Announcement of World Bank President Acknowledges Problems in India Narmada Projects on June 18, 1992

FOR IMMEDIATE RELEASE * World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A *Telephone: (202) 477-1234 Contact: Tim Cullen (202) 473-1782 Alan Drattell BANK NEWS RELEASE NO. 92/S66 (202) 473-1787 WORLD BANK PRESIDENT ACKNOWLEDGES PROBLEMS IN INDIA NARMADA PROJECTS WASHINGTON, D.C., June 18 -- Following is a statement by World Bank President Lewis T. Preston: I have today received the report of the Independent Review of the Sardar Sarovar (Narmada) Projects in India. My predecessor, Barber Conable, commissioned the review in June 1991 in the midst of growing public controversy over the projects. The decision to mount such an Independent Review -- the first of its kind in the World Bank's history --.resulted from our commitment to public accountability. Mr. Conable wanted to obtain an impartial assessment of the implementation of the resettlement and rehabilitation and environmental aspects of these projects. He asked Bradford Morse, former administrator of the United Nations Development Programme (1976-86), to head the review. A team of prominent specialists assisted Mr. Morse. The Narmada River, India's fifth longest river, is one of the country's most important untapped water resources. The Narmada projects were designed to supply fresh water and electricity, create employment opportunities, and raise the living standards of millions of poor people in the region. The report of the Independent Review has identified a number of deficiencies in the Bank's appraisal of the projects, in the borrower's implementation and in the Bank's supervision work. It is clear that performance under these projects has fallen short of what is called for under Bank policies and guidelines and the policies of the Government of India. The Independent Review provides extensive*documentation and, in some cases, a fresh perspective on the nature and severity of the problems. I am convinced that the problems highlighted call for a comprehensive and vigorous response. Accordingly, within the next few days I will be submitting to our Board of Executive Directors our analysis of the report and a set of specific - 2 - remedial actions addressed to both the project-specific and institution-wide issues raised by the report. Continued Bank support for the Narmada projects is justified. But we should proceed only if practical ways can be agreed to ensure that the pace of further construction of the dam is adjusted to whatever extent is required to permit a fully responsible approach to the resettlement and environmental concerns. This will be the premise underlying our project- specific remedial actions. At the institutional level I am committed to ensuring that the implementation of the Bank's policies in these sensitive areas meets the highest standards. We will have a number of proposals to make with respect to Bank procedures, staffing and skill mix that will be consistent with this objective. I am grateful to Mr. Morse and his team for the considerable effort which has gone into this report. The hope-- and the challenge--is that the remedial measures stimulated by the report will lead to effective solutions to the problems which have afflicted the Narmada projects. -0-