Mekong Watch CATFISH TALES
1 July 2002 Issue #3
CONTENTS
1. NOTE FROM THE EDITOR: FORMAT FOR CATFISH TALES AND CALL FOR FEEDBACK
Welcoming suggestions from readers.
2. MDB POLICY NEWS: PUBLIC CONSULTATION ON THE INSPECTION FUNCTION HELD
IN TOKYO (11 JUNE 2002)
Background explanation of ADB inspection function. Summary of
Tokyo NGO input into ADB public consultation. Concerns raised included
needs for (a) permanent inspection panel, (b) problem-solving mechanism,
(c) guarantees for panel field visits, (d) accepting claims in local
languages, and (e) suspension/cancellation of loans during inspection.
3. MDB POLICY NEWS: ADB AND ASSISTANCE TO BURMA--JAPAN'S POSITION (24
June 2002)
Japan's Ministry of Finance says it sees no immediate change in
ADB's position on Burma. Gives no specifics on Japanese Executive
Director's position. Summary of discussion between officials at MOF and
NGOs on the position of Japan on ADB operations in Burma provided.
4. PROJECT UPDATE: ON NUT SOLID WASTE MANAGEMENT PROJECT, THAILAND (17
JUNE 2002)
JBIC targeted during "Global Day of Action Against Waste
Incineration" for involvement in export of dirty technology to other Asian
countries. JBIC financed an initial study for a waste incineration plant
in On Nut, Thailand. Study not yet disclosed. NGOs concerned about toxic
pollution from the plant and impacts on Bangkok.
5. JAPANESE ODA: LIST OF PROJECTS IN MEKONG REGION (JANUARY-JUNE 2002)
A list of grant and loan projects in Mekong countries for which
E/Ns have been signed this year. Grants total 12.781 billion yen, Loans
total 69.746 billion yen.
6. TO SUBSCRIBE / UNSUBSCRIBE
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1. Note from the Editor
Hello friends. Thank you to those who have given us feedback about Catfish
Tales. In response to requests, we are adding a short description of each
topic in the Contents. If you have any recommendations to make this
newsletter more reader-friendly, interesting, useful please do not hesitate
to send in your comments to <mekong-w@co.xdsl.ne.jp>.
Thank you!
Tamaki Ohashi
Mekong Watch Japan
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2. MDB Policy News: ADB PUBLIC CONSULTATION ON THE INSPECTION FUNCTION
HELD IN TOKYO
BRIEF BACKGROUND EXPLANATION OF ADB INSPECTION FUNCTION
The ADB inspection function was established in 1995 with two main
objectives. One was to address the concerns of local people regarding ADB
financed projects. The other was to conduct independent investigations of
whether or not the ADB was following its own policies or not
(compliance). By 2000, no inspections had been conducted. Two requests
had been made for an inspection, but they were rejected by the ADB. There
were many ADB projects which caused environmental and social damage. The
small number of requests for inspection was largely because ADB outreach
was not enough and the procedure is complicated and difficult to understand.
The first case to be accepted for inspection was the Samut Prakarn
Wastewater Management Project in Thailand. The ADB Board approved it on 10
July 2001. A Panel was chosen from a roster of candidates, but the Panel
members were not able to visit the Samut Prakarn site due to resistance
from the Thai Government. The Panel wrote its findings from the
information it was able to collect without a field visit, and found that
seven ADB policies had indeed been violated and recommended measures the
ADB should take to address the violations and the concerns from the local
community. The findings of the Panel, however, were overturned by the Bank
Management, and the Board Inspection Committee wrote a final report which
neglected to recommend that the ADB Board acknowledge the policy violations.
Stakeholders both inside and outside the ADB are dissatisfied with the
current inspection function. There is a general consensus that the
inspection function does not fulfill either of its 2 objectives.
The ADB began its review of the inspection function at the end of last
year. Its first working paper was released in early May. For more details
on the ADB and the inspection function review process, please see the ADB's
website <http://www.adb.org/Inspection/review.asp>.
TOKYO CONSULTATION
On 11 June 2002, the Asian Development Bank (ADB) held its first public
consultation on its inspection function in Tokyo. This was the first of a
series of consultations which will be held over the next 2 months.
The Tokyo consultation was attended by Japanese ministry officials,
Japanese NGOs, and the private sector. It was an opportunity for Japanese
NGOs to raise their concerns about the ADB's inspection function. (For
those who need a brief explanation of the ADB inspection function and the
background of the consultations, please see the explanation provided below).
Points raised by Japanese NGOs:
a. Permanent ADB Inspection Panel needed -- Currently, the ADB chooses new
panelists from a roster each time a case is accepted for inspection. The
absence of a permanent panel prevents institutional learning and makes it
impossible for trust building between the panel and civil society. Due to
the current role of the Board Inspection Committee, the panel's
independence is undermined, and NGOs recommended that this Committee be
dissolved when the inspection function is reformed.
b. Problem-Solving Mechanism necessary -- The current inspection function
is a mechanism to investigate policy violations, but has no mechanism to
address (and redress) social and environmental problems on the ground.
c. Panel Field Visits must be Ensured -- In the Samut Prakarn case, the
Inspection Panel was unable to make a field visit due to the resistance by
the Thai government. This problem needs to be addressed during reform of
the inspection function.
d. Local Languages must be allowed -- Currently, requests for inspection
are accepted by the ADB only in English. This makes it very difficult for
local communities to file for inspection. It is also very difficult for
communities to obtain and understand the policies of the ADB and
specifically identify which ones have been violated.
e. Suspension/Cancellation of loans should be possible -- When the
inspection of the Samut Prakarn case was finished in March 2002, the
project was 90% complete. This has led to questioning of the effectiveness
of the Panel's findings and the Board's decisions. Measures must be
implemented to enable suspension or cancellation of loans during the
Inspection process.
At this point, it is not clear what the ADB's position is or how it will
incorporate the interventions from civil society. It has been reported
that some senior ADB staff and many governments of developing countries
would like to see the inspection function weakened or abolished.
OPPORTUNITIES FOR INPUT INTO REVIEW PROCESS
There are still opportunities for civil society to influence the reform of
the inspection function. The ADB is accepting written comments from the
public. The first working paper on reforming the inspection function can
be seen at < http://www.adb.org/Inspection/draft.pdf >. The second working
paper will be released at the end of July, and the final paper will be sent
to the Board for review in September.
After the Regional Consultation in Manila (20-21 June 2002), there are four
more consultations to be held in August in Phnom Penh, Kathmandu, Beijing,
and Sydney. (For exact dates and contact person at the ADB,
see
http://www.adb.org/documents/events/2002/inspection_function/frankfurt/consu
ltations.pdf)
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3. MDB Policy News: ASIAN DEVELOPMENT BANK and AID TO BURMA-- JAPAN'S
POSITION?
In an interview with Raj Nag of the Asia Development Bank's Mekong
Department (by Owen Brown for the DowJones Newswires, 9 May 2002), Nag said
that the Mekong Department hopes to begin updating its knowledge base on
Burma in preparation for resumed development assistance. While he gave no
indication of when the Board of the ADB might make such a decision, or what
factors are involved in such a decision, he himself seemed to feel a need
to prepare as soon as possible in the event that such a decision is made.
The article also sited the Japanese government as being a strong supporter
of resuming economic assistance to Burma. Concerned about this position,
Mekong Watch inquired to the Ministry of Finance about this.
At a regular meeting between NGOs and the Japanese Ministry of Finance, we
raised ADB assistance to Burma as one agenda item. The questions we raised
were:
1. What has been the position of the Japanese government/Executive
Director regarding assistance to Burma in the past?
2. In light of recent political changes in Burma (especially Daw Aung San
Suu Kyi's release from house arrest), has the Japanese government/ED's
position changed?
3. Are there specific criteria that the Japanese government wants to have
met before ADB resumes assistance to Burma?
4. From the Japanese Government's perspective, is Burma close to
fulfilling those criteria?
5. What would be priorities for ADB assistance to Burma (eg:
infrastructure, humanitarian assistance, technical assistance)?
The response from the Ministry of Finance was basically that nothing has
been determined yet in terms of resumption of aid to Burma, and they did
not anticipate a change in the situation soon. There are a few reasons for
this.
First, there has been no official request for aid made by Burma. Without an
official request, there will not be a resumption of aid.
Second, in order to give aid, there needs to be a survey done to determine
the most effective way to supply assistance and develop an Operational
Strategy for Burma. Now, there is no Operational Strategy.
Third, Burma still has outstanding loans to the ADB, and until a plan can
be made for repayment, it will be difficult for the ADB to supply new loans.
Political progress was also mentioned as necessary for ADB operations in
Burma to resume. For example, Daw Aung San Suu Kyi's freedom to travel and
conduct political activities could be one factor.
When asked whether Japan's position on this issue in the ADB would be
determined mostly by the Ministry of Foreign Affairs (as a diplomatic
issue) or by the Ministry of Finance (as the Ministry responsible for
Japan's activities in the ADB), we were told that the decision would be in
consultation with the Ministry of Foreign Affairs. This issue is both a
diplomatic and economic one, so MOF and MOFA would discuss the issue before
determining the stance of the Japanese Executive Director to the ADB when
it comes time to discuss resumption of aid.
We were then asked what we thought about the resumption of ADB aid to
Burma. Yes or No? We responded that no, it was not time to resume ADB
operations in Burma due to two main factors.
1. Commitment by the military regime to political transition is still not
evident. We are not aware of any progress in discussions between the
military regime and the NLD since the release of Daw Aung San Suu Kyi, and
escalation of conflict on the Thai-Burma border seems to be an excuse not
to proceed with the talks. It would seem that the regime is more
interested in prolonging the transition process than bringing it forward.
2. In order for the ADB to formulate an effective Operations Strategy, and
in order to make development plans, public participation is a key
element. The situation in Burma now does not allow people to freely
express their opinions, and any objections to a plan which could be
interpreted by the regime as an obstruction to aid could be punished. If
the ADB is prepared to impose strict conditions which would guarantee that
there is transparency in how money is used, that people are free to express
their opinions without fear of retribution, and to monitor that the
conditions imposed are strictly implemented, then certain programs could be
considered. But we are not hopeful that the ADB has the capacity to
implement and follow-up on measures to guarantee that program objectives
are actually met and human rights are respected.
Depending on how soon there is change in the ADB and in Burma, this could
be the first in a series of discussions on ADB operations in Burma.
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4. Project Update: ON NUT SOLID WASTE MANAGEMENT PROJECT, THAILAND
June 17 was the first "Global Day of Action Against Waste
Incineration." 126 NGOs from 54 counties took action to protest against
dirty incineration technology and called for more sustainable waste systems.
In Japan, several NGOs and grass roots groups opposed to waste incineration
organized a public seminar to share experiences of environmental and health
problems caused by incinerators. They also visited companies which have
promoted incineration technology.
The Japan Bank for International Cooperation (JBIC) was one of the targets
of global actions because it has promoted the export of dirty technology to
other Asian countries. Japanese incineration industries have exported
several incineration plants to east and southeast Asia, mainly to Korea and
Taiwan, but also to China, Singapore, Malaysia and Thailand. For example,
Mitsubishi Heavy Industry and NKK exported incineration plants to Phuket
Island and Samui Island respectively. Both plants have polluted the soil
around the incinerators, according to a report from an NGO.
In 2000, JBIC financed a study of an incineration project in Bangkok,
promoted by the Bangkok Metropolitan Administration. The study aimed to
review the existing master plan and feasibility study of the On Nut Solid
Waste Management Project. The proposed project is to build a 1350 ton/day
incineration plant in On Nut, in the southeast part of Bangkok. The study
was financed under the scheme called Special Assistance for Project
Formulation (SAPROF), which will lead to a Yen Loan project. In response to
this study, some local NGOs have raised their concerns about the project.
Greenpeace Southeast Asia Toxic Campaigner Tara Buakamsiri said in a press
release, "If this incinerator is built, it will release massive amounts of
toxic chemicals over the people of Bangkok. The newly-elected BMA
councilors should immediately turn down the proposal to build this cancer
factory. "
Local people are also concerned about the impacts of the incinerator on
their livelihood, because many residents in On Nut make their living by
collecting the garbage and selling the valuables.
The first phase of the study was completed last year, but the report has
not yet been disclosed. JBIC and BMA are still negotiating for further study.
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5. Japanese ODA: LIST OF PROJECTS IN THE MEKONG REGION
Below is a list of grant and loan projects for which Exchange of Notes
(E/N) have been signed this calendar year between the Japanese government
and recipient countries in the Mekong Region. On the website of the
Ministry of Foreign Affairs, you can find a complete list for all
countries. http://www.mofa.go.jp/policy/oda/note/index.html
E/N list for GRANT AID (1 January - 14 June 2002)
BURMA
1. The project for Rehabilitation for Baluchaung No.2 Hydro Power Plant
628 million yen (10 May 2002)
2. The Project for Improvement of Medical Equipment for Hospitals in Yangon
792 million yen (22 April 2002)
3. The supply of Japanese language learning equipment to the University of
Foreign Languages, Yangon
35 million yen (29 March 2002)
4. The Project for Human Resource Development Scholarship
203 million yen (15 January 2002)
TOTAL: 1.658 billion yen (approx: US$13.264 million)
CAMBODIA
1. The supply of TV programs to the National Television of Cambodia (TVK)
38 million yen (13 June 2002)
2. The project for Rural Drinking Water Supply in Peri-Urban of Phnom Penh
City
784 million yen (13 June 2002)
3. The project for Improvement of Equipment for Demining Activities (Phase
III)
798 million yen (13 June 2002)
4. The Project for Expansion of Electricity Supply Facilities in Siem Reap
2.131 billion yen (23 May 2002)
5. The Project for Reducing Infant and Child Mortality and Morbidity in
the Kingdom of Cambodia (through UNICEF)
308 million yen (22 March 2002)
6. Food Aid
2.5 billion yen (26 February 2002)
7. The Project for Flood Protection and Drainage Improvement in the
Municipality of Phnom Penh -Detail Design
66 million yen (6 February 2002)
TOTAL: 6.625 billion yen (approx: US$53 million)
LAOS
1. The Project for Rehabilitation of the Nam Ngum I Hydropower Station
1.204 billion yen (16 May 2002)
2. Food Aid
380 million yen (8 April 2002)
3. The Project for Malaria Control (Phase 2) and Parasitic Diseases Control
305 million yen (27 March 2002)
4. Grant Aid for Debt Relief
82 million yen (6 March 2002)
5. The Project of Preparation for Conservation of Vat Phou Archaeological
Site
244 million yen (25 January 2002)
6. Grant Aid for Debt Relief
53 million yen (23 January 2002)
TOTAL: 2.268 billion yen (approx: US$18.144 million)
VIETNAM
1. The project for Procurement of Bush Cutter and Related Equipment for Ho
Chi Minh Highway Project
1.454 billion yen (22 April 2002)
2. The project for Reconstruction of Bridges in the Central Area of Viet Nam
739 million yen (29 March 2002)
3. The supply of micrographic equipment and equipment for restoration of
historical documents to the State Archives Department of Vietnam
47 million yen (5 February 2002)
TOTAL: 2.240 billion yen (approx: US$17.92 million)
E/N LIST OF LOAN PROJECTS (1 January - 14 June 2002):
THAILAND
1. Transmission System and Substation Development Project (Seventh Stage
Phase II)
2.326 billion yen (28 March 2002) (approx: US$18.608 million)
VIETNAM
1. O Mon Thermal Power Plant and Mekong Delta Transmission Network Project
(II)
15.594 billion yen (29 March 2002)
2. Hai Van Pass Tunnel Construction Project (III)
3.359 billion yen (29 March 2002)
3. Red River Bridge Construction Project (II)
14.863 billion yen (29 March 2002)
4. Saigon East-West Highway Construction Project (II)
10.926 billion yen (29 March 2002)
5. Tan Ton Nhat International Airport Terminal Construction Project
22.768 billion yen (29 March 2002)
TOTAL: 67.51 billion yen (approx: US$540.08 million)
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