On 16 March 2016, FMO announced that it would temporarily suspend all activities in Honduras, in light of the negative developments around the Agua Zarca hydro power project. On 9 May FMO decided to seek a responsible exit from Agua Zarca.
In the past months, FMO’s portfolio of other projects in Honduras, not related to the Agua Zarca project, has been reviewed, including environmental and social factors, especially in relation to indigenous communities and land rights. On the basis of the favourable outcomes of this review, FMO resumes its activities in Honduras, to fulfil its obligations as a financier in a responsible and appropriate way. In case the situation requires this, or if new events take place, we will intensify our monitoring and/or take additional action.
It is key to FMO’s mission to finance projects in developing economies and fragile countries. This entails that comprehensive environmental and social assessments are central in our (business) considerations, in Honduras and elsewhere.
In order to prepare a responsible exit from Agua Zarca, a mission of independent experts will travel to Honduras to make a thorough assessment of the project. FMO is committed to learn from their findings, while it remains in intensive dialogue on our methodology and policies with the relevant stakeholders, including NGO’s. The outcomes of both the mission and dialogues will provide guidance for our current and future activities in Honduras, and beyond.