Bangkok Post
February 24, 2001

Japan may review its seven-billion-yen (US$60.9 million) loan for the Klong Dan wastewater treatment plant in Samut Prakarn, Finance Minister Kiichi Miyazawa said yesterday.

“The Asian Development Bank may have to make its own decision” by taking into account local people’s concern over environmental degradation and alleged scandals in connection with the project, Mr. Miyazawa told the House budget committee in Tokyo.

The loan for the project was provided through the bank.

The plan is intended to help clean up wastewater containing heavy metals generated by an industrial area in Samut Prakarn province.

Residents of tambon Klong Dan have long protested against the project. In January, more than half the member of the Senate signed a letter to the bank asking for a review.

“There is a situation where we must ask, ‘Can we go ahead with the project?’ when the public voices dissatisfaction and criticism. I suspect this is such a case,” Mr. Miyazawa said.

The wastewater treatment project, costing US$605 million, was approved by the Manila-based bank in December 1995. The bank has pledged $230 million in loans for the project.

The plant, which has been under construction since February 1998, is said to be 30% completed and is due to begin operation in early 2002.

Japanese opposition legislators in January called for the bank launch a corruption inquiry into the project.