VZCZCXYZ0029
RR RUEHWEB

DE RUEHGT #0832/01 1221653
ZNR UUUUU ZZH
R 021653Z MAY 07
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC 2574
INFO RUEHC/DEPT OF LABOR WASHDC
RUEHME/AMEMBASSY MEXICO 4208
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS GUATEMALA 000832 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:N/A 
TAGS: PGOV PHUM KDEM ENRG EAID SENV SOCI GT
SUBJECT:  PROGRESS ON COMPENSATION TO VICTIMS OF CHIXOY 
HYDROELECTRIC PROJECT 
 
 
¶1. Summary:  The Guatemalan government released the outline of a 
process to reach agreement on compensation for indigenous 
communities affected by the 1976-82 construction of Chixoy 
hydroelectric dam.  Both the GOG and leader of the organization of 
affected communities expressed satisfaction with the road map and 
the progress made after more than 30 years since the beginning of 
the construction of the dam project, which displaced several hundred 
indigenous families.  End summary. 
 
Background 
---------- 
 
¶2. In 1976, the Guatemalan government initiated construction of a 
hydroelectric dam in Rio Chixoy (also known as Rio Negro).  Hailed 
as "the largest man-made work in Central America," the project aimed 
to develop a reliable and inexpensive source of hydroelectric 
energy.  Indigenous communities in the Rio Negro area resisted the 
project, which was funded by the World Bank and the Inter-American 
Development Bank. 
 
¶3. In late 1976, the GOG forcibly displaced and resettled 
approximately 500 families, averaging seven members each (a total of 
3,514 persons), with promises of compensation for damages and losses 
incurred, including purchase of new land, payment for damaged crops, 
construction of new homes with services and infrastructure, 
development of sustainable projects and cooperatives, and an offer 
of gratuitous electric energy.  While each family ultimately 
received legal title to resettlement land and a house, the affected 
communities claimed that the plots were too small and infertile and 
complained of lack of electricity and water services. 
 
¶4. The dam began operations upon its completion in 1982.  Six former 
civilian patrol officers (PACs)(civilian volunteers organized by the 
military to control the population during the internal conflict) 
were arrested in 2003 on charges of murdering 146 people on March 
13, 1982 in Rio Negro village.  Some Guatemalan and international 
NGOs expressed concern that construction of the dam was linked to 
the massacre.  They alleged that the military committed a number of 
massacres in the Rabinal area from 1981 to 1983, accusing resisters 
of being guerrillas, to clear land for the dam.  The six ex-PACs 
remain in custody, awaiting a ruling by the Constitutional Court. 
 
¶5. On September 7, 2004, prompted by persistent poor living 
conditions on their resettlement land, including lack of water and 
electricity, the communities seized control of the dam for two days 
and publicly demanded that the GOG honor its promises to compensate 
them for damages and losses.  They also demanded the creation of a 
commission comprised of the GOG, World Bank, Inter-American 
Development Bank, Human Rights Ombudsman's Office, the UN, and 
communities affected by the dam to mediate the conflict and to seek 
resolution.  Some Washington law firms provided pro bono assistance 
to the displaced communities. 
 
¶6. Based on a complaint filed by the GOG, nine community leaders 
(including two leaders of the victims' group ADIVIMA), who organized 
the protest, were subsequently arrested on charges of causing public 
disorder, endangering national security, and damaging private 
property.  The criminal case is ongoing. 
 
¶7. In the aftermath of the protest, on September 18, 2006, the GOG 
and the Coordinator of Communities Affected by the Construction of 
Chixoy Hydroelectric Dam (COCAHICH) signed a formal agreement to 
coordinate in identifying and verifying the commitments previously 
made by the GOG and damages and losses incurred by the affected 
communities; compensating the communities; and setting up an 
inter-institutional high-level commission to mediate the conflict 
with the participation of the GOG, Human Rights Ombudsman's Office, 
ADIVIMA legal representation on behalf of the communities, and 
international observers. 
 
Progress on Compensation 
------------------------ 
 
¶8. Vice President Stein publicly presented on April 20 a 
comprehensive report of progress made over the past six months, 
between September 18, 2006 and March 31, 2007.  He noted that the 
GOG has taken concrete actions, including development of a Plan of 
Verification, since the signing of the official agreement last year, 
which formalized the negotiation process, and that all decisions 
were reached by consensus between the government and COCAHICH. 
 
¶9. Luis Felipe Polo, Advisor to VP Stein, said that the government 
has assumed responsibility for its commitments and has already 
initiated construction of schools and houses, among other 
activities, to reduce poverty and to improve the well-being of the 
affected communities.  Describing the progress as "transparent" and 
"positive," he observed that the government is working not only to 
construct homes but to strengthen the cultural, spiritual, and 
economic development of the indigenous communities. 
 
¶10. Polo emphasized that the plan is a State commitment and that the 
next administration (to take office in January 2008) will have 
co-responsibility for meeting the GOG's commitments.  He affirmed 
that the current administration is committed to fulfilling as many 
obligations as possible in its remaining nine months. 
 
¶11. Grassroots COCAHICH leader Juan de Dios Garcia expressed 
satisfaction with the progress being made after more than 30 years 
of fighting for the rights of the affected 28 indigenous communities 
that comprise COCAHICH.  He said that the steps taken demonstrate 
recognition by the GOG of the damages and losses the communities 
have long suffered and reflect the political will of the GOG and the 
international community to address the situation. 
 
¶12. OAS Representative Diego Paz pointed out that the agreement 
signed in September 2006 provided a concrete government response to 
the victims.  Among the principal accomplishments over the past six 
months were the creation of a formal, high-level negotiation process 
respected by both parties, and the development of the Plan of 
Verification.  However, the time invested in developing and reaching 
consensus on the Plan of Verification has delayed its execution, 
including seeking and obtaining the funds necessary for its 
implementation. 
 
¶13. Comment:  While the Chixoy case is not fully resolved, e.g., 
there is the question of whether the GOG will be able to implement 
fully the verification plan, important progress has finally been 
made in addressing this decades old controversy.  Vice President 
Stein's management of this issue is a good example of his pragmatic 
process-oriented approach to political problems. 
DERHAM