20 81 Hydroelectric Project of the Bayano.” To this end, Cabinet Decree 156 of July 8, 1971, was promulgated, by which the State established a Special Fund for Compensation to help the Indigenous of 82 Bayano. The IACHR notes, in relation to the reason why the payment of economic compensation was established, that the fourth considering paragraph of that decree established: “The move to new areas implies for the indigenous great efforts, accompanied by considerable economic outlays, all of which 83 justifies, for reasons of humanity, the assistance that the State agrees upon to benefit them.” 83. According to Article 2 of Cabinet Decree 156, the Special Fund would be constituted by 30% of the total revenues of the State Forestry Fund (Fondo Forestal del Estado), as of January 1, 1971, and by those that come in as of the promulgation of said Decree and for the three subsequent years. These revenues would be obtained from the permits or concessions granted by the Forestry Service of 84 the Ministry of Agriculture for the extraction of timber in the area of the Indigenous Reserve of Bayano. As for the conditions in which the payment must be made, Article 3 established that the Forestry Service of the Ministry of Agriculture would deliver the corresponding amount to the officially recognized 85 representatives of the indigenous every six months, beginning on June 30, 1971. 84. In addition, the State made a commitment to the Kuna of Madungandí and the Emberá of Bayano to grant individual monetary compensation that would cover the crops lost and the burden of 86 relocation. The payment was to be made monthly for three years. 85. In 1972 the State initiated the construction of the Bayano Hydroelectric Complex, which 87 culminated on March 16, 1976. In March 1973, when the construction was already under way, the Institute of Hydraulic Resources and Electrification (hereinafter “IRHE”) created an emergency project for the Bayano, temporary in nature, for the purpose of “keeping the residents of the basin from leaving in a 88 disorderly and uncontrolled manner when the moment of the flooding arrives.” 86. Once construction of the hydroelectric dam began, the residents were opposed to leaving 89 the zone. To address this situation, the State created the Bayano Integral Development Project, by 81 Annex 15. Second considering paragraph of Cabinet Decree 156 of July 8, 1971. Annex 10 to petitioners’ initial petition of May 11, 2000; and Annex 3 to the State’s communication of June 29, 2001. 82 In particular, the first article provided as follows: “Hereby established within the Forestry Fund of the State shall be a Special Fund for Compensation and Assistance for the indigenous peoples who inhabit the area within the current Indigenous Reserve of Bayano and within the areas declared non-adjudicable by Cabinet Decree 123 of May, 1969” sic. Annex 15. Cabinet Decree 156 of July 8, 1971. Annex 10 to petitioners’ initial petition of May 11, 2000; and Annex 3 to the State’s communication of June 29, 2001. 83 Annex 15. Considering paragraphs of Cabinet Decree 156 of July 8, 1971. Annex 10 to petitioners’ initial petition of May 11, 2000; and Annex 3 to the State’s communication of June 29, 2001. 84 Annex 15. Article 2 of Cabinet Decree 156 of July 8, 1971. Annex 10 to petitioners’ initial petition of May 11, 2000; and Annex 3 to the State’s communication of June 29, 2001. 85 Annex 15. Article 3 of Cabinet Decree 156 of July 8, 1971. Annex 10 to petitioners’ initial petition of May 11, 2000; and Annex 3 to the State’s communication of June 29, 2001. 86 Annex 3. Alaka Wali, “Kilowatts and Crisis: Hydroelectric Power and Social Dislocation in Eastern Panama”, 26 Westview Press, Boulder, Colorado 1989. Annex 51 to petitioners’ initial petition of May 11, 2000. Annex 17. Sworn statement by the Kuna caciques. Annex 17 to petitioners’ initial petition of May 11, 2000. Annex 6. Informe Técnico Socio-Económico sobre la Indemnización e Inversión de la Comarca Kuna de Madungandí y de las Tierras Colectivas Emberá Piriatí, Ipetí y Maje Cordillera de 2002. Annex E to petitioners’ brief of January 19, 2007, received by the IACHR the same day. 87 Petitioners’ initial petition of May 11, 2000. pp. 11 and 16. Annex 1. Esther Urieta Donos, thesis “Ipeti-Choco: Una comunidad Indígena de Panamá afectada por una Presa Hidroeléctrica”. Universidad Veracruzana, School of Anthropology, 1994. p. 37. Annex C to Petitioners’ brief of additional observations on the merits, received by the IACHR December 18, 2009; State’s brief of March 24, 2011, received March 25, 2011. 88 Annex 1. Esther Urieta Donos, thesis “Ipeti-Choco: Una comunidad Indígena de Panamá afectada por una Presa Hidroeléctrica”. Universidad Veracruzana, School of Anthropology, 1994. p. 40. Annex C to Petitioners’ brief of additional observations on the merits, received by the IACHR on December 18, 2009. 89 Expert Ultiminio Cabrera Chanapi stated: “The indigenous communities had no recourse but to relocate since the water was already rising, and there was nothing they could do but relocate to another site.” IACHR, Public hearing, March 23, 2012 on Continúa…

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