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THE IDR CASE
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Limi-Nawâh S.A.
is the first indigenous corporation
in Nicaragua and was was established
under Nicaraguan mercantile law in
July
2003.
Limi-Nawâh S.A.
is the property of 16 indigenous
communities situated on the Bambana
and Prinzapolka Rivers
and was modeled after 9 indigenous
communities known as the Meadow Lake
Tribal Council in Canada.
The
hope was to deliver the experience
and success of the Canadian
indigenous communities to Nicaragua.
MLTC established an non-government
organization called Contigo
International and received direct
support from the Canadian
International Development Agency (CIDA).
One
of the first tasks for Limi-Nawah
was to find additional support
for the project.
To
this end, Limi-Nawâh
developed an economic development
strategy that
was presented to the International
Community in Managua in November
2003.
Two agencies, the Inter-American
Development Bank
(IDB) and the Nicaraguan Institute
of Rural Development
(IDR)
expressed an interest to participate
in the project.
This led to a formal proposal
presented to IDR in December 2003.
The Canadian International
Development Agency also agreed
to provide special funding of up to
$250,000 for the production of
management plans and for the
purchase of the first wood for the
mill to operate.
Limi-Nawah was required to generate
a large amount of documentation in a
short period of time to satisfy the
requirements of the government
bureaucracies promising to support
the project. By March of
2004, officials
of CIDA and IDR
exchanged letters of commitment and
support to finance the project as
presented by Limi-Nawâh.
Canada honoured its commitment by
providing Contigo with immediate
access to the $250,000 promised;
IDR was committed to provide the
necessary funding for the capital
equipment to guarantee the project
success.
Limi-Nawâh
started the project by executing its
management plan development,
paying required taxes to the
Government of Nicaragua,
setting the contracts for harvest
and delivery of roundwood to the
sawmill site,
the selection and training of
personnel,
and the preparation of the physical
site for the sawmill that was to be
financed by IDR.
HOWEVER
IDR DID NOT COMPLY and
Limi-Nawah began to sustain losses
of its roundwood that had a value in
the international market of more
than
US$400,000
based on a contract that had been
negotiated with a US company
(Robinson Lumber
Company).
The consequences of the detrimental
reliance on IDR have obviously been
incredibly negative for Limi-Nawah
and the indigenous community owners.
IDR must accept all of the
responsibility for the failure of
the project.
They had an obligation to assist
Limi-Nawah in the development of the
documentation for submission to the
IDB for project approvals; they
failed miserably in this process.
Limi-Nawâh
proceeded with the implementation of
the project based on a trust and
confidence that instead dissolved
into a dramatic financial failure.
IDR
reneged on its commitment to both
Canadá y Limi-Nawâh.
The
position taken by IDR has placed the
project under serious risk and
exposed the 16 communities to an
unreasonable economic liability-
this is totally unacceptable act of
insensitivity to the deep poverty
that exists in the zone.
La posición tomada
por IDR ha puesto al proyecto entero
en serio riesgo y ha expuesto a
Limi-Nawâh y a sus representantes,
las 16 comunidades indígenas en un
riesgo económico irrazonable y
totalmente inaceptable. |
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