PULP MILLS (JUDGMENT) 34 B. CMB (ENCE) Project 28. The first pulp mill at the root of the dispute was planned by “Celulosas de M’Bopicuá S.A.” (hereinafter “CMB”), a company formed by the Spanish company ENCE (from the Spanish acronym for “Empresa Nacional de Celulosas de España”, hereinafter “ENCE”). This mill, hereinafter referred to as the “CMB (ENCE)” mill, was to have been built on the left bank of the River Uruguay in the Uruguayan department of Río Negro opposite the Argentine region of Gualeguaychú, more specifically to the east of the city of Fray Bentos, near the “General San Martín” international bridge (see sketch-map No. 2 on p. 35). 29. On 22 July 2002, the promoters of this industrial project approached the Uruguayan authorities and submitted an environmental impact assessment (“EIA” according to the abbreviation used by the Parties) of the plan to Uruguay’s National Directorate for the Environment (hereinafter “DINAMA”, from the Spanish acronym for “Dirección Nacional de Medio Ambiente”). During the same period, representatives of CMB, which had been specially formed to build the CMB (ENCE) mill, informed the President of CARU of the project. The President of CARU wrote to the Uruguayan Minister of the Environment on 17 October 2002 seeking a copy of the environmental impact assessment of the CMB (ENCE) project submitted by the promoters of this industrial project. This request was reiterated on 21 April 2003. On 14 May 2003, Uruguay submitted to CARU a document entitled “Environmental Impact Study, Celulosas de M’Bopicuá. Summary for public release”. One month later, the CARU Subcommittee on Water Quality and Pollution Control took notice of the document transmitted by Uruguay and suggested that a copy thereof be sent to its technical advisers for their opinions. Copies were also provided to the Parties’ delegations. 30. A public hearing, attended by CARU’s Legal Adviser and its technical secretary, was held on 21 July 2003 in the city of Fray Bentos concerning CMB’s application for an environmental authorization. On 15 August 2003, CARU asked Uruguay for further information on various points concerning the planned CMB (ENCE) mill. This request was reiterated on 12 September 2003. On 2 October 2003, DINAMA submitted its assessment report to the Uruguayan Ministry of Housing, Land Use Planning and Environmental Affairs (hereinafter “MVOTMA”, from the Spanish abbreviation for “Ministerio de Vivienda Ordenamiento Territorial y Medio Ambiente”), recommending that CMB be granted an initial environmental authorization (“AAP” according to the Spanish abbreviation for “Autorización Ambiental Previa”) subject to certain conditions. On 8 October 2003, CARU was informed by the Uruguayan delegation that DINAMA would very shortly send CARU a report on the CMB (ENCE) project. 24

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