Ecuador EcoFund

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Ecuador EcoFund

In 2003: "EnCana has also committed a total of US$7.4 million toward the establishment and maintenance of a 20-year 'Ecuador EcoFund' designed to invest more than US$20 million into environment-related programs in that South American country. The Fund is the result of a collaboration between the ppipeline consortium Oleoducto de Crudos Pesados (OCP) Ecuador S.A. that has now completed about 80% of a transnational oil pipeline, and a group of non-government environmental organizations active in Ecuador. Excluding EnCana's direct and indirect contribution, other OCP sponsors have committed US$8.6 million. The projects to receive financial support from the EcoFund shall have co-financing from the environmental NGO network of at least 30%, thereby raising the total value of the Fund to more than US$20 million.

"EnCana Corporation, the largest private-sector energy investor in Ecuador and a major sponsor of the OCP pipeline, is anchoring the Fund to ensure sustainability and the early provision of tangible financing for the Fund to commence its work this year.

"Like Ecotrust in Alberta, this new initiative is to be used for the development of environmental programs, training, scientific research and other conservation projects in Ecuador. The main objective is to strengthen the nation's environmental conservation strategy through activities where specialized institutions and local communities will be involved.

"The founders of the EcoFund are now in the process of defining the grants allocation principles and administrative processes. It is anticipated that the EcoFund will be administered by the Fondo Ambiental Nacional (FAN), a private, independent and non-profit institution formed between representatives of the public and private sectors. None of the local NGOs who worked to reach this Agreement, nor OCP or EnCana, will participate in the administration of the EcoFund. An initial disbursement of $1 million will be made when the Agreement is signed. During the first five years of the Agreement, funds raised will total $10 million, with the balance committed over the following 14 years.

"The creation of EcoFund is above and beyond OCP's obligations to comply with its other environmental responsibilities and obligations related to prevention, control and mitigation during the construction and operation of the transnational crude oil pipeline. OCP has to date invested some US$20 million in more than 350 health-related, educational and community development facilities and programs along the 500 kilometre length of the pipeline. (http://www.ocpecuador.com)" [1]

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References

  1. EnCana Launches $10 Million Community Fund, CSRWire, accessed November 2, 2008.