Barclays says no to Caspian pipeline loan
Posted: 3 December 2003
Pressure now on HSBC, Natwest to follow suit
Environment groups welcomed a decision by Barclays not to provide
a loan to the controversial Baku-Tbilisi-Ceyhan oil pipeline.The
pipeline has been criticised for causing environmental damage and
undermining human rights, as well as destabilising the conflict-prone
region.
Barclays declined to give a reason for staying out of the Caspian
pipeline, but did say that "All projects in which we participate
are considered in accordance with our established risk management
policies and procedures including those addressing environmental
and social issues, which are in line with the Equator Principles".
Barclays is one of four British banks which earlier this year signed
up to the Equator Principles, a set of voluntary environmental and
social guidelines on project finance.
The bank’s move is set to put its rivals under pressure to
follow. HSBC, Royal Bank of Scotland (which owns NatWest) and Standard
Chartered have also adopted the Principles. Campaigners say the
Caspian pipeline breaks the Principles on numerous counts.[2]
Nick Rau, of Friends of the Earth, commented, "On this project,
Barclays seems to have put its money where its mouth is and stayed
out. HSBC, Royal Bank of Scotland and Standard Chartered should
now follow suit and boycott this project."
The other three banks have refused to say whether they are working
on a loan proposal for the pipeline.[3]
Kerim Yildiz, Director of Kurdish Human Rights Project, added,
"This pipeline is set to cause human rights abuses along its
whole route. In Turkey, it will be guarded by the Gendarmerie, which
has been repeatedly criticised by amongst others the ECHR, the Council
of Europe and the US State Department, for its appalling human rights
record. If banks provide loans to it, they will be publicly associated
with the human rights violations that occur as a result of the pipeline
project".
Greg Muttitt, of PLATFORM, commented, "This is a heavily political
project, driven - sometimes coercively - by US oil interests. Banks
must question whether such an approach gives them a stable investment,
or whether public pressure might overcome political might, as it
has recently in Georgia".
Barclays has often been criticised for the projects it has financed
- most recently the Karahnjukar Dam in Iceland. [4] Environmentalists
are hopeful that the Caspian pipeline decision marks the start of
a different approach by the bank.
Nicholas Hildyard, of the Corner House, said, "We are taking
Barclays at their word on this. The company’s record on engagement
with civil society groups has not been good; we hope that this marks
the turning
over of a new leaf".
For more information see www.baku.org.uk
Posted by Richard Price,
Editor Pipeline Magazine
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