The Enron Corporation: Recommendations To Private and Public Financial Institutions that Financed the Dabhol Power Project (January 1999)



"Many energy companies have invested in closed or repressive countries -- arguing that their investment would help develop the local economy and thereby improve the human rights situation. But in this case, Enron has invested in a democratic country -- and human rights abuses there have increased. Enron hasn't made things better for human rights; it has made things worse."	Summary and Recommendations To the Government of India To the Enron Corporation To the Government of the United States To Private and Public Financial Institutions that Financed the Dabhol Power Project
Table of Contents Key Individuals Named in this Report I. Summary and Recommendations II. Background: New Delhi and Bombay III. Background to the Protests: Ratnagiri District IV. Legal Restrictions Used to Suppress Opposition to the Dabhol Power Project V. Ratnagiri: Violations of Human Rights 1997 VI. The Applicable Laws VII. Complicity: The Dabhol Power Corporation VIII. Responsibility: Financing Institutions and the Government of the United States IX. Conclusion Appendix A: Correspondence Between Human Rights Watch and the Export-Import Bank of the United States Appendix B: Report of the Cabinet Sub-Committee to Review the Dabhol Power Project Appendix C: Selected Recommendations and Conclusions from the Parliamentary Standing Committee on Energy, May 29, 1995 Appendix D: Correspondence Between the Government of India and the World Bank	Recommendations *To Private and Public Financial Institutions that Financed the Dabhol Power Project* · For public and private institutions that financed the Dabhol Power project, adopt explicit policies in support of human rights and establish procedures to ensure that financing of projects does not contribute to or result in human rights abuses. At a minimum, implement a policy to conduct a “human rights impact assessment.” Such procedures should involve governmental and nongovernmental actors and should be fully transparent. · Require that high-ranking officials within financing institutions be appointed to monitor human rights in relation to the Dabhol Power project financing and subsequent human rights developments as Phase I is completed and Phase II begins. · In order to verify compliance of human rights standards, private institutions that are financing the Dabhol Power project should produce annual reports to shareholders on the company’s activities in terms of human rights. Public institutions that are financing the project should report to the public annually in order to demonstrate compliance with these policies.