(November 23, 2001) The Board of the European Bank for Reconstruction and Development (EBRD) is to take a (final?) decision on the infamous K2/R4 project on 29 November. On 7 November, the President of the EBRD Jean Lemierre made a recommendation that the Board of Directors of the EBRD give final approval to a loan to finance the completion of K2/R4, two Soviet-designed nuclear reactors in Ukraine. The Board meeting is scheduled for 29 November.
(558.5344) WISE Amsterdam - Bankwatch and several other NGO's are questioning Lemierre's assumption that the conditions (see box) that were approved last year by the EBRD Board (see WISE News Communique 540.5226: "EBRD approves K2/R4 loan - campaign continues") are completely met.
CONDITIONS FOR BOARD APPROVAL
Source: www.bankwatch.org |
According to Bankwatch "the project is being pushed to support a couple of moribund nuclear companies, while the Ukrainian public will have to take the burden of payment and continue to be threatened by the poor level of safety of other nuclear plants in our country. Although the reactors will be partially completed with Western technology, the reactors would not be licensable in western countries".
The greatest concerns are on the safety of the proposed reactors, the actual effectiveness of the newly formed State Nuclear Regulatory body, the assurance that enough funding will be provided to ensure that the project can be completed in the safest possible manner, the lack of real need for greater energy output in the Ukraine and the continued public opposition to the project.
The most convincing argument against this project is that it is neither needed nor wanted. The EBRD itself has recognised that Ukraine's main problem is with energy efficiency and not with output. The country got through last winter without Chernobyl's nuclear output, or using an EBRD loan for the purchase of fossil fuels to supplement the expected energy shortage. The day after Chernobyl was permanently shut down, President Kuchma, in a public meeting, stated that "Ukraine has enough generating capacity." The latest public opinion poll shows that only 11% of the Ukrainian public supports the project.
Bankwatch has released a report in which it proves that the 4 conditions have not been met. The report points out glaring inconsistencies in the Bank's conditions for loan approval and what has actually been achieved in Ukraine. The report is available on their web site in PDF format.
Source: Bankwatch press releases, 9 and 19 November 2001
Contact: Olexi Pasyuk, CEE Bankwatch Network, PO Box 89, 01025 Kiev, Ukraine
Tel.: +380 44 238 6260; mobile: +380 50 5711684
Email: opasyuk@bankwatch.org
Web: www.bankwatch.org/k2r4