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US-backed Mexico dam project triggered protest, rare defeat

In this Nov. 4, 2014 photo, a fisherman works in the waters of the "Cerro the Oro" dam in the town of Tuxtepec, Mexico. When the U.S. government backed construction of a new hydroelectric plant in southwestern Mexico, residents rose up and defeated a three-year, $30 million project supported by the little-known Overseas Private Investment Corp. in Washington. It marked a rare instance of a community fighting off development in a country where projects are often pushed through over local objections. (AP Photo/Felix Marquez) In this Nov. 4, 2014 photo, a fisherman works in the waters of the "Cerro the Oro" dam in the town of Tuxtepec, Mexico. When the U.S. government backed construction of a new hydroelectric plant in southwestern Mexico, residents rose up and defeated a three-year, $30 million project supported by the little-known Overseas Private Investment Corp. in Washington. It marked a rare instance of a community fighting off development in a country where projects are often pushed through over local objections. (AP Photo/Felix Marquez)

By Associated Press January 30, 2015 1 min read

SANTA URSULA, Mexico (AP) – When the U.S. government backed construction of a hydroelectric plant in southwestern Mexico, it envisioned a project that would power the community and stir the economy in Oaxaca state. Yet to residents, the project near the Cerro de Oro dam stirred painful memories and fresh fears.

They rose up and defeated the three-year, $30 million project supported by a little-known U.S. government agency, the Overseas Private Investment Corp. It’s a rare instance of a community fighting off development in a country where projects are often pushed through over local objections.

The fight opened a window into the impacts that residents sometimes encounter in developments backed by a U.S. government agency with a global mission. In Mexico, OPIC provided an $8.5 million loan guarantee for the project.