Location:           Uruguay (Border with Argentina on the Uruguay River)

Sector:               Pulp and Paper

Companies:      Uy Metsa Botnia (Finland)—later UPM and ENCE (Spain)

Investment ($):            US$1.2 billion

Communities:    Gualeguaychú, pop 85,000 (Argentina); Fray Bentos,

pop 35,000 (Uruguay)

Conflict:              Community and Environmental organizations in Uruguay and Argentina
reject installation of two large pulp mills in river border
town in Uruguay. Uruguayan government, companies and financial actors insist                               on the project. Community, the government of Argentina and
select NGOs fight to expel Botnia and ENCE.

Civil Society:     Asamblea Ciudadana Autoconvocada de Gualeguaychú
Centro de Derechos Humanos y Ambiente (Argentina
Guayubira (Uruguay)

Lead Banks:    World Bank (IFC, MIGA), Nordea, Calyon, ING, BBVA,
Finnvera (Finnish ECA), CESCE and ICO (Spanish ECAs),
Nordic Investment Bank (NIB)

Key Events:      – Thousands of people (50,000 – 100,000) March to border to Oppose the Mill
- International Road/Bridge Blocked by protesters for Several Years
- Diplomatic Conflict ensues between Argentina and Uruguay
- King of Spain Mediates
- International Court of Justice Complaint filed by Argentina

Complaints:     – Compliance Advisory Ombudsman (CAO) Complaint – (Agnst: IFC (World Bank))
- Inter-American Commission on Human Rights Complaint
- OECD Guidelines Complaints (Agnst: Botnia, Finnvera, Nordea)
- Equator Principles Complaints (Agnst: ING, Calyon, BBVA)
- Human Rights Compliance Complaint (Agnst: Nordea)
- International Court of Justice Complaint
- National Criminal Complaint (Agnst: Argentina)
- National Civil Complaint (Agnst: Uruguay)

Time Frame:   2005-2008 (conflict persists today)

Results:            - Financing Stalled for 18 months due to Damning CAO Audit
- ING Pulls US$480m following Equator Principles Complaint
- ENCE decides to move to another location
- Govt of Finland denies and refuses involvement
- Govt of Uruguay silences protestors – supports mill
- Botnia Insists on Site Choice and Builds with own Funds
- IFC delayed by CAO, but moves forward despite conflict
- ICJ verdict favors Argentina but does not order relocation
- Int’l road block lifted after several years (after ICJ Verdict)
- Botnia builds mill and starts production of pulp in 2007.
- Communities still active in case against the project.

This is a useful “test case” for understanding international corporate accountability