News / 30 September 2016

New report: lenders should exit from Agua Zarca project

Last week, the conclusions of an independent fact-finding mission to the Agua Zarca Hydro-electric Project in Honduras, were released. The report was commissioned by one of the project financiers, the Dutch development bank FMO after human rights defender and fierce opponent of the dam Berta Cáceres was murdered in March 2016. 

Provoking violence 

The report shows that the lenders - including the FMO– did not ensure that the Agua Zarca Hydroelectric Project in Honduras complied with international standards. The report also states that the project provoked and deepened violence amongst communities which would be affected by the project.


FMO will exit from the project

The report follows one which was published last month by the United Nations Special Rapporteur on the Rights of Indigenous Peoples, Victoria Tauli-Corpuz, who condemned the Agua Zarca Project. In response to the conclusions of the fact-finding mission it commissioned, the FMO committed to exit the project in a responsible way after they consult with all stakeholders.


Other lenders

SOMO and Both ENDS published a statement in which we welcome FMO’s exit from the project, but also share some concerns. One of our fears is, for example, that FMO’s withdrawal will clear the way for others, and therefore we urge FMO not to pass along this flawed project to another lender.




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