Press Responses : Thursday, January 9, 2003
The Ottawa Citizen
Thursday, January 9, 2003
Environmental details of deals hidden by EDC, report says: Watchdog group says lack of information on 7 export agreements is 'unacceptable' by Jack Aubry
Canadians are being left in the dark on the environmental assessments of overseas ventures backed by the Export Development Canada, such as the construction of a new Candu nuclear reactor in Romania, a new report says.
The report, Seven Deadly Secrets: What the EDC Does Not Want You to Know, looks at projects around the world, including Romania's Cernavoda reactor, which may be supported by the Crown corporation despite serious environmental, social and human rights risks.
"History seems to repeat itself and 2003 started on a bad note. International Trade Minister Pierre Pettigrew confirmed that Canada would be guaranteeing almost half a million dollars for Cernavoda," said Fraser Reilly-King, co-ordinator for the NGO Working Group on the EDC.
"We know it is a great risk -- a great financial and environmental risk."
The EDC helps Canadian businesses win export contracts through financing or insurance guarantees. Under public pressure, the Crown corporation adopted a new environmental review policy that commits the EDC to ensure that assessments of the environmental and social impacts of backed projects are performed. But the assessments are made public only if the companies involved agree.
In a statement yesterday, EDC executive vice-president Eric Siegel said the NGO report contains "erroneous and misleading allegations" concerning the corporation's environmental and disclosure policies.
Mr. Siegel said the Cernavoda project was one of the first projects reviewed under EDC's new policies and a summary of the environmental impact assessment performed was released.
That assessment was not detailed enough for some critics, however.
"To date, a full environmental impact assessment has never been made public. This is unacceptable, especially given the serious risks involved," said Shawn Patrick Stensils of the Campaign for Nuclear Phaseout.
The NGO report looks at seven projects with potential EDC involvement, including an Inco Ltd. nickel mine in Indonesia, the Alumysa aluminum smelter in Chile, the Goro nickel mine in Kanaky-New Caledonia and the Tambogrande mine in Peru.
It concludes all the projects present significant environmental and social risks.
Mr. Siegel says the EDC does not disclose whether it has considered and rejected a project "because to do so would be irresponsible and could harm the project sponsor's international reputation."
Last week, Mr. Pettigrew said the government will use the controversial cabinet-controlled Canada Account to underwrite a $328-million deal for Atomic Energy of Canada Ltd. and Romanian utility Societatea Nationala Nuclearelectrica to complete the partially built Romania nuclear reactor.
