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dam-l LS: Statesman: Siemens role in dam project doubtful
The Statesman, July 1, 2000
Siemens role in dam project doubtful
DESIKAN THIRUNARAYANAPURAM
STATESMAN NEWS SERVICE
WASHINGTON, June 30. — The involvement of Siemens AG in the controversial
Maheshwar Dam project could be in doubt following a critical review
of the project
released by the German government yesterday.
The independent review was commissioned following the controversy over a
proposed export credit guarantee from the German government to Siemens for the
supply of turbines to the hydro-electric power project.
The critical findings, released by the ministry of economic cooperation and
development, could pressurise the German government to withdraw from the
project, according to the German environmental group Urgewald.
Such a withdrawal would force Siemens to drop out or find another government
with lower standards to guarantee the turbine sales from one of the company's
foreign subsidiaries. Activist groups opposed to the project, led by
the US-based
International Rivers Network, are bracing up to oppose any government which may
be prepared to take up the export credits for Maheshwar.
The increased uncertainty over the future of Maheshwar will also have
repercussions on New York-based Ogden Corp., which is slated to make a major
investment in the project, along with the Indian textile company S Kumars.
The German review was led by Dr Richard E Bissell, executive director of the
policy division at the US National Research Council and a former
chairman of the
World Bank's Inspection Panel.
The World Bank panel has in the past reviewed the Sardar Sarovar project on the
Narmada River and other Indian projects.
Following are some of the conclusions of the review:
* The number of people who would lose their land and jobs to the
project is "much
higher" than claimed by project authorities, and the amount of replacement land
required for resettlers " would be many times higher than the
currently calculated
requirement."
* "The requirement of money for just the agricultural land would be
many times the
current budget for the entire Resettlement and Rehabilitation (R&R) plan."
* The payment of cash compensation to farmers by project authorities "clearly
violates the standard" that farmers should be provided with replacement land
* The Madhya Pradesh Electricity Board has been contracted by S Kumars to
carry out resettlement and rehabilitation. However, according to
their officials,
the "state electricity board has little or no experience in implementing R&R...
the resources and capability to carry
out R&R in accordance with the stated policy and conditions of clearance, do
not exist."
* "The project planning process was neither transparent nor
participatory. Even now, there is little transparency, participation
and democracy in the process of implementation."
* "The benefits of the dam to the regional and national power sector
have become increasingly controversial as the cost of construction
is now four times the estimate submitted to the government 10 years
ago."