1. Complaint on behalf of citizens affected by proposed paper mills in Fray Bentos, Uruguay CEDHA Centre for Human Rights and Environment, Argentina & Servicio Argentino de DDHH

2. Two proposed paper mills BOTNIA (Finnish company) capacity of 1,000,000 tonnes of pulp p.a. ENCE (Spanish company) capacity of 400,000 tons of pulp p.a. Around 50% larger than either company´s capacity in its country of origin.

3. Location of the projects BOTNIA – 5 kilometers upstream of Fray Bentos (adjacent to General San Martin Int’l Bridge) ENCE –12 kilometres upstream of Fray Bentos BOTH PROJECTS WILL DRAW WATER AND DISCHARGE EFFLUENTS UPSTREAM OF FRAY BENTOS (POP. 23,000).

4. Location of BOTNIA project in relation to Fray Bentos UR and Gualeguaychu, AR. The ENCE project is located on the same river bank further upstream from the BOTNIA project adjacent to the largest island. (Source: Botnia EIA)

5. Paper mill technology Chlorine based Kraft or Elemental Chlorine Free (ECF) Total Chlorine Free (TCF) Both projects will use ECF technology which still involves the use of chlorine products and involves the creation of Organochlorine wastes including dioxins and furans.

6. World Bank Pollution Prevention and Abatement Handbook: Pulp and Paper Mills (1998) “The trend is to avoid the use of any kind of chlorine chemicals and employ “total chlorine free” (TCF) bleaching... Only ECF processes are acceptable and from an environmental perspective, TCF processes are preferred.” (page 395-6)

7. Avoiding increasingly strict regulations EC Integrated Pollution Prevention and Control Directive 96/61/EC will require European paper mills to implement Best Available Technology by 2007.

8. Poor record in countries of origin ENCE Convicted in 2003 of pollution of the Pontevedra River in Spain over 30 years. Six 6 executives jailed and 433,000 Euro indemnity demanded BOTNIA Spill of 7500 litres of black liquor into Lago Saimaa Severe loss of amenity in towns adjacent to paper mills

9. Lago Saimaa contaminated by BOTNIA Finland in summer 2003 Another Botnia town in Finland formerly known as the Bay of Hauki (for a fish), is now known as “Pulp” for its foul odors

10. International commitments Treaty for the River Uruguay which requires consultation with Argentina for projects affected the shared waters of the river. Contrary to Uruguay’s commitments under the Stockholm Convention on Persistent Organic Pollutants which require the reduction of organochlorines toward the goal of total elimination.

11. Affected environment Uruguay River from which over 100 million cubic meters/ day will be drawn & contaminants returned. Risk to Guarani Acquifer, subject of World Bank grant for its importance to the region Tourism, fishery, retirement industries as well as bee keeping and dairy industries to be affected by contaminated waters, and foul sulphurous odors.

12. Uruguay River today

13. Affected populations Around 300,000 residents within a 50km radius including Gualeguaychu (80,000), Fray Bentos (23,000). 400,000 people live downstream of the projects. Heavily reliant on tourism, fishery industries

14. Effects of the ENCE paper mill in Pontevedra, Spain

15. Health effects of Kraft paper mill liquid and gaseous wastes Organochlorines (650 kg/day) including dioxins: extremely toxic; bioaccumulative; mutogenic and carcinogenic; related to birth defects, liver damage, skin complaints, neurological and immunological abnormalities.

16. Inadequate environmental and social impact assessment Environmental effects in Argentina ignored Health effects not assessed No attempt to evaluate the degree of environmental harm (Botnia) or evaluated without justification Negative social impacts ignored: odors, lifestyle changes, loss of employment in tourism etc.

17. Civil Society Reaction to the Projects Unprecedented continuous campaign of protests since September 2003 Up to 40,000 people blocking international road routes Government of Argentina made representations to Government of Uruguay and World Bank Unusual collaboration between civil society and Argentine Foreign Ministry

18. Around 40,000 people cut the General San Martin Bridge between Fray Bentos and Argentina in April 2005 in protest against the paper mills

19. Argentine Minister Rafael Bielsa in Gualeguaychu, 29 July 2005

20. Breaches of IFC policies International Waterways Policy Environmental Assessment Policy (including World Bank Pollution Prevention and Abatement Handbook) Disclosure Policy

21. International Waterways Policy Absence of “collaboration and goodwill” with Argentine riparian state (paragraph 3). Failure to await outcome of bilateral Commission for the River Uruguay, Bilateral technical commission is still meeting (paragraph 8a) IFC cannot be satisfied of agreement or absence of effects in Argentina (paragraph 8)

22. Environmental Assessment Policy Failure to consider alternatives to the project (TCF, alternative sites, no project, tertiary wastewater treatment) (paragraph 2, 8a) Failure to appoint independent international panel for either Category A project (paragraph 4) Failure to justify departure from World Bank Pollution Prevention and Abatement Handbook recommended TCF technology (paragraph 6) Breach of Uruguay´s commitments under Stockholm Convention (paragraph 3: IFC not finance projects breaching country´s obligations)

23. Disclosure Policy Failure to consult with affected Argentine stakeholders. Failure to include details of public consultation and how results incorporated in the project. Misrepresentation of the projects as having broad public support.

24. Remedies sought by the Complainants IFC not consider financing until breaches of IFC policy are cured, including: an international panel is appointed to oversee the environmental assessment; environmental assessment of the project & its alternatives including alternative sites, takes place; public consultation takes place and its results are incorporated in the project; the IFC has considered the broad public opposition to the project; Cont’d over the page...

25. Remedies sought by the Complainants cont´d the bilateral process established by the Agreement between Uruguay and Argentina for the River Uruguay is complete and its studies incorporated in the project plan that if the project(s) proceed, the project sponsors provide a financial assurance to guarantee aganist environmental and social impacts of 10% of project value.