Negotiations on Barro Blanco hydroelectric dam reach consensus.

AutorReynolds, Louisa

A new round of negotiations will begin on March 27 on Panama's US$225 million Barro Blanco hydroelectric project--now 95% complete but the source of a long-standing feud between Generadora del Istmo S.A. (GENISA), the contractor for the dam, and the Ngabe Bugle indigenous group, which is vehemently opposed to the project because of environmental concerns.

After a wave of local protests stalled construction work on Feb. 9, the Panamanian government launched negotiations with GENISA and indigenous communities on Feb. 21. The government has since agreed to investigate alleged environmental violations by GENISA, including the mismanagement of solid and hazardous waste and failure to coordinate the use of explosives and flammable substances with the fire department.

GENISA is a Panamanian company created specifically for the construction of the Barro Blanco dam. The project has been financed through equity capital as well as loans provided by the German Investment Corporation (DEG), the Netherlands Development Finance Company (FMO), and the Central American Bank for Economic Integration (CABEI).

Similar protests to the ones held in February had previously halted construction of the dam in May 2012, when locals occupied the site and an inspection team led by the UN Development Programme (UNDP) visited the area (NotiCen, Feb. 23, 2012, and Feb. 21, 2013). The inspectors presented their report in December 2012 and recommended a water-flow simulation to understand the impact of sudden floods as well as better consultation mechanisms with local communities.

In March 2013, indigenous leader Onesimo Rodriguez was killed by four masked assailants after attending a protest against the dam in Cerro Punta, Bugaba, and his body was thrown into a nearby stream. The Movimiento 10 de Abril indigenous protest movement issued a statement saying that it held the DEG and other financial institutions responsible for "the social and environmental impacts" of the project as well as the "repression" that local communities were suffering at the hands of the state.

The current talks are being led by a high-level committee headed by Panamanian Vice President and Foreign Minister Isabel de Saint Malo de Alvarado and facilitated by the UN in the district of Tole, 400 km west of Panama City. Other committee members include Security Minister Rodolfo Aguilera, Interior Minister Milton Henriquez, Labor Minister Luis Ernesto Carles, and Environment Minister Mirei Endara.

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