Serious Violations of EBRD Policy in Azer-Yod Project

Serious Violations of EBRD Policy in Azer-Yod Project

EcoLur

The European Bank for Reconstruction and Development (EBRD) in 2008 signed a loan agreement with Azer-Yod LLC, which owns the plant for the production of iodized products in Hasanabad of Neftchala region of Azerbaijan, at $ 15 million for the project total project cost of $ 17 million. The loan will be used to purchase and install a new modern production line and the acquisition of additional equipment to increase the design capacity and production at the plant. All products will be exported. EBRD indicates that the project aims at developing the private sector and regional diversification of the economy.

OWRPO (Oil-Workers' Rights protection Organization) for 3 years is monitoring the project. As a result of monitoring conducted in 2009, identified numerous problems in the implementation of this project. So according to local residents, the plant, located a few kilometers from the city brings certain problems for the residents of the town and nearby villages. It's the smell of iodine, in the summer dust (containing iodine odor spread through the village, a distance of 5 meters can not see anything because of the dust), and the problem is the outdated equipment, all the pipes leading from the wells to the plant are old, iodine water flows directly into the water and the ground.

Sewage treatment plants do not work and the plant does not meet modern requirements, as the effluents from the plant stem to the surrounding area with the villages, forming a water channel with the characteristic of iodine color with a characteristic odor of iodine. Problems in the delivery of water for drilling iodine plant led to the leak and water logging of the surrounding area and on the basis was formed plaque of brown-red color. And in this polluted area cattle from nearby villages are grazed. . Not far from the plant (200 m) is the beach.

Wastes of drilling recycled water are discharged into the canal, which in turn flows into the Caspian Sea. And a variety of compounds included in the production of waste can cause irreparable damage to the environment and in particular the Caspian Sea and the two fish factory.

Monitoring also showed in this project serious violations of policies adopted by the Bank (Informing the public, environmental and social policy), which are given below:

•  Lack of policy on public relations. The website of the bank, given only general information about the project, that creates problems for the dissemination of the project to the public.

• The local office of the EBRD there is not a complete information and documentation on this project.

• Issues of environmental causes and definition of the category of the project. This project is classified as category B, which drew criticism from civil society organizations. Why the project is classified in Category B , if there could be big risks, i.e. the pollution of transboundary waters in the release into the sea and as a result of accidents, radioactive waste, as well as storage and disposal of hazardous waste. A risk factor of production for the two plants for the reproduction of fish fry, located in the same area also was not studied.

May 15, 2012 at 14:16