Peru Gas Pipeline and Indigenous Peoples

camisea peru. Source: Instituto de Estudios Superiores de Administración

Peru’s government said in June 2014 that three companies have qualified to submit bids for a contract to build and operate a multi-billion dollar gas pipeline project in the country’s southern region, the state news agency Andina reported.  State investment promotion agency ProInversion said that two of the contenders for the Southern Peru Gas Pipeline concession are consortia.

The consortium Gasoducto Sur Peruano is made up of Brazilian construction giant Odebrecht and the firm Enegas. The consortium Gasoducto Peruano del Sur is made up of France’s GDF Suez, as well as the firms Sempra, Techint and TGI. The third contender is Energy Transfer.  The technical proposals are expected to be submitted on June 26, 2014 and the concession is scheduled to be awarded on June 30, 2014. The bid consists in the design, financing, construction and maintenance of a 32″ pipeline, in three sections.

The Southern Peru Gas Pipeline will extend some 1,000 kilometers, transporting natural gas from the Camisea fields in Peru’s south-eastern Amazon region to the Peruvian coast. The project is expected to require an investment of some $4 billion.  The government says the pipeline is to provide inexpensive gas to southern Peru, helping to spur development in one of the country’s poorer regions.  [However NGOS have argued that the project will harm indigenous peoples living in the region].

According to the UN Special Rapporteur on the rights of indigenous peoples,, James Anaya (see Remarks on the extension of exploration and extraction of natural gas  in Block 88 of the Camisea project, March 24, 2014)

“[S]everal national and international NGOs have claimed a number of environmental and health problems in relation to the expansion plan of the project, in some cases stating that any activity of extractive industry within the reserve is simply incompatible with its protection goals. The Special Rapporteur has found that in many cases these claims are speculative and vague, and without relation to the information contained in the EIA of the company or the findings of government.”

But the rapporteur stated also that:

“Assessing the impacts that mining activity could have on indigenous peoples within the reserve and to establish effective safeguards, it is necessary to have adequate knowledge beforehand, to the extent possible, these peoples and their dynamics, in observance the principle of non-contact remote villages. However, while there is relatively extensive information on indigenous reserves within the sustained or sporadic contact with settlements, the available information on indigenous peoples in isolation is outdated and incompleteThis information gap has generated divergent opinions and a lack of trust in relation to the protective measures that the Government has demanded that Pluspetrol is committed to implement in the context of extractive activities in the reserve.

Excerpts, Three Contenders for Peru’s Southern Gas Pipeline,  Peruvian Times, June 6, 2014 and the Remarks on the extension of exploration and extraction of natural gas in Block 88 of the Camisea project, March 24, 2014

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