It was said to be the last hope of appeal for the Belize Alliance of Conservation Organizations and Non-Government Organizations (BACONGO).

    A London press release dated January 29th, 2004 stated, "In an unusual 3-2 decision, a high court in London today decided not to halt construction on a controversial hydroelectric dam in the rainforest of Belize, Central America. The lawsuit to stop the project was brought by a coalition of environmental groups and business owners in Belize to challenge the Belizean government's hasty approval of a 50-metre dam to be built by the Canadian-based, Fortis, Inc. It was the first environmental case in the history of the Privy Council, the final court of appeal for Belize and many countries in the British Commonwealth." (See http://www.privy-council.org.uk/files/other/bacongo-adv.rtf to obtain a copy of the Council's decision.)

    According to the majority decision, written by Lord Hoffman, "The question of whether it (generating capacity) was sufficient to justify proceeding with the scheme, was a political decision not reviewable in a court of law."

    The Natural Resources Defense Council (NRDC) played a key role in an international effort to stop the dam. "The majority's opinion is disappointing, but the dissent made clear that approval of the Chalillo Dam was based on the unlawful, erroneous, and deceitful actions of its proponents. The words of this dissent will haunt and ultimately doom this economically and environmental unsound project," said Jacob Scherr, NRDC International Program Director.

    The three-judge majority of the Privy Council acknowledged that the proposed dam would flood an area scientists say is "one of the most biologically rich and diverse regions remaining in Central America," home to endangered species such as the jaguar, tapir, and the last 200 remaining scarlet macaws in Belize. Nevertheless, Lords Hoffman, Rodger and Sir Leggatt deferred to the Belizean government's political decision to allow the Canadian-backed project to go forward.

    A strongly worded minority dissent found that the dam approval process violated Belizean law and should be overturned. The dissent written by Lord Walker and joined by Lord Steyn, criticized Fortis and the Belizean government for consistently failing to disclose to the courts critical information about the project. Also receiving scathing reviews, ("not credible,") was Chief Environmental Officer Ismael Fabro, who was in charge of the project's environmental review. The dissent also underscored the flaws in the government's assessment of the dam site's geology, which could cause the dam to leak or become unstable.

    The environmental assessment repeatedly stated that the dam would be built on solid granite. Expert geological assessments, which Fortis and the government withheld from the courts for nearly two years, showed that there is no granite at the site, which is composed of more fragile sandstone and shale.

    The majority justices placed no real importance on this cover-up, reasoning that regardless of whether it was granite or sandstone, it made little difference in the end for a dam that was properly engineered. Belize law states that "a description of the development proposed, comprising information about the site, the design and size and scale of the development and its immediate surroundings" must be provided.

    As a result, the dissent concluded that construction should be stopped until the information about the site's geology is made public. "The people of Belize are entitled to be properly informed about any proposals for alterations in the dam design before the project is approved and before work continues with its construction," Lord Walker concluded.

    "Today's decision confirms that Fortis and the government have not been truthful to the Belizean public or to the courts," said Tony Garel, Chairman of BACONGO, the Belizean coalition of environmental groups bringing the case to the Privy Council. "The fundamental errors about the geology of the dam site could mean the difference between life and death for the 12,000 people living downstream from the site," he added.

    Belize's Prime Minister Said Musa was quoted as saying, "With development, everything has an environmental impact.we must respect the democratic process."

    Speaking on behalf of BACONGO, Godsman Ellis expressed his disappointment but assured Belizeans that BACONGO "watchdogs" will continue to play a major role in monitoring this project.

    Speaking for the NRDC, Scherr concluded, "We call on Fortis and the Belizean government to make public the current situation at the site, any plans for changing the dam design, and an accounting of all additional costs. We strongly urge them to reconsider going forward with this doomed project."

    Back in the Macal River Valley of Belize, the tapirs, jaguars and Macaws are all cringing in fear.