PULP MILLS (JUDGMENT)
37
pared a plan for monitoring water quality in the area of the pulp mills
(hereinafter the “PROCEL” plan from the Spanish acronym for “Plan de
Monitoreo de la Calidad Ambiental del Río Uruguay en Areas de Plantas Celulósicas”). CARU approved the plan on 12 November 2004.
36. On 28 November 2005, Uruguay authorized preparatory work to
begin for the construction of the CMB (ENCE) mill (ground clearing).
On 28 March 2006, the project’s promoters decided to halt the work for
90 days. On 21 September 2006, they announced their intention not to
build the mill at the planned site on the bank of the River Uruguay.
C. Orion (Botnia) Mill
37. The second industrial project at the root of the dispute before the
Court was undertaken by “Botnia S.A.” and “Botnia Fray Bentos S.A.”
(hereinafter “Botnia”), companies formed under Uruguayan law in 2003
specially for the purpose by Oy Metsä-Botnia AB, a Finnish company.
This second pulp mill, called “Orion” (hereinafter the “Orion (Botnia)”
mill), has been built on the left bank of the River Uruguay, a few kilometres downstream of the site planned for the CMB (ENCE) mill, and
also near the city of Fray Bentos (see sketch-map No. 2 on p. 35). It has
been operational and functioning since 9 November 2007.
38. After informing the Uruguayan authorities of this industrial
project in late 2003, the project promoters submitted an application to
them for an initial environmental authorization on 31 March 2004
and supplemented it on 7 April 2004. Several weeks later, on 29
and 30 April 2004, CARU members and Botnia representatives met
informally. Following that meeting, CARU’s Subcommittee on
Water Quality and Pollution Control suggested on 18 June 2004 that
Botnia expand on the information provided at the meeting. On
19 October 2004, CARU held another meeting with Botnia
representatives and again expressed the need for further information
on Botnia’s application to DINAMA for an initial environmental
authorization. On 12 November 2004, when approving the water quality
monitoring plan put forward by the CARU Subcommittee on Water
Quality and Pollution Control (see paragraph 35 above), CARU decided,
on the proposal of that subcommittee, to ask Uruguay to provide further
information on the application for an initial environmental authorization. CARU transmitted this request for further information to Uruguay
by note dated 16 November 2004.
39. On 21 December 2004 DINAMA held a public hearing, attended
27