|
|
|
| Sunday, 17 July 2005 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
ADB Board approves recommendations on highway project MANILA, Philippines - ADB's Board of Directors has approved the recommendations of a report submitted by ADB's Compliance Review Panel on its investigation of complaints of noncompliance on a highway project in Sri Lanka. The recommendations were contained in a report on the Southern Development Transport Project (STDP) in Sri Lanka. The Board accepted the findings of the report that some ADB's operational policies and procedures had not been complied with during the project from processing to implementation. It directed that steps be taken to meet the shortcomings of the project. The highway project, approved in November 1999, aims to promote development and growth by constructing about 128 km of expressway together with access roads that connect the economically underdeveloped southern region of the country around Galle and Matara to the Colombo area. A road safety component to help address Sri Lanka's pressing road safety problems is included. The highway is co-financed by the Japan Bank for International Cooperation and the Government of Sri Lanka, with ADB financing almost 30% of the project's total estimated cost of US$295.9 million. Although the project has received support from many communities and residents, grievances have been expressed by some affected persons along its route. A request was filed and registered by the Compliance Review Panel in December 2004, questioning compliance with ADB's operational policies and procedures on the project. This followed two previous complaints filed under the previous inspection function in 2002 and found ineligible at the time; two mediation efforts, through a domestic NGO in 2002-2003 and an international mediator in 2004; and involvement of ADB's Special Project Facilitator in the second half of 2004. Among the major findings of the Compliance Review Panel, the report highlighted: * The environmental impact assessment carried out in 1999 and the subsequent environmental findings report for the ADB section do not fully cover the final trace on which the highway is to be constructed, identified in detail during initial implementation. Public information and participation in the environmental review process was also inadequate at some stages. * Gender issues were not analysed sufficiently during project formulation and no gender action plan was carried out, despite the project having a significant impact on women. * There were problems with the social analysis of vulnerable groups, compliance with ADB's policy on involuntary resettlement, land acquisition, and the income restoration program. * Changes in project scope have occurred and there is a need to determine the impact of these changes. * The project benefit monitoring and evaluation system needs to be further developed to comply with ADB requirements. Following discussion of the report, ADB's Board accepted the recommendations in the report, among them to assess the environmental impact and incorporate any recommended mitigation measures, review co-financing arrangements to strengthen policy compliance of the project, and conduct a gender analysis. The recommendations also require that all affected persons be fully compensated by actual payment before they are moved, and called for assistance to be given in the implementation of the income restoration program. "ADB has recognised implementation problems with the STDP and has already
taken several steps well ahead of these findings to address the issues
highlighted by the panel, in close cooperation with the Government," says
Alessandro Pio, ADB Country Director for Sri Lanka. |
|
| News | Business | Features
| Editorial | Security
| Produced by Lake House |
