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Date:  Wed, 14 Apr 2004 16:27:37 +0900
From:  Mekong Watch <info@mekongwatch.org>
Subject:  [catfish 00016] JBIC STUMBLES INTO IMPLEMENTATION OF ENVIRONMENTAL GUIDELINES
To:  catfish@mekongwatch.org
Message-Id:  <200404140727.i3E7RZfr017228@smtp3.dti.ne.jp>
X-Mail-Count: 00016

Mekong Watch CATFISH TALES

TOPIC:  JBIC STUMBLES INTO IMPLEMENTATION OF ENVIRONMENTAL GUIDELINES:

Date: 14 April 2004


JBIC STUMBLES INTO IMPLEMENTATION OF ENVIRONMENTAL GUIDELINES:
       --LACKS RESOURCES TO RELEASE INFORMATION IN ENGLISH?--

The Japan Bank for International Cooperation (JBIC) has yet to live up to 
its responsibility to provide important information to stakeholders in 
spite of its professed commitment to do so under its new Environmental 
Guidelines.

JBIC's new Environmental Guidelines, adopted in April 2002, went into 
effect in October 2003 (see Catfish Tales #1 and #14 for more 
information).  Though the Guidelines are now in effect, JBIC is not 
releasing the information it should, and it is not implementing the 
guidelines appropriately.  NGOs that participated in consultations to 
develop the Guidelines are unhappy that their successful efforts to include 
progressive provisions in the Guidelines have thus far been negated by 
JBIC's poor implementation.

Of the various Official Development Assistance (ODA) schemes, JBIC is 
responsible for Yen Loans, and also provides import and export credits to 
Japanese corporations (non-ODA international financing).  JBIC is the 
world's largest international finance institution, and its new Guidelines 
cover both its yen loan and international financing operations.  The 
Guidelines commit JBIC to proactive information disclosure, and a 
complaints mechanism called the Objection Procedures was also established 
under the Guidelines.  For this, JBIC (as an export credit agency) is being 
heralded as cutting edge.

Unfortunately, JBIC is already stumbling over its commitments in the 
Guidelines.


INFORMATION ONLY IN JAPANESE

According to the Guidelines, JBIC welcomes information provided from 
stakeholders and releases information regarding projects it is considering 
financing so that stakeholders can contact JBIC with concerns as early as 
possible.  Certain types of information are uploaded on JBIC's website 
immediately after screening projects it is considering funding and 
categorizing them according to the degree of anticipated 
environmental/social impacts.

At present, however, JBIC is providing this information only in 
Japanese.  While English is also a barrier to accessing information for 
many local NGOs and project affected people, making information available 
only in Japanese makes it nearly impossible for them to get the information 
they need-unless they or people they know have Japanese language capacity.

Also according to the Guidelines, after a decision has been made to finance 
a project, the results of JBIC's environmental review of the project are 
put on JBIC's website.  This information is important in order to ensure 
the accountability of JBIC's environmental reviews, and is essential 
information in the event that stakeholders would choose to use the 
Objection Procedures.  However, this information is also being provided 
only in Japanese.


OTHER CONCERNS

In addition to the above, other concerns regarding JBIC's implementation of 
the new Guidelines are as follows:

*JBIC's website is supposed to list whether or not JBIC has received 
documents related to social and environmental considerations, such as 
relocation plans.  While JBIC will provide this information regarding 
Environmental Impact Assessments and EIA Certificates, information on 
relocation plans and other documents is not being disclosed on the 
website.  A JBIC official has explained that JBIC does not intend to put up 
this information after all.

*Not only are results of environmental reviews being provided only in 
Japanese, the only information available is a 1-2 page summary.  There is 
no explanation of how JBIC responded to any concerns raised by stakeholders 
and other parties outside JBIC.

*In meetings between NGOs and JBIC regarding problems with specific 
projects, only the department responsible for overseeing investment attends 
the meetings.  Officials responsible for examining environmental concerns 
do not attend.

*JBIC does not respond in writing to concerns raised or information 
provided by stakeholders in writing.

The most progressive provisions in the Guidelines are regarding information 
disclosure and encouraging stakeholders to provide JBIC with 
information.  These provisions are also essential to prevent damage to 
environments and livelihoods from JBIC projects.  The fact that these 
promises are not being kept, now that the Guidelines are actually in 
effect, is evidence of JBIC's lagging commitment in using the Guidelines to 
prevent damage from occurring as a result of its projects.

At a regular meeting between JBIC and NGOs on February 26, Mekong Watch and 
other NGOs pointed out these problems and called for them to be 
resolved.  At this meeting, Mr. Yoshio Wada, the director of a division in 
JBIC's Development Assistance Strategy Department, made inadequate excuses 
such as "providing information in English requires too many 
resources."  NGOs can only conclude that JBIC is not interested in 
resolving the remaining problems-especially considering that much of the 
information put on JBIC's website in Japanese is originally provided by 
recipient governments in English.


NGO ACTION-PROVIDING INFORMATION IN ENGLISH

NGOs must continue to push JBIC to be more responsible by raising these 
issues with the Finance and Foreign Affairs Ministries (which oversee JBIC).

As a result of JBIC's failures in the above-mentioned areas, Japanese NGOs 
are establishing our own website to provide the information that JBIC 
should be.  Information available in Japanese regarding JBIC projects that 
are expected to have significant environmental and social impacts will be 
put up in English on our website at  <www.jbic-watch.net>.  This website 
will be operational at the end of April 2004. 


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