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Central America free trade agreement

CAFTA Interim Environmental Review
October 7, 2003

 

Thank you for the opportunity to make comments to CAFTA Interim Environmental Review. Below you will find a brief description of what I do here in Nicaragua and the negative effects that the increase in trade will have on US investors in Nicaragua.

I am a U.S. citizen, passport # Z7828946 and was born on 01-31-60 , in Esteli, Nicaragua. My challenge concerns a business investment that I entered into based on certain laws and incentives offered by the Government of Nicaragua and which is now threatened by the same government. I am a businessman with interests in Nicaragua and Costa Rica. My business offers University level courses to U.S based students through a program run by Dr. Paul Garber of the University of Illinois. Students travel to Central America and stay at either of two family-owned eco-tourism resorts, the Ometepe Biological Field Station in San Ramon, on the Island of Ometepe, Nicaragua, and La Suerte Biological Field Station in Costa Rica's tropical rainforest region. I also operate a combination hostel and bed-and-breakfast in Merida, on the island of Ometepe, Lake Nicaragua. The courses offered by the educational end of my business are designed to take full advantage of our setting and use nature as a classroom. I am a nature enthusiast and invested my life savings in Nicaragua because of its beautiful environment and my desire to help rebuild the country after years of strife. The Government of Nicaragua actively encourages investment, particularly U.S. investment, through an investment law that offers attractive investment incentives, especially in the tourism sector (see "La Ley de Incentivos Turisticos" and "El Plan Nacional de Desarollo Turistico de la Republica de Nicaragua"). Tourism is heavily promoted as an excellent investment opportunity largely because of the country's unspoiled, natural beauty. The "Mark Twain Route," (Rio San Juan/Granada/Ometepe/San Juan del Sur), is the investment location most strongly encouraged.(The National Tourism Development Plan identified Ometepe as a "Destino Turistico de Primer Orden" or a Tourist Destination of the first order). It is along the Mark Twain route that I invested. My business is centered on the southwest coast of the island and our instructors and scientific researchers make heavy use of the island waters, bird, monkey and reptilian habitat, as well as the flora, to teach their classes and complete important research. Physical activities are also encouraged, primarily swimming, kayaking, hiking and mountain biking. In addition to this, we are involved in a very important long-term scientific research and educational program to restore and protect the unique
migration of the bull shark into Lake Nicaragua from the Caribbean Sea through the San Juan River. This amazing biological phenomenon occurs only in this part of the world, which has been endorsed by the Central American governments, the United Nations Environment Program (UNEP), the Organization of American Sates (OAS), Mote Marine Laboratory, University of Wisconsin, and National Geographic Society, among the educational and research institutions in the U.S.

Given this background, I was shocked and dismayed to learn that Nicanor SA, (a firm of which Patrick Bolanos, nephew of Nicaragua's president, Enrique Bolanos, is the general manager), open a tilapia farm and processing plant on the shores of San Ramon, Ometepe. Tilapia is an omnivore that threatens to destroy the natural fish of the lake and the Rio San Juan, which feeds into it (thereby also threatening the island's fishing industry and established touristic activities. Moreover, because of the industrial wastes the project will generate, farming tilapia will contaminate our beaches and water, and promote the growth of bacteria, thus posing a health threat to visitors and residents alike. The initial stages of the Tilapia project is generating about 40 tons daily of fish excrement, urine and artificial food waste. With the possibility of an increasing demand for fresh water fishes in the US, companies will move into Lake Nicaragua in order to compete with NICANOR. The threat of Fresh water pollution will augment immensely with CAFTA due to the trade advantages aqua culture fish like Tilapia will have in the future. In addition to the environmental impact, such development is gradually destroying the very value of the investment the Government of Nicaragua promotes and on which I relied. I, together with other concerned residents, scientists and environmentalists, began organizing efforts to dissuade the Government of Nicaragua from approving the project. Despite our strenuous efforts and scientific facts supporting our position, MARENA, Nicaragua's environmental protection agency, approved the project just a few weeks after president Bolanos took office. By February of 2003 all the cages where in place in the lake shore and full production started.

In order to illustrate better the gravity of the situation, please find next a few documents written on 25th October 2001 by Salvador Montenegro Guillen, director and founder of Hydro Resource Research Center of Nicaragua at National University of Nicaragua (CIRA/UNAN) and directed to the ministries of MIFIC, MARENA, INAA and INTUR :

The following is the pollution currently being generated by only one aqua culture farm in our lake waters.

“It is evident that these fish are wonderful as breeding fish. They grow fast, they waste little food, they are full of energy, they do not require much attention, they are highly accepted, and enterprises throughout the world are interested in improving the prices, which are now the same as those of trout. These are positive aspects of this kind of industry. Notwithstanding all the enthusiasm, the breeding of aggressive species such as tilapia is not allowed in cages in natural waters in civilized countries because the risk of harm is big and unpredictable.”

“The cages were designed to be used in artificial ponds or in manmade lakes, not in natural water. Tilapias are similar to rats in their ability to adapt, resist, and take advantage of whatever they find to feed on. That is why they are so dangerous to the balance of natural ecosystems. The tragedy caused by rats in the country is equivalent to what tilapias do to natural water.”

“It is not altogether true that tilapias are not dangerous because they “are herbivorous”. Tilapias are omnivorous. They are eager bottom feeders when they are adults, and they consume insect larvae, benthic organisms, and any other thing that fits into their mouth.”

“The island of Ometepe offers great potential to the development of ecotourism. So, in addition to the ecological inconveniences exposed, the artificial breeding of tilapia transgresses the declaration of the island (Law No. 302) as Natural Reservation and Cultural Patrimony of the Nation. This includes adjacent places, coastal areas and islands. It also contradicts Article 8 of the same law, which clearly “forbids any activity that can destroy or threaten to destroy the natural and cultural resources of the island”.”

“Even if the system to keep the fish in the cages is absolutely safe (which is unlikely) and there is never an escape of adult fish or a risk of multiplication from their eggs due to their limited reproductive habits in the cages, there is a serious and extremely harming impact, resulting from THREE THOUSAND TO FIVE THOUSAND METRIC TONS of live fish crowded in a space of 21,000 m3 (the size of a cage). This amount of fish constantly produces wastes equivalent to the raw sewage of a growing population. (Those five million kilograms are equivalent to 125,000 pigs forty kilograms each, in the same place, at the same time).”

“Authorizing this project would be equivalent to installing a chicken pen with five million kilograms of live chickens (about three million seven hundred thousand birds) in cages suspended in the water, whose raw wastes would fall directly into the water for the current to disperse . In other words, the waste elimination system of this gigantic project is the water of Lake Cocibolca, the same water the Government of Nicaragua has declared to be used for drinking and for ecotourism.”

“The design of floating cages to be used in natural water is unacceptable because the animals are directly in contact with the natural water, and there is no way of purifying it after it is polluted. They are not isolated ponds in which systems of mitigation and purification can be installed. This is the water of Lake Cocibolca we are talking about, the most important natural resource in the country.”

“There is nowhere in the world, and there could never be, a residual water treatment system for this kind of intensive culture, …”

In the face of facts that argue against it, I, and others like me, are convinced that this "victory'' was achieved through the use of influence peddling by Patrick Bolanos (and of which his uncle, President Enrique Bolanos, probably has full knowledge). Can it be a coincidence that Nicanor obtained an environmental impact statement favoring its project from the
consulting firm Audubon (no ties to the prestigious Audubon society) , a company whose candidacy to serve as co-manager of the MaderasVolcano Natural Reserve? We think not. Audubon will manage the area in which the proposed tilapia fish farming plant is located, as Nicanor strongly backed. With Audubon as co-manager of the Reserve, Nicanor would have the control of the area, avoiding all the opposition already generated.

This type of backroom manipulation runs directly contrary to the policy clearly enunciated by President Bolanos: a policy that supports good administrative practices and transparency in the study and management of natural resources, as well as the bi-national integrated management and sustainable development initiative for the Lake Nicaragua and San Juan River Basin. Transparency is also a policy strongly supported by the U.S. Government. Backroom manipulation, lack of transparency and influence peddling clearly act to economic detriment of U.S. investors drawn to Nicaragua by the government's promises and inducements.

Other present and potential U.S. investors also require your protection. Everything possible should be done to make the Government of Nicaragua honor its promises and commitments, and to protect future investors.

In Ometepe and Lake Nicaragua a visitor sees paradise in nature. It is a paradise that may soon be lost.

Please help us conserve it.

Best Regards

Alvaro Molina
Ometepe Biological Field Station

Maderas Volcano, Ometepe Island, Lake Nicaragua
Tel. 505-453-0875, Managua office 277-1130, 270-1176
Email merida@ibw.com.ni
La Suerte Biological Field Station
Cariari, Pococi, Limon, Costa Rica
Tel 506-710-8005 email ometepe@racsa.co.cr