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dam-l LS: IRN response, Large Dams/Best Practices
INTERNATIONAL RIVERS NETWORK
1847 Berkeley Way
Berkeley CA 94703
September 9, 1999
Mr. Khalid Rahman
Manager Energy Sector (West)
Asian Development Bank
Fax: 632 741 7961
Dear Mr. Rahman
Re: Large Dams and Recommended Practices RETA
Thank you for your response to our letter of August 3, 1999, regarding the
ADB’s Study of Large Dams and Recommended Practices. Unfortunately, it
appears that the Bank has misunderstood the essential point being made in
the letter. That point is that the ADB has proceeded with this study in a
non-transparent and non-participatory manner. Nothing in your letter
indicates that the Bank has made any attempt to seek meaningful input from
NGOs and civil society. This is contradictory to the WCD process, and
reflects the process that is often followed in the planning and
construction of large dams. If one of the main problems with large dams is
replicated in a study to review the performance of large dams, the study
will obviously inspire little confidence amongst dam-affected peoples and
NGOs.
The following provides an illustration of how non-transparent the ADB
process has been. Some time ago one of our colleagues from India, Himanshu
Thakkar, Coordinator of the South Asia Network on Dams, Rivers and People
(SANDRP), contacted Michael Bristol, Project Officer at ADB, seeking more
information about this project. Mr. Bristol replied to Mr. Thakkar, asking
him to state who he was. After Mr. Thakker explained his position with
SANDRP, Mr. Bristol failed to respond again.
You mention that the TOR were provided to me for comment. Indeed they were,
because I happened to be in Manila making inquiries about the project at
the time that the TA paper was being prepared. However, I was given 48
hours to comment on the Terms of Reference, certainly not enough time to
share the paper with my colleagues. This is not consultation, and shows the
ADB in poor light if you consider it to be. A true consultative process
would make the TOR available to a wide array of concerned parties, with an
adequate period for comment.
As for the confusion relating to SEATEC and SEATEC International, we would
like to request details on the other projects that SEATEC have been
involved in in the region.
Under the circumstances, the best option before ADB would be to abandon
this study. Despite the ADB’s claims, the study is clearly contrary to the
spirit of the establishment and process of the WCD, and is therefore
inappropriate as a complement to the work of the WCD.
Yours sincerely
Aviva Imhof
South-East Asia Campaigner
cc Mr. Tadao Chino, President
ADB Executive Directors
US Treasury
Mr. Alastair North, AITA-NET
Achim Steiner, Secretary-General, WCD
______________________________
Letter from Mr. Rahman to IRN:
ASIAN DEVELOPMENT BANK, Manila
24 August 1999
International Rivers Network
1847 Berkeley Way
Berkeley CA USA.
Dear Ms. Imhof
Subject: TA 5828-REC: Large Dams and Recommended Practices
Kindly refer to your letter of 3 August 1999 addressed to President Chino,
on the above-captioned study.
Developing countries face major challenges in meeting their demand for
water and energy and controlling floods that periodically cause huge loss
of life and property contributing to increased incidents of poverty. In
evaluating the various options available for meeting these challenges the
possibility of constructing large dams and water reservoirs cannot be
ignored. There is however a need to analyze past experience in these areas
so that the benefits and costs may be assessed in as informed a manner as
possible.
Consultants for the above Study have been selected in a transparent manner
in accordance with the Bank's Guidelines. We would also like to clarify
that SEATEC, one of the selected Consultant, to the best of our knowledge,
is distinct from and has no connections with SEATEC INTERNATIONAL, who you
claim in your letter, to have done environmental assessments that were less
than satisfactory. The Panel of Experts for the Study, composed of
respected professionals, was selected after consultations within and
outside the Bank.
The Terms of Reference of the Study were provided to you for comment. We
expected that IRN and its 18 associates would use their wealth of knowledge
on the subject to provide constructive comments and guidance. However, you
chose not to.
We are disappointed by your decision not to cooperate with the Study team.
We feel constructive dialogue between the different parties is the best way
to serve the people who may be affected, achieve our common goal and avoid
misunderstandings as in the case of SEATEC.
The aim of the study is to broaden and deepen the analytic work on the
subject and complement the work of the WCD. The findings of the Study will
be provided to the WCD and those others interested and it will be up to
them to judge its value and make the best use of it.
We would appreciate if you would kindly forward a copy of this letter to
the following NGOs who had jointly signed your letter.
Sincerely yours,
KHALID I. RAHMAN
Manager, Energy West Division
_______________________
August 3, 1999 5 pages total
Mr. Tadao Chino
President
Asian Development Bank
Fax: 632 636 2001
Copies to: ADB Executive Directors, US Treasury
Dear Mr. Chino
Regional Technical Assistance Grant for the Study of Large Dams and
Recommended Practices (TAR: STU 32478)
We, eighteen NGOs working on large dams in Asia, write to you concerning
the above technical assistance grant, which was approved by the Bank in
December 1998. We understand that the purpose of this study is to develop
“recommendations, acceptable to the various stakeholders, on best practices
for the evaluation, design, construction, operation, and decommissioning of
large dams." We further understand that this study is intended to provide
input into the World Commission on Dams (WCD).
We wish to inform you that because this study has not been handled in an
open and transparent manner, we are unable to cooperate with the study team
or accept their conclusions. The reasons for us taking this position are
articulated below.
1. Poor process of approval and implementation
The study was originally proposed to fit into the World Commission on Dams
process, after the ADB informed the WCD that it could not directly finance
the activities of the WCD. ADB staff were informed by WCD representatives
in December last year that they did not believe that the study was
appropriate or necessary, yet the Bank decided to proceed nevertheless.
The Terms of Reference for the study were developed without any apparent
consultation with NGOs, and the ADB has made no attempt to proactively
inform NGOs of the study or its process of implementation. One NGO was
given the opportunity to comment on the draft technical assistance paper,
but only because a representative happened to be visiting the Bank’s
headquarters in Manila at the time.
The key to NGO participation in any study of this type is early involvement
in its development and full disclosure of information along the way. NGOs
and affected peoples must have a say in how the study is carried out, and
who is chosen to implement the study. The only reason NGOs have cooperated
with the WCD thus far is because it has been established through a
relatively transparent process of negotiation with civil society and
because the WCD has made a commitment to carry out its work in an open and
participatory manner. The way that the ADB has handled this study from the
beginning demonstrates the lack of understanding of Bank staff regarding
good process and an ignorance of what it takes to achieve acceptability
from NGOs and affected people.
2. Choice of consultants
We have recently discovered that consultants SEATEC International and
Lahmeyer, in association with AIT, have been awarded the contract for this
study. The TA paper states: “It is important that the consultants are
widely perceived as being free of vested interests, and this quality will
be taken into account in the shortlisting.” Yet the process of shortlisting
was undertaken in secrecy, without any consultation with NGOs or affected
communities.
SEATEC is a well-known dam industry consultant in Thailand. The company has
done many environmental impact assessments for controversial dam projects
in Thailand, such as Pasak dam, Pakpanang dam, Chao Phraya and Nan River
Embankment Project, and a thermal power plant in Prajuab Kirikhan, Southern
Thailand.
The company also did the Environmental Assessment and Management Plan for
the controversial Nam Theun 2 dam in Laos. The EAMP was discredited by two
independent reviewers who commented on the serious inadequacy of the EAMP’s
treatment of the issues of downstream impacts, water quality and cumulative
impacts. Both reviewers agreed that the negative costs of the project on
fisheries, riverine and wetland biodiversity, and local people (including
health impacts) would be far higher than stated in the EAMP. The World Bank
admitted that there were a number of pro-dam advocacy statements in the
initial draft of the EAMP that were inappropriate and that required
modification.
Lahmeyer has gained a reputation for unabashed support of controversial
hydropower projects worldwide. Their involvement and support for projects
such as Nam Leuk and Nam Theun 2 in Laos, Bakun Dam in Malaysia, Arun III
in Nepal, and Chixoy Dam in Guatemala has been severely criticized by
international human rights and public interest groups. Most recently,
Lahmeyer was implicated, together with eleven other international
dam-building companies, in a bribe scandal in which at least one top
official involved in the World Bank-financed Lesotho Highlands Water
Project received nearly US$2 million in bribes over ten years. Lahmeyer
reportedly contributed US$8674 to secure their involvement in the project.
(see attached article)
The ADB’s Guidelines for Procurement have recently been amended to include
a provision which states that "The Bank … will declare a firm ineligible,
either indefinitely or for a stated period of time, to be awarded a
Bank-financed contract if it at any time determines that the firm has
engaged in corrupt or fraudulent practices in competing for, or in
executing, a Bank-financed contract." (section 2.14).
We believe SEATEC and Lahmeyer have vested interests in ensuring that dam
projects continue to gain support from governments and multilateral
development banks. We are therefore unable to accept these companies as
legitimate and non-biased. There is also the outstanding question of
whether, given the corruption scandal involving Lahmeyer and the spirit of
the ADB’s anti-corruption policy, the company should be awarded a
Bank-financed contract.
3. Advisory Panel
The TA paper includes provisions for appointment of an Advisory Panel, the
purpose of which is to “provide quality control for the study” and “by
being independent, to ensure and to demonstrate that there is no bias in
the study from possible vested interests.” We understand that the Panel has
already been chosen. One of the Panel members is Martin ter Woort, who
works for Acres International, another of the companies implicated in the
Lesotho corruption scandal. Mr. ter Woort has been involved in developing
the Resettlement Action Plan for Nam Theun 2 dam in Laos, and therefore
cannot be considered independent and free from vested interests.
If the Bank wanted the Panel to ensure and to demonstrate that there is no
bias in the study, then it should have allowed nominations from NGOs and
affected peoples, and undergone a participatory process for selecting the
Panel.
4. Recommendations for best practice
As a result of the inadequacies in the way the Bank has chosen to handle
this study, we wish to inform you that we will not be able to accept the
recommendations on best practices that are being developed by the
consultants. If the ADB truly wants to adopt guidelines acceptable to all
interested parties, then it should commit to adopting the guidelines to be
developed by the WCD.
We hope that the ADB will attempt to learn from the mistakes it has made,
and will consider abandoning the study, rather than wasting public money on
a process that is flawed from the outset.
Please direct your reply to this letter to Ms. Aviva Imhof at International
Rivers Network,
fax: + 1 510 848 1008. Thank you for your attention to this matter.
Yours sincerely
Dr. Chusak Wittayapak,
General Secretary
Academics for the Poor, Thailand
Lina Cabaero
Campaigns Coordinator
AID/WATCH, Australia
Wanida Tantiwittayapitak,
Advisor
Assembly of the Poor, Thailand
Peter Bosshard
Berne Declaration, Switzerland
Owen J. Lynch
Senior Attorney
Center for International Environmental Law, USA
Dr. Chayan Vaddhanaphuti,
Director, Ethnic Studies Center
Chiang Mai University, Thailand
Aly Ercelawn and Mohammad Nauman
Creed Alliance, Pakistan
Hemantha Withanage,
Senior Environmental Scientist,
Environmental Foundation Ltd, Sri Lanka
Avi Mahaningtyas
Friends of the Earth International
Ikuko Matsumoto
Aid Reform Project Coordinator
Friends of the Earth Japan
Mr.Prasitthiporn Kan-onsri,
Coordinator
Friends of the People, Thailand
Aviva Imhof
South-East Asia Campaigner
International Rivers Network, USA
Mr.Suppachai Jarernwong,
Coordinator
Legal Aid for Marginalized People, Thailand
Mae Ocampo
Information/Liaison Officer
LRC-KsK/FoE Philippines
Mr. Jedsada Chotkitpivart,
Campaign Official
Northern Development Foundation, Thailand
Somchai Sirichai,
Chairperson
Northern Farmers Network, Thailand
Chainarong Sretthachau,
Coordinator
Southeast Asia Rivers Network, Thailand
Hannarong Yoawalers,
Coordinator, Conservation Policy Division
Wildlife Fund Thailand, Under the Royal Patronage of Her Majesty the Queen
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Aviva Imhof
South-East Asia Campaigner
International Rivers Network
1847 Berkeley Way, Berkeley CA 94703 USA
Tel: + 1 510 848 1155 (ext. 312), Fax: + 1 510 848 1008
Email: aviva@irn.org, Web: http://www.irn.org
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