MercoPress. South Atlantic News Agency

EU ratifies support for Botnia pulp mill in Uruguay

The European Union praised the World Bank decision to extend a 170 million US dollars loan for the completion of the Botnia-Orion pulp mill in Fray Bentos, Uruguay, and which has become the core of a dispute with neighboring Argentina.

EU Trade Commissioner Peter Mandelson said in Brussels the World Bank decision confirms and leaves no doubts about the Finnish company's huge investment in the Uruguayan side of the river that acts as a natural frontier and which Argentina is challenging claiming environmental reasons.

However Mandelson called on both governments to "put an end to the litigation" over the pulp mills conflict since "from my point of view there are no more questions or doubts about the investment".

In late November the World Bank board with a landslide vote approved the loan plus a 350 million US dollars insurance policy for the pulp mill which is keeping to the original timetable and is scheduled to be finished and in production by October 2007. Botnia sources revealed that the whole package can be said "to be 65% ready".

"Uruguay and the investment have received full support from the World Bank, from its managing board, following a considerable delay and a cumulative environmental impact assessment. I applaud the decision", said Mandelson.

"We're all interested, including Argentina and Uruguay that this undertaking moves ahead complying with all the necessary environment requirements and conditions", emphasized Mr. Mandelson who nevertheless admitted he was not aware of the Spanish King's "facilitating" efforts to convince both sides to resume discussions on the issue. "Any effort to help overcome the situation has our support", concluded Mandelson.