Project – On record
This profile is no longer actively maintained, with the information now possibly out of dateBankTrack
Johan Frijns, BankTrack

Project – On record
This profile is no longer actively maintained, with the information now possibly out of dateBankTrack
Johan Frijns, BankTrack
What must happen
Sectors | Hydroelectric Power Generation |
Location |
|
Status |
Planning
Design
Agreement
Cancelled
Operation
Closure
Decommission
|
Website | http://hidroelectricaaguazarca.hn |
|
This project has been identified as an Equator Project |
With a generating capacity of 22 megawatts, a 300 metre-long reservoir and a 3 kilometre long diversion channel between the dam and the turbines, Agua Zarca - being constructed by the Honduran corporation DESA - is a relatively small hydroelectric project. But for the local Lenca - indigenous peoples living in Río Blanco, between the departments of Intibucá and Santa Bárbara in western Honduras - it is big enough: the project threatens to dessicate the river Gualcarque and therewith the communal farm lands. The river is an important resource for swimming, washing and fishing, with important cultural and spiritual value.
In 2015, the project was relocated to the opposite side of the Gualcarque river. Therefore, it is no longer to be built on indigenous farm lands, although these may continue to be affected by dessication. In October 2015, construction on the west side started. After the murder of Berta Caceres and other violent incidents in the beginning of 2016, the project's funding was suspended. A fact-finding mission was sent by the lenders, whose findings were published in September 2016. FMO and Finnfund declared to withdraw from the project, and their exit was finalised in July 2017.
Impact on human rights and communities
Many of the indigenous local population fear for their future and the future of their children. Although the relocation of the project prevents further destruction of their farm lands, they fear for desiccation of their lands. Since an unknown amount of water will be channeled, the village of La Tejera, one of the bigger villages in the area, may loose its access to water.
Flowing water has a deep spiritual value for the Lenca population; damming and stopping this water flow means putting a barrier to the life of the river. Spiritual ceremonies are regularly held at the riverbank, which cannot be performed if the river will run dry. There has been an agreement between the mayor and DESA, in which DESA promises a couple of jobs (without detailing the number or the payment), as well as street building and maintenance and partial electrification. The connection of two communities to the main line, but not the electrification of the households. However the community rejects these token gestures and claims that these are responsibilities of the state.
Especially the community of La Tejera, in which protest is widespread, has been socially affected by the project and has to pay a high price for their opposition. Crime and violence has risen since the project began. Infamous hitmen have been reported to be present and several villagers have been attacked and murdered under unclear circumstances. Also, conflict between communities has increased. Inhabitants of other communities are reported to be paid by DESA to guard the construction site with machetes.
The heavy militarization of the region and the constant intimidation, the community reports gun shots at night, arbitrary house inspections and detentions, sexual harassment and death threats, not to mention the killing and injuring of opponents by the military in July 2013, creates a general climate of violence and fear.
The opposition against the Agua Zarca project is seen as the most important struggle of all struggles COPINH is involved in. In their defense of indigenous land against 50 other megaprojects, Agua Zarca is symbolic. 'If they can build this dam, they can build anything they want', a member of COPINH stated.
There have been constant human rights violations connected with the imposition of the Agua Zarca dam, especially the right of indigenous peoples to be consulted (free prior informed consent, FPIC) and to their land and territory, the right to free expression and to assembly, the right to physical integrity, the right to food, the right to water and the right to life, among others. Although the project was relocated, previous construction has damaged farm land, for which villagers not have been compensated. Both DESA and investors point out communal meetings which have been held, but the fact that DESA organised and facilitated these meetings disqualifies them as FPIC, as described in ILO 169.
The state is not only failing to respect human rights and to assure that the company obeys them, but is actively supporting DESA by sending in the military and police force. They are based at the company's facilities, drive in the company's cars, and help out with military equipment and intimidation of the population. This creates the impression that the company has command over the military and police force. Maybe it is no coincidence that the director of DESA, David Castillo, studied in the West Point Military Academy of the US and served as the assistant of the director of the Honduran Army Intelligence. He has also worked as the Technical Director of the Honduran Energy Company ENEE right before joining DESA. Moreover, he was prosecuted for three different corruption charges while he worked for the state.
The project implementation was accompanied by the militarization of the area. Local opponents are subject to arbitrary house inspections and detentions. Several people have been subject to death threats: the COPINH coordinator Berta Cáceres and the other COPINH members Tomás Gomez and Aureliano Molina, also Francisco Javier Sánchez, Lucio Sánchez and others.
On 24th May 2013, Berta Cáceres and Tomás Gomez were arbitrarily arrested in a military checkpoint close to the project, accused of illegally carrying a weapon - which turned out to be a military weapon which was being put in the truck bed ("paila" of the pick-up) at the checkpoint. Since then, Berta Cáceres has been subject to legal restrictions ("medidas cautelares"), even though the case has been temporarily suspended in the court.
On July 15th 2013, military personnel, positioned inside the company's logistics headquarters, opened fire against peaceful local protesters and, with numerous shots from two metres distance, directly targeted and killed the local indigenous leader Tomás García. He, as COPINH members confirm, had earlier been offered money for stopping the protest, which he had refused. His son Allan García was heavily injured and several others injured.
On 2nd March 2016, Berta Cáceres was murdered in her house. Over the years she received numerous death threats. She had insisted on protection by state forces, which the state refused to provide. The murder led to demonstrations in many parts of the world.
Lenca women, who are usually responsible of providing the water for the family and washing the clothes, would probably suffer most from a restricted access to the river which for some represents the only water source. Harrasment of female protesters has been known to take place.
Impact on nature and environment
For the building of the 300 metre-long water reservoir, the diversion channel, the machine house and new streets to the construction site, many trees are being torn down. Several villagers fear the effect this may have on the vulnerable climate. The peasant communities are fully dependent on their corn, bean, vegetable and coffee fields. Besides, by interrupting the flow of the river, fish will be hindered from moving downstream.
multilateral development banks
national development banks
Total project costs are around USD 64 million.
Project sponsor
Desarrollos Energéticos S.A. (DESA)
HondurasOther companies
COPRECA
HondurasGerencia Ambiental Internacional (GAI)
GuatemalaMonkey Forest Consulting
Hong KongPöyry Energy Oy
FinlandVoith Hydro
GermanyApplicable norms and standards
2022
Jun 28 2022 | Daughter of murdered Honduran human rights activist files criminal complaint against Dutch Development Bank FMO
Bertha Zúniga Cáceres today filed a criminal complaint with the Public Prosecutor's Office, against the Dutch development bank FMO. The daughter of the Goldman Environmental Prize Winner Berta Cáceres Flores, who was murdered in March 2016, requests the Public Prosecutor to launch a criminal investigation into the complicity of FMO and its executives in violence, corruption, misappropriation of funds and money laundering in the context of the development of the Agua Zarca dam in Honduras (Global Justice Association).