U.S. power company AES Corp. has been forced to delay building the $550 million Bujagali dam, Uganda, because of a financing shortfall.
A broad coalition of organisations is challenging the plan to privatise Ghana’s water system. They complain that the World Bank and IMF-promoted scheme will not extend services to poorer people or ensure fair pricing. The deal - which the IMF has just made part of its new conditions for Ghana - reflects the biases of the consultants which drew it up at a cost of $3million.
US multinational Bechtel is seeking compensation from the Bolivian government after protests forced the cancellation of its contract to provide water in Cochabamba. The case has been accepted by the International Centre for the Settlement of Investment Disputes, a little-known arm of the World Bank Group. Campaigners are preparing to challenge the process.
The World Bank has recently announced that it will not be taking action following allegations of corruption levelled at corporate clients in Peru and Lesotho. The Peru goldmine and Lesotho dam cases lead some Bank-watchers to question the Bank’s high-profile commitment to rooting out corruption.
Tanzanian authorities have arrested Rugemeleza Nshala, President of the Lawyers Environmental Action Team (LEAT), and raided the house of another LEAT lawyer, Tundu Lissu in connection with their investigations into abuses and irregularities at the World Bank-backed Bulyanhulu gold mine.
In late December the World Bank approved the Bujagali dam, Uganda.
NGOs have expressed “dismay” at the World Bank’s proposed private sector strategy.
The latest World Development Report (WDR) places the market at the centre of any institutional framework for development and confirms the Bank’s neoliberal approach to development (October 2001).
The Multilateral Investment Guarantee Agency (MIGA) has issued a 13-page response to the report Risky Business published by Friends of the Earth and other NGOs this summer.
The World Bank’s proposed new private sector development strategy is criticised in a response from Public Services International Research Unit (PSIRU).