European investors drop support of controversial Honduran dam

FMO and FinnFund, two of the biggest funders of the Agua Zarca hydroelectric project in Honduras, today announced their exit from the venture. This comes more than a year after the murder of the Indigenous rights defender Berta Caceres and a subsequent campaign by Oxfam and allies pushing them to drop the project.

George Redman, Oxfam’s country director for Honduras, said: “This is a long-awaited and important step in the hard road Berta’s family and her organization, COPINH, have travelled in their fight for justice and respect for the rights of the Lenca people.

“History cannot repeat itself. Finnfund and FMO must work more closely with communities on the ground to ensure they only back projects that fully respect international and national laws. Any complaints of irregularities in their investments must be taken seriously and responded with swift and appropriate action. Profits cannot come before people.”

Oxfam notes that the biggest investor, CABEI, has not made any public announcement on the project since April of last year, when they said they would act in tandem with FMO. The longer this silence continues, the more questions will be asked of CABEI’s true priorities and values, and the more this project will become a stain on their record.

Oxfam calls on other companies still connected with the project, including the German firms Voith and Siemens, to also withdraw.

“Today’s announcement does not mean justice has been done in Berta’s case. While the capture of eight suspects in her murder is a positive step, their trials have been beset by delays and irregularities, and the intellectual authors remain at large. Until those individuals, and others responsible for threats, attacks, and killings of community members are brought to justice it, the conditions required for the dialogue amongst local communities that FMO wishes for will not exist. We will continue to follow the case closely.”