Concerns about the proposed EBRD loan to Kuwait Energy
Briefing | 27 May 2013
This analysis looks to the proposed loan of the EBRD to Kuwait energy, scheduled for approval on 29 May.
Primary findings are that:
- The EBRD failed to properly identify the beneficiary of the loan, or the country where it is incorporated (the tax haven Jersey).
- The fossil fuel nature of Kuwait Energy’s drilling will fail to improve development or social justice in Egypt. While the EBRD claims to prioritise renewable energy, the reality shows a commitment to further oil & gas extraction, one of the few sectors that can easily attract capital.
- The EBRD’s miscategorisation of this project as unlikely to have major impacts enabled the bank to avoid adequate impact assessments or due diligence.
- By focusing merely on disclosing revenue payments and not ensuring oil contracts are published, the EBRD is effectively undermining international best practices on transparency.
- The loan is presented as a means to reduce heavily polluting gas flaring. However, these will make up only a small part of the project, if they take place at all. The briefing argues that the “gas flaring” element was used to disguise a loan essentially geared towards general oil extraction operations.
Theme: Energy & climate