- Posted March 12, 2014 by
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Advocate Mr.Sandip Kumar Chakraborty urges World Bank to recognize policy violations in the Tata Mundra plant
Honourable Dr.Jim Kim,
President of World Bank.
Dear Dr. Kim,
It’s over four months since your accountability mechanism – Compliance Advisor Ombudsman (CAO) – published its report on Tata Mundra power project in Gujarat, India. The report unambiguously pointed at serious violations committed by International Finance Corporation (IFC) while financing the project. To quote CAO:
“IFC’s review of its client’s E&S assessments was not commensurate with the risk involved. IFC paid insufficient attention to the requirements of the Performance Standards. IFC should have required that its client commission additional E&S assessment in order to ensure compliance. IFC did not pay adequate attention to verifying whether pre-project consultation requirements were met.
“IFC failed to assure itself that directly affected fishing communities were engaged in effective consultation. IFC’s E&S review regarding marine impact did not meet the due diligence requirements set out in the Sustainability Policy. IFC has failed to ensure that its client has correctly applied the requirements of the Thermal Power Guidelines.
“IFC failed to meet the requirements of the Sustainability Policy despite sufficient indications of project-related displacement (both physical and economic) as to require objective assessment. IFC should have advised that CGPL’s consideration of cumulative impact needed to go beyond that contained in the SEIA. IFC is unable to demonstrate either that its client’s monitoring is commensurate to risk.”
Despite such a scathing report, I am disappointed that you have not taken any action. By not acknowledging the violations committed by IFC, and by not taking any immediate corrective actions, you are letting the violations to continue. By IFC failing in complying its own policies, it lets the company continue with gross violations, negatively impacting thousands of people and the fragile ecosystem of Kutch.
As the head of a development bank like World Bank, we expect a more responsible action from you.
I urge you to:
1. Recognize IFC policy violations and the serious impacts of its financing after CAO audit reconfirmed community’s complaint;
2. Develop remedial action plan that has clear timeline, specific targets and monitorable indicators that address restoration and reparation needs; and
3. Withdraw IFC funding immediately from the Tata coal plant and do not consider funding for project expansion.
Sandip Kumar Chakraborty,
A servant of the servant of The Supreme Personality Of Godhead Lord Sree Krishna,
Advocate and Social Activist.