WB may not disburse last trance of Watsal<\/p>\n
Muninggar Sri Saraswati
\nThe Jakarta Post
\nJakarta<\/p>\n
The World Bank may not disburse the third and last trance of the
\nWater Resources Sector Adjustment Loan (Watsal) worth US$150
\nmillion to Indonesia if the controversial water resources bill
\nfails to meet a 1999 commitment on water resource policy reform.<\/p>\n
Guy Alaerts, the bank's senior water resources specialist,
\nsaid on Tuesday that the bank was confused with the development
\nof the water bill deliberation.<\/p>\n
\"We must discuss it with the government whether to continue
\nthe programs (or not). If there is different thought with the
\npolicy, the funding may not be proceeded,\" said Alaerts.<\/p>\n
The House of Representatives (DPR) decided to put the bill's
\ndeliberation on hold due to strong reactions from the public
\nconcerned with moves to privatize the water sector.<\/p>\n
The bill had also triggered debates on whether water was a
\ncommodity or a human right.<\/p>\n
According to Alaerts, the water resources bill was \"absolutely
\nnot in line with the loan agreement, the on-going projects nor
\nthe grant agreement.\"<\/p>\n
\"Therefore, the investment would be useless because there may
\nnot be interests or benefits,\" he said.<\/p>\n
Confronted with severe economic crisis, the government agreed
\nin 1999 to reform the country's legislation on water to allow the
\nprivatization of the water sector, in exchange for loans worth
\n$300 million. The first and second trances were disbursed in June
\n1999 and 2001 respectively, totaling US$150 million.<\/p>\n
Many analysts and non-governmental organizations have
\nexpressed opposition to the current draft of the water resource
\nbill as it considers water purely as an economic commodity,
\nthreatening people with uncertainty over access to safe and
\naffordable water.<\/p>\n
The World Bank sponsored a similar program in Latin American
\ncountry Bolivia 1999 but the move has led to frequent protests
\nover access to safe and affordable water.<\/p>\n
Alaerts claimed that the bank and other donors had invested in
\nIndonesia some $1 billion for various projects, including Watsal,
\nin the reform of water resource management.<\/p>\n
\"If the Indonesian government and the House do not want to
\ncontinue it, it would create problems not only to Indonesia, but
\nalso to donors,\" Alaerts warned.<\/p>\n
He said the bank and other donors had made initial discussion
\nwith the government about the issue.<\/p>\n
However, Alaerts rejected allegations that the investment by
\nthe bank for water resources policies in Indonesia was a vehicle
\nfor multinational water companies to enter the country.<\/p>\n
\"Some 95 percent of all funding from the World Bank has
\nnothing to do with private companies. We're not interested to
\nhelp them... no benefit,\" he said, adding that the World Bank
\n\"only hopes for more equitable management of water resources so
\npeople would be assured for access to water in the future.\"<\/p>\n
Legislator Amri Husni Siregar of the Reform faction said that
\nthe House would not be hasty in deliberating the bill.<\/p>\n
\"We have no target. We only consider to make a legislation
\nthat is good and accepted by the public,\" he asserted, saying
\nthat the House was scheduled to resume the deliberation later
\nthis month.<\/p>\n
Amri, who is also a member of the House's working committee
\nfor the bill's deliberation, said that the House would give time
\nfor the public to scrutinize the bill.<\/p>\n
Simon L. Himawan, the director of water resources and
\nirrigation with the State Ministry of National Development
\nPlanning Agency (Bappenas), said the case had become the
\ngovernment's concern.<\/p>\n
\"(If they stop the disbursement), Minister Boediono will have
\na headache as it will affect the state financial balance,\" he
\ncommented, suggesting the bank to understand that the bill
\ndeliberation was beyond the government's authority as it was in
\nthe hands of the House.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wb-may-not-disburse-last-trance-of-watsal-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}