Issue Date: Jan 31, 1993
THE WORLD Bank has approved a $70 million loan to finance the 450-MW hydroelectric dam on Chile's biggest river, the Bio Bio.
The loan was sanctioned by the bank's International Finance Corp (IFC), which lends to the private sector, even before the Pangue dam's environmental impact assessment by the bank was complete. IFC also pre-empted a court ruling in a suit filed by environmentalists, contending the Pangue project is unconstitutional because it damages rights to property, life and a clean environment.