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Cover Photo and Layout by Mari Jeanie Derillo - Santos Printed on Recycled Paper ISSN 0017-238
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ANNUAL REPORT
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THE FORUM’S VISION Democratic governance and equitable social, gender and environmental justice enjoyed/flourishing through Asia and the Pacific region.
THE FORUM’S MISSION •
To stimulate public awareness and action as well as develop closer working ties with Peoples’ Organizations (POs), Non-Governmental Organizations (NGOs), and other public interest groups on issues related to the Asian Development Bank
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To develop a cohesive framework and overall strategy in coordination with partner NGOs, Community-Based Organizations (CBOs) and Peoples Organizations (POs) for the campaign on the ADB
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To sharpen public debate on and understanding of the Bank’s growth-oriented development paradigm and top-down development strategies
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To influence the Bank to adopt poverty reduction-focused and grassroots-based policies for sustainable development To critique the development models adopted by the Bank
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To assist and build capacities of CSOs and movements (including local communities) through Forum networks tonight for equitable social and environmental justice, democratic governance, and safeguards in Bank’s projects
WHAT WE DO ? The NGO Forum on ADB is a network of civil society organizations (CSOs) that has been monitoring the projects, programs and policies of the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). The Forum has been active since 1992. It has been assisting project, program and/or policy-specific campaigns led by its members, and has been conducting capacity building workshops. NGO Forum on ADB NEITHER accepts money from the ADB nor is it in any way part of it.
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CONTENTS MESSAGE FROM INTERNATIONAL CONVENER
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ASIAN DEVELOPMENT BANK
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49th ADB ANNUAL GOVERNORS MEETING
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ASIAN PEOPLE’s CALL ON CHALLENGING ADB’s IMMUNITY
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ASIAN INFRASTRUCTURE INVESTMENT BANK
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ASIAN PEOPLE’s SAFEGUARDS
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OTHER ACTIVITIES
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PUBLICATIONS
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RESEARCH
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FINANCE REPORT
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INTERNATIONAL COMMITTEE
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OUR PARTNERS
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MESSAGE FROM INTERNATIONAL CONVENER
NGO Forum on ADB is the only long-standing network monitoring the IFIs in Asia established in 1991. Its membership spread Asia to Europe and United States has experience engaging the ADB on monitoring safeguards, disclosure, and accountability. We also have experience working in agriculture, transportation, infrastructure, water, and energy sectors.
We are happy that Forum is playing this role successfully in many Asian countries, building and assisting local struggles initiated by the local communities to protect their territories and nature. The Forum also keeps a close relationship with the ADB and AIIB management to engage this advocacy and to receive information which is important for their local communities.
Meantime NGO Forum on ADB started engaging the Asian Infrastructure Investment Bank (AIIB) which was established late 2015. AIIB claims that it will be a lean, clean, and green bank. It will only engage in infrastructure investment in the region but AIIB already began its financing with the core support from the Asian Development Bank (ADB) and the World Bank (WB). NGO Forum on ADB started monitoring both banks based on the people safeguards which have been agreed between the civil society organizations engage in IFI monitoring.
Forum extends its gratitude to the financial partners C. S. Mott Foundation, 11.11.11 Coalition, OXFAM Australia, Foundation for a Sustainable Society, Both Ends, Growald Family Fund, and Heinrich Boell Foundation for helping out in achieving its objectives. World financial architecture and the political situation is changing very rapidly. The gap between the poor and the rich are becoming very high. Living in both rural and urban life is getting harder due to resource depletion and climate change. Business monopoly in the world is making people harder to live. Ruling regimes are more concerned on the business sector and the middle class. Borrowing more and more funds to support unsustainable development is their only solution. This model is already failed in some countries and has created more and more development refugees.
ADB and AIIB do not have local experiences on how their projects impact the local environment, and social structures. In this connection, civil society organizations can play a major role in bringing those local voices to the discussion table. This is one of the Forums critical work now. The Forum is also involved in educating local communities on how the neoliberal development model can harm their traditional sustainable life, and how they can engage these banks to avoid or minimize dangers.
The civil society voice is very much important to reverse this trend. We are happy that Forum continues to play a critical role towards a more sustainable future for our future generations.
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7. Electricity Market and Transmission Development Project
ASIAN DEVELOPMENT BANK This year has been very hectic but remarkable for the Forum; from supporting affected communities of ADB funded projects to lobby meetings, the Forum has been in the forefront of monitoring the bank.
8. Mundra Ultra Mega Power Project 9. GMS Nam Theun 2 Hydroelectric Project
On project monitoring, lobby meetings have been conducted faithfully to engage the bank in providing solutions to project-affected communities. A special set of lobby meetings were also conducted highlighting Strategy 2030 and the Public Communications Policy Review (PCP) which resulted in a delay in the implementation of the two.
10. Implementation of the Environmental Management Plan for the Son La Hydropower Project
Digital shorts have been produced by the forum, in live action and animation which aims to educate the public regarding ADB’s privileges and problematic projects across Asia.
14. Calaca Coal-Fired Thermal Power Plant Project
Revisiting of different projects were also conducted this year in preparation for the Asian People’s Call, special attention was given to the following projects –
17. Trans Borneo Power Grid: Sarawak to West Kalimantan Transmission Link
11. North Eastern States Roads Investment Program 12. West Seti Hydroelectric Project 13. Song Bung 4 Hydropower Project 15. Visayas Base-Load Power Project 16. Green Power Development Project II
18. NAM NGIEP 1 HYDROPOWER PROJECT 19. Industrial Tree Plantation Project
1. Marcopper Mining Disaster
20. Nucleus Agro-Enterprises TA Loan
2. Theun-Hinboun Hydropower Project
21. Southern Agriculture Area Development Project
3. Phulbari Coal Project
22. Crucial Problems of the Indigenous Peoples of the Madhupur Forest
4. Mae Moh Power Station 5. Masinloc Coal-Fired Thermal Power Plant Project 6. Kali Gandaki "A" Hydroelectric Project 6!6
ANNUAL REPORT 23. Phnom Penh to Ho Chi Minh City Project
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44. MWSS New Water Source Development Project 45. Rural Area Water Supply and Sanitation Sector
24. GMS: East-West Economic Corridor
46. Water Supply and Sanitation Sector Project
25. Southern Transport Development
47. Integrated Citarum Water Resources Management Investment Program
26. Dushanbe-Kyrgyz Border Road Rehabilitation Project
48. Community-Based Infrastructure Services Sector Project
27. Road Network Development East-West Highway Improvement Project
49. Melamchi Water Supply Project
28. Reconstruction of Cement Production Facility in Aceh Project
50. Greater Colombo Water and Wastewater Management Improvement Investment Program
29. Road Network Development Program
During the Asia Clean Energy Forum (ACEF) NGO Forum on ADB together with Freedom from Debt Coalition (FDC), Philippine Movement for Climate Justice, Sanlakas and 350.org had an outside engagement while the forum secretariat and member organization created space for CSOs inside the event.
30. GMS Rehabilitation of the Railway in Cambodia 31. North-South Road Corridor Investment Program 32. CAREC Transport Corridor 1 33. Education Sector Reform
Inside the event, the Forum ADB policy coordinator delivered the official statement of the Forum to the participants.
34. Amu Bukhara Irrigation System Rehabilitation Project 35. Senior High School Support Program
Outside forum members contest the funding of ADB on coal related projects.
36. Emergency Assistance for Relief and Recovery from Typhoon Yolanda
The day ended with a comment from the Philippine Country director Richard Bolt stating that they will honor COP 21. Also, the official statement of the Forum was sent to ALL the ADB Directors and to the ADB President, Takehiko Nakao.
37. Promoting Economic Use of Customary Land 38. Chashma Right Bank Irrigation Project 39. Samut Prakarn Wastewater Management Project 40. Khulna-Jessore Drainage Rehabilitation Project
During the 13th Annual Meeting of the Independent Accountability Mechanisms, the Forum once again made space for the affected community, this time from the railway rehabilitation project in Cambodia.
41. South West Areas Integrated Water Resources Management 42. Sundarbans Biodiversity Conservation Project
Virak Sim together with Leng Sarron of Equitable Cambodia was able to raise important points about ADB’s projects flaws on the panel ‘How to Reach the Last Mile – Ensuring Affected Communities Receive Effective Remedy’.
43. Tonle Sap Environmental Management
Affected communities from Naga, Cebu (Visayas Base-Load Project) was able to be heard thru their representative Atty. Aaron Pedrosa via the panel ‘Examples of accountability cases in the Philippines’. The Forum together with network members conducted a fact-finding in activity in Ulaanbaatar, Mongolia, the location of the Combined Heat and Power Plant Number 5 Project (CHP5) funded by the ADB. The Project will be located on an approximate 45 hectares of land within the Khali in Valley, approximate ly 16 kilome te rs southe ast of Ulaanbaatar.
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The Project's design, construction, and operation were supposed to incorporate international best practices. The plant is configured to have three identical CHP blocks, each consisting of a circulating fluidized bed (CFB) boiler, which will be coupled with a steam turbine/generator unit. Hot water for distribution to the district heating network will be produced from the steam extracted from the turbines. The Forum critically engaged the ADB through ADB Strategy 2030 Consultation. The event is a consultation of the Asian Development Bank’s corporate strategy with CSO’s. Forum raised a point on ADB’s intent to shift towards using country safeguards systems without any ‘assessment’ and ‘equivalency’ with its own safeguards systems as presented by Strategy and Policy Department of the ADB. Pointing out the alarming move towards using country systems prematurely will have disastrous
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impacts on local communities and the environment especially in autocratic regimes where civil society voice is suppressed and persecuted, and national instruments are riddled with corruption and weak implementation. On the second day of the event Forum’s Executive Director gave a talk on civil society forum; Trends and Challenges in Engagement where he clearly emphasizes that some parts of the operational framework of the bank clearly are not working and this has to be addressed. The Forum in partnership with Legal Rights and Natural Resources Center – Kasama a Kalikasan, launched a public information campaign regarding the anniversary of the Marcopper Disaster. This featured affected communities testimony, a before and after photos, and stories about the current state of the communities devastated by Placer Dome, Marcopper’s Contractor.
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A CSO briefing session was organized by the Forum
Over 25 local, regional and international organization endorsed the letter. It was hand and electronically delivered to President Takehiko Nakao, the ADB Management, ADB Executive and Alternate Directors, Mr. Indu Bushan, Director General, ADB Strategy and Policy Department, Mr. Bambang Susantono, Vice-President, Sustainable Development and Climate Change Department / Economic Research and Regional Cooperation Department / Department of External Relations and Mr. Dingding Tang, Chair, Compliance Review Panel.
with the title ‘Transparency and Accountability in Asian Development Bank and Risks Ahead for the Filipino People’. It discusses the ADB Strategy 2030 and its failure to have a meaningful consultation with the stakeholders. Great discussion on action points was crafted which later on was made into a letter of response to the ADB. The five-page letter indicated ADB’s consultation process was not designed to gather CSO viewpoints meaningfully. It also indicated that the Strategy 2030 also lacks clear performance indicators to achieve SDGs or clear phase out plans on energy investments from fossil fuel to renewable energy sources to achieve 1.5 degrees as per COP 21.
The Forum also managed to have two active working groups, namely in the Philippines and in Bangladesh, with India and South East India in the works.
49th ADB AGM This year the Forum hosted 3 panels in the ADB AGM in Frankfurt, Germany, namely –
environmental and social safeguards among other international financial institutions. The panel will also discuss the due diligence mechanism that ADB institutionalized, and whether it is adequate to ensure full compliance with safeguards requirements. The panelists are -
Institutional Reforms to Improve Implementation of ADB’s Safeguards Policy In view of the safeguards operational review undertaken by ADB’s Independent Evaluation Department in 2014, this session will explore institutional reforms that have been undertaken to fulfill the gaps identified in the report.
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The session underscores the importance of ADB’s Safeguard Policy Statement in the broader context of
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Nessim Ahmad - Deputy Director General, Sustainable Development and Climate Change Department and Concurrently Chief Compliance Officer, ADB
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2. Ratan Bhandari - Water Resources Activist, Nepal
investment at US$78 trillion over the next 2 decades globally, and US$730 billion per year for 2015–2025 for Asia. Development models of multilateral development banks tend to rely heavily on infrastructure as the engine of growth. The panel will discuss large-scale infrastructure and the displacement of people and livelihood as a consequence while recognizing the planetary limits to growth. It will also explore how borrower systems for safeguards are equipped to protect existing vulnerabilities of affected people. In particular, it will deliberate on the adequacy of country safeguard systems to provide protection within social and environmental limits of communities and countries, in the context of infrastructure-driven development. This panel is co-organized with OXFAM. The panelists are -
3. Titi Soentoro - Policy Advisor for Gender, Social, and Ecological Justice, Aksi! Indonesia 4. Eang Vuthy - Executive Director, Equitable Cambodia 5.
Hemantha Withanage - Executive Director, Centre for Environmental Justice, Sri Lanka
A Grassroots Perspective on Integrating Core Labor Standards in ADB - Quality employment is a key component of ADB’s strategy to promote inclusive growth. As such, adherence to the International Labor Organization’s Core Labor Standards (CLS) in ADB’s lending operations is crucial to attaining this goal. The NGO Forum on ADB in cooperation with Public Services International will shed light on the importance of adhering to CLS. The panel will also explore how best to integrate CLS in ADB operations. This panel is co-organized with Public Services International. The panelists are – 1.
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Jan Willem van den Wall Bake - Alternate Executive Director representing Canada, Denmark, Finland, Ireland, The Netherlands, Norway, and Sweden, Asian Development Bank
2. Mae Buenaventura - Asian Peoples Movement on Debt & Development 3. Stephanie Fried - Ulu Foundation
Claude Akpokavie - Senior Adviser, Bureau for Workers Activities, International Labour Organization (ILO)
4. Kate Geary - Oxfam 5.
2. Martin Beckmann - Policy Officer, Service-, Regional- and Structural Policy, Policy and Planning Unit, ver.di
Rayyan Hassan - Executive Director, NGO Forum on ADB
6. Knud Vocking - Urgewald
3. Matt Fischer-Daly - Coordinator of the Cotton Campaign, International Labor Rights Forum
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4. Souparna Lahiri - Advocate for Environment, Forests, Tribal Rights, Workers’ Rights, Climate Change, and Development Finance
Aside from that, representatives from the affected community from Cambodia spoke during the Meeting between Civil Society Organizations and ADB Management and had given President Takehiko Nakao a bottled murky water which was taken from the catch basin the bank has made for the people to get drinking water.
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Mario Sander - Executive Director representing Austria, Germany, Luxembourg, Turkey, and United Kingdom, ADB
Yu Xiaogang - Green Watershed, People’s Republic of China
Lastly, there was also an outside activity which was participated by the Forum, Equitable Cambodia, Aksi!, Center for Environmental Justice, Oxfam, Green Watershed, Cotton Campaign, CS Mott, Urgewald and Stiftung Asienhaus.
Infrastructure-Driven Growth Model of Multilateral Development Banks in the Context of Planetary Limits - Infrastructure investment has reached a new global peak. Recent forecasts estimate the demand for infrastructure
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CHALLENGING ADB’s IMMUNITY
AIIB
The first planning/meeting about the activities in relation to ADB’s 50 years of operation took place in Sulo Riviera Hotel, Quezon City. During the meeting, the group was able to brainstorm possible events, media campaigns, mobilization, and research topics that can solidify the groups call on challenging ADB’s immunity.
The Desk Review on the “Proposed Business Model of the Asian Infrastructure Investment Bank (AIIB)” authored by Ms. Luz Rio Ligtheart was published and was presented. The Forum Secretariat, 11.11.11, Focus on the Global South and Jubilee South, attended the presentation and discussion. The Forum also participated in the 1st Annual Meeting of the AIIB in Beijing, China where the Forum have expressed their intention to continuously engage the bank after its introduction the year before.
The meeting was followed by several working group meetings, conference calls, and an event presentation in Bangkok, Thailand during the Asian People’s Safeguard Meeting. By this time the plan is already concrete and the activities included a twoday international conference initially entitled as ‘Global Call on Challenging ADB’s Immunity’ which later on evolved into ‘Asian People’s Call on Challenging ADB’s Immunity’. A photo exhibit will be happening alongside the conference, showcasing and exposing 50 problematic ADB-funded projects. A mobilization will be conducted outside the ADB Headquarters dubbed as ‘ADB’s Walk of Shame’.
The Forum also mailed a letter alongside the Comprehensive Critique on the Draft Environmental and Social Framework (ESF) of the Asian Infrastructure Investment Bank (AIIB) to the Finance Ministers of the countries who ratified with the Bank. It was also done electronically, in a few days some countries answered back and this includes – 1. Singapore 2. United Kingdom
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3. New Zealand
from China through its policy banks (EXIMBANK), commercial banks (Bank of China), investment funds and companies;
4. AIIB Chief Officer The Global Call for AIIB to Make Safeguards Consultation Open & Inclusive letter was snail and electrically mailed. The One Belt One Road (OBOR): Energy and Infrastructure Nexus and the Role of AIIB was conducted, it was a gathering of 38 individuals and organizations coming from different Civil Society Organizations (CSOs) across Asia, Europe and USA and considered to be one of the first ever gathering of groups convened by Forum to discuss and hold a dialogue on the One Belt One Road (OBOR), the event allowed for these organizations to get a grip and get an understanding of the China-Led initiative.
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More and more trans-boundary projects are being implemented that unlock the regions;
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There are multiple coordinated actions and players that make it very difficult to pinpoint who is accountable;
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This means the presence of intermediaries and not just a single entity to deal with;
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There is the emergence of other bilateral and multilateral financiers and another financing
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In the same line, it will be important to consider the geopolitics of China, Russia, and the USA.
Towards the second half of the year, the Forum, CEE Bankwatch and BIC had a meeting with Mr. Hamid Sharif, Director General of the Compliance, Effectiveness and Integrity Unit of the AIIB. The meeting covered the grievance mechanism that will be employed by the bank. With the goal to keep the member's organization as well as the public informed on the development of AIIB, the Forum organized the “Exploring The Impacts Of The Philippines Joining The AIIB From An Environmental, Social And Economic Perspective”. Invited experts are:
From the sharing, the following observations, issues, and trends are seen to be emerging that impact the work of organizations: There are more projects on infrastructure and cross-border activities that are going on;
ADB does project preparation but the actual implementation is outsourced or contracted, making it difficult to monitor environmental and social safeguards standards.
The AIIB Microsite was set up which includes AIIB Public Information Materials, its timeline, and updates on the projects funded by the bank.
Key speakers provided background on the following OBOR and its features as well as a Chinese perspective on the project. Experiences were shared on energy and on trans-boundary mega projects that raised concrete issues and concerns on the ground. At the same time, there was sharing of case experiences on bank advocacy work that complemented with the international perspectives on multilateral development banks’ advocacy.
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Amb. Jose Sta. Romana (Ambassador of the Philippines to China)
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Amb. Jose Romero (President, Council of Foreign Relations)
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Atty. Margarita Alias (from the Office of Senator Allan Peter Cayetano, 17th Congress)
In the event, the experts shared their views and the latest information about the AIIB. The event was also live-streamed with a total of 8000 views from people from all walks of life. As the year ends, NGO Forum on ADB was able to conduct the 2nd AIIB Strategy Meeting in Bangkok where over 35 organizations around the world attended. The strategy meeting was able to
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map the organizations regarding their strengths, what issues they are tackling, strategic regional locations and group them based on a possible The Forum being in the forefront of monitoring the AIIB have been invited to share its expertise on the following events – •
What's AIIB all about? Asia, China and the Contested Global Order organized by Chulalongkorn University
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AIIB Meeting in Bangkok, Thailand organized by BIC and Focus on the Global South.
ASIAN PEOPLE’s SAFEGUARDS The Forum convened the Asian People’s Safeguard this year in Bangkok, Thailand. During the meeting, organizations presented the state of working groups in each country. The meeting also covered the history of the working group and where it is as of the moment. Several panel discussions took place to enrich the knowledge and give participants on how safeguard from different countries function – •
Trends in the Use of Country Safeguards Systems
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Social Movements in Asia and Civil Society Space: Challenges and Struggles in Organizing
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Regional Coordination of Social Movements and the Role of International Organizations: Challenges and Best Practices
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Progress Made and Further Detailing of ADB 50 Years Plan
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Progress at the National Levels on ADB 50 Years Plan
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Endorsement of the Asian Peoples Safeguards Platform of Action to Challenge ADB’s Immunity
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Commitments, Solidarities, and Mapping for ADB 50 Years
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Investment Trends in Asia
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Asian Peoples Safeguards: Drawing Out Synergies of Activities
At the end of the event, the following have been mandates have been endorsed 1.
Request and endorsement on the status of the people safeguards be retained.
2. The committees to continue on working and then there's a specific task on the preamble, principles, strategies and communications in most of the comments inputs and feedback and recommendation would be distributed among these committees and there is an agreed deadline and then we do that by email.
Challenging IFI Immunity
3. If the steering committee in the interest of not disrupting and hopefully continuing the work on coordination would like to continue its membership and then we recruit after the 50th anniversary of the ADB.
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OTHER ACTIVITIES This year, the Forum had the International Committee (IC) election; the following are the newly elected IC’s – •
Hemantha Withanage (Centre for Environmental Justice) – International Convenor
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Hasan Mehedi (CLEAN) - South Asia
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Titi Soentoro (Aksi! for gender, social and ecological justice) – Indonesia
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Eang Vuthy (Equitable Cambodia) – Mekong
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Eduardo C. Tadem (Freedom from Debt Coalition) – Philippines and IC Treasurer
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Huub Scheeles (Both Ends) - Europe and the United States
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Yuki Tanabe (JACSES) - Australia and Japan
Focus on the Global South
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Alyansa Tigil Mina (ATM)
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Philippine Movement for Climate Justice (PMCJ)
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Asian People’s Movement on Debt & Development (APMDD)
The Forum Executive Director went to South Korea to attend the High Level Policy Forum on Financing for Development. During the event aside from engaging in a dialogue with the Asia Pacific Civil Society, the forum submitted an input statement with the NGO Forum Position Statement, which was presented in 67 countries. United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) organized the event. The policy coordinator for ADB attended and spoke at technical workshop on campaign finance organized by the Philippine Center for Investigative Journalism (PCIJ). The Forum participated in the EURO IFI meetings and took part on how to approach/strategize on how the CSOs should deal with international financial institutes.
The Forum Secretariat also have the following coordinators – 1.
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Mari Jeanie Derillo – Communications Coordinator
Executive Director, Rayyan Hassan went to Mongolia to attend the Asia-Europe People's Forum where the Forum participated actively.
2. M i r i a m A r n e l l e A z u r i n – A D B P o l i c y Coordinator
The communications and ADB policy coordinator of the Forum attended the ASEAN: Civil Society Conference and shared their insights of ASEAN and the ADB.
3. Luz Rio Ligtheart – AIIB Policy Coordinator The Forum participated in the Annual Environmental NGO Conference in Beijing, China early this year. Also, the Forum met with Urgewald along with other CSO’s to critically engage the Ministry of Finance of Germany, German ChiefNegotiator, and German Parliamentarians from Budget Committee and Oppositions on AIIB, ESF Policies and affected community concerns.
Forum also took part in LEAPING FORWARD: A Forum on Philippine Human Rights Agenda and its Role in the ASEAN Community Integration.
OXFAM Hong Kong organized the G20 Working Group Meeting where NGO Forum on ADB actively participating. An online petition was carried out via Avaaz.org to free Saeed Baloch of the Pakistan Fisherfolk Forum, the Petition gathered 597 signatures from all over the world with 77 shares from Facebook and 20 mentions on Twitter during the week of the petition. The signed petition was mailed to the Pakistan Prime Minister Nawaz Shariff. At the same time, the Forum with the help of partner organizations gathered in front of the Pakistan Embassy in Makati City carrying their statement to release Saeed Baloch the soonest. Organizations that joined the activity are the following !1 4 14
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It was a fruitful and insightful discussion in the lens of the Philippine government and the CSOs. The Forum flagged the issues of potential displacements in line with the national government's thrusts for infrastructure development and how Philippines can share its new policy with ASEAN countries on freedom of information. The Forum also mentioned the importance of people's participation and human rights in national development. Forum also participated in the Regional Consultation on the launching of a civil society platform on Sustainable Development Goals (SDGs) in Asia tentatively called “Asia Civil Society Partnership for Sustainable Development (APSD)” The Forum attended the BRICS Working Group in Goa, India with the intention to work hand in hand regarding bank (ADB, AIIB, BRICS) funded projects. Lastly, NGO Forum on ADB attended the EURO IFI and engaged with partner organizations in the European block on areas concerning ADB and AIIB funded projects.
PUBLICATIONS
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Desk Review on the Proposed Business Model of the Asian Infrastructure Investment Bank (AIIB)
Risk Management matrix and that of Results Framework surely point out to this significant aspect.
A report that summarizes and presents key points and findings based on documents, data/ information, and related literature; speeches and news articles that have been written on the Asian Infrastructure Investment Bank‟s (hereafter AIIB) establishment and inner workings. The study was commissioned by NGO Forum on ADB (hereafter Forum) to explore the emerging investment model of AIIB using its experiences with the Asian Development Bank (ADB) and help address the knowledge gap. This desk-based review of documents and comparisons to existing MultiDevelopment Banks‟ (MDBs) operations were collected and analyzed to get possible insights into AIIB‟s model in Asia.
Through the advocacy approach paper we have tried to point out where the problem lies and what more is needed on the part of the ADB management to translate its commitment on the compliance to CLS and labour issues to a regime of full compliance. On the eve of 50 years of its establishment, ADB should come out clear, be transparent, commit to due diligence in upholding the rights of the workers and fulfill its commitments to fully implement core labour standards in its operations. Non compliance with core labour standards stands between ADB’s long term strategy of poverty reduction and inclusive growth and achieving that objective. Critique of AIIB Energy Strategy: Suitable for Asia Issue Note for Discussion
Ensuring ADB’s Compliance with Core Labour Standards
The AIIB has just recently released its AIIB Energy Strategy Note for public comments till November 12, 2016. The Bank is holding two rounds of public consultations on the document. “The objective is the consultation process is to shape and inform the development of an Energy Strategy for AIIB. The first round of consultation will inform the preparation of the draft Energy Strategy, which will be submitted for discussion by the Board in December and posted on the website, followed by the second round of consultation in early 2017” (pg 1 AIB ES Note).
Asian Development Bank was the first multilateral development bank in 2001 to commit that in the design, and formulation of its loans, and implementation of its projects, ADB will comply with the internationally recognized core labor standards. But, to many, including the workers’ organizations and global trade unions and CSOs monitoring MDBs, the ADB management, during the last fifteen years, has not been able to integrate and include to a full extent the CLS in to its operational framework. Violations of the rights of workers and trade unions in ADB projects persist. Workers directly employed by ADB contractors and sub-contractors continue to work and live under poor conditions and have very little means to bring their plight to the ADB for appropriate action. This act of omission goes against ADB’s strategy of poverty reduction and inclusive growth.
The note is essentially structured as follows:
In ADB funded projects, especially for the infrastructure projects, workers are first and direct beneficiaries in terms of employment generation, decent wages, gender equality, decent working and living conditions and reduction of poverty. But, workers issues are relegated under Other Social Issues in operational terms and treated differently from other safeguard issues like environment, resettlement and indigenous rights. Is it because workers’ issues and core labour standards are not considered potential risks enough for the non implementation of projects or projects getting delayed? Absence of CLS in Risk Assessment and
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Outline of proposed objectives
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Goals
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Guiding Principles
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Implementation of the Strategy
AIIB Energy Sector Strategy Discussion The AIIB has released its 2nd AIIB Energy Sector Strategy Discussion Draft for public comments till March 6 2017. This is the second of the two rounds of public consultations on the document.
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“The objective is to solicit further inputs and comments on the draft Energy Sector Strategy. After this, the Strategy will be completed and considered by the Board of Directors.” (pg. 1 AIIB ESS Discussion Draft) •
The note is essentially structured as follows: Introduction
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Global Energy Landscape Issues and Challenges
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Lessons Learned from MDB Energy Sector Investment in Asia
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Objective of the Energy Sector Strategy
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Guiding Principles
RESEARCH 1.
ADBs impact on Gender: 3 Case studies in Bangladesh, Cambodia, India
2. Country Safeguard Systems: 3 Regional perspective Cases from Researchers in Mongolia, Sri Lanka, Mekong 3. Trend Analysis on ADBs 50 Years track record of Investment: Critical perspective from Civil Society, LRC Philippines 4. ADBs Impact on PWDs: Life Haven, Philippines
Implementation: Sectoral Approach, CrossCutting Issues. (The Forum will critique the different components of the above-mentioned structure accordingly throughout this paper and include comments and critiques on outstanding issues)
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NGO Forum on ADB Critical Analysis on ADBs PCP
6. NGO Forum on ADB Submission on AIIB Accountability Mechanism
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INTERNATIONAL COMMITTEE
HEMANTHA WITHANAGE INTERNATIONAL CONVENER
EDUARDO C.TADEM
TITI SOENTORO
EANG VUTHY
TREASURER
SOUTHEAST ASIA
MEKONG
YUKI TANABE
HASAN MEHEDI
HUUB SCHEELE
AUSTRALIA/JAPAN
SOUTH ASIA
EUROPE
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OUR PARTNERS
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POST SCRIPT
It has been a very busy year for the Forum with new campaigns and major gains in our advocacy on ADB. Firstly, I want to thank each and everybody in the Forum family for all the hard work and professionalism you have demonstrated throughout the various activities we have accomplished together this 2016. The Forum members proved their diversity and talent yet again in contributing to a very critical document on the AIIBs Environmental and Social Framework for the second round as well as it's newly formulated energy strategy. This submission came from the collective experience and ground insight from the members on their decades of work in engaging the ADB. We have engaged the ADB as they open the Public Communication Policy Review and their Strategy 2030, throughout 2016 the Forum engaged ADB in multiples fronts, with project concerns from the Mekong, South Asia, Central Asia, and South East Asia grounds, along with active advocacies from ongoing complaints at the ADB CRP. Compounded efforts at Management and Board level at the ADBs 49th AGM in Frankfurt regarding our positions were related even to the ADB President; where we were recognized as active stakeholders in the debate regarding responsible Asian development financing. All the efforts in the ADB front have yielded to our recognition as a valid and legitimate grassroots organized civil society network with the AIIB. Formal communications from AIIB have validated our presence on the ground and our repeated demands for environmental and social safeguards have also resulted in positive changes and inclusions in AIIBs ESF. As we approach 2017 we realize that both ADB and AIIB are eyeing trans-boundary infrastructure and the planet continues to be taxed by dirty energy investments. To this end, NGO Forum on ADB has to remain vigilant on both project and policy fronts at both Banks. Our mandate to supporting the protection of the planet’s ecosystems and fighting for the rights of the underprivileged remain strong, as we look forward to implementing our strategies, campaigns and ideas for a better and just world.
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