Critical UNDP Report Spells Finis for Cement Factory Near

UNCLAS SANTO DOMINGO 001319 SIPDIS E.O. 12958: N/A TAGS: SENV EAGR DR SUBJECT: Critical UNDP Report Spells Finis for Cement Factory Near Dominican National Park ¶1. SUMMARY: The findings of a United Nations Development Program (UNDP) report are highly critical of the environmental impact study commissioned by the Government of the Dominican Republic (GoDR) to support the construction of a cement production facility by the Consorcio Minero Dominicano (CMD) near Los Haitises National Park. Defenders of the park began criticizing the GoDR immediately after the environmental permit was issued for construction of the facility. While the GoDR has not officially retracted the permit, President Fernandez earlier announced that the UNDP report findings would be honored . In response to the public backlash and the UNDP report, the CMD has announced that the facility will be located in another part of the country. Meanwhile environmentalists are shifting their sights to a USD three billion Barrick Gold development in Pueblo Viejo that they see as an ecological menace. ¶2. On 4/14/09 the Ministry of Environment and Natural Resources (SEMARENA) approved an environmental permit for a cement production facility in Gonzalo, Monte Plata, just outside the buffer zone of Los Haitises National Park. Environmentalists accused CMD and the government of colluding to facilitate the project. Since April, environmental NGOs and student groups have vociferously opposed the construction of the facility. Youth groups organized sit-ins outside government offices and within the park itself, and organized a huge concert to promote awareness of the project. Protestors have been particularly critical of Environmental Minister Jaime David Fernandez Mirabal, who had previously enjoyed strong popularity among environmentalists for boosting enforcement of local environmental laws. ¶3. Opponents of the project complained that the facility would cause air and water pollution that would compromise the park's unique geologic, climatic, and biotic conditions. In response to the public outcry, the GoDR agreed to allow UNDP to conduct an independent review of the Dominican engineering firm's environmental impact study. President Fernandez promised that the GoDR would abide by the UNDP's findings. The UNDP report, released publicly on 11/26/09, criticized the original study, saying that "it has more faults than virtues and that the analysis was not rigorous enough given the complexity of the situation." The mining consortium reacted by announcing that the facility will not be constructed near Los Haitises, but would be built elsewhere in the country. On 12/7 SEMARENA announced that it was canceling the CMD's permit and that the land that would have been used for the cement facility will be converted to a forestry project for "conservation, rational use, and the development of surrounding communities." ¶4. With the Los Haitises cement plant project defeated, environmentalists are now raising questions about the USD three billion Barrick Gold project. The Dominican Bar Association and the Academy of Sciences have demanded a congressional revision of the Barrick contract. They are calling for an agreement that clearly defines the benefits to the state and the local community of Pueblo Viejo, a detailed environmental management plan, and an environmental monitoring lab run by Dominicans and financed by the Barrick. Local media sources have also been critical of both the terms and rapidity of congressional approval of the Barrick contract. Barrick's contract with the GoDR is said to be too generic to guarantee the adequate environmental protection. Barrick representatives recently expressed concern to EmbOffs about the criticism the company has come under lately. Barrick is a Toronto-based corporation and the largest gold mining company in the world. Globally, Barrick has come under criticism by environmental groups for its use of cyanide and mercury in the gold mining process. When asked about the environmental management plan for the Pueblo Viejo project, a Barrick official told EmbOffs that Barrick follows a higher environmental standard that Dominican or Canadian law requires. ¶5. COMMENT: Blocking construction of the cement plant near Los Haitises National Park was a watershed achievement for Dominican environmentalists, as it was the first case where protests by environmentalists led to a reversal of a government decision. This success is energizing the environmental movement, which is now shifting its sights to the Barrick Gold project. One can expect future investments that raise environmental concerns will need to devote greater resources to establish the environmental viability of their proposals. END COMMENT. Lambert