NEWS RELEASE
From the office of the Green MEPs

11th November 2003


EUROPEAN BANK AGREES CONTROVERSIAL PIPELINE LOAN

TAXPAYERS CASH WILL FUND HUMAN RIGHTS ABUSES, MEP WARNS

LONDON's Green MEP Jean Lambert today called on Development Secretary Hilary Benn to resign after he approved two loans using taxpayers money to fund a proposed oil pipeline despite mounting warnings from environmental and human rights campaigners in more than 14 countries.

Her comments came at a demonstration outside DFID's London HQ after it emerged the European Bank for Reconstruction and Development had approved a $125m loan for the pipeline.

"This pipeline threatens human rights, democracy and the environment in central Asia and Turkey, and would not be happening if the UK had objected to these public loans. Hilary Benn, as the minister responsible, has failed his first major test and is clearly not up to the job," said Mrs
Lambert.

The Baku-Ceyhan pipeline, proposed by a consortium of oil companies led by BP, will enable oil and gas to be exported from central Asian republics overland through Turkey, by-passing the Middle East entirely.

The Turkish Government has already agreed to relinquish sovereignty over the proposed route and provide security for those sections of the 1000-mile plus pipeline that fall in its territory, despite the objection of Kurdish communities living along the proposed route who say the project has not been subject to democratic audit. Kurds have suffered well-documented human rights abuses at the hands of the Turkish military throughout their ongoing struggle for autonomy from Ankara.

"The Baku-Ceyhan pipeline will appropriate wealth from Azerbaijan and Georgia for redistribution amongst Western corporations, bringing little benefit to local communities," said Mrs Lambert.

"The deal with come at a heavy price: those living along the proposed route can expect continued political repression and hastened environmental degradation."

The loans, worth a total of more than $375 million, were finalised today after the European Bank for Reconstruction and Development announced it would provide $125 m for the BP-led pipeline, which will connect Azerbaijan and Georgia with Turkey's Mediterranean coast. The World Bank approved a further $250 m last week.

Mr Benn voted in favour of both loans, despite clear warnings from human rights and environmental campaigners in 14 countries and a direct appeal from Mrs Lambert last month to block the proposal. He does not have to report his reasons for supporting the loans to parliament.

"It is simply scandalous that the EBRD has agreed to finance this environmental and human disaster waiting to happen, thanks in part to the support of the UK Government.

"Hilary Benn has failed his first ethical test since replacing Baroness Amos. He has turned international development on its head, by using taxpayers money to support the multinational corporations that are seeking to subvert sustainable international development and I urge him to look to his conscience and resign."

ENDS

For more information please contact Ben Duncan on 020 7407 6280, 07973 823358 or at press@greenmeps.org.uk