World Court to Decide on Uruguay Mills Construction
Date: 13-Jul-06
Country: NETHERLANDS
Argentina wants the International Court of Justice (ICJ), also known as the World Court, to order a temporary halt to further construction of the US$1.7 billion project, while it weighs its claim that the mills violate a bilateral treaty.
Under a 1975 treaty, all issues regarding the water of the Uruguay river must be consulted on and agreed by both countries.
Argentina and Uruguay have been wrangling for months over the construction of the mills on the banks of the shared river. Argentina said it was not consulted.
Uruguay opposes a suspension of the project, its largest industrial investment, insisting that there is no danger of pollution and that halting the project would cause considerable economic damage to the small country.
The plants are being built by Finland's Metsa-Botnia and Spain's Ence.
The dispute came to a head after months of protests by Argentine environmentalists and residents that have cost Uruguay's economy US$400 million.
In April, the World Bank's private-sector arm decided to withhold approval of about US$400 million in funding for the mills until it completes studies on the project's social and environmental impact.
