U.S. groups urge inter-American bank to reject gas project in Peru's Amazon
Tue Feb 25, 7:22 PM ET
Associated Press
http://www.ap.com

LIMA, Peru - Six U.S. conservation groups urged the Inter-American Development Bank to not fund a natural gas project in Peru's Amazon jungle, saying the project could expose indigenous Indians to deadly diseases.

In an e-mail sent Tuesday to the president of the Washington-based bank, the groups said 15 Nanti children who lived near work sites on the Camisea natural gas project died between August and December from illnesses previously unknown to their area.

Uncontacted indigenous groups are susceptible to diseases common to modern societies because they have not built up immunities.

The Rainforest Action Network, Environmental Defense, the Bank Information Center, the Institute for Policy Studies, the Friends of the Earth International and Amazon Watch also said workers on the project had made contact with isolated communities and given them gifts.

Peru's finance minister visited Washington last week in search of a US$75 million loan to fund the pipeline to transport the natural gas to Lima.

Peruvian officials say the US$1.35 billion project is a way for the poor nation to build an energy industry, create jobs and repay the country's US$20 billion foreign debt.

Environmentalists worry the project could destroy parts of the Lower Urubamba River basin, some 280 miles (450 kilometers) east of Lima. The area has one of the world's most biologically diverse and pristine rain forests.

In response to environmental concerns, the inter-American bank and Peru signed a US$5 million loan in January to improve environmental supervision of the project and Peru's government pledged to contribute another $2.2 million.

The Camisea gas fields are believed to hold 13 trillion cubic feet of natural gas as well as oil. Peru hopes to begin piping gas over the Andes to the coast by 2004.