The Patuca II Hydroelectric Dam Project consists of three principal parts (5,6) which will cause irreversible changes in the zone of La Mosquitia and Olancho in the Patuca river basin.

The three principle parts of the Patuca II dam construction are:

a) The infrastructure to advance and maintain the work, which consists of the following:

- An access road from Catacamas to the site, including the construction of 53 kilometers of new road through the Mazicales virgin tropical rainforest, and the dam construction site itself.

- The construction of power lines along another route such as that of the road from the dam to Tegucigalpa.

- A large building camp for the workers (2,000 people) at the construction site.

c) A reservoir with an area of approximately 45 square kilometers with a height of 189 meters above sea level. The reservoir will widen the river Patuca over a distance of 105 kilometers, to a width of approximately 400 meters. Also the river Cuyamel is going to be broadened, almost as far Rancho Escondido. This means that both sides of the two rivers, along with the homes of the inhabitants, will be flooded.

At a global level, HARZA employs approximately 400 people and generates over US$ 100,000,000 in sales each year (12). HARZA plans, designs and administrates the building of some of the largest and most controversial dams in the world, for example "The Three Gorges Dam" in China (12).

The projects of the Panda Energy International at a global level include coal, gas, and hydroenergy. Panda operates two hydroelectric projects at present, in other parts of the world, with a total capacity of 420 MW. Recently Panda has joined with HARZA for the purpose of developing hydroelectric projects, and in Honduras they have formed the Panda Patuca Power Company, based in Tegucigalpa. Panda / HARZA have contracted the consultation company WCI / Bioconsult, based in Tegucigalpa, to produce an Environmental Impact Study, in order to obtain the obligatory environmental licence from SERNA.

The merchandisers of electricity from Patuca II (HARZA, Panda Patuca, and the investors) will be the ones who reap the benefits of the project, because nowhere else in Honduras will energy be produced as cheaply as by Patuca II (3) (three times cheaper than the present price of electricity in Honduras). But no contract has yet been signed for electrical energy which quotes a price three times less than the present price for the people, and the Honduran economy. Also, Honduras is going to be dependant on another large dam. Experience with the "El Cajon" dam demonstrates what can happen if the constructors do not work with care, and the tenuous nature of the availability of electricity.

• Soil erosion, because of deforestation around the river Patuca.
• Sedimentation I: Silting up of the river below the dam (removal of the soil and associated reduced fertility).
• Sedimentation II: The dam will silt up rapidly, its life will be short, or it will be necessary to build a second dam up river of Patuca II (11).
• Sedimentation III: Water without sediment causes more erosion down river.
• Resettlement of the present inhabitants (deforestation, erosion, different life.)
• Rapid colonisation by means of the new road (7). The river basin above the dam will be exploited (for example roads, erosion, sedimentation)
• Presence of workers (related contamination and infrastructure)
• A large area of water (like a lake) affects the micro-climate, it affects the level of the underground water-table. Also, there are health risks (e.g. malaria) and it will affect the growth of aquatic plants.
• Loss of forest (habitat for flora and fauna and for man, source of water and oxygen, plants for medicines and other uses).

• The loss of animals (in danger of extinction, routes of migration, and destruction of habitat.)
• The loss of sources of future wealth , for example, medicinal substances, eco-tourism, and the sale of oxygen.
• The destruction of the Mesoamerican Biological Corridor (with local, national and global implications) contrary to national and international laws and agreements (1,2).
• Negative impact on international cooperation which supports the conservation of the Mesoamerican Biological Corridor in Honduras.
• Threat to the culture and rights of the indigenous people, violation of OIT 169 (I.L.O. agreement on indigenous rights ratified by Honduras) (18).
• The loss of cultural monuments and archeological sites which have yet to be investigated.
• The total duration of the Environmental Impact Study is less than one year, which is little time to evaluate environmental impact in a zone with so much natural, cultural, and archaeological richness.
• The Environmental Impact Study is paid for by the HARZA construction company.

There are many critical points in the process of approving the Environmental Licence such as:-

Only six weeks (5,6) are planned for the preparation of field data for the EIS. It is NOT possible in six weeks to research the environmental impact of the Patuca II Project on the Mesoamerican Biological Corridor in Honduras. For example, it is not possible to take into account the different seasons of the year, or the socioeconomic and ecological scenarios. It is necessary to adapt the team of investigators, and the time taken for the study, to the climatic, social, cultural and ecological conditions of the zone for the benefit of the nation of Honduras.

SERNA and it's officials should remain neutral, objective and without prejudice in considering, evaluating and pronouncing on the Environmental Impact Study. In April 1998, before the preliminary results of the study, a minister of the present government said openly in the village of Batalla, La Mosquitia, in front of the people, a number of ambassadors, and businessmen that "the project will go ahead and no indian is going to stop it". Also,other high functionaries of the government and deputies of the National Congress have indicated that Patuca II will go ahead. This suggests that a decision has already been made, before the results of the EIS are obtained, and gives rise to serious doubts about the commitments which the government has made with the construction companies.

Thus doubt is cast on the neutrality and objectivity of government functionaries, who are responsible for the approval of the Environmental Impact Evaluation, and should demonstrate these attitudes. Also there are national and international laws and agreements which would be violated, for example: the OIT 169 of 1989 (Agreement of the International Labour Organisation) about the rights of indigenous and tribal people in independent countries and ratified by Honduras in 1994; and Decree No 104-93 of the General Law of the Environment dealing with the participation of the population. 9. Are There Alternatives?

Yes there are alternatives for the generation of Electricity to the year 2005 with a total capacity of at least 927 MW without the Patuca II project. This is four times the quantity potentially produced by Patuca II. The following are the alternatives for producing energy:

Possible projects planned for the generation of electricity with their capacities in MW. Name Type of Project Company Capacity (MW) (4) Various Sites Thermal Plant (2) ENEE 276 Cangrejal Hydro Hydro-West 50 Los Llanitos Hydro Staf Kraf/ ENEE 135 11 Small Sites Hydro Proy. GAUREE/ENEE 43 Aguas de la Renia High-Head,No Reservoir Lombardi ? Aguas de la Renia Low Head ENEE 52 El Tablon Hydro ? 110 Jilamito Hydro Hidroeléctrica Atlantis 20 Aguas de la Renia Hydro Tia Hon Mex 100 Biomasa Biomass Bio-Gen 30 Biomasa Biomass (Bagazo) (3) Sugar Cane Industry 41 Biomasa Biomass Towner 30 Biomasa Biomass COHDESACia. Bambú 25 - 50 Eólico Wind Zond 30 - 60 Total min. 927 TOTAL MAX 997 N.B. The environmental impact of these projects would of course need careful evaluation.

If you are concerned about this project, you can:-

Request detailed information about the plans and agreements concerning the Patuca II project, the present and future energy policy of Honduras, and about the national and international investors and their interests. Share the information obtained with any of the organisations concerned with the Patuca II project, for example HARZA, Ministry of the Environment, and COHDEFOR, ENEE, Bioconsult, MOPAWI, National Coordinator for the Environment (CNA), Tawahka Indigenous Foundation (Asarg-Launa FITH), Moskitia Asle Takanka (MASTA). As concrete points of action we propose the following:

• Discuss the problem with your friends, acquaintances, colleagues at work, in the church, in an organisation or in your sports team.
• Write personally to the local or national press expressing you point of view and requesting alternatives, transparency, participation and neutrality in respect of Patuca II.
• Write personally to your regional member of parliament, expressing your interest and requesting that he raise the matter in Congress.
• Write personally to the President of the Republic, to the President of the National Congress, or to the Minister for Natural Resources and the Environment, asking for reassurance that the laws of Honduras will be totally respected, that the environmentally least harmful alternatives will be investigated in detail, and that the presence of the indigenous people in the area of the project will be respected.

- Excelentísimo Presidente de la República

Ing. Carlos Flores Facusse
Blv. Juan Pablo II
Tegucigalpa MDC
Honduras, CA
Fax (504) 235 6949

- Honorable Presidente del Congreso Nacional

- Honorable Ministro de Recursos Naturales y Ambiente

Please send a copy of your letter(s) to:one or both ot the following:

Coordinadora Nacional Ambientalista CNA, Apdo. postal 440, Tegucigalpa MDC, Honduras, Tel 237 3899, Fax 238 1305, Email IISE@sdnhon.org.hn

MOPAWI, Apdo 2175, Tegucigalpa MDC, Honduras, CA; Fax (504) 235 8659, Email mopawi@optinet.hn