---

Julian Payne
Executive Director for Canada, Denmark, Finland, Netherlands, Norway and Sweden
Asian Development Bank
6 ADB Avenue, Mandaluyong City
0401 Metro Manila
PHILIPPINES

Fax 632 636 2444

Dear Mr. Payne,

Please find attached a copy of a June 13th letter to ADB President Tadao Chino from a network of 38 people’s organizations representing farmers, labourers, students, environmentalists, and communities across Thailand. The groups condemn the ADB for failing to respond to concerns they raised about ADB-financed projects and programs in Thailand last month in Chiengmai, and demand an immediate response.

At the time of the ADB annual meeting in Chiengmai last month, President Chino assured those organizations that ADB staff would provide written responses and more detailed information about specific complaints by the end of May. In addition, three ADB directors, Cinnamon Dornsife (United States), John Lockhart (Australia), and Uwe Henrich (Austria, Germany, Turkey, and United Kingdom), promised to investigate citizens’ allegations of corruption and other unlawful procedures in connection with the ADB-financed Klong Daan wastewater treatment project in Samut Prakarn province.

At a meeting arranged by Thai NGOs, representatives from hundreds of communities opposed to the $605 million Klong Daan plant, told the directors that the project, if completed, would release huge amounts of untreated heavy metal sludge into their fishing grounds, destroy the fishing livelihoods of hundreds upon hundreds of families, and cause long-term damage to the coastal ecosystem upon which their local economy thrives. They complained that the project was approved by the Thai government without a proper public review procedure and environmental impact assessment, in violation of Thai laws and the constitution. They also said that Thailand’s pollution control department, the government agency responsible for the project, had illegally acquired land for the project, fenced off the project area and started construction, denying local communities access to coastal mangrove forests and fishing grounds.

Finally, the villagers urged the ADB directors to stop ADB loans for the project, investigate their complaints and allegations of corruption, and visit Klong Daan communities to see for themselves what is at stake. In response, Ms Dornsife, Mr. Henrich, and Mr. Lockhart said they had no power to make any decisions at the time but that they would order an investigation.

We believe that the ADB directors have an individual responsibility to ensure the Bank conducts this investigation immediately, in a transparent and thorough manner. As the project’s lead financier, the Bank also has a responsibility to immediately stop loan disbursements for the project in question, until the Bank conducts its investigation, visits the project area, and discloses the details of its findings to the Thai government and public.

We regret that neither you nor any of your staff attended last month’s meeting to hear from Klong Daan representatives directly but we nevertheless urge you, as the representative of Canada and five other ADB-donor countries, to ensure that the ADB provides an immediate written response to the Klong Daan villagers and to the 38 people’s organizations, without any further delay.

So that we may keep our network of supporters across Canada informed about the ADB’s performance, we would appreciate a written response from you as well as copies of any written responses to the people’s organizations of Thailand.

Sincerely, Gráinne Ryder Policy Director, Ext.228

cc Cinnamon Dornsife, Alternate Executive Director for United States
Uwe Henrich, Alternate Executive Director for Austria, Germany, Turkey, and United Kingdom
John Lockhart, Director for Australia, Cambodia, Hong Kong, Kiribati, Micronesia, Nauru, Solomon Islands, and Tuvalu

Read Letter to President Tadao Chino.