Export credit finances destructive, debt-laden projects [Indonesia]
Author: Down to Earth Newsletter, Published on: 1 May 2001
A new NGO report has drawn attention to the role of export credit lending agencies in pulp and paper mills and other projects in Indonesia, which have led to increased deforestation and abuse of people's rights. Export credit lending agencies (ECAs) based in industrialised countries fail to require even minimal environmental standards when backing projects, according to the report published in February by the Indonesian NGO, Bioforum, and the US-based organisation, Environmental Defense. The report is part of an international campaign to push government-backed export credit agencies designed to promote overseas investment to develop social and environmental guidelines...The PT TEL pulp mill in South Sumatra, which started commercial production last year, is already causing serious pollution problems...A US$ 1.5 billion finance package was approved for the mill in 1994 by Canadian, Finnish, German, Japanese and Swedish ECAs.