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Southern Chile Environment
The Environmental Battle for Southern Chile Part III: Tompkins, Bachelet, and the road to Chile.
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Southern Chile Environmental Issues
In part I of this series we looked at who the players are in the environmental battle for Southern Chile. In Part II, we republished an article from the New York times to give an you an idea about the international scope of Endesa's dam projects across Chile. Now we would like to take a look at the Government's role, their position on the Endesa's Project, and what is the current status of the road and dam project in Southern Chile.
Futaleufu valley southern Chile dam project endesa
Well, just as you think Endesa could not do any more wrong, they come up with something new. They turn the public perception of the blame for the road not being completed on to Tompkins with the 'Road to Chile Now!' campaign. It turns out that it is not up to any of them. Thus, our fourth and very absent actor makes its appearance. That is the federal Chilean government. Are they not responsible for building roads and sorting these sorts of public works messes out?

Public and Private Roads in Chile

Well, yes and no in Chile. In Chile, for the most part, major highway projects are not run by the government. They are toll road concessions run by private companies. This is especially true when it is a big expensive project like carving mountains to cross the rugged terrain of Pumalin Park.

It turns out that the real reason there is no road is that the Chilean government will not allocate the money to build the road themselves, and there is no company willing to venture the money for a very expensive road project to a relatively unpopulated part of Chile. Chaiten is the largest city with a population of about 6,000-7,000 people.

Douglas Tompkins: Persona non grata

A recent report in Chile's national paper El Mercurio looked at the problems that Douglas Tompkins is having with the new administration of Michelle Bachelet. Bachelet, a pediatrician by training that campaigned with on an environmental platform, has now turned in support of the road. Where Douglas Tompkins had a relatively friendly relationship with the former administration, Bachelet's administration is refusing to negotiate or even meet with Tompkins on the issue.

The reasons they give is that Tompkins is no longer the owner of Pumalin. He gave the land to a None-Governmental Organization, and he no longer has any legal authority to speak on behalf of Pumalin Park. Their position is that the road project is going to go forward, and now the only thing to be settled is how much they are going to pay for the land. The saber rattling is that the government wants to pay what Tompkins payed for the land some 20 plus years ago. Some of the land Tompkins bought for as little as $3000 pesos a hectare (about $6 US a hectare).

Reality Check for Southern Chile's Environment

All that said, the political and practical reality is not as bad as it sounds. The road has not even begun. Bachelet's administration will be long gone by the time the first tree is cut. The real decisions, with real contracts for construction, are still many years away. Fortunately for the trees at Pumalin, Bachelet has also proved to be rather light on her commitment to development projects in the deep South of Chile. The planned bridge to connect Chiloe to the mainland for example was recently canceled for being too expensive.

So, in the end, it is not Endesas fault really that the road is not being built. It is not even Tompkins fault, although he does not seem to terrible broken up about it. It is the Chilean governments fault, and that means politics and lots of it.

All the deep pockets are talking with their political friends. Tompkins, has been very good about mustering support with the Chilean party that holds a minority position. In fact, Piñera the presidential candidate that ran against president Batchlet and lost, also owns a large nature reserve of his own just across the water in Chiloe. Tompkins and Piñera have worked on many environmental projects together.

Endesa has gained sufficient political influence because Chile is in a energy crisis currently with the ruling party. They already have one hydroelectric dam on the Bio Bio river in the VIII region of Chile. They have also committed to going ahead with construction of a dam on the Baker river. For the next 5 years or so, it does not appear that the road through Pumalin will be top priority for them, and therefore the Futalefue river will be safe for many years to come from the dam.

A Wild Card in the Battle for Patagonia, Chile

There are rumors of a wild card in this race for southern Chile's environment. It seems a German company is looking in to the purchase of Spanish owned Endesa. The hope is that a purchase by a German company, with Germany's strong environmental culture, will make Endesa's priorities take a different direction in South America. We will keep you up to date on this twist.