European firms earn millions of dollars consulting on dam projects for Military Council

European firms earn millions of dollars consulting on dam projects for Military Council

Justice For Myanmar has recently uncovered that the Myanmar junta paid two European engineering corporations millions of dollars to serve as consultants for the development of hydropower projects.

The International Rivers made this announcement on March 14 th the International Day of Action for Rivers.

The Swiss arm of AFRY, which is listed on the Swedish stock exchange, earned US$4.68 million in service fees for consulting work on the Upper Yeywa and Middle Paunglaung Hydropower Projects in Myanmar from February 2021 to September 2022, which is registered on the Swedish exchange.

AFRY a Swedish corporation describes itself as one of the top 5 knowledge powerhouses for Hydropower. According to International Rivers ngo, it has already caused devastating environmental damage along the Mekong river in Laos, as a result of its major role in the design, supervision of engineering of the Xayaburi dam on the Mekong. AFRY operates in more than 100 countries worldwide.

The Myanmar branch of Austria-based ILF Group’s Thai subsidiary, ILF Consulting Engineers (Asia), earned US$1.1 million in consulting fees from the junta from February 2021 to April 2022.

Both companies are paid by a department of Myanmar’s Electricity Ministry which is illegally under the control of the coup Military Council.

AFRY did not respond to specific questions from Justice For Myanmar regarding the current status of their operations in Myanmar, but confirmed they have projects in the country.  

ILF Group responded, “the dam required for the power plant is a so-called rockfill dam with a clay liner. With this type of dam, once construction has begun, it cannot be stopped immediately for safety reasons. Our activities were discontinued some time ago, and most recently focused on dam stabilization and slope stabilization for spillway purposes.” ILF Group did not disclose the date their activities were discontinued.

“It is disappointing that AFRY and ILF are collaborating with the Military Junta and contributing to the development of dam projects that harm the environment and society, especially while their business partners are waging a brutal war against the Myanmar people”, Justice For Myanmar spokeswoman Ma Yadana Maung said.

Both companies remain registered on Myanmar’s corporate registry.

Justice For Myanmar also criticized that AFRY and the ILF have disregarded the opinions of local communities and international human rights obligations by continuing to conduct business as usual with the Military Junta. This Junta is responsible for numerous war crimes, and their actions are widespread.

Justice For Myanmar also calls for a responsible cessation of any ongoing hydropower projects in Myanmar until the country attains federal democracy.

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