Ecuador is counting on a $1.1 billion heavy crude pipeline to double oil transport capacity and flood government coffers with much-needed revenues to put the country on a path of sustained of economic growth.But local environmentalists have argued that the 314 mile (505 km) pipeline will cut through Mindo forest, which is often covered by clouds and is home to unique bird species, and promote oil exploration in the environmentally sensitive Amazon jungle.
Members of Greenpeace in Germany visited Ecuador this week to examine the route for the pipeline - under construction since last year - as they pressure WestLB bank back home to cut a $900 million loan for the project.
"We have ancient forest in an area of Mindo and it's rare mountain cloud forest," Michaela Braun, forest campaigner for Greenpeace in Germany, told reporters. "We've seen it and it's not the same, already now."
Braun said Greenpeace will also pressure the federal state of North Rhine Westphalia, owner of a 43 percent stake in WestLB, to pull backing for the project, which also faces protests in Ecuador's Amazon this week.
Local residents in the crude-rich jungle province of Sucumbios have blocked roads in an attempt to push the consortium building the pipeline - OCP Ecuador SA - to grant more compensatory funds for local development.
But the company says an agreement on development funds for Sucumbios was already reached with authorities last year and there is no reason for protests, which have halted work on the project in the area.
"All these unexpected events interrupt work and at some point could affect the project and it being completed on time," OCP spokesman Francisco Diaz said in a television interview.
"It was expected to be completed in April 2003. But these difficulties could delay it," he said.
OCP is made up of Alberta Energy Co. Ltd. , Agip Petroleum , Kerr-McGee , Occidental Petroleum Corp. , Spain's Repsol-YPF and Argentina's Perez Companc and construction firm Techint.