Dáil Éireann debate -
Thursday, 12 Jul 1990

Vol. 401 No. 6

Written Answers. - Irish Multilateral Aid.

Alan Shatter

Question:

100 Mr. Shatter asked the Minister for Finance if he is ensuring the Irish multilateral aid distributed through the World Bank is being used to safeguard the environment; and if he will call for the cessation of World Bank funds towards the Narmada Dam in India.

Minister for Finance (Mr. A. Reynolds)

In recent years, the World Bank has made the environment a major focus of attention in its lending policies. To this end, the bank has substantially increased the resources it devotes to the environment which is enabling it to incorporate environmental concerns into all facets of its project cycle. The bank's direct lending for environmental purposes has also increased dramatically. Moreover, environmental issues have become an ever increasing part of the bank's dialogue with the Governments of its borrowing countries and, in addition, the bank is developing its relationships with the non-governmental organisations (NGOs) which specialise in environmental issues. In the light of these developments, I am satisfied that World Bank group resources, including Ireland's contributions, are being utilised with care and concern for the environment.

I have already conveyed my concerns about the Narmada River Development Project to the Executive Director for Ireland at the World Bank. I have been assured that the bank has taken special care in planning and implementing the project with the Government of India and that it continues to pay careful attention to the views of NGOs and to local interests about the project. Furthermore, I understand that specific conditions relating to resettlement and environmental protection issues are inscribed in the bank's agreements with the Indian central and state governments involved in the project and failure to fully comply with these conditions could lead to a suspension of disbursements. Finally, I am assured that the bank continues to monitor the situation closely, with its next detailed review of the project being scheduled for later this year.