Dams, Development and the Environment in Latin America and the Caribbean: Some experiences of the Inter-American Development Bank
By Luis García, Diego J. Rodriguez, Lorena Rossi (09/00, En) See also Environment and Natural Resources
The Inter-American Development Bank (IDB) was established in 1959 to foster economic and social development in Latin America and the Caribbean. Its membership currently totals 46 countries of which 26 are borrowing member countries. The working capital of the Bank is presently US$ 100 billion, allowing it to approve annual lending of at least US$ 6 to US$ 7 billion over the next 15 to 20 years.
Since its inception, IDB?s involvement in large infrastructure projects, including dams, has been substantial. The Bank has assisted countries in the Region in the construction of their transportation systems (land, air, water), urban development, energy, sanitation, water supply, etc. In the energy sector, the IDB has provided financing for the construction of a large number of hydroelectric projects. A large proportion of IDB?s financing for dam-related projects has gone to energy generation and irrigation, with a relative priority given to energy generation.
From 1960 to 1999, the Bank financed 140 projects involving dams, for a total of US$ 9.4 billion. Most of these projects were in Argentina, Brazil, Chile, Colombia, Dominican Republic, Guatemala, Guyana, Mexico, Peru and Venezuela. Eighty-two projects involved dams higher than 15 meters. Twenty of them were higher than 100 meters, including seven of 150 meters or more. Environmental considerations were explicitly included since the 1970s and resettlement issues since the 1980s. Both considerations are now part of all project lending, not only of those related to dams and reservoirs.
For years, governments, civil society organizations, development officials, and the private sector have debated the costs and benefits of large dams. The controversy about dam construction in the region is compounded by the current and future need to supply water for different and conflicting human uses and the need to conserve and protect freshwater ecosystems in a sustainable manner.
The paper begins with a summary of the Bank?s involvement in these projects since the 1960s. It presents the Bank experience with environmental management issues, and the highly controversial social issue of involuntary resettlement. It continues by summarizing the emerging experience of the IDB with private sector financing for dam-related investments, and finalizes with a brief discussion of some of the more challenging issues now facing institutions like IDB, with this type of involvement.
Last updated: 05/08/07
