WB may not disburse last trance of Watsal

WB may not disburse last trance of Watsal

Muninggar Sri Saraswati
The Jakarta Post
Jakarta

The World Bank may not disburse the third and last trance of the
Water Resources Sector Adjustment Loan (Watsal) worth US$150
million to Indonesia if the controversial water resources bill
fails to meet a 1999 commitment on water resource policy reform.

Guy Alaerts, the bank's senior water resources specialist,
said on Tuesday that the bank was confused with the development
of the water bill deliberation.

"We must discuss it with the government whether to continue
the programs (or not). If there is different thought with the
policy, the funding may not be proceeded," said Alaerts.

The House of Representatives (DPR) decided to put the bill's
deliberation on hold due to strong reactions from the public
concerned with moves to privatize the water sector.

The bill had also triggered debates on whether water was a
commodity or a human right.

According to Alaerts, the water resources bill was "absolutely
not in line with the loan agreement, the on-going projects nor
the grant agreement."

"Therefore, the investment would be useless because there may
not be interests or benefits," he said.

Confronted with severe economic crisis, the government agreed
in 1999 to reform the country's legislation on water to allow the
privatization of the water sector, in exchange for loans worth
$300 million. The first and second trances were disbursed in June
1999 and 2001 respectively, totaling US$150 million.

Many analysts and non-governmental organizations have
expressed opposition to the current draft of the water resource
bill as it considers water purely as an economic commodity,
threatening people with uncertainty over access to safe and
affordable water.

The World Bank sponsored a similar program in Latin American
country Bolivia 1999 but the move has led to frequent protests
over access to safe and affordable water.

Alaerts claimed that the bank and other donors had invested in
Indonesia some $1 billion for various projects, including Watsal,
in the reform of water resource management.

"If the Indonesian government and the House do not want to
continue it, it would create problems not only to Indonesia, but
also to donors," Alaerts warned.

He said the bank and other donors had made initial discussion
with the government about the issue.

However, Alaerts rejected allegations that the investment by
the bank for water resources policies in Indonesia was a vehicle
for multinational water companies to enter the country.

"Some 95 percent of all funding from the World Bank has
nothing to do with private companies. We're not interested to
help them... no benefit," he said, adding that the World Bank
"only hopes for more equitable management of water resources so
people would be assured for access to water in the future."

Legislator Amri Husni Siregar of the Reform faction said that
the House would not be hasty in deliberating the bill.

"We have no target. We only consider to make a legislation
that is good and accepted by the public," he asserted, saying
that the House was scheduled to resume the deliberation later
this month.

Amri, who is also a member of the House's working committee
for the bill's deliberation, said that the House would give time
for the public to scrutinize the bill.

Simon L. Himawan, the director of water resources and
irrigation with the State Ministry of National Development
Planning Agency (Bappenas), said the case had become the
government's concern.

"(If they stop the disbursement), Minister Boediono will have
a headache as it will affect the state financial balance," he
commented, suggesting the bank to understand that the bill
deliberation was beyond the government's authority as it was in
the hands of the House.