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The Relationship Among Financial Institutions, Safeguards and Hydroelectric Dams in the Amazon

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The Relationship Among Financial Institutions, Safeguards and Hydroelectric Dams in the Amazon The University of San Francisco USF Scholarship: a digital repository @ Gleeson Library | Geschke Center Master's Projects and Capstones Theses, Dissertations, Capstones and Projects Spring 5-15-2020 The Relationship Among Financial Institutions, Safeguards and Hydroelectric Dams in the Amazon Amy Juelsgaard [email protected] Follow this and additional works at: https://repository.usfca.edu/capstone Part of the Environmental Sciences Commons Recommended Citation Juelsgaard, Amy, "The Relationship Among Financial Institutions, Safeguards and Hydroelectric Dams in the Amazon" (2020). Master's Projects and Capstones. 1013. https://repository.usfca.edu/capstone/1013 This Project/Capstone is brought to you for free and open access by the Theses, Dissertations, Capstones and Projects at USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. It has been accepted for inclusion in Master's Projects and Capstones by an authorized administrator of USF Scholarship: a digital repository @ Gleeson Library | Geschke Center. For more information, please contact [email protected]. This Master's Project The Relationship Among Financial Institutions, Safeguards and Hydroelectric Dams in the Amazon by Amy Juelsgaard is submitted in partial fulfillment of the requirements for the degree of: Master of Science in Environmental Management at the University of San Francisco Submitted: Received: ...................................……….. ................................…………. Amy Juelsgaard Date Stephanie A. Siehr, Ph.D. Date Table of Contents List of Figures ........................................................................................................................ ii List of Tables ........................................................................................................................ iii List of Acronyms ................................................................................................................... iv Abstract ................................................................................................................................ v 1. Introduction and Research Questions ................................................................................. 1 2. Background ....................................................................................................................... 3 2.1 Significance of the Amazon .......................................................................................................3 2.2 Infrastructure in the Amazon ....................................................................................................7 2.3 Environmental and Social Safeguards ...................................................................................... 12 3. Methodology ................................................................................................................... 15 3.1 Policy Analysis ........................................................................................................................ 15 3.2 Case Studies ........................................................................................................................... 16 4. Policy Analysis ................................................................................................................. 17 4.1 Evolution of safeguards through World Bank .......................................................................... 17 4.2 Traditional approach versus country systems approach ........................................................... 23 4.3 Comparison of safeguards by financial institution ................................................................... 25 5. Case Studies .................................................................................................................... 28 5.1 Coca Codo Sinclair Dam in Ecuador ......................................................................................... 28 5.1.1 Project location ......................................................................................................................................... 28 5.1.2 Project history ........................................................................................................................................... 29 5.1.3 Social and environmental impacts of the project ..................................................................................... 35 5.1.4 Analysis of CHEXIM’s compliance with social and environmental items .................................................. 38 5.2 Belo Monte Dam in Brazil ....................................................................................................... 40 5.2.1 Project location ......................................................................................................................................... 41 5.2.2 Project history ........................................................................................................................................... 42 5.2.3 Analysis of BNDES compliance with social and environmental items ....................................................... 51 5.2.4 Social and environmental impacts of the project ..................................................................................... 53 6. Discussion and Conclusions .............................................................................................. 58 6.1 Traditional Approach Bests Country Systems Approach ........................................................... 60 6.2 Safeguards Futile Without Implementation ............................................................................. 61 6.3 National Development Banks Take Over ................................................................................. 62 7. Recommendations ........................................................................................................... 63 8. Literature Cited ................................................................................................................ 67 i List of Figures Figure 1. Map of South America showing the location and outline of the Amazon biome in yellow and basin in blue ................................................................................................................. 4 Figure 2. Global maps showing species richness (biodiversity) levels for different categories of species: birds, mammals and amphibians ...................................................................................... 5 Figure 3. Map depicting the major rivers and tributaries in the Amazon ...................................... 6 Figure 4. Map depicting the current and planned dams in the Amazon and their location relative to protected areas and indigenous territories ............................................................................... 8 Figure 5. Image showing the deforestation caused by a hydroelectric dam in the Brazilian Amazon ......................................................................................................................................... 10 Figure 6. Graph showing the amount of loans granted by the various types of financial institution and the specific banks in 2013 in USD billion ............................................................. 12 Figure 7. Graph showing the global outward foreign direct investment stock from four emerging economies in USD billion .............................................................................................................. 20 Figure 8. Timeline outlining the events related to the evolution of environmental and social safeguards at the World Bank ...................................................................................................... 22 Figure 9. Map of the location of the Coca Codo Sinclair Dam and the surrounding protected forests and protected areas .......................................................................................................... 29 Figure 10. Timeline of major events related to the Coca Codo Sinclair Dam ............................... 34 Figure 11. The environmental and social impacts caused by the Coca Codo Sinclair Dam in Ecuador ......................................................................................................................................... 35 Figure 12. A photo showing the power lines cutting through protected Amazonian forest ....... 36 Figure 13. Map showing the location of Belo Monte Dam and the surrounding indigenous territories ...................................................................................................................................... 41 Figure 14. Photo of Tuira, a Kayapo woman, and the President of Eletronorte, Jose Lopes Muniz, at the Meeting of Indigenous Peoples of the Xingu in Altamira .................................................. 43 Figure 15. Timeline of major events related to the Belo Monte Dam ......................................... 50 Figure 16. The social and environmental impacts caused by the Belo Monte Dam in Brazil ...... 54 Figure 17. Photo depicting deforested wood for the construction of the Belo Monte Dam ....... 56 ii List of Tables Table 1. The benefits of environmental and social safeguards for different stakeholders involved in development. ............................................................................................................................ 13 Table 2. Percentages of each type of land cover at the project site during specific years throughout the project cycle of the Belo
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