`Monster' project threatens indigenous peoples.

The world's largest wetland area and the Indigenous peoples who live there are endangered by the construction of Hidrovia, a mega-project with costs that may exceed $5 billion. The development would see the dredging, widening and straightening of the Parana and Paraguay rivers for more than 3,500 km.

Hidrovia would allow ocean-going ships to sail into the centre of South America, give land-locked Bolivia a deepwater port and give Brazil and Paraguay better access to international shipping. Plans call for it to be largely funded by the World Bank, and it is being supported by the governments of Argentina, Bolivia, Brazil, Paraguay and Uruguay, which together make up a free-trade zone called Mercosur.

The super-waterway is envisioned by Mercosur as the future economic backbone for the region. Environmentalists and Aboriginal people see it somewhat differently -- as a potential economic and environmental disaster.

Between the Paraguay and Parana rivers, lies the Pantanal. It is the heart of the continent, more than just geographically: the pulse of the Pantanal regulates the flow of water to and through a huge drainage basin.

The Pantanal itself covers more than 200,000 sq. km in Brazil, Bolivia, Paraguay and Argentina. That's a marsh four times the size of Nova Scotia.

In the rainy season, the grasslands of the Pantanal get covered by the water to a depth of more than two metres. The area acts as a sponge, retaining water from all around, then gradually releasing it over the next few months. It thus eliminates the potentially disastrous flood tides, while also supplying water over the subsequent dry months to the rich plains of Argentina and Uruguay.

The Pantanal is also home to the largest undamaged ecosystem in South America, which includes wildlife that Audubon Magazine described as "staggering." Also resident are members of the Guato, Terena, Kaiowa, Borora, Umotina, Pareci and Kinikinao traditional peoples.

"Development induced by Hidrovia will affect the present lifestyle of the local rural populations throughout the Pantanal and Paraguay rivers region, including the remaining Indigenous populations," says a study by Wetlands of the Americas, a river conservation group based in the U.S. and in Argentina.

"Subsistence hunting has been a traditional activity in the area, mostly by Indigenous communities," the report continues. "Sport hunting is a growing activity in the area, both by local populations and by international groups. Loss of habitat, particularly for ducks, and changes in productivity patterns may affect productivity of huntable species.

Hidrovia may essentially drain the area, given time. Part of the project is the removal from the huge rivers of rock barriers which slow the flow of water. The straightening out of the rivers -- Hidrovia will cut out more than 60 km from the rivers when it's finished -- will also allow the water to get out of the Pantanal faster. While the marsh dries out, the people downstream may be subjected to greatly increased flooding.

"No doubt, the project's impacts will not be limited to the rivers and wetlands, but will extend outward in waves to encompass the entire Paraguay basin," concluded the first meeting of the Indigenous peoples of the Paraguay basin in Asuncion, Paraguay, last October. "Our concern is not limited to the affected communities, but extends to all peoples who will also be impacted by the Hidrovia."

The Pantanal has been protected by the annual flooding, which has limited development and agriculture, thus preserving traditional lifestyles and wildlife. With less water -- the rivers rise and fall as much as 15 metres a year -- there will be more permanently dry ground. With increased economic development, there will be more money and better market access. The pressures on the Pantanal and its people may be too great to withstand.

"This project is intended to benefit small groups of large businessmen who will profit from the export and transport of grains, meat and minerals," the Indigenous peoples' statement said. "But, all the people of the five countries will have to pay for it, and it will cause very great impacts to traditional populations. Nothing about this project will help Indigenous peoples.

"If the rivers and the wetlands are affected, our drinking water, our springs and wells will be affected," the statement continued. "In this way, our lives will be affected and our survival will be endangered.

"This project does not recognize the value of the rivers, nor the value of the wetlands, nor the forests, the fish, or the birds. Nor does it value Indigenous peoples or life itself. It only places value on the profits of the businessman."

The profitability of the project has also been seriously questioned. South American governments have been accused of solving small problems with large projects, which end up enriching the political and economic elites but costing the countries. The huge Italpu Dam enriched Paraguay's President Juan Carlos Wasmosy, also a high-profile Hidrovia promoter. It has cost the construction magnate's country dearly since it was built in the 1970s. Experts point to the possibility that Hidrovia might also become an expensive white elephant.

International bankers require a 10 per cent to 12 per cent, which is only barely achievable in Hidrovia. Projections assume an increase in agricultural production, which is not assured. One commentator points out two problems with the Brazilian soy crop: estimates are based on an increase of up to 25 per cent over the current maximum productivity per hectare, and the soy is available for shipping when the water is already highest when products can be shipped on the rivers as they are. There will be no soy crop to ship when the water is traditionally low, therefore there's no need to deepen, widen and straighten the rivers.

"The Hidrovia Paraguay-Parana project," said the combined voice of the Indigenous peoples, the voice of the Pantanal, "is like a giant monster which threatens the Indigenous peoples of the region. The constitutions of our countries have recognized our right to exist as original peoples. If this Hidrovia project goes against this fundamental right, it must be stopped."