30.09.2008
Civil society entities support measures adopted by Ecuador against Odebrecht

Brasília – Several civil society entities including the Institute of Social and Economic Studies (INESC), Movement of Dam Affected People (MAB) and Brazilian Network on Multilateral Financial Institutions released on September 28, a note of support to the Ecuadorian government for blaming construction company Odebrecht for its “bad services” to the country “especially regarding the Hydroelectric Plant San Francisco”.

According to the entities, it is fair for the Ecuadorian government to demand compensation for the malfunction of the plant “which was financed with public money of the Brazilian taxpayers through the National Bank of Economic and Social Development (BNDES)”.

The entities remind in the note that Odebrecht was also responsible for the construction of Line 4 (Yellow line) of the Sao Paulo metro, which partially collapsed on January 12, 2007, killing seven people and injuring many others. The entities affirm in the note that they “understand that the recent actions taken by the Ecuadorian government are not only seeking justice with relation to the serious impacts of the problematic hydroelectric plant”.

The note demands from the Brazilian government that BNDES provides explanations regarding the financing to Odebrecht for the particular project in Ecuador: “the lack of transparency in that financing operation with public resources compromises the ability of the Brazilian society in particular, to have a clear view on the case”.

On September 23, the Ecuadorian government blocked the assets of construction company Odebrecht, based on the malfunction and subsequent paralysis of the San Francisco plant. The government also demanded financial repairs for the damages caused on Ecuadorian economy.

On September 27, President Rafael Correa announced that the Brazilian company presented a proposal of understanding in which it accepted all the demands of the Ecuadorian side regarding the compensations and necessary repairs to the Hydroelectric Plant San Francisco. Correa is currently studying the company’s proposal and will reply to the company in the future.

Source: Agência Brasil