP), which has been the cause of considerable controversy in Slovakia, as has the fact that the planned route impacts protected Natura 2000 areas.
Read more in our issue paper.
[Issue paper] The EBRD and coal. Dirty business unnoticed - EBRD AGM Issue Paper
(May 10, 2010)
Despite numerous international calls for the discontinuation of public support for fossil fuels in the face of climate change, the EBRD continues to finance the dirtiest among them, coal. What is more, the bank plans to expand its activities in this field. CEE Bankwatch Network urges the EBRD to phase out any support for coal industry making it more competitive and disadvantaging sustainable energy.
Read more in our issue paper.
[Issue paper] Azeri iodine plant - is this local development? - EBRD AGM Issue Paper
(May 10, 2010)
In 2008 the European Bank for Reconstruction and Development (EBRD) approved a USD 15 million senior loan for the USD 17 million Azer-Yod LLC iodine manufacturing project in Azerbaijan. The loan has been used for the purchase and installation of a new industrial line and acquisition of additional equipment which is to help increase the enterprise’s output and capacity. The majority of the plant’s products will be exported. The EBRD specifies that the project will contribute to development of the local private sector as well as regional economic diversification.
The plant is located near Hasanabad, in the Neftchala district, 175 kilometres from the capital of Azerbaijan, Baku. The Neftchala district has been experiencing frequent disruptions of water and electricity supplies. The gas supply has also been unreliable, especially in winter, due to low gas pressure. As a result of these complications inhabitants are abandoning the countryside and moving to the city in pursuit of better living conditions. However, the lives of locals are made even worse because of environmental problems caused by the iodine plant.
Read more in our issue paper.
[Issue paper] ArcelorMittal Temirtau - a never ending story - EBRD AGM Issue Paper
(May 10, 2010)
Since the project was approved there has been a dramatic change of economic situation in Kazakhstan. The same company that was seriously criticised by the Kazakh government for poor health and safety practices and frequent accidents at its coal mines involving the deaths of tens of workers has become a key actor in the game that the government has been playing with investors while trying to save jobs. In October 2008 the Government of Kazakhstan signed a memorandum of understanding with AMT to prevent thousands of workers from being dismissed, granting at the same time delays in environmental obligations, as well as providing reduced social tax and state subsidies such as lower prices for energy and railway rates, and guaranteed state purchase of steel.
Read more in our issue paper.
[Issue paper] Antea Cement, Kruja, Albania - EBRD AGM Issue Paper
(May 10, 2010)
In July 2007 the Government of Albania approved the construction of a cement factory in the municipality of Kruja, 30 kilometres north of the capital Tirana. The investor, Antea cement, a subsidiary of Greece’s TITAN Cement Group, completed the construction of the plant and started production in January 2010. The plant is the second in close vicinity to and the third located in the municipality of Kruja. The project features Chinese technology with equipment from the manufacturer and contractor CBMI Construction Co. Ltd., which required bringing up to 700 Chinese workers to the site. The plant's capacity of 1.5 million tonnes annually is intended to be primarily exported to Kosovo and Montenegro and to be only partially used domestically.
Read about the problematic issues related to the project in our issue paper.
[Issue paper] Preliminary report on impacts on the Rojkovske Raselinisko Mire by the proposed motorway D1 Turany-Hubova, Slovakia
(May 10, 2010)
[Issue paper] Report from fact-finding mission on Corridor Vc motorway, Bosnia and Herzegovina, 23 - 25 February 2010
(February 2, 2010)
The main aims of the visit were to obtain updated information on the proposed changes to the route at Blagaj and Pocitelj, which were proposed in summer 2009 but which had stalled due to political issues, and to understand what progress has been made in establishing the Prenj National Park and how this may impact on the plans to build the motorway in the area.
[Issue paper] Some ways forward for the EBRD - NGO proposals for the EBRD Capital Resource Review 4
(January 18, 2010)
The economic crisis has added urgency to these findings, raising difficult questions for the EBRD about its role in the transition countries and the sustainability of the free market model it has been promoting for nearly two decades.
While there has been plenty of discussion about needing to learn lessons from the crisis, it is not yet clear what has concretely changed in the EBRD’s operations. Bankwatch, supported by 45 other organisations, is requesting that any increase in the EBRD's capital is conditioned on improvements - laid out below - in the bank’s practices.
[Issue paper] Some implications of the Lisbon Treaty for the European Investment Bank - Counter Balance Briefing for MEPs
(January 15, 2010)
[Issue paper] Introduction of cyanide leaching of gold in Bulgaria
(November 20, 2009)
[Issue paper] Bankwatch position paper on the Nabucco gas pipeline
(November 1, 2009)
[Issue paper] a BELENE chronology
(October 26, 2009)
[Issue paper] Report from the Gazela resettlement fact-finding mission in October 2009
(October 19, 2009)
Some improvements in the current conditions have taken place, however as the colder weather sets in, heaters need to be urgently provided. Employment and the plans for the long-term resettlement of the project-affected people remain to be resolved. Similarly the sustainability of the resettlement of those who originally came from outside of Belgrade needs to be addressed, as around 20 out of the 60 families who were taken to their towns of origin in southern Serbia have already returned to Belgrade to live in informal settlements.
CEE Bankwatch Network gratefully acknowledges EU funding support.