news - FMO' s reaction to article De Volkskrant

The financing by FMO of the Agua Zarca project in Honduras has received media attention in the Netherlands. On Tuesday 6 May an article was published by Dutch newspaper De Volkskrant.

FMO considers the content of the article as one-sided, suggestive and incomplete. The article is mostly based on suggestions and opinions stated by representatives of NGO’s that oppose the construction of the dam and not substantiated by facts.

FMO deeply regrets the events that took place in July 2013, leading to casualties.

FMO finances the development of the Agua Zarca project because this is a small-scale, run-of-the-river construction providing clean and sustainable energy to Honduras, a country that is largely depending on fossil fuels. The project generates jobs, clean energy (also to the local community) and helps to reduce poverty. Our consultations and visits to the local communities show that the majority of the local population is supportive of the project and want to proceed as soon as possible with the project in order to reap the economic and social benefits.

FMO gives the highest priority to carefully engage all involved parties in its projects through intensive dialogue and consultation with the local population, to allocate a fair and righteous compensation for families that suffer damage and to make sure that the investments contribute to local job generation. FMO welcomes involvement and input from NGO’s to make sure these processes are performed well.

FMO is aware of the fact that we finance projects in fragile countries and that infrastructure projects can encounter resistance from affected people within the region. That’s why FMO takes both environmental and social issues very seriously. These have been looked at thoroughly during FMO’s due diligence process of the project and will constantly be monitored. FMO has had intensive discussions with the involved parties and NGO’s about our financing in which we have asked for information and evidence that can substantiate the serious allegations made in several cases. Until today, we have not received anything.

FMO also recognizes the responsibility of businesses to respect human rights, wherever they operate and independently of States’ abilities and willingness to fulfill their human rights obligations. FMO itself respects human rights, and also acknowledges the responsibility of its business clients to respect human rights. Meeting this responsibility also means creating access to an effective mechanism that can facilitate early indication of, and prompt remediation of, various project-related complaints. That’s why FMO has implemented an Independent Complaints Mechanism and accompanying Procedure that is effective as of January 1, 2014, which allows external parties to file a complaint concerning projects financed by FMO. In this way FMO strives to implement a robust and independent procedure and to communicate transparently about it to stakeholders.