Rettet den Regenwald e.V. (Rainforest Rescue)

Sierra Leone: European ethanol project to cause more hunger in Sierra Leone

Since 17.02.10 1583 people have participated in this protest action.

Cars versus people and nature

Addax Bioenergy is a subsidiary of the Addax & Oryx Group (AOG) which has its head office in Geneva. The group, formed in 1987 and invests in the oil and gas sectors, in gold mining and in bioenergy in sub-Saharan Africa.

Sierra Leone is one of the poorest countries in the world. 70% of the population live in poverty, with an income of less than 67 US cents per day. After long years of civil war, the West African country is trying to rebuild itself and to feed its population. According to the World Food Programme (WFP), 51% of the population suffer from hunger and malnutrition. Life expectancy is a mere 34 years. Nearly half a million people depend on WFP food aid.

Addax’s ethanol project, planned nine miles west of the town of Makeni in Northern Sierra Leona, is likely to worsen the situation. 20,000 hectares of land are to be leased to the company for 50 years in order to establish sugar cane and cassava plantations for ethanol, and to build an ethanol refinery. A Special Advisor to the President of Sierra Leone even speaks of 40,000 hectares.

Cassava is the country’s staple food and a conflict between food and cars will be created. Small farmers are to be paid the meager compensation of $6 per hectare per year for the loss of their land. Very few jobs will be created because the harvest will be mechanized. Furthermore, sugar cane plantations and ethanol refining require large quantities of water, which will be taken from the nearby Rokel River

Addax promotes its project by promising to deliver 90 million litres of ethanol to Europe every year. Biofuel targets in the UK and EU have made the plans economically attractive and profitable. Furthermore, Sierra Leone has a partnership agreement with the EU and imports are tax-free. £210 million are required for the project. According to information from Addax, the company is working with six European investment and development funds, amongst them the London-based public-private Emerging Africa Infrastructure Fund (EAIF). The European Investment Bank, which is owned by the EU member states and works according to EU policy priorities, is also considering funding the project.

Please write to the Emerging Africa Infrastructure Fund, the European Investment Bank and other potential European investors and request that they do not fund Addax’s ethanol project in Sierra Leone.

For background information, please listen to a radio report from Sierra Leone.

Emerging Africa Infrastructure Fund (EAIF), UK
Nick Rouse, Managing Director, nick.rouse@frontiermarketsfm.com
Orli Arav, Head of Project Finance, orli.arav@frontiermarketsfm.com

FMO, Netherlands
Nanno Kleiterp, CEO, n.kleiterp@fmo.nl
Jurgen Rigterink, Chief Investment Officer, j.Rigterink@fmo.nl
Nico Pijl, Chief Risk & Finance Officer, n.pijl@fmo.nl

Swedfund, Sweden
Per Juth, Director, Business Development, Per.Juth.@swedfund.se

German Investment and Development Fund (DEG)
Bruno Wenn, CEO, bruno.wenn@deginvest.de
Dr. Peter Thimme, Manager for Environment and Sustainable Development, thi@deginvest.de

Austrian Development Bank (OeEB), Austria
CEO, Mrs Andrea Hagmann, Andrea.Hagmann@oe-eb.at
Mr Michael Wancata, Michael.Wancata@oe-eb.at

European Financing Partners (EFP) - European Investment Bank (EIB)
Philippe Maystadt, President of the Board, p.maystadt@eib.org

African Development Bank, Cote d’Ivoire
Donald Kaberuka, President, d.kaberuka@afdb.org
F.J.M. Perrault, Director Operations Department West 2 Region, f.perrault@afdb.org

Dear Sir/Madam,

I am, deeply concerned about the investment deals currently being considered for an ethanol project in Sierra Leone, proposed by Addax Bioenergy, a subsidiary of the Swiss Addax-Oryx Group. 20,000 hectares of sugar cane and cassava plantations for ethanol as well the construction of an ethanol refinery are planned. The total investment would be for £210 million (240 million Euros).

Sierra Leone is one of the world’s poorest countries. More than two thirds of the population live in absolute poverty, 50% suffer from hunger and malnutrition, nearly half a million people depend on food aid from the World Food Programme. In order to guarantee consistent ethanol production, at cassava, the staple food in the region, is to be turned into agrofuel during at least 150 days a year. The ethanol project thus directly competes with people’s need for food and threatens their food security and food sovereignty.

Contrary to Addax’s claims, the land which is to be converted to plantations is neither infertile nor degraded. It is fertile farmland on which small farmers practice sustainable agriculture and produce food for the local population. Contrary to sugar cane monocultures, the current farming system provides habitat for numerous plant and animal species.

The land is to be leased for fifty years and small farmers are to be paid minimal companesation of $6 per hectare per year. The sugar cane harvest is to be mechanised, which will minimize the number of jobs. In no way will there be compensation for the loss of people’s land and livelihoods. The project thus resembles an organised land grab.

Another serious concern is the requirement for water both for irrigation during the dry season and for the refinery. This is to be taken from the Rokel River. Furthermore, ethanol refining produces large quantities of highly polluted water, called vinasse. The 15 MW of electricity to be provided to households and industry in Sierra Leone does not in any way justify the conversion of 20,000 hectares of land to sugar cane monocultures.

Although Addax has provided a 270 pages long Environmental Impact Assessment, that document contains only vague information about the project impacts and the necessary measures for the protection of communities and the environment. The loss of people’s livelihoods and food production are unavoidable.

It is irresponsible that Addax speaks about seven public-private development and investment funds which collaborate with and support the project
(www.addax-oryx.com/AddaxBioenergy/AddaxBioenergy-QuickView-Report-Launch-of-Public-Disclosure-of-ESHIA.pdf, page 5 unten, image 9): The European Development Bank (EFP-EIB), the African Development Bank (AfDB), the German Investment and Development Fund (DEG), the UK-based Emerging Africa Infrastructure Fund (EAIF), FMO in the Netherlands, the Austrian Development Bank (OEB), and Swedfund in Sweden. Those claims help to make the project looks respectable amongst policy makers in Sierra Leone and to wind their support.

I therefore urge you to immediately an unequivocally reject any type of support or investment for the project, which would contradict your organization’s aims because the project will worsen, not alleviate poverty in Sierra Leone.

Yours faithfully,

Campaigns:

Sierra Leone: European ethanol project to cause more hunger in Sierra Leone