Who are Battersea Power Station co-owners Sime Darby?

Producing palm oil is already a bad thing on its own (see our previous blog ), but Malaysia-based multinational conglomerate Sime Darby (a.k.a co-owner of the Battersea Power Station) also violates numerous contracts and even acts in an illegal way, according to Friends of the Earth.

Continue reading for a summary on Darby’s careless actions, all based on reports by Friends of the Earth, which are attached at the bottom of this article.

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The multinational conglomerate is developing palm oil plantations in Liberia, swallowing up farmlands and forests used by local communities to sustain their livelihoods. The contracts for land concessions signed by Sime Darby and the Liberian government violate several Liberian laws and regulations as exposed by a government agency report released a few months ago. They also violate several human rights principles in conventions ratified by the Liberian government as well as principles enshrined in Liberian Law.

Sime Darby’s plantations in the Ketapang district in West Kalimantan, Indonesia, are unlikely to achieve RSPO certification in the near future. The company has allegedly illegally deforested protected forest at Ketapang and is producing palm oil on this land. Sime Darby’s 100 – per – cent owned subsidiary PT BAL has cleared 2,600 ha of concessions that overlap with Protected Forest. This is what a Forestry Department team discovered in 2003.  Another wholly-owned subsidiary, called PT SNP, has a 1300 ha concession that overlaps protected forest. Parts of this have again been cleared and planted without permission. Indonesia was one of their victims as well. More than 2 million hectares of forest, including protected forest and conservation areas, have been illegally converted to palm oil plantations.

The Liberia Extractive Industries Transparency Initiative (LEITI) has found that contract award process between Sime Darby and the Liberian government did not comply with local land laws, failed to conduct public consultations or produce due diligence reports as required by Liberian rules.

To sum up some of Sime Darby’s deeds, which highly affect the local communities in Liberia:

– No compensation has been paid to communities for land taken over by the company
– Forest areas used for various cultural practices had also been destroyed and planted with oil palm
-Sime Darby operations could lead to a loss of biodiversity, particularly the Upper Guinean Forest Ecosystem, which includes globally endangered and vulnerable bird species
-There could be land clearance of substantial areas of closed forest (more than 40 per cent tree cover) resulting in reductions in carbon storage and sequestration capacity
– There are risks of loss of livelihoods, food insecurity and the potential for chronic poverty
– Increased risk of conflict and rural to urban migration
– Increase in gender inequalities

According to Sime Darby’s own High Conservation Value Assessment report, one of the concession areas (Garwula District, Grand Cape Mount County) is comprised of
wetlands, agricultural lands, and mainly intact natural forested areas. This area houses a variety of animal species including Water Chevrotain and African Buffalo, both of which are protected under Liberian laws. Various species of forest and lowland birds, as well as reptiles including crocodiles are found in the area as well. Another concession area (Bopolu District,Gbarpolu County) also has significant forest cover.

To give you a list of violated Liberian regulations:

-By having no protection for communities’ rights in respect of customary land and natural resources;
-By not guaranteeing the principle of Free, Prior and Informed Consent (FPIC);
-By allowing involuntary resettlement of communities if they are deemed to impede the companies’ activities;
-By allowing the degradation of food security by not mandating that the company find alternative nutrition sources for community members who lose farmland to the plantations.

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As if Sime Darby has not caused enough harm already, local communities accuse them of violating their human rights as well, in a way of:

-Providing inadequate information about the concession areas;
-Not providing communities copies of the concession agreement;
-Giving little or no time to consider their response;
-Providing inadequate or no compensation;
-Not giving communities the opportunity to say ‘no’.

After these findings, the Friends of the Earth have given Sime Darby the following demands:

– The concession agreements or contracts must be renegotiated in order to enshrine the responsibility to conduct FPIC negotiations, to invalidate the resettlement clause, and acknowledge customary community land rights regarding the concession land;
– Only after the communities have given their free, prior and informed consent can the company operate on their land;
– Communities should not be displaced against their will by the activities of Sime Darby;
– All community members should benefit from the plantations and the benefits shall be laid out clearly to the communities before they enter into any agreement;
– Employment rights must be respected;
– Compensation rates must be agreed with the communities before entering into any contractual agreement;
– No further deforestation and other environmental degradation should take place by Sime Darby in any of the concession areas.

But the following terrifying quote from Sime Darby Plantation managing director Datuk Azhar Abdul Hamidi shows that they’re not taking these demands very seriously:

”Later on, when the opportunity arises, we may open estates in Brazil or in any South American country near the equator where oil palm grows well.”

Sime Darby’s expansion into Liberia is part of the company’s ambition to reach 1 million hectares of plantation land in the next five years. This would very nearly double its current palm oil plantations area and would inevitably involve large scale deforestation to create new land. But unfortunately, it is not alone. IOI and Cargill, are also expanding their operations into new land including forest. Let’s hope these ’’opportunities’’ won’t arise at all.

The most incredible part of the story is that European banks, pension funds and private equity funds have given out loans to Sime Darby with a total value of 280 million
euro and assisted with issuing new bonds with a total value of 250 million euro. The company is highly supported in their destruction, so it seems.

Furthermore, the largest European shareholders of Sime Darby are the Norwegian Government Pension Fund – Global, the British asset manager Schroder Investment Management, the Dutch pension fund Pensioenfonds Zorg en Welzijn (PfZW) and the German Deutsche Bank. Deutsche Bank is also the largest European bondholder together with AXA Group (France). HSBC and Standard Chartered (both from the United Kingdom) are the only European financial institutions that have assisted Sime Darby to issue new bonds.

To conclude with, EU biofuels targets are driving deforestation of tropical rainforests as Sime Darby’s operations in Indonesia and Liberia reveal. They will continue to expand elsewhere to meet the extra demand for palm oil, therefore causing indirect greenhouse gas emissions. The EU must account for the emissions caused by the new demand stemming from its targets.

See the full PDF’s on this, reports by Friends of the Earth.
Palm_oil_driving_deforestation_Aug_2010 Sime_Darby_and_land_grabs_in_Liberia_June_2013

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Will the chimneys be demolished all at once?

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There is a growing worry about the survival of the chimneys on Battersea Power Station. While expert opinion says they could be repaired the developers insist they have to be demolished and replaced with replicas. To avoid a repeat of the roof situation – ( see Demolition by Stealth)  where Bloom, a previous owner, took the roof off and then claimed he could not afford to replace it- planning permission was only given to demolish and rebuild the chimneys one by one, but now it seems like it is going to be a different story.

South London Press wrote an article in their newspaper this week about the fact that Battersea Power Station Development Company (BPSDC) are pushing towards knocking all the chimneys down at once. This action is something that English Heritage has warned about, since it might result in the chimneys never being rebuilt. Now on the other hand are Battersea Power Station Development Company, English Heritage and Wandsworth council in discussion about removing the clause in the building contract that requires the chimneys being removed and rebuilt one by one. English Heritage have not been able to reassure Battersea Power Station Community Group that they are not willing to change their view on the demolition of the chimneys.

Battersea Power Station Development Company was claiming in an exhibition last week that replacing the chimneys one by one would be too time consuming and would delay the rebuilding and restoration of the power station.

Wandsworth council claims that Battersea Power Station Development Company are examining different ways to rebuild the chimneys, but if there would be a change in the rebuilding strategy, it would have to be approved from the council in consultation with English Heritage.

Is there still not a risk that the chimneys will not be rebuilt if they are taken down all at once? Since it is cheaper, and possible, to repair them rather then to replace them, why would a company who are driven by profit decide to do something that is more expensive? Is it not proof enough to suspect that if the chimneys are gone all at once, there will be a great risk that they are never rebuilt, and rendered historically worthless the power station will be demolished as well.

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The new development in Battersea “is not” only for the rich

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The redevelopment of Battersea Power station has started and as we have written many times before, we are very concerned what the impact of the new neighborhood might have on the existing community.

30-40 percent of the flats have been sold to foreign investors, said the CEO of the new Battersea Power Station Development Company, Robert Tincknell to the Evening Standard last week. He did also mentioned that even if they were bought up by foreign investors, most of the investors will probably rent the flats to londoners. Something that would contribute to the vibrant community they hope to build. He also believes that the new development will be good for local business and that they are trying to be a part of the existing community.

The question still remains, would not a new development with expensive flats make the rent for existing houses higher? Tincknell says that he does not want Battersea Power Station to only be a place for the rich, but with the building plans they got, does it really sound like a place that is not only for the rich?

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The effects of palm oil-plantations has on Orangutans

Oil_palm_plantation_in_Cigudeg-04

As we have written before, one of the new owners of Battersea Power Station, Sime Darby, is one of the worlds largest producers of Palm Oil and has been accused of illegal logging in the rain forest of Borneo and Sumatra as well as destroying the habitat of the endangered Orangutan.

The UK government has voted to offer subsides to power stations for the burning of large portions of palm oil and other biofuels. An increased demand for palm oil poses a big threat to rain forest and the Orangutans habitat.

Famous British author of fantasy novels, Terry Pratchett, visited Borneo in 1994 and fell in love with the Orangutans. Recently he returned for a BBC-documentary, Terry Pratchett: Facing Extinction, to see how the orangutans turned out.

To see what effects palm oil-plantations have on these endangered animals, please watch Terry Pratchett: Facing Extinction.

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Is the new Power Station scheme to change people’s quality of life?

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Rob Tincknell was interviewed in The Standard, Hong Kong’s biggest circulation English daily, about the plans for Battersea Power Station earlier this month. The power station was bought by three Malaysian companies, SP Setia, Sime Darby and Employee’s Provident Fund, in June last year. Tincknell said that the Malaysian’s vision for the site is better and different from the previous schemes, since this one is bigger and it is going to influence people’s quality of life.

Tincknell failed to mention that people’s quality of life is not only going to change for the better. Like we have mentioned before, many in the nearby communities are people on low incomes, and with a luxury estate just across the road from their homes the rents will rise and their quality of life will get worse.

Developers who want to attract really wealthy buyers have to build super-size apartment buildings with flats bigger then 6,000 square feet. The new penthouses in Battersea are planned to be 8,000 square feet, a size aimed to appeal more to the rich rather then the members of the Battersea community.

Tincknell also mentioned that no other plans have had a good solution to the public transport, but this scheme is planning to extend the Northern Line with public money, a 1 billion loan from UK government to Transport for London.

Two things are interesting with this statement. First of all, the previous owners of Battersea Power Station, who Tincknell also worked for, were the one’s who planned the extension of the Northern Line. Second, the owners were also suppose to pay for the extension as a contribution towards section 106- planning gain. Somewhere down the line the private-funding of the underground extension has turned in to a public-funding.

In the end Tincknell said that tourists want to come and see things that are authentic, and he means that the Power Station surrounded by ugly new buildings will give “authenticity” to the place. The only question is, will Battersea Power Station survive after its chimneys have been taken down to be rebuild, and how much of its authenticity will it be able to keep?

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“New” idea to turn Battersea Power Station in to a rollercoaster


The “new” idea of a roller coaster wrapped around the power station.


A similar idea but from 1988

Wired Magazine wrote earlier this week about who the Architecture firm Atelier Zündel Cristea (AZC) had won a competition hosted by ArchTriumph. The competition was to use the Power Station as inspiration to imagine a new Museum of Architecture.

AZC idea was to build a roller coaster around the Power station, add some new floors, have galleries inside and use the roof for exhibitions on architecture.

The idea of turning the Power Station into a roller coaster is not new. It is an old idea from Margaret Thatcher’s eighties that thankfully never happened.

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Palm oil biofuel is endangering the homes of Orangutans

The UK Government are proposing to support the burning of 500,000 tonnes of bio liquid per year in power stations. The largest part of this fuel will be palm oil, since it is the cheapest vegetable oil. One such Combined Heat and Power Station is planned for the Battersea Power Station site.

Even though some bio liquids can be good and environmentally friendly, the use of palm oil ruins the rainforest and the home of orangutan, an animal that today is nearly extinct.

We have written before how Sime Darby, new owners of Battersea Power Station, have carried out illegal logging in rain forests and endangered the homes of orangutans. So Sime Darby, with their production of palm oil,  is not only a threat for Battersea Power Station, but also for orangutans, the rainforest and in the end our environment.

 

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Should We Trust Sime Darby with Battersea Power Station?

The Malasian company Sime Darby is one of the worlds largest producers of Palm Oil. They also make up 40% of the comglomerate which now owns and is redeveloping the Batersea Power station and surounding area.

The company has been surrounded by controversy over its ethical practices. According to a recent Friends of the Earth report Sime Darby has carried out illegal logging in the rain forests of Borneo and Sumatra, home to endangerd speicies such as the Orangutan, to make way for palm oil plantations.
Sime Darbys Palm Oil opperations in Liberia are equally dubious with the company accused of swallowing up farmlands and forests used by local communities to sustain their livelihoods.
The company has been exposed for running an aggressive Greenwash campaign to try and “counter the negative perceptions surrounding the Palm Oil Industry”. The campaign involved the funding of a series of TV shows which were shown on CNBC and the BBC. The films where presented as current affairs when in fact the company which produced them; the FBC Group (ironically standing for Fact Based Media), where in the pay of Sime Darby and the Malaysian government.

Sime Darbys track record show it to be a company with little concern for local communities or the environment. They are driven only by profit and to this end will spend millions to appear “ethical” and “Sustainable” whilst continuing with business as usual. This film asks if we should trust such a company with the redevelopment of one of Britain’s most famous and Iconic buildings.

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Battersea Bulletin 28 – FoE claim Sime Darby, Malaysian co-owner of Battersea Power Station, involved in illegal logging

 Sime Darby, a member of the Malaysian consortium
which recently took over Battersea Power Station, has
been involved in illegal logging in the rain forests of
Malaysia and Indonesia, according to a 2010 report by
Friends of the Earth, ” ‘Sustainable’ palm oil driving deforestation. Biofuel crops, indirect land use change and emissions”, Friends of the Earth Europe, 2010

Download pdf Battersea_Bulletin_28

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