92002E2248

WRITTEN QUESTION E-2248/02

by Pedro Marset Campos (GUE/NGL) to the Commission

(23 July 2002)

Subject: Construction of a hydroelectric power station on indigenous land in Chile

The company Endesa Chile, which has been privatised and acquired by Endesa España, is in the process of constructing the Ralco hydroelectric power station. This will result in the flooding of 630 hectares of indigenous land and the disappearance of two Pehuenche Indian communities which have always existed in the Alto Bio Bio, and contravenes Indigenous Law No 19.253 of 5 October 1993 and the Basic Law on the Environment No 19.300 of 9 March 1994.

Furthermore, adverse opinions on this construction project have been issued by 22 relevant Chilean public bodies, and the World Bank has refused to grant it funding because it contravenes its code of ethics.

Eight of the 93 families living in the area have asserted their rights under the Indigenous Law and refused to be relocated, while the others have caved in to pressure, threats and blackmail.

The Chilean government is affecting ignorance of its own laws, and has set up a Committee of Wise Men to put a figure on the compensation payable to these eight families. This is unlawful and sets an alarming precedent for the indigenous peoples of Chile and their survival.

1. Is the Commission aware of this situation?

2. Does it not feel there is a need, in the light of the recently signed EU-Chile Association Agreement, to demand respect of democracy clauses and the indigenous rights they contain?

3. What measures is it considering taking with regard to this violation of indigenous rights and therefore of the EU-Chile Association Agreement?

Answer given by Mr Patten on behalf of the Commission

(17 September 2002)

1. The Commission is aware of the construction of the Ralco hydroelectric power station. It also knows that more than 600 people, including 85 indigenous families, accepted the resettlement plans proposed by Endesa and that only eight indigenous families did not accept to be relocated.

2. The draft Association Agreement between the Community and its Member States and the Republic of Chile contains a general clause concerning the respect of democratic principles and fundamental human rights (Article 1). This Agreement has not yet been signed by the two parties, though signature is foreseen during the second semester of 2002.

3. The reallocation of these eight families is being dealt with by Chilean justice according to the Chilean Law. Furthermore, the Commission understands that the Chilean President, Ricardo Lagos, met the Pehuenches families at La Moneda on 5 July 2002 and committed himself to find an equitable solution to this issue.

4. The Commission has been informed that the Government is trying to find an equitable solution to this sensitive matter that respects the rights of the indigenous people and at same time does not jeopardise investment necessary for promoting the sustainable development of the country as a whole. Therefore, the Commission believes that there are no reasons justifying a Commission action at this point in time.