PULP MILLS (JUDGMENT)
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sarily consist of a full assessment of the environmental impact of the
project, which will often require further time and resources, although,
where more complete information is available, this should, of course, be
transmitted to CARU to give it the best possible basis on which to make
its preliminary assessment. In any event, the duty to inform CARU will
become applicable at the stage when the relevant authority has had the
project referred to it with the aim of obtaining initial environmental
authorization and before the granting of that authorization.
106. The Court observes that, in the present case, Uruguay did not
transmit to CARU the information required by Article 7, first paragraph,
in respect of the CMB (ENCE) and Orion (Botnia) mills, despite the
requests made to it by the Commission to that effect on several occasions, in particular on 17 October 2002 and 21 April 2003 with regard to
the CMB (ENCE) mill, and on 16 November 2004 with regard to the
Orion (Botnia) mill. Uruguay merely sent CARU, on 14 May 2003, a
summary for public release of the environmental impact assessment for
the CMB (ENCE) mill. CARU considered this document to be inadequate and again requested further information from Uruguay on
15 August 2003 and 12 September 2003. Moreover, Uruguay did not
transmit any document to CARU regarding the Orion (Botnia) mill.
Consequently, Uruguay issued the initial environmental authorizations
to CMB on 9 October 2003 and to Botnia on 14 February 2005 without
complying with the procedure laid down in Article 7, first paragraph.
Uruguay therefore came to a decision on the environmental impact of the
projects without involving CARU, thereby simply giving effect to Article 17, third paragraph, of Uruguayan Decree No. 435/994 of 21 September 1994, Environmental Impact Assessment Regulation, according to
which the Ministry of Housing, Land Use Planning and Environmental
Affairs may grant the initial environmental authorization provided that
the adverse environmental impacts of the project remain within acceptable limits.
107. The Court further notes that on 12 April 2005 Uruguay granted
an authorization to Botnia for the first phase of the construction of the
Orion (Botnia) mill and, on 5 July 2005, an authorization to construct
a port terminal for its exclusive use and to utilize the river bed for
industrial purposes, without informing CARU of these projects in
advance.
108. With regard to the extraction and use of water from the river, of
which CARU should have first been informed, according to Argentina,
the Court takes the view that this is an activity which forms an integral
part of the commissioning of the Orion (Botnia) mill and therefore did
not require a separate referral to CARU.
109. However, Uruguay maintains that CARU was made aware of the
plans for the mills by representatives of ENCE on 8 July 2002, and no
later than 29 April 2004 by representatives of Botnia, before the initial
environmental authorizations were issued. Argentina, for its part, considers that these so-called private dealings, whatever form they may have
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