WB water aid may dry up<\/p>\n
Muninggar Sri Saraswati, The Jakarta Post, Jakarta<\/p>\n
The World Bank may not disburse the third and last tranche 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 about developments in
\nthe water bill deliberation.<\/p>\n
"We must discuss it with the government whether to continue
\nthe programs (or not). If there are different thoughts with
\nregards the policy, the funding may not continue," said Alaerts.<\/p>\n
The House of Representatives (DPR) has put the bill's
\ndeliberation on hold, due to strong public reactions concerning
\nthe privatization of the water sector.<\/p>\n
The bill has also triggered debates on whether water was a
\ncommodity or a basic 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 a severe economic crisis, the government
\nagreed in 1999 to reform the country's legislation on water to
\nallow the privatization of the water sector, in exchange for $300
\nmillion in loans. The first and second tranches were disbursed in
\nJune 1999 and 2001 respectively, totaling US$150 million.<\/p>\n
Many analysts and non-governmental organizations have
\nexpressed their opposition to the existing draft water resource
\nbill, as it considers water as an economic commodity, which they
\nsay threatens people with uncertainty over access to safe and
\naffordable water.<\/p>\n
The World Bank sponsored a similar program in Bolivia in 1999,
\nbut the program has been at the root of frequent protests over
\naccess to safe and affordable water.<\/p>\n
Alaerts claimed that the bank and other donors had invested
\nsome $1 billion for various projects in water resource management
\nreform in Indonesia, including Watsal.<\/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," he warned.<\/p>\n
He said the World Bank and other donors had conducted an
\ninitial discussion with the government about the issue.<\/p>\n
Alaerts rejected allegations that the water resources
\ninvestments from the bank was a vehicle for multinational water
\ncompanies 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 in
\nhelping them ... no benefit," he said. "(The World Bank) only
\nhopes for more equitable management of water resources so people
\nwould be assured access to water in the future."<\/p>\n
Legislator Amri Husni Siregar of the Reform faction said the
\nHouse would not be hasty in deliberating the bill.<\/p>\n
"We have no target. We are only concerned about making a
\nlegislation that is good and is accepted by the public," he
\nasserted, adding that the House was scheduled to resume the
\ndeliberation later this month.<\/p>\n
Amri, who is also a member of the House working committee for
\nthe bill's deliberation, said the House would accommodate public
\nscrutiny of the bill.<\/p>\n
Simon L. Himawan, director of water resources and irrigation
\nwith the National Development Planning Board (Bappenas), said the
\nissue had become the government's concern.<\/p>\n
"(If they stop the disbursement), Minister (of Finance)
\nBoediono will have a headache, as it will affect the state's
\nfinancial balance," he said. He suggested the bank to understand
\nthat the deliberation was beyond the government's authority, as
\nit was in the hands of the House.<\/p>",
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