Govt decides to stop World Bank water loan<\/p>\n
Muninggar Sri Saraswati
\nThe Jakarta Post\/Jakarta<\/p>\n
The Indonesian government has rejected the last disbursement of
\nfinancial assistance under the Water Resources Sector Adjustment
\nLoan (Watsal), saying the conditions demanded by the World Bank
\nfor the aid are unfeasible.<\/p>\n
National Development Planning Board irrigation department head
\nBudhi Santoso said recently the decision was recommended by a
\nnational team comprising several ministries related to water
\nresources management.<\/p>\n
\"The reason for our refusal is a difference in opinion between
\nus (Indonesia and the World Bank) about who should manage the
\nwater resources,\" Budhi said on the sidelines of a workshop on
\nwater held by the Asia Development Bank (ADB) in Bogor, West Java
\nlast week.<\/p>\n
He said the World Bank had urged Indonesia to adopt market-
\noriented programs and deregulate the industry.<\/p>\n
The World Bank's proposal did not match the government's move
\ntoward competence-based development programs, Budhi said.<\/p>\n
\"Some people may have the capability to manage water, but some
\nothers may not,\" Budhi said.<\/p>\n
The World Bank warned the government last year to cancel its
\nplanned disbursement of the remaining US$150 million of the
\nBank's $300 million total commitment to finance the country's
\nwater projects, if the country failed to fulfill its 1999 promise
\nto privatize the water sector.<\/p>\n
The first two disbursements were made in 1999 and 2001,
\ntotaling $150 million.<\/p>\n
To comply with the World Bank's demands, Indonesia had passed
\nthe water resource Law No. 7\/2004, which privatized the water
\nsector. The government, however, has not issued the necessary
\nsupporting regulations to enact the law.<\/p>\n
The government agreed in 1999 during the severe economic
\ncrisis to reform the country's legislation on water to allow the
\nprivate sector to manage the resource.<\/p>\n
Budhi denied speculation the cancellation was a result of the
\ngovernment's failure to issue regulations.<\/p>\n
The World Bank could not be reached for comment.<\/p>\n
Critics and environmentalists have opposed the water resource
\nlaw. They say the law made the resource an economic commodity and
\nwould threaten the poor's access to safe, affordable water.<\/p>\n
They have brought the law to the Constitutional Court for a
\njudicial review.<\/p>\n
The World Bank sponsored a similar water privatization
\nprogram in Bolivia in 1999, but that program has sparked frequent
\nprotests.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-decides-to-stop-world-bank-water-loan-1447893297",
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