Controversial Brazil eviction project budget slashed

15 December 1998

Last year the Brazilian government narrowly managed to persuade the World Bank’s Board not to send its Inspection Panel to investigate the Itaparica hydroelectric project, subject of controversy over the forced eviction of 40,000 people. The government pledged to spend US$290 million of Brazilian funds on an action plan to solve the problems and finish the Project.

But in early October this year the Brazilian press announced that the government cut had 50% of the Itaparica budget, making it impossible to implement the Action Plan. Pólo Sindical, Brazil Network and other NGOs were not informed by their government or the Bank about this cut and are now urgently asking whether the Bank is supervising the Action Plan it approved, and when will the Inspection Panel visit the Itaparica Project.