The Cayal Río Curicó: Cayal Role Material

(Jump to Confidential Instructions for the Cayal Negotiator)

Shared Information for the Río Curicó Negotiation

The CEO and General Manager of Organización Nacional de Energía (ONE, pronounced OH-nāy) has invited representatives of five constituencies to his plush boardroom overlooking the Latin American capital city. ONE provides power to this sprawling metropolis of over four million people. Beyond the city, the country is growing rapidly, escalating the need for higher electricity output nationwide. The government relies on ONE, the nation’s largest utility company, to meet this demand.

In response, ONE recently began preliminary work on a power plant on the Río Curicó. Preparation of the site has already begun and ONE has invested over US$300 million.* Last month, a regional court suspended the government’s preliminary authorization for the plant and ordered that all work on the project be stopped. The ruling stated: “Any mega-project should be compatible with the requirements of the country, but should also take into account the identity of and respect for Indigenous peoples and the environment.” The judge called for ONE’s response within two months, and scheduled a hearing to reconsider the stop-work order at that time. In concluding remarks, the judge suggested that the conflicting parties work together to reach a solution satisfactory to all.

Opposition to the Río Curicó project centers on two concerns: degradation of the river’s ecosystem and disruption of the Indigenous communities in the region. ONE has been negotiating bilaterally with several involved parties for months, only to have each tentative agreement with one party rejected by another, over and over again. Realizing that restarting the project rests on multilateral bargaining, the company has asked all six parties to come together to negotiate mutually agreeable terms for a power plant on the Río Curicó.

In addition to ONE, the parties represented in the negotiation include:

Parties in Río Curicó Negotiations

ONE, the largest electric generating company in the country, was created in 1977 as a state-owned enterprise to bring electricity to the country. As early as the 1980s, the country’s central planners drew attention to the need for more electric power. In the late 1990s, the country experienced a severe drought that forced electricity rationing. ONE privatized during this period and began to build new plants, starting close to the capital then gradually moving outward.

Demand for electricity in the country is now growing at 7% annually. To meet this demand, ONE proposed a hydroelectric project on the Río Curicó. The 423 km-long river originates in two mountain lakes and travels down through pine forests and agricultural lands on its way to the ocean. The alto Río Curicó region, fertile highlands fed by the river, has been populated for millennia by Indigenous Wentéche. Because it courses through steep canyons above and below the alto region, and its flow is uninterrupted by development, Río Curicó is one of the world’s top rivers for white water rafting. For the same set of reasons, the river is also the country’s largest single potential source of hydroelectric generation. As proposed, Río Curicó would be the biggest hydroelectric project in the country to date, employing a workforce of up to 3,500. ONE’s proposal stipulates that at least 10% of the workers be Wentéche.

Río Curicó forms the northern border of the current-day Wentéche territory. The Wentéche people, who currently number approximately 10,000, are a small mountain-dwelling branch of a larger group of approximately one million Indigenous people living in the country and its neighboring countries in Latin America. Wentéche, “People of the Wenhuén,” (when-WHEN) refers to an alpine nut that is a principal food source in the alpine river region. Historically, Wentéche have been a migratory people, spending winters in the foothills and summers in the high mountains, on the banks of the Río Curicó. With a distinctive culture and their own language, they live in deep poverty, surviving on small herds of goats and sheep, micro farms, and stores of alpine nuts.

While many modern Wentéche carry on the traditions of their ancestors, younger members of the community are increasingly moving to the capital city for jobs and education, and bringing their families with them. Many hope that future generations may escape the grips of poverty that have entrenched much of their community for decades.

A small group of elderly Wentéche who call themselves the Cayal (the elders) embrace the traditional Wentéche view of the highlands and Río Curicó as sacred, and thus are uninterested in the promises of modern development in their country. “The river is our spiritual ancestor and provides our people with food and with life.” To many inside the country and around the world, the Cayal have become a symbol of Indigenous resistance to large-scale development.

The Environmentalists belong to a nongovernmental organization (NGO) named Verdes Juntos. Verdes Juntos was recently founded and funded by local and international environmentalists to protect waterways from environmental degradation. As part of their efforts to save Río Curicó, the Environmentalists have been educating Wentéche people about their land rights and supporting them in related negotiations and legal proceedings. The Environmentalists have become increasingly vocal in their demands that the government and ONE search for alternative energy sources in addition to hydroelectric power plants. Because Río Curicó is one of the few mountainous, free-flowing rivers in the world, it is a rallying cry for environmentalists and sports enthusiasts alike. The Environmentalists are also interested in making sure that the river remains a destination for popular outdoor activities, such as rafting.

The International Finance Corporation (IFC), a World Bank Group member, invests around US$10 billion annually in the private sector to promote economic development around the globe. Unlike other World Bank funding, IFC financing does not require government guarantees, allowing investment in areas with unstable political systems. The IFC funds projects in developing countries primarily through investments, including in infrastructure, finance and manufacturing. Investments in electric power and utilities make up approximately 15% of IFC’s infrastructure portfolio. Because they represent international interests, including protection of the environment and respect for Indigenous people, IFC required ONE to develop a comprehensive plan to mitigate deterioration of the river’s ecosystem and to compensate and relocate the Wentéche families who would be affected. ONE’s Proposal for Preservation and Relocation included detailed plans for Wentéche community relocation, compensation, and cultural support, as well as plans for preserving the river’s ecosystem.

There are also several legal considerations for ONE and the government to take into account. Accordingly, the country’s Departamento de Desarrollo Indígena (DDI) is also party to the negotiations. When first considering a project on the alto Río Curicó, ONE approached Wentéche community leaders to discuss purchasing lands that would be affected by the construction and operation of a dam. The community responded that they were not interested in selling their land. As ONE began exploring other options, legal teams looked into two national laws that appeared to be in conflict with one another.

The Indigenous Law decreed that designated Indigenous lands, including those of the alto Río Curicó, “may not be taken away, seized, encumbered, or acquired except between Indigenous communities or individuals of the same ethnicity.” The Electric Law, however, invoked the principle of eminent domain and stated that concessions granted for hydroelectric plants included the right to occupy facilities required for hydroelectric installations. Multiple experts concluded that the Electric Law should take precedence over the Indigenous Law, given the government’s interest in adding electricity generation capacity to the country’s portfolio. After further investigation, legal experts found resolution in a section of the Indigenous Law granting DDI responsibility for accrediting trades in which Indigenous lands could be exchanged for non-Indigenous lands of similar commercial value, which would then be considered Indigenous lands. Therefore, DDI would need to agree to any arrangements ONE makes for relocation and compensation of the affected Wentéche families.

Issues in the Río Curicó Negotiation

As the six parties gather for the negotiation, five major issues are on the table. The regional courts will not lift the stop-work order until ONE has demonstrated substantial multiparty support for the project. Specifically, the court will approve a proposal only if ONE can gain support from at least four other parties on a single proposal incorporating all five issues. The support of these key parties will demonstrate to the courts, local community members, and the international community that issues surrounding Indigenous peoples and the environmental protection have been adequately considered. Although unanimous support would provide the most compelling evidence that public interest issues have been discussed and agreed upon, the court has said it will allow a proposal with four additional supporting votes to proceed with development.

Issue A: Facilities.

The first issue under discussion is the type of facility that would be put in place on the alto Río Curicó. Hydropower relies on water flowing over turbines, creating energy that can be captured and turned into electricity. The volume of water and differences in elevation along a river determine the amount of energy available. A steep, high-flow river, such as Río Curicó, creates a massive amount of energy even without a large dam. To turn this energy into electricity, water from the river would be directed through a pipe and then pushed against turbine blades, which would activate a generator to produce electricity.

There are two basic types of hydroelectric generation plants: run-of-river systems and storage systems. In run-of-river systems, the natural force of the river drives the pressure on the turbines. Run-of-river systems are feasible in rivers with constant, year-round flow, such as Río Curicó. In storage systems, dams direct water into reservoirs where it is stored and then released at selected times and intensities. Reservoirs allow control over the rate at which water is released to the turbines, while a run-of-river system involves minimal storage and little to no control over water release rates.

Four types of facilities have been identified as potential options for Río Curicó: run-of-river, pondage, impoundment reservoir, off-river reservoir. Unfortunately, the facilities that are able to generate more electricity are also the ones that would lead to greater environmental harm—including erosion, sedimentation, wildlife disruption, and fauna destruction.

The National Energy Commission examined the environmental impact of all four types of facilities, and this impact was weighed against the amount of energy each facility was capable of producing. The commission concluded that any of the options would provide at least the minimal necessary energy without leading to outsized harm to the environment. A larger reservoir facility was also considered and ruled out after the environmental impact assessment.

In addition to variation in the potential amount of energy generation, the four types of facilities vary in forecasted costs and revenues associated with building and running the plants. For the sake of the negotiation, all of the parties should assume that the internal ROI for each of the projects is roughly equivalent. Differences in forecasted costs and revenues associated with the different facilities have been taken into account in each party’s scoring system (included in private role information). As a result, finances and other economic factors beyond those presented in the issues below should not be added to the negotiation.

Issue B: Community Support and Relocation.

Any hydroelectric facility built on the Río Curicó will affect the lives of Wentéche living in the alto region. The country’s Indigenous Law states that properties taken by eminent domain must be replaced with superior properties that will then be designated Indigenous. Many people in the community would prefer to move away from the affected area before building begins. ONE’s team and representatives from the community discussed lands that could be purchased for the community, in particular for families who would be displaced by the project. These discussions, together with stipulations in the Indigenous Law, clarified the basic criteria for the selection of relocation areas: new properties must have both greater commercial value and better possibilities for agricultural or other productive economic activity than the original properties. ONE has identified two options that fit these criteria. The first is a large rural estate called El Barco; the second combines two smaller estates, El Huachi and Santa Laura. The company has offered to purchase either of the two options.

Issue C: Compensation to Displaced Families.

Alterations to the river and land surrounding any hydropower facility could affect 93 families in the Wentéche community. Traditionally, Wentéche hold property collectively, but the government requires that ONE compensate individual families for property taken by eminent domain. DDI and the environmentalists from Verdes Juntos helped the community settle on parcel designations for each family. The average parcel, approximately 16 acres, has been appraised at US$13,000 including land, buildings, and forest. In sum, the affected properties were appraised at roughly US$1,300,000. The government has stipulated that all displaced families must be compensated at a minimum of 120% of the appraised value of their Río Curicó properties. This compensation is in addition to ONE’s purchase and development of new properties and the payment of relocation costs, discussed above.

The rate of compensation to the displaced families is still under discussion. ONE has offered the legally mandated compensation, by family, at a rate of 120% of the assessed value of each family’s parcel. Wentéche community representatives are asking for 300% of the appraised value, which they view as reasonable compensation for the loss of their homes and the land on which their ancestors have lived since long before the Spanish began to claim the country as theirs.

Issue D: Wenhuén Foundation.

In addition to the relocation and compensation plans, ONE’s team consulted with representatives of the Wentéche community for additional avenues for community support. The consultations revealed multiple areas of need in the community. To meet some of the immediate needs, the company began offering free services including transport to medical facilities and electricity for previously unconnected Wentéche properties. To address longer-term needs, they coordinated with the community to identify archeological sites and cemeteries for preservation or relocation. ONE also established and began funding the nonprofit Wenhuén Foundation to promote better living and economic conditions and preserve the cultural heritage of the Wentéche.

The Wenhuén Foundation, established by ONE in coordination with DDI and Wentéche leaders, will be governed in perpetuity by five community members, one DDI representative and one ONE representative. Three principles underlying the Foundation’s governance and activities were developed in partnership with Wentéche leaders: (1) community participation in decision-making; (2) community identification of projects for investment; and (3) promotion of cultural traditions across sectors. In its initial phase, the Foundation will fund technical agricultural and forestry assistance, a scholarship program for Wentéche students, and a cultural program to maintain Wentéche language and religious ceremonies.

ONE established the Foundation with a one-time donation of US$9 million. In addition, ONE has proposed annual contributions for the next 50 years to cover operating expenses. ONE has agreed to contribute at a minimum rate of US$250,000 annually plus 0.3% of annual net income. Other parties are asking ONE to contribute up to US$2,250,000 annually plus 0.7% of annual net income.

Issue E: IFC Funding.

IFC investment in the Río Curicó project is critical for its success. Total costs for the Río Curicó project are likely to run from US$6 to 12 billion. Similar projects currently under construction in other countries have run significantly over time and over budget. IFC investment is often the only backstop protecting utility companies and national governments from bankruptcy. ONE has secured additional funds from several public and private sources in Europe, North America and China, nearly all in the form of 30-year loans, but all of these funds are conditional on IFC investment in the project. (As mentioned above, all of the parties are assuming the internal ROI for each of the projects is roughly equivalent.)

In previous discussions with the IFC, ONE suggested possible investment levels ranging from US$200 million to US$400 million, depending on the facilities and the impact of the project on the environment and the Indigenous people.

In preparation for the negotiation, the parties have agreed to discuss specified options for each the five issues described above. The possible options within each of those issues have been established as follows:

Negotiation Mechanics

ONE has gathered all key parties for a meeting to seek a proposal that will win enough support for a court approval. The organization has submitted the following initial Proposal for Preservation and Relocation to the court:

Any negotiator may suggest an alternative to ONE’s current proposal, although ONE’s approval is required for any proposal to enter an official vote. If parties cannot settle on an alternative proposal by the time a vote is required, they will vote on ONE’s initial proposal above.

The court has required at least four supporting votes (in addition to ONE) on a proposal covering all five issues before it will reconsider the stop-work order. Parties cannot vote on individual issues separately; voting must reflect the proposal as a whole.

Three parties’ votes warrant special consideration. First, as stated above, ONE must approve any proposal before a formal vote. Second, DDI’s approval is necessary for any deal to be accepted by the court, since DDI must sign off on any land trades triggered by eminent domain of Indigenous lands. Third, the IFC can veto any project that involves IFC investment. Finally, any two other parties together can also exercise veto power over any deal, since the court will reject any proposal not supported by at least four parties, in addition to ONE.

The judge suggested that the conflicting parties work together to reach a solution satisfactory to all. ONE concurs that they would prefer unanimous support to avoid any further lawsuits and quickly proceed with development.

Confidential Instructions for the Cayal Negotiator

(From the members of the Cayal)

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We, the Cayal of the Wentéche, are opposed to the theft of our land and the destruction of our community. Before the arrival of the Spanish in the 16th century, Indigenous communities occupied about 25 million acres of the most fertile lands in the region. Like most original peoples throughout the world, the Wentéche do not have a legal system that recognizes individual property rights. In our cosmovision, the earth is not something to be divided up and owned. We recognize land as community property not because we “own” the earth or the river, but because we live there and use the land and the river for productive purposes. The fruits of the earth are gifts that can be used while we live on the land, the natural environment is respected, and special places in our environment are considered sacred.

Indigenous peoples throughout this country, including the Wentéche, were gradually pushed off our lands to reservations of two million acres at the fringes of both territory and society. In spite of national laws intended to keep Indigenous lands in Indigenous hands, the government continued to auction off large tracts through much of the twentieth century. By the 1990’s, local and international attention had nearly halted the expropriation of Indigenous lands. Nonetheless, common lands still held by the Wentéche have been allocated into parcels assigned to individual families, thus instating Western norms of individual property rights across our people.

When ONE first announced its plans for the alto Río Curicó region, our people refused to sell. In response, ONE asked the government for the right of eminent domain to take the land away from us. We now find ourselves forced to negotiate to save our culture, our way of life, the land on which our ancestors rest, and the river that feeds us.

We have met and discussed all of the issues ONE and the other parties have put on the table for the upcoming negotiation. This document presents our collective guidance to you on the negotiation overall, as well as on each of the issues and related options. We trust you will secure an outcome that protects all of the Wentéche, including the Cayal and our ancestors who lie among us in the alto Río Curicó.

We do not believe in the “benefits” that ONE and the government claim we will realize from this new power plant. This river and the land of the alto Río Curicó are our spiritual home, keeper of our culture and belief systems. Building this power plant will destroy our ancestral land and sacred resting place, in addition to taking away our homes and livelihood. As one of our wise elders said, “We are the Cayal of the Wentéche, and though some would discard our ancestors and our traditions, we must continue to fight to maintain our identity and our sacred home.”

We are participating in this negotiation for three reasons. First – and most important by far – we hope that our participation will derail the negotiations and prevent ONE from securing enough support to complete the Río Curicó project. You need to be extremely tactful in your attempts to block the negotiation, since ONE only needs four “yes” votes to proceed and can easily cut you out of the deal entirely if you make your position too visible. Second, if ONE is able to muster enough support to go through with the project, we hope to minimize the impact on the river and the surrounding land. Third, if a deal goes through, we hope to make sure that it involves the minimum level of investment and the highest cost possible, in order to help bankrupt ONE. We want to make an example of ONE to other corporations and illustrate the consequences of threatening Indigenous life. Historically, our people have been powerless against large corporations like ONE, and this negotiation presents a unique opportunity to exert influence with international attention and pressure supporting our cause.

ONE has put forward plans to purchase new lands to make up for the destruction of our homes. Some Wentéche families seem to welcome the possibility of moving away from alto Río Curicó to lands that offer more resources and are closer to cities. Their children are asking for a different life and they see value in better education than local schools can provide. They have also come to rely on doctors rather than on traditional medicine. While we do not fault them for these choices, they are not our choices nor those of our ancestors. What we find troubling, though we try to understand, is the attraction to shopping and consumer goods. None of this matters to the Cayal. We are the elders and our people have lived in the alto Río Curicó since time began. We will die on this land regardless of the outcome of this negotiation.

Money means little to us, but we know that our younger community members and future generations could benefit from ONE’s contributions through the Wenhuén Foundation. Therefore, we hope to maximize funding to help our sons and daughters in the community carry on our cultural traditions and way of life. And of course, money means everything to ONE and we plan to extract as much as possible if they move forward with the destruction of our homes.

In addition to our fellow Wentéche, there may be one other like-minded party at the table. The environmentalists from Verdes Juntos have talked with the Cayal about the destruction a dam would cause to the land surrounding Río Curicó. Verdes Juntos has warned us not to believe ONE’s or the government’s promises (conveyed through DDI) that our people will be better off after the project than we currently are.

In spite of the truth of our stance, we realize that others in the negotiation will ignore you if you are too transparent in trying to stop the negotiation. If you announce that you prefer that the project stop immediately, before further destruction of the land, the river and our homes, you’ll be pushed aside in the negotiation. As a result, you must tread lightly and attempt to negotiate on the issues discussed below.

Scoring.

We have constructed a scoring system to illustrate which issues and options are of the greatest and least value to us. If you can achieve an impasse, you will earn 150 points. However, if you cannot block the deal and you must negotiate, you can score up to 88 points upon closing the negotiation depending on how the five issues are resolved.

We are asking you to earn as many points as possible for the Cayal in this negotiation. We are fighting not only for our immediate community, but also for Indigenous peoples under threat worldwide. While an impasse would be the best outcome, with a payoff of 150 points, some deals are still worse than others if you cannot derail the negotiation entirely.

We would be better off abandoning the negotiation and challenging ONE in court than accepting a deal worth less than 29 points. You should never vote yes to any agreement worth less than 29 points. We hope you are able to derail the negotiation; if not, we are confident that you can negotiate successfully and score much higher than 29 points.

Facilities.

The alto Río Curicó is sacred to us and it is the resting place of our ancestors. We strongly prefer that no facility be built at all! If a facility is going to be built, there is only one option that does minimal damage to the river and the land around it. A run-of-river facility would not require major changes to the flow of the river, though of course any facility would permanently alter our community. All of the other options would flood at least some of the land around the river. While some of these options are objectively more harmful than others, we believe that any option that alters the land of our ancestors would destroy our history and our culture.

We have assigned the following points across the possible options for this issue:

Facilities Points Assignments
Options Points
A1. Run-of-river = 20 points
A2. Pondage =   0 points
A3. Impoundment reservoir =   0 points
A4. Off-river reservoir =   0 points

Community Support and Relocation.

While other displaced community members may benefit through improved living conditions and economic opportunities available in the relocation areas, the Cayal do not have any plans to leave our sacred home. We cannot make ourselves young again to take advantage of education and employment opportunities in the city. And because we reject modern medicine and other services, lands close to metropolitan areas offer no compensation for us.

We do not view moving to replacement lands in other rural river regions, miles away from our homes and ancestors’ resting places, as compensation for insufferable losses. We have therefore assigned no points to this issue. Nonetheless, you should treat this issue carefully because other Wentéche consider this an important issue, and you do not want to antagonize them.

Community Support and Relocation Points Assignments
Options Points
B1. ONE will purchase and develop El Barco to be designated as Indigenous land =   0 points
B2. ONE will purchase and develop El Huachi and Santa Laura to be designated as Indigenous land =   0 points
B3. ONE will purchase and develop El Barco, plus El Huachi and Santa Laura to be designated as Indigenous land =   0 points

Family Compensation.

The families affected by this project should be compensated for the inconvenience and destruction that ONE is bringing upon them. We would like our community members to receive the highest amount of compensation possible. A positive byproduct of higher compensation is that it puts financial strain on ONE.

We have assigned the following points across the possible options for this issue:

Family Compensation Points Assignments
Options Points
C1. 120% of the land’s appraised value =   0 points
C2. 200% of the land’s appraised value =   4 points
C3. 300% of the land’s appraised value = 10 points

Wenhuén Foundation.

The Foundation’s goal is to support the Wenteche’s cultural activities, which are of utmost important to us. While it would be better if ONE let our people continue our lifestyle uninterrupted by their catastrophic development, the Wenhuén Foundation presents the best form of compensation if the project were to succeed. The Foundation will supply continued financial support that will bolster our cultural traditions and community welfare for generations. Our community leaders will also hold leadership positions in the foundation and have power over funding and resource allocation.

As mentioned, this issue has the potential to place a major financial burden on ONE. ONE’s proposals for single payments through land purchases and family payouts will too easily allow them to disengage from Wentéche and ignore the damage they’ve inflicted upon our people. We think that it is absolutely immoral that ONE would destroy our identity, our homes, and our way of life. If ONE manages to push the project through, however, channeling as much money from ONE to fund our Wentéche sons and daughters in the long term would be the best way of ensuring that ONE does not end up profiting off the graves of our ancestors. Therefore, we hope to dedicate our efforts to maximizing this payout.

We have assigned the following points across the possible options for this issue:

Wenhuén Foundation Points Assignments
Options Points
D1. $250,000 annually + 0.3% annual net income =   0 points
D2. $750,000 annually + 0.4% annual net income = 10 points
D3. $1,250,000 annually + 0.5% annual net income = 10 points
D4. $1,750,000 annually + 0.6% annual net income = 30 points
D5. $2,250,000 annually + 0.7% annual net income = 40 points

IFC Funding.

First and foremost, we understand that IFC funding is crucial for the project to succeed. We are nearly certain that ONE will not proceed with the project if funding is withheld.

Furthermore, the IFC has faced international criticism for supporting projects that destroy the environment and ignore the rights of Indigenous people. We have no reason to believe that their actions in this project will be any different. International investment will further disrupt our local community, and we will need to fight against both ONE and the IFC if both are involved. We see this as yet another example of corporations making money off Indigenous communities. On principle, we do not think it is appropriate for the IFC to be giving large amounts of funding to ONE for this project.

However, you should handle this issue carefully. The IFC wields a lot of power and they may be sympathetic to our plight (or at least hesitant to receive bad press). You do not want to make enemies with them during this negotiation.

We have assigned the following points across the possible options for this issue:

IFC Funding Points Assignments
Options Points
E1. IFC invests nothing = 18 points
E2. IFC invests $200 million in return for 2% equity = 13 points
E3. IFC invests $300 million in return for 3% equity =   0 points
E4. IFC invests $400 million in return for 4% equity =   0 points

Negotiation Logistics.

Timing

Voting

  1. At the end of each round of negotiation, the person in the ONE role must offer a proposal covering all five issues.
  2. The other five parties must vote on the full proposal. Votes should be made privately on paper or in the chat (if negotiating online) and shared with ONE.
    1. If the proposal does not meet a party’s minimum, as stated in their role materials, the party must vote ‘no’.
    2. If the proposal meets or exceeds a party’s minimum, they may vote ‘yes’ or ‘no’.
    3. Note: Votes after each round are final, but parties may change their votes across rounds, even if ONE announces the same proposal across more than one round.
  3. After the vote, ONE should record the votes on the ‘Official Voting Sheet’ provided in their role materials. ONE will include a count of how many parties voted ‘yes’ for each round, and circle ‘Yes’ or ‘No’ to reflect whether the group reached agreement in each round.
  4. After recording votes, ONE should read out the votes to the full group.
    1. If four of five parties, not including ONE, voted ‘yes’ and neither DDI nor IFC vetoed the proposal, you have an agreement and the negotiation is over.
      1. DDI can veto any proposal
      2. IFC can veto any proposal that requires IFC investment (Issue E options E2, E3, and E4)

Completing the Negotiation

  1. If you do not have an agreement after voting at the end of rounds one or two, the group progresses to the next round and continues to negotiate.
  2. If you do not have an agreement after voting in round three, the negotiation ends in impasse.
  3. After reaching an agreement, or at the end of round three, ONE should submit the completed voting sheet according to directions provided by the instructor.

We have attached a one-page summary sheet that summarizes the points assigned to each issue and option. Feel free to use this to calculate your points as you negotiate. This information is strictly confidential! You should not show your summary sheet/scratchpad to anyone.

Once again, you will need to position yourself carefully in this negotiation. If the ONE negotiator realizes you are intent on making sure no deal goes through they will ignore you and the issues we care about, and turn to the other negotiators for a deal without you. That could prove devastating to our cause.

Good luck in the negotiation. Remember, no deal is the best possible outcome. We and our ancestors are relying on you!

Confidential Summary Sheet Cayal NegotiatorColumn one lists the Issue or Option, Column two lists the points, Columns 3 to 5 are intentionally left blank
Issue/Option Points 1st Vote 2nd Vote 3rd Vote
A. Facilities (20)
1. Run-of-river 20
2. Pondage 0
3. Impoundment reservoir 0
4. Off-river reservoir 0
B. Community Support and Relocation (0)
1. El Barco 0
2. El Huachi and Santa Laura 0
3. El Huachi, Santa Laura, and El Barco 0
C. Family Compensation (10)
1. 120% of the land’s appraised value 0
2. 200% of the land’s appraised value 4
3. 300% of the land’s appraised value 10
D: Wenhuén Foundation (40)
1. $250,000 annually + 0.3% annual net income 0
2. $750,000 annually + 0.4% annual net income 10
3. $1,250,000 annually + 0.5% annual net income 20
4. $1,750,000 annually + 0.6% annual net income 30
5. $2,250,000 annually + 0.7% annual net income 40
E: IFC Funding (18)
1. IFC invests nothing 18
2. IFC invests $200 million in return for 2% equity 13
3. IFC invests $300 million in return for 3% equity 0
4. IFC invests $400 million in return for 4% equity 0

Table notes:

Endnotes

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