MEDIA RELEASE: November 17, 2009
“Sustainable Finance” Undermines Food Security of Lao Communities - ANZ
Investment in Lao dam violates the Equator Principles and Lao Law
The Theun-Hinboun Expansion Project –
a dam and diversion project under construction in Central
Laos – violates the Equator Principles and Lao law, according to a report and video released today.
The report, Expanding Failure, documents how Lao villagers are being sold down the river in a hydro
deal that will displace thousands of people from their homes and land, and deprive thousands more of
access to fertile rice fields, riverbank vegetable gardens, grazing lands, forests and fisheries.
The project is being financed by three international banks – ANZ of Australia, BNP Paribas of France
and KBC of Belgium - that have committed to the Equator Principles, a set of social and environmental
guidelines for private banks. The report was based on a field visit by BankTrack and International
Rivers to the project area in May 2009.
Ikuko Matsumoto, Lao Program Director for International Rivers and the author says, “These violations
are unacceptable for a project that is being financed by three commercial banks that have adopted the
Equator Principles. The project will undermine food security for up to 50,000 Laotians and the plans to
restore livelihoods are woefully inadequate. The banks funding the project have promised that
people’s lives will be restored. They must take this responsibility seriously and put people before
profits.”
“The ANZ needs to seriously engage with the evidence collected in the report and demonstrate that
the local people will be properly compensated for any losses suffered as a result of the project,” said
Dr Mark Zirnsak, Director of the Justice and International Mission Unit, of the Uniting Church in
Australia Synod of Victoria and Tasmania. “At the moment the ANZ has refused to discuss any of the
evidence collected in the report, simply arguing the project meets the standards in question.”
UCA Funds Management, an operating entity of the Uniting Church in Australia, Synod of Victoria and
Tasmania operates the UCA Growth Fund, the Uniting Growth Fund and the UCA Cash Management
Fund, all of which have investments in the ANZ Banking Group (shares and Floating Rate Notes). It
seeks to engage with companies in which it invests to encourage compliance with the Synod’s ethical
investment policy.
November 2009.pdf. A short video (8 minutes) including interviews with dam affected villagers is also
available. Contact media liaison; Michael Docherty 0408 950 702 or Kim Cain 0419 373 123
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