LONDON—A dam in Belize backed by Newfoundland-based
Fortis Inc. is fundamental to the country's economic
development, Belize's attorney-general says, warning
of dire consequences if Britain's Privy Council delays
the project.
As a poor country, Belize relies
on foreign investment to build public projects, but
Godfrey Smith fears the money would evaporate if the
Privy Council orders the dam to undergo a second
environmental assessment, possibly postponing
construction for years or even causing it to be
abandoned.
"Belize simply cannot afford for
the world financial community to know that there is
this kind of indecisiveness," he told a five-man
judicial committee hearing an appeal of the case
yesterday brought by a coalition of environmental
groups.
The Cahill Dam on the Macao River
has been approved by local environmental protection
agencies, but the Belize Association of
Non-Governmental Organizations believes plans for the
hydroelectric project are flawed. The group says the
dam's approval was granted on plans that showed the
facility would be built on granite, but geological
surveys indicate the site chosen consists of sandstone
and shale, raising questions about safety.
The group wants the Privy Council
to order a new environmental assessment. Construction
on the project, which is upstream from the town of San
Ignacio, began earlier this year.
Belize Electric Co. Ltd., a
subsidiary of Fortis, concedes bedrock was originally
misidentified as granite, but says the sandstone at
the site can safely support the dam.
The environmental groups also
argue the project, valued at $30 million (U.S.), which
was worth about $39 million (Canadian) at yesterday's
exchange rate, will damage surrounding rain forest
that has been left untouched by human beings for 500
years and destroy the habitat of threatened species,
including jaguars, tapirs and scarlet macaws.
The Privy Council, which serves
as the final court of appeal for Belize, reserved
judgment on the case. A judgment could take weeks.
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