Mekong Watch CATFISH TALES
5 November 2002 Issue #7 (13 November 2002)
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CONTENTS
1. JAPANESE POLICY NEWS: JBIC and JICA NOW SUBJECT TO NEW INFORMATION
DISCLOSURE LAW. 1 October 2002.
Japan's implementing agencies of ODA are now subject to the information
disclosure law. Though obstacles to transparency of JBIC and JICA
operations remain, it is expected that the information disclosure law will
help to facilitate people's understanding of JBIC and JICA's role and work
in ODA operations.
2. JAPANESE POLICY NEWS: COMPLAINTS PROCEDURE FOR JBIC's ENVIRONMENTAL
GUIDELINES STILL NEED IMPROVEMENT. 31 October 2002.
Though improvements have been made over the initial draft of the
complaints procedure for JBIC's new environmental guidelines, there are
still concerns regarding information disclosure and limitations on when
complaints will be accepted.
3. PROJECT MONITORING: TA TRACH DAM PROJECT (VIETNAM) SAPROF I STUDY
FINISHED. 11 October 2002.
A JBIC-financed supplementary study of environmental and social impacts
expected from the Ta Trach Dam Project has been completed. It is unclear
how much information from the process of the study will be disclosed.
4. MEKONG WATCH E-MAIL/WEBSITE
NEW! We have just put up a new English website.
5. TO SUBSCRIBE AND UNSUBSCRIBE
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1. JAPANESE POLICY NEWS: JBIC and JICA NOW SUBJECT TO NEW INFORMATION
DISCLOSURE LAW
On 1 October 2002, a new law entitled the "Law Concerning Access to
Information Held by Independent Administrative Institutions" went into
effect. As a result, information held by the Japan Bank for International
Cooperation (JBIC) and the Japan International Cooperation Agency (JICA)
are now subject to subject disclosure.
Japan is one of the world's largest providers of ODA, and much of this ODA
has been lacking in transparency and accountability. One reason for this
is due to the fact that accessing information from the Japan Bank for
International Cooperation (JBIC) and the Japan International Cooperation
Agency (JICA) has been incredibly difficult. These institutions are
largely responsible for financing and overseeing the implementation of ODA
loans, grants, and technical assistance. JBIC is also Japan's export
credit agency. Because these institutions have not been subject to
regulations related to public access to information, they have often
ignored the voices of those who requested information.
In April 2001, a similar information disclosure law went into effect for
government ministries and agencies. JBIC and JICA, however, were not
subject to this law. In the Japanese ODA system, however, it is JICA and
JBIC who hold most of the specific information regarding ODA projects. The
information held by the supervising ministries (such as the Foreign and
Finance Ministries) is actually limited. Due to this problem, strong
demands were made for an information disclosure law which would apply to
these institutions as well.
With the new law in effect as of October 2002, written requests for
information can be submitted to JBIC and JICA, and in principle, these
institutions must disclose the requested information. There are some
documents, however, which are exempt from disclosure if they are found to
meet certain criteria. Such criteria includes information which, if
disclosed, would damage the relations between Japan and other
countries. Information which would detract from neutrality of
decision-making may also be kept confidential.
The interpretation of these criteria are a concern, especially when
examining the response to information disclosure requests by the Japanese
Foreign Ministry, one of the supervising ministries of JBIC and
JICA. Under the earlier information disclosure law enacted on 1 April
2001, the Ministry of Foreign Affairs (MOFA) and other Japanese ministries
must respond to requests for information disclosure. In fiscal year 2001
(1 April 2001 - 31 March 2002), MOFA received 2000 requests through the
information disclosure law. Of these, 867 requests were denied
(43.4%). Only 254 requests (12.7%) were disclosed in full, and 879 (44%)
were partially disclosed. It is interesting to note that the overall figure
for information disclosure of all ministries and agencies combined is about
90% (including both full and partial disclosure). MOFA plays a
disproportionately large part in rejecting requests for information
disclosure.
There are many issues which remain to be addressed, even with the new
law. Requests for information must be submitted in Japanese, and requests
for information cannot be submitted to JBIC and JICA's overseas
offices. In addition, if the government of a country receiving ODA objects
to the disclosure of information, it can remain undisclosed. There is
still a long way to go before ODA will be truly accountable to local
communities of countries receiving ODA.
This said, this law will also enable public access to many documents which
have never been made public before. Mekong Watch will also be submitting
many requests to JBIC and JICA for information relevant to development
projects in the Mekong Region. In addition, we would like to assist
communities in the Mekong Region to submit requests for information should
the need arise.
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2. JAPANESE POLICY NEWS: COMPLAINTS PROCEDURE FOR JBIC's ENVIRONMENTAL
GUIDELINES STILL NEED IMPROVEMENT.
In the last issue of Catfish Tales, JBIC had released its first draft of
the Complaints Procedure for its new Environmental Guidelines with many
very serious flaws. Since then, there have been a series of public
consultations, and a second draft was released 31 October 2002. Notable
improvements have been made, but 2 major concerns remain. These are the
duration in which JBIC will accept complaints and information disclosure.
After the release of the JBIC's first draft, the corporate sector and NGOs
submitted papers in response. These papers became the basis of discussions
at the public consultations held since then. The proceedings of the
consultations have also improved since they first began. Originally,
representatives of the corporate sector made interventions which opposed
the establishment of a complaints procedure, but this situation has been
remedied, and discussions have contributed to the revisions leading to the
second draft.
In the second draft, there are notable points such as acceptance of
complaints in the official language of the recipient country, and the
acceptance of complaints even during the monitoring phase after lending has
been completed.
Problems remain, however, mainly in regard to acceptance of complaints only
after loan agreements have been signed, and the degree of information
disclosure. Concerns regarding both these issues are now being raised not
only in the public consultations, but also by Members of Parliament in
various parliament committees.
Regarding the question of the duration in which complaints will be
accepted, the current proposed procedures allow complaints to be filed only
after loan agreements have been signed. JBIC's justification for this is
the Administrative Appeal Law upon which they base their
argument. According to this Law, complaints in domestic procedures can
only be filed against decisions which have been made. JBIC's decision as
an organization would be first embodied in a loan agreement. Anything
before then is still simply part of the process of coming to a decision,
and is thus beyond the scope of things subject to the complaints procedure.
JBIC's argument ignores the fact that one of the purposes of the complaints
procedure is to facilitate prevention of problems. Reflecting on the
history of international finance institutions, the need to allow complaints
to be filed prior to loan agreements is recognized by many, aside from JBIC
and the corporate sector. It should also be remembered that the results of
complaints proceedings are not legally binding, making it virtually
impossible to make changes in the contract (ie the loan agreement) for a
project even if non-compliance were to be found. It is therefore
inappropriate for JBIC to base its reasoning on the Administrative Appeal
Law.
Regarding information disclosure, the same Administrative Appeal Law is
used to justify disclosing only the results of Inspections of the
complaints filed. Other information during the process of decision-making,
such as notification of receipt of complaints, the decision on whether or
not to investigate the complaint, and the reasons for that decision will be
sent directly to the complainant, but will not be disclosed by JBIC
itself. The information specified for disclosure are the final report of
the Inspector, the Inspector's annual report, and the opinion of the
Investment and Finance Department of JBIC. As a result, it is likely that
inspections could be carried out, unknown to the public, until the process
is completed.
These two points will be discussed at the last public consultation to be
held on Nov 18. In the brief one week since the previous consultation,
Members of Parliament have on several occasions spoken strongly in favor of
allowing early filing of complaints and more complete information
disclosure. Such discussions have been held at a hearings of the Democratic
Party's Environment Subcommittee, the Foreign Affairs Committee of the
Lower House, the Environment Committee of the Upper House, and at a meeting
for members of GLOBE (Global Legislators' Organization for a Balanced
Environment). Concerns were also expressed in a non-partisan petition to
JBIC's president.
On the other hand, it is interesting to note that the Parliamentary
Secretary for the Foreign Ministry and the Councilor for the Finance
Ministry have made positive noises regarding the need to address these 2
points, responses quite different from JBIC's. As these are JBIC's
supervising Ministries, it is hopeful that improvements can still be made.
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3. PROJECT MONITORING: TA TRACH DAM (VIETNAM) SAPROF I STUDY FINISHED
The SAPROF I Study for the Ta Trach Dam Project (see Catfish Tales Issue #4
[15 July '02]) has been completed. This project is a plan for a dam on the
Huong River in Central Vietnam, mainly for the purpose of flood
control. The SAPROF I study financed by JBIC was to examine the
environmental and social impacts of the project, as well as some of the
geological concerns.
While it is commendable that JBIC is being cautious and conducting
supplementary studies on the social and environmental impacts that this dam
would have, there are some serious concerns regarding the quality of the
SAPROF I study. Major concerns include:
a. Insufficient investigation of downstream impacts, in particular on a
lagoon ecosystem at the mouth of the Huong River,
b. Local people have not been provided with enough information about the
risks that dams pose to their livelihoods and environments,
c. Important studies on preventative measures for floods in Central
Vietnam and the impacts of other dams in Vietnam have been conducted, but
they have not been reviewed by the SAPROF I team. Lessons from the past,
therefore, cannot be expected to be incorporated into the conclusions of
the SAPROF I study.
d. Alternatives to the Ta Trach Dam project have been examined with a
focus on flood control rather than disaster management.
The report of the SAPROF I study is expected to be completed by the end of
this month. It is expected that the final report of the study will be
disclosed. However, Mekong Watch is urging JBIC to ensure that all relevant
information leading to the conclusions made in the report will be disclosed
as well.
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4. MEKONG WATCH E-MAIL/WEBSITE
To facilitate better understanding of official Japanese involvement in
development in the Mekong Region, as well as the activities of Mekong
Watch, we have put up a new English website. It is still very basic with
many pages still under construction, but take a look, and keep an eye out
for additions!
http://www.mekongwatch.org/english/
Suggestions and questions are always welcome.
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