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FMO management response to the report and recommendations of the Independent Fact Finding Mission on Agua Zarca

Author: FMO, Published on: 8 September 2016

…FMO announced its intention to exit from the project when a person associated with our client was accused of being complicit in the murder of Berta Caceres. However, there is clear evidence that the project has a good deal of support from directly affected communities and brings substantial social benefits as well. If the project does not continue, it can be expected that the communities will return to a poverty cycle of subsistence living. Further to discussion with stakeholders, it appears unlikely that an exit from the Project will solve the conflict. On the other hand, “during meetings with project opponents and COPINH, it became apparent […] that if the project was not completely abandoned, this would result in the continuation of the opposition campaign.” The continuation of the opposition campaign is likely to have a negative impact, and the division between the affected communities will remain. This could also result in the re-escalation of violence. FMO response: Our decision about the responsible exit will reflect all of the above findings. The report clearly shows the complexity of the situation. Therefore, all parties involved must be heard, including all local communities, the client, the other lenders and international NGO’s.

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Related companies: Desarrollos Energéticos (DESA) FMO