IFIs role in Tsunami Rehabilitation

presentation by

S.M.Prithiviraj Voices from the margins (VFM)

Tamilnadu, India.E-mail: prithvi14@yahoo.com &

voicesfromthemargins@gmail.com

Estimated Funds for rehabilitation

World Bank estimated that US $ 1.213 billion is required for tsunami rehabilitation April 2005

State wise assessments Tamilnadu- US$ 868.3 million

Kerala-US$ 157.7 millionPondicherry- US$ 114.4 million

Andhra Pradesh-US$ 72.6 million

Funds allotted by IFIs

Asian Development Bank sanctioned US$ 143.75 million under Tsunami Emergency Assistance

Programme (TEAP) this is inclusive of US$ 93.85 million for reconstruction and US$ 49.9 million

for livelihood restoration

ADB funds gave more priority to reconstruction

World Bank sanctioned a loan amount of US$ 456 million

Infrastructural development in coastal districts is the priority of World Bank

IFI funds and tsunami rehabilitation 2005 to 2008

16,000 tsunami affected families are homeless and another group of 18,000 families living in damaged houses are waiting for the construction of houses after 4 years

50,000 families are yet to recover completely from the loss of livelihood

BUT More than 1,000 kms of big coastal roads are laid

Several government buildings are constructed by diverting the funds

Wrong Priorities in rehabilitation

While thousands of tsunami victims are homeless and struggle for livelihood

World Bank and Asian Development Bank have a priority only on developing infrastructural facilities

As a result…. People have roads but no homes, no improvement in livelihood and social

security….

Why roads…

Most of the coastal roads are laid with the purpose of linking new and old special economic zones located in the coastal areas.

Roads are laid for transportation of goods, linking

commercial ports, special economic zones and big polluting industries.

Roads are laid with a perspective of linking tourist resorts, entertainment parks and beaches for foreign tourists.

Tsunami is an opportunity for ADB and World Bank

WB and ADB pressurized Government of Tamilnadu and Pondicherry to privatize ports with 100 years leasing and collection of levies for using the port.

Construction of new commercial ports in the Tamilnadu coast because it is maritime wise strategically located in between East Asia and the West Asia.

More number of Container handling ports for special economic zones of Tamilnadu coast are under planning

Most of the investors of special economic zones are from the countries like South Korea, Taiwan, China and Japan. Interestingly Asian Development Bank officials are reportedly lobbying for corporate sector of these far east countries with the State Government officials.

40 new ports are in the pipeline and some ports are already under construction in Ennore, New Tuticorin port, Cuddalore and Karaikal.

Privatization of ports are made as a result of pressures from IFIs

Impact of Infrastructural investments

More commercial ports means more interference in sea causing destruction of nets of the fishers,

disturbing the livelihood of fishers, ecological damage to coral reefs,

environmental pollution, forcibly capturing the traditional lands of coastal

fishing communities, destruction of coastal forests and grooves,

mining of natural sand dunes,Creating new sea erosions in the coastal villages near

the ports, and triggering displacement of indigenous fishing

communities from the coast to inland.

Attempt to legalize coastal invasion

World Bank and Asian Development Bank officials are behind the Government of India’s notification on coastal management zone 2008.

This notification violates Coastal Regulation Zone Notification of 1991 which protects coastal environment, resources and land rights of indigenous fishing and other coastal communities.

The proposed new notification provides scope for exploitation of coastal land and sea resources by private corporate entities.

What we demand

Convert all loans sanctioned under tsunami rehabilitation into interest free grants

Allocate funds for livelihood restoration and social security components for the welfare of coastal

communities\

Stop promoting commercial ports and special economic zones

Minimize the socio-economic and environmental negative impacts of Funds of IFIs