Probe International - Belize dam trial: Victory, what victory?

When Britain’s Privy Council ruled last month Canadian-backed Chalillo dam Belize should go ahead, Fortis CEO Stanley Marshall declared victory company people Belize. ("Environmentalists lose battle stop Canadian dam Belize," January 29, 2004, www.cbc.ca)

Victory, what victory? True, Fortis narrowly escaped an injunction stop construction Chalillo dam. Three out five judges decided Belizean government's environmental approval dam not illegal, just flawed.

But two out five judges wanted project stopped. They said dam's environmental impact assessment, which paid Canadian International Development Agency, failed comply with Belize’s Environmental Protection Act, "so flawed important errors about geology site" unacceptable. They said "Belize has enacted comprehensive legislation environmental protection direct foreign investment, if has serious environmental implications, must comply with legislation. rule law must not sacrificed foreign investment, however desirable."

Even more disturbing, dissent noted Fortis’ failure disclose "highly relevant" information Belizean courts confirming its consultants, Toronto firm AMEC, had made serious error would require changes dam’s design.

"Not even most protracted determined paper chase could have got true facts" case, wrote dissenting Judge Lord Walker. One report kept under wraps nearly two years, until just days before Privy Council's final hearing, warned Chalillo reservoir could "leak like sieve" due presence karst limestone. report two consulting geologists pointed "disastrous history dam building" under similar conditions neighbouring Guatemala.

Fortis failed inform Belizeans about these risks how affects public safety dam's final costs. One thing certain court documents: Belizeans, not Fortis, are on hook if anything goes wrong. Back 2001, Fortis signed an agreement with Belizean government protects company liability event dam fails reservoir leaks construction costs double.

Even best-case scenario, Belizeans will paying almost twice market rate Chalillo's output, losing one country's prime tourist attractions. One four people Belize earn their living nature-based tourism, country's leading industry.

That's victory Belizeans. That's tunnel vision monopoly abuse Canadian power company.

Gráinne Ryder Policy Director Probe International.

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