Press Releases
[Press release] New report: EU funds must plug clean energy gap in central and eastern Europe
(March 3, 2010)
On the day that the European Commission launches its vision for 2020, its ‘Europe 2020 strategy’, a new report from CEE Bankwatch Network and Friends of the Earth Europe lays out how improved targeting of EU structural and cohesion billions for energy efficiency and renewables can get the EU - and particularly the new member states in the east - on track to meet and exceed emissions reduction targets for tackling climate change.
The new analysis from CEE Bankwatch Network and Friends of the Earth Europe points to alarming shortcomings in how billions of EU funds earmarked for clean energy projects in the new member states are being deployed. It calls for big increases in the marginal allocations that the new member states have thus far given to clean energy schemes, citing widespread evidence from the ground that building efficiency schemes are ready to take off if they become more affordable and if EU money is better targeted.
The new analysis from CEE Bankwatch Network and Friends of the Earth Europe points to alarming shortcomings in how billions of EU funds earmarked for clean energy projects in the new member states are being deployed. It calls for big increases in the marginal allocations that the new member states have thus far given to clean energy schemes, citing widespread evidence from the ground that building efficiency schemes are ready to take off if they become more affordable and if EU money is better targeted.
[Press release] Transparency allergy reappears at EIB, crisis billions still cloaked in confidentiality
(February 4, 2010)

CEE Bankwatch Network today criticised the European Investment Bank (EIB) for adopting a new transparency policy that persists in keeping the final destination of billions of publicly backed money unknown to the public.
Information on loans from commercial banks across Europe, that have received credit lines from the EIB, to final beneficiaries such as small- and medium-sized companies, public authorities, mid-companies, investments funds or equity funds remains unobtainable to the public, under the EIB's new transparency policy signed off this week by the bank's directors. This type of lending is a central - and growing - plank of the EIB's economic crisis response.
Anna Roggenbuck, Bankwatch's EIB Campaign coordinator, said: “The EIB's unwillingness to permit just a chink of light on its lending through financial intermediaries is symptomatic of the new policy as a whole. If one of the lessons of the economic crisis is the need for greater transparency in the financial system, then the message has not got through to the EU's bank.”
Information on loans from commercial banks across Europe, that have received credit lines from the EIB, to final beneficiaries such as small- and medium-sized companies, public authorities, mid-companies, investments funds or equity funds remains unobtainable to the public, under the EIB's new transparency policy signed off this week by the bank's directors. This type of lending is a central - and growing - plank of the EIB's economic crisis response.
Anna Roggenbuck, Bankwatch's EIB Campaign coordinator, said: “The EIB's unwillingness to permit just a chink of light on its lending through financial intermediaries is symptomatic of the new policy as a whole. If one of the lessons of the economic crisis is the need for greater transparency in the financial system, then the message has not got through to the EU's bank.”
[Press release] Chelopech gold mine plans frozen, campaigners call for cyanide leaching to be binned
(January 26, 2010)

An announcement from Dundee Precious Metals that it is freezing plans on its investment at the Chelopech gold and copper mine in central Bulgaria because of ongoing legal challenges has been welcomed by the Cyanide-free Bulgaria coalition.
As reported in the Bulgarian media yesterday, Dundee's announcement comes after more than five years of problems and controversies surrounding the Canadian company's plans to introduce cyanide leaching technologies in order to extract gold at the Chelopech mine.
With the legal appeals process concerning permits for stage two of the Chelopech mine development expected to last upwards of two years, the Cyanide-free Bulgaria coalition has written to Dundee Precious Metals, encouraging the company to use this hiatus period to conduct further research into technologies safer than cyanide and to carry out improved public consultations.
As reported in the Bulgarian media yesterday, Dundee's announcement comes after more than five years of problems and controversies surrounding the Canadian company's plans to introduce cyanide leaching technologies in order to extract gold at the Chelopech mine.
With the legal appeals process concerning permits for stage two of the Chelopech mine development expected to last upwards of two years, the Cyanide-free Bulgaria coalition has written to Dundee Precious Metals, encouraging the company to use this hiatus period to conduct further research into technologies safer than cyanide and to carry out improved public consultations.
[Press release] Bulgarian parliament hears the anti-cyanide concerns of thousands
(January 21, 2010)

Today at the Bulgarian parliament's Petitions Committee three public petitions related to controversial mining initiatives were heard, in a process described by 'Cyanide Free Bulgaria' campaigners as “encouraging and not before time.”
Two of the petitions - one of 14 400 signatures supporting a legally binding cyanide ban across Bulgaria, the other 'For a clean Maritza River' aiming to prevent industrial pollution from mining - had been overlooked for two years, but following re-submission to the Petitions Committee in November last year were finally granted a hearing in the committee.
Daniel Popov, Bankwatch national coordinator in Bulgaria and member of the Cyanide Free Bulgaria coalition, said: “The fact that these petitions have been heard in the Bulgarian parliament's committee at all represents good progress for the thousands of people and hundreds of communities across Bulgaria that face the prospect of mining involving lethal chemicals taking place in their areas, next to their water sources, and usually without consultation.
Two of the petitions - one of 14 400 signatures supporting a legally binding cyanide ban across Bulgaria, the other 'For a clean Maritza River' aiming to prevent industrial pollution from mining - had been overlooked for two years, but following re-submission to the Petitions Committee in November last year were finally granted a hearing in the committee.
Daniel Popov, Bankwatch national coordinator in Bulgaria and member of the Cyanide Free Bulgaria coalition, said: “The fact that these petitions have been heard in the Bulgarian parliament's committee at all represents good progress for the thousands of people and hundreds of communities across Bulgaria that face the prospect of mining involving lethal chemicals taking place in their areas, next to their water sources, and usually without consultation.
[Press release] Putin's 'legal diversion' for Moscow-St. Petersburg motorway must rule out European Investment Bank project backing, say Russian NGOs
(January 19, 2010)

Russian non-governmental organisations, led by local residents’ group the Movement to Defend Khimki Forest, have today appealed to the European Investment Bank (EIB) not to approve a planned EUR 200 million loan for the Moscow-St. Petersburg motorway unless the route is changed to avoid the protected Khimki Forest near Moscow.
The Khimki Forest Park, situated only five kilometres from the Moscow city boundary, provides a popular respite area for local residents in the polluted and densely populated region and is home to elks, boars and other animals.
When local people found out about the motorway plans by accident in 2007 and started to protest, the local authorities responded with arrests, and demonstrations and tent camps have been subjected to attacks. In November 2008, a local opponent of the proposed routing of the project, journalist Mikhail Beketov, was severely beaten and is permanently disabled.
The Khimki Forest Park, situated only five kilometres from the Moscow city boundary, provides a popular respite area for local residents in the polluted and densely populated region and is home to elks, boars and other animals.
When local people found out about the motorway plans by accident in 2007 and started to protest, the local authorities responded with arrests, and demonstrations and tent camps have been subjected to attacks. In November 2008, a local opponent of the proposed routing of the project, journalist Mikhail Beketov, was severely beaten and is permanently disabled.
[Press release] New billions for the EBRD must lead to environmentally and socially 'useful' banking, say civil society groups
(January 18, 2010)

With the support of 45 civil society organisations from around the world, CEE Bankwatch Network today presented the European Bank for Reconstruction and Development (EBRD) with a set of proposals that seek to modify the development bank's lending practices to bring about real social and environmental improvements in central and eastern Europe.
The EBRD is currently engaged in a fourth review of its capital resources, and for the 2010-2015 period it is requesting a 50 percent capital increase - an extra EUR 10 billion - from shareholder governments.
Pippa Gallop, interim EBRD co-ordinator of Bankwatch, said: “This level of capital increase request from the EBRD suggests that the bank is in buoyant, expectant mood following its response to the economic crisis, in which it has been credited with saving central and eastern Europe’s banking systems from collapse by lending them billions of euros. However, the short-term apparent success of these emergency transfusions should not divert attention from the long-term questions now surrounding the whole concept of the transition to market economy promoted by the EBRD.
“The crisis has shown the bankruptcy of the idea that promoting the private sector is an end in itself. The EBRD needs to focus on concrete social and environmental goals that will improve people's wellbeing instead of trying to bend everything to fit market criteria.”
The EBRD is currently engaged in a fourth review of its capital resources, and for the 2010-2015 period it is requesting a 50 percent capital increase - an extra EUR 10 billion - from shareholder governments.
Pippa Gallop, interim EBRD co-ordinator of Bankwatch, said: “This level of capital increase request from the EBRD suggests that the bank is in buoyant, expectant mood following its response to the economic crisis, in which it has been credited with saving central and eastern Europe’s banking systems from collapse by lending them billions of euros. However, the short-term apparent success of these emergency transfusions should not divert attention from the long-term questions now surrounding the whole concept of the transition to market economy promoted by the EBRD.
“The crisis has shown the bankruptcy of the idea that promoting the private sector is an end in itself. The EBRD needs to focus on concrete social and environmental goals that will improve people's wellbeing instead of trying to bend everything to fit market criteria.”
[Press release] Nord Stream Baltic Sea pipeline assessements breach EU laws, Estonian environmental groups alert European Commission
(January 7, 2010)

Bankwatch member group the Estonian Green Movement, along with the Estonian Fund for Nature, have today sent a former complaint to the European Commission that lays out how Finland, Sweden, Denmark and Germany have failed to comply with EU environmental legislation when granting Nord Stream a licence to construct the EUR 8 billion Baltic Sea gas pipeline.
The Estonian NGOs allege that EU directives on environmental impact assessment (EIA) and conservation of wild birds and habitats have been violated by the member states in the preparation for construction of the 1220 kilometre long pipeline that is intended to deliver natural gas from Russia to Germany across the Baltic Sea. Project promoter Nord Stream is seeking significant project finance support from export credit agencies and a range of banks, including potentially the European Investment Bank.
The Estonian NGOs allege that EU directives on environmental impact assessment (EIA) and conservation of wild birds and habitats have been violated by the member states in the preparation for construction of the 1220 kilometre long pipeline that is intended to deliver natural gas from Russia to Germany across the Baltic Sea. Project promoter Nord Stream is seeking significant project finance support from export credit agencies and a range of banks, including potentially the European Investment Bank.
[Press release] Bankwatch complaint on abuse of environmental laws leads to suspension of EIB financing for Slovak motorway
(December 21, 2009)
Following a complaint lodged by Friends of the Earth-CEPA, CEE Bankwatch Network's member group in Slovakia, over breaches of EU and national environmental laws taking place in the preparation of a section of the D1 motorway project, the Complaints Office of the European Investment Bank (EIB) has announced that the bank will not sign off on EUR 700 million of financing for the project until all relevant documentation is provided by the Slovak Ministry of Transport, Posts and Telecommunications.
Friends of the Earth-CEPA questioned the EIB's due diligence on the Turany-Hubova section of the D1 motorway - to be financed under a public-private partnership scheme - which led in December 2008 to the EU's bank agreeing to provide financing for the project.
The environment group pointed to the fact that a less damaging routing variant for the motorway section that had been recommended by the project's environmental impact assessment was overlooked in favour of an alternative routing that crosses two national parks - in Mala Fatra and Velka Fatra - and protected areas of the Natura 2000 network, as well as running through the village of Sutovo.
Friends of the Earth-CEPA questioned the EIB's due diligence on the Turany-Hubova section of the D1 motorway - to be financed under a public-private partnership scheme - which led in December 2008 to the EU's bank agreeing to provide financing for the project.
The environment group pointed to the fact that a less damaging routing variant for the motorway section that had been recommended by the project's environmental impact assessment was overlooked in favour of an alternative routing that crosses two national parks - in Mala Fatra and Velka Fatra - and protected areas of the Natura 2000 network, as well as running through the village of Sutovo.
[Press release] After pollution permit windfall, yet more public money for steel giant ArcelorMittal
(December 14, 2009)

One week after revelations that ArcelorMittal managed to obtain free surplus greenhouse gas emissions permits worth EUR 1 billion for the period until 2012 under the European Emissions Trading Scheme, the European Investment Bank (EIB) - the EU's bank - is tomorrow set to approve a EUR 130 million low-interest loan for the company’s operations in Brazil.
The loan comes only a month and a half after another EIB loan for ArcelorMittal: EUR 250 for the steel giant's European operations.
Since the beginning of the decade the company has also clocked up more than EUR 450 million in public loans from the European Bank for Reconstruction and Development and the International Finance Corporation. This summer it was also revealed that between 2005-2008 the company had already amassed surplus emissions allowances under the European Emissions Trading Scheme worth in excess of EUR 1.3 billion.
The loan comes only a month and a half after another EIB loan for ArcelorMittal: EUR 250 for the steel giant's European operations.
Since the beginning of the decade the company has also clocked up more than EUR 450 million in public loans from the European Bank for Reconstruction and Development and the International Finance Corporation. This summer it was also revealed that between 2005-2008 the company had already amassed surplus emissions allowances under the European Emissions Trading Scheme worth in excess of EUR 1.3 billion.
[Press release] “Fossil of the Day” award at Copenhagen for Poland's stalling tactics on EU targets
(December 11, 2009)

Poland landed the mock NGO prize “Fossil of the Day” on day four of the climate negotiations in Copenhagen for actively blocking the proposed upgrade of the EU's emissions reduction target to 30 percent. This award is given to the country or countries doing the most to obstruct progress in the global climate talks, with Germany and New Zealand trailing Poland on day four.
Ondrej Pasek, CEE Bankwatch Network's climate change officer, said: “Raising Europe's target this year is absolutely key to achieving a real climate deal in Copenhagen. The EU has set in its climate-energy package the target of reducing emissions by 30 percent in 2020 to 1990 levels, if other countries join with 'comparable efforts'. In this way the EU is trying to push other developed countries to raise their emission cut pledges to avoid the global mean temperature rising over 2 degrees.
“But at the EU summit in Brussels today, we need to see less bluffing, less positioning and instead a firm commitment to 30 percent. The all too familiar sight of Polish government stubbornness is threatening the EU's position as a climate talks leader.”
Ondrej Pasek, CEE Bankwatch Network's climate change officer, said: “Raising Europe's target this year is absolutely key to achieving a real climate deal in Copenhagen. The EU has set in its climate-energy package the target of reducing emissions by 30 percent in 2020 to 1990 levels, if other countries join with 'comparable efforts'. In this way the EU is trying to push other developed countries to raise their emission cut pledges to avoid the global mean temperature rising over 2 degrees.
“But at the EU summit in Brussels today, we need to see less bluffing, less positioning and instead a firm commitment to 30 percent. The all too familiar sight of Polish government stubbornness is threatening the EU's position as a climate talks leader.”
[Press release] Ukraine wins 'Fossil of the Day' award in Copenhagen for 'hot air' tricks
(December 9, 2009)

Day two of the United Nations climate negotiations in Copenhagen saw NGOs from around the world awarding Ukraine the top prize - and the third place prize - in the mock 'Fossil of the Day Award', given to the country or countries doing the most to obstruct progress in the global climate talks.
Ukraine secured the first prize for having the worst carbon emissions reduction target in the world: a 20 percent reduction from 1990 levels, which equates to a 75 percent increase at current levels.
Irina Stavchuk, of the Ukrainian environmental group National Ecological Centre of Ukraine, a Bankwatch member group, said: “As things currently stand, it is a major wasted opportunity for Ukraine to have such a target as we have huge potential to make energy efficiency improvements, which is economically feasible, but there is a need for political will.”
Ukraine secured the first prize for having the worst carbon emissions reduction target in the world: a 20 percent reduction from 1990 levels, which equates to a 75 percent increase at current levels.
Irina Stavchuk, of the Ukrainian environmental group National Ecological Centre of Ukraine, a Bankwatch member group, said: “As things currently stand, it is a major wasted opportunity for Ukraine to have such a target as we have huge potential to make energy efficiency improvements, which is economically feasible, but there is a need for political will.”
[Press release] Environmental smokescreens for potential EU-funded incinerator in Krakow can be lifted by clean alternatives, says Bankwatch
(December 7, 2009)

An environmental impact assessment (EIA) report for a proposed new 220,000 tonnes per year incinerator in Krakow that could be in line for substantial EU funding has been rejected following a public hearing and the submission of critical comments from hundreds of members of the public and civil society organisations, including Bankwatch member group Polish Green Network.
Riddled with shortcomings and inconsistencies, the EIA report has now received a major setback for a third time. This leaves the Polish government with an uphill struggle to meet its own deadline of applying for EU funding for the incinerator - with estimated total costs of EUR 120 million - by the middle of next year, and may jeopardise the use of any EU funds for waste management in Krakow in the current 2007-2013 EU funds programming period.
Riddled with shortcomings and inconsistencies, the EIA report has now received a major setback for a third time. This leaves the Polish government with an uphill struggle to meet its own deadline of applying for EU funding for the incinerator - with estimated total costs of EUR 120 million - by the middle of next year, and may jeopardise the use of any EU funds for waste management in Krakow in the current 2007-2013 EU funds programming period.
[Press release] New report: EU Copenhagen ambitions hampered by fossil-heavy lending at EU's public bank
(December 2, 2009)

A new report from CEE Bankwatch Network has found that the energy sector lending of the European Union's bank, the European Investment Bank (EIB), is not contributing to EU efforts to pledge a credible 20 percent cut in greenhouse gas emissions at the upcoming UN climate conference in Copenhagen.
The report - 'Change the lending, not the climate' - reveals that between 2002 and 2008 the EIB loaned EUR 18 billion in support of oil, gas and coal projects. It also identifies that the small rise in the EIB's renewable energy investments since 2006 has been largely nullified in climate terms by a sharper rise since 2006 in the bank's loans for gas power plants, pipelines and liquified natural gas terminals.
While the EIB’s still incomplete energy lending record in 2009 is shaping up to be more favourable for renewable investments, the carbon footprint of past and current EIB loans persists in undermining EU climate and energy targets, according to the public funder watchdog group.
The report - 'Change the lending, not the climate' - reveals that between 2002 and 2008 the EIB loaned EUR 18 billion in support of oil, gas and coal projects. It also identifies that the small rise in the EIB's renewable energy investments since 2006 has been largely nullified in climate terms by a sharper rise since 2006 in the bank's loans for gas power plants, pipelines and liquified natural gas terminals.
While the EIB’s still incomplete energy lending record in 2009 is shaping up to be more favourable for renewable investments, the carbon footprint of past and current EIB loans persists in undermining EU climate and energy targets, according to the public funder watchdog group.
[Press release] Corners being cut for unnecessary road build in Czech Republic
(December 2, 2009)

More
sharp practice surrounding the routing of a proposed Trans-European
Network (TEN-T) corridor in the South Moravia region of the Czech
Republic is expected at the European Parliament today, warned
Bankwatch member group Czech Friends of the Earth, with
representatives of eight regions in the Czech Republic, Poland and
Austria seeking to sign a memorandum on the Baltic-Adriatic Corridor
that would promote the construction of a duplicate and unnecessary
highway joining the city of Brno with Vienna
through the towns of Mikulov and Drasenhofen at the Czech-Austrian
border.
The attempt by the regions to include the controversial R52 highway within the corridor that should be financed by European money comes less than a week after the Czech Highest Administrative Court ruled against a Regional Land-Use Plan that included the proposed routing of the R52 highway.
The attempt by the regions to include the controversial R52 highway within the corridor that should be financed by European money comes less than a week after the Czech Highest Administrative Court ruled against a Regional Land-Use Plan that included the proposed routing of the R52 highway.
[Press release] Concerns mount over cyanide rush in Bulgarian mining projects, European Commission urged to intervene
(December 1, 2009)

Two Bankwatch groups and the members of the Cyanide Free Bulgaria coalition outlined today at a press conference in Sofia the ongoing problematic issues hanging over the proposed introduction of controversial cyanide leaching at the Chelopech mining project and with the Bulgarian government's handling of the environmental procedures for wider use of cyanide in mining projects across the country.
The Center for Environmental Information and Education has lodged a formal complaint with the European Commission related to infringements of EU law associated with the Integrated Pollution Prevention and Control (IPPC) permitting process for the cyanide installation at phase 2 of the Chelopech project.
Daniel Popov, of the Center for Environmental Information and Education and Bankwatch national coordinator, said: “The IPPC permitting for the use of cyanide technology at the Chelopech mine took place without due consultation with the concerned public downstream from the mine which we believe to be in breach of EU law, the Aarhus Convention on public participation and also Bulgarian legislation. Given the risks involved both for people and the natural environment with the use of cyanide technology, we call on the Commission to fully assess the extensive evidence presented in our complaint.”
The Center for Environmental Information and Education has lodged a formal complaint with the European Commission related to infringements of EU law associated with the Integrated Pollution Prevention and Control (IPPC) permitting process for the cyanide installation at phase 2 of the Chelopech project.
Daniel Popov, of the Center for Environmental Information and Education and Bankwatch national coordinator, said: “The IPPC permitting for the use of cyanide technology at the Chelopech mine took place without due consultation with the concerned public downstream from the mine which we believe to be in breach of EU law, the Aarhus Convention on public participation and also Bulgarian legislation. Given the risks involved both for people and the natural environment with the use of cyanide technology, we call on the Commission to fully assess the extensive evidence presented in our complaint.”
[Press release] Public in danger of being short-changed by new South East European Public-Private Partnership Network
(November 30, 2009)

The new South East European Public-Private Partnership Network launched in Sarajevo today risks promoting overpriced infrastructure projects and aggravating public sector financial burdens, according to South East Europe Development Watch (SEEDW), a coalition of regional NGOs.
Originating in the UK, public-private partnerships (PPPs) consist of a private company constructing and operating public infrastructure such as schools, hospitals or motorways, and the government either renting the facility through an ‘availability fee’ or users paying the company directly, e.g. toll motorways. The contracts often last for several decades. The PPP model has been heavily criticised for delivering overpriced projects, with high profits and low risks for investors, while the taxpayer pays the bill.
Originating in the UK, public-private partnerships (PPPs) consist of a private company constructing and operating public infrastructure such as schools, hospitals or motorways, and the government either renting the facility through an ‘availability fee’ or users paying the company directly, e.g. toll motorways. The contracts often last for several decades. The PPP model has been heavily criticised for delivering overpriced projects, with high profits and low risks for investors, while the taxpayer pays the bill.
[Press release] EU funded incinerator plans in Poland consign recycling bins to scrapheap
(November 27, 2009)

An announcement from the Polish city of Bydgoszcz that it plans to end its waste separation collection scheme by the end of this year has been criticised by CEE Bankwatch Network's member group Polish Green Network. The proposed move comes as Bydgoszcz looks to become the first Polish city to receive EU funds for the development of a new waste incinerator by 2012.
Przemek Kalinka, Bankwatch's national coordinator in Poland, said: “Bydgoszcz is currently the front-runner among Polish cities to pitch for EU funds, in this case EUR 85 million, for a new waste incinerator and we are seeing the real price that has to be paid for this completely unsustainable approach to waste management.
“By pulling recycling opportunities that are popular with households, the authorities in Bydgoszcz are confirming our fears and putting the lie to European Commission claims that incineration and recycling can go together. Incinerators need waste and they need it in growing volumes to be economically viable, and that, unfortunately, appears to be the chosen strategy in Bydgoszcz as waste separation and recycling bins get ready to be towed away to the scrapheap.”
Przemek Kalinka, Bankwatch's national coordinator in Poland, said: “Bydgoszcz is currently the front-runner among Polish cities to pitch for EU funds, in this case EUR 85 million, for a new waste incinerator and we are seeing the real price that has to be paid for this completely unsustainable approach to waste management.
“By pulling recycling opportunities that are popular with households, the authorities in Bydgoszcz are confirming our fears and putting the lie to European Commission claims that incineration and recycling can go together. Incinerators need waste and they need it in growing volumes to be economically viable, and that, unfortunately, appears to be the chosen strategy in Bydgoszcz as waste separation and recycling bins get ready to be towed away to the scrapheap.”
[Press release] Ukrainian power company ignores EBRD warnings, ploughs on with controversial power lines project
(November 23, 2009)

This morning in the village of Usatove near Odessa Ukraine's national power company Ukrenergo continued construction activities on a EUR 25.8 million project financed by the European Bank for Reconstruction and Development (EBRD), thus ignoring calls from the development bank at the end of last week “to halt immediately further construction work and to take measures aimed at defusing the tense situation in the area”.
Villagers peacefully protesting against the installation of transmission line towers by the company were again pushed away from the construction site of the electricity tower and the area was surrounded by special police forces.
In violation of the project conditions, agreed with EBRD and reflected in the loan agreement ratified by the Ukrainian parliament, state owned Ukrenergo has altered the initially intended route of the high voltage power transmission line. Instead of bypassing the village of Usatove the company has decided to construct the line in very close vicinity to local houses and streets. These revised plans have led to months of resistance by local inhabitants, which came to a head last week as police arrived in the village to free up space for project construction workers.
Villagers peacefully protesting against the installation of transmission line towers by the company were again pushed away from the construction site of the electricity tower and the area was surrounded by special police forces.
In violation of the project conditions, agreed with EBRD and reflected in the loan agreement ratified by the Ukrainian parliament, state owned Ukrenergo has altered the initially intended route of the high voltage power transmission line. Instead of bypassing the village of Usatove the company has decided to construct the line in very close vicinity to local houses and streets. These revised plans have led to months of resistance by local inhabitants, which came to a head last week as police arrived in the village to free up space for project construction workers.
[Press release] Violations at EBRD power lines project spark clashes between police and villagers in Ukraine
(November 18, 2009)

A project financed by the European Bank for Reconstruction and Development (EBRD) in the Odessa region of Ukraine has this week been the scene of clashes between 300 police officers and villagers resisting the routing of high voltage power lines through their village. The EUR 25.8 million Odessa High Voltage Grid Upgrade project is being implemented by Ukraine's national electricity company Ukrenergo in violation of agreements with the EBRD, the international public development bank and backer of the project.
Signed off by the EBRD in 2005, the project's environmental impact assessment (EIA) deemed that the power lines were to bypass the village of Usatove. However, Ukrenergo's plans to proceed with the routing of the power lines in very close vicinity to local houses and streets have led to months of resistance by local inhabitants, which came to a head on Monday this week as police arrived in the village to free up space for project construction workers.
Clashes on Monday left five women seeking medical assistance. With ongoing police backing, Ukrenergo has continued its construction efforts in the village, working overnight, as villagers reacted by blocking roads. This morning five local men were beaten and arrested on the site.
Signed off by the EBRD in 2005, the project's environmental impact assessment (EIA) deemed that the power lines were to bypass the village of Usatove. However, Ukrenergo's plans to proceed with the routing of the power lines in very close vicinity to local houses and streets have led to months of resistance by local inhabitants, which came to a head on Monday this week as police arrived in the village to free up space for project construction workers.
Clashes on Monday left five women seeking medical assistance. With ongoing police backing, Ukrenergo has continued its construction efforts in the village, working overnight, as villagers reacted by blocking roads. This morning five local men were beaten and arrested on the site.
[Press release] Czech government cuts money for recycling, diverts EU funds to "landfill in the sky"
(November 16, 2009)

A proposal to cut money for the recycling of waste announced by the Czech government today will increase Czech imports of raw materials and lead to environmental damage, according to Czech Friends of the Earth, member group of CEE Bankwatch Network.
Czech ministers decided in favour of a hastily prepared amendment to the state waste management plan, backing a plan that will allow controversial subsidies to go to waste incinerator plants. The move involves the diversion of some money from EU funds allocations that were until now earmarked for improving waste separation and recycling.
Czech Friends of the Earth pointed out that according to figures from the Czech Ministry of Environment the construction of incinerators - instead of recycling - will increase the costs for families when it comes to the collection of domestic waste.
Czech ministers decided in favour of a hastily prepared amendment to the state waste management plan, backing a plan that will allow controversial subsidies to go to waste incinerator plants. The move involves the diversion of some money from EU funds allocations that were until now earmarked for improving waste separation and recycling.
Czech Friends of the Earth pointed out that according to figures from the Czech Ministry of Environment the construction of incinerators - instead of recycling - will increase the costs for families when it comes to the collection of domestic waste.










CEE Bankwatch Network gratefully acknowledges EU funding support.