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FOREST CONSERVATION NEWS TODAY

PAPUA NEW GUINEA: Landowners Make World Bank Inspection Panel Claim

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12/12/01

OVERVIEW & COMMENTARY by Forests.org

Landowners in the Kiunga-Aiambak area of Western Province, Papua New

Guinea, have lodged a claim with the World Bank Inspection Panel

regarding the Bank's failure to adhere to policy and commitments

regarding rainforest conservation.  This is an internationally

significant news story.  The World Bank Inspection Panel provides an

independent forum for people directly affected by a World Bank funded

project to raise their concerns.  The current economic loan program

from the World Bank to the government of PNG includes a moratorium on

new logging as a condition for the loans.  Illegal logging and the

Kiunga-Aiambak road project, despite loan commitments to end such

activities, have strongly affected landowners.  Landowners claim that

they have suffered economic, social, environmental and cultural loss

as a result of the illegal logging on their land.  Despite having

been brought to the attention of the government and the World Bank,

nothing has been done so far to stop the illegal logging operations. 

The World Bank and government have allowed the moratorium to lapse,

and are preparing to make the final loan payment very shortly.  The

World Bank has not followed its policies nor held the government of

PNG accountable for meeting its forest conservation commitments under

the loan.

 

Landowners are calling for an end to illegal logging in the Kiunga-

Aiambak area and a continued moratorium on new logging.  Forests.org

wholeheartedly supports their claims.  How can you help?

 

*      Circulate the press release below to media, particularly in PNG,

Australia and international economic/financial press.  This is a

story worthy of international news attention.  Feel free to direct

media to Forests.org for interviews.

 

*      Respond to Forests.org's action alert in solidarity with PNG

landowner demands at http://forests.org/emailaction/png.htm

 

*      Additional materials; including the full claim, executive

summary and cover letter to the World Bank can be found at the Papua

New Guinea Rainforest Conservation Portal at

http://forests.org/pngforest.html

 

g.b.

 

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RELAYED TEXT STARTS HERE:

 

Center for Environmental Law and Community Rights Inc (CELCOR)

Papua New Guinea

Phone: 675 + 3234509

Email: celcor@datec.com.pg

 

December 7, 2001

 

Press Release

 

KIUNGA-AIAMBAK LANDOWNERS LODGE CLAIM WITH INSPECTION PANEL

 

Port Moresby

 

The Center for Environmental Law and Community Rights Inc. (CELCOR)

representing landowners in the Kiunga-Aiambak area of Western

Province lodged a claim with the World Bank Inspection Panel on 3rd

December 2001. The claim was registered by the Inspection Panel on

7th December 2001. CELCOR is a public interest law NGO based in Port

Moresby. The Inspection Panel claim was lodged under the instructions

from over 300 landowners affected by the Kiunga Aiambak road project

and illegal logging in the area. 

 

The landowners affected by illegal logging and the Kiunga-Aiambak

road project decided to pursue this matter with the World Bank

Inspection Panel because they have lost their land and forests

through bad forest governance during the currency of the Governance

Promotion Adjustment Loan by the Bank to the government of

Papua New Guinea.  The landowners claim that they have suffered

economic, social, environmental and cultural loss as a result of the

illegal logging on their land. Their concern has been brought to the

attention of the government and the World Bank but nothing has been

done so far to stop the illegal logging operations on their land.

 

The expropriation of the landowners forest by the State and the

logging company have caused and will continue to cause, grave

economic, social, environmental and cultural loss to the claimants. 

 

"We feel that the Bank is not doing enough to address the governance

problem so far as the forest industry is concerned. This has caused

irreversible harm to the claimants land and forests", said Damien

Ase, Executive Director of CELCOR.

 

The landowners have claimed that the World Banks disbursement of the

second tranche of the Governance Promotion Adjustment Loan without;

 

* maintaining the moratorium on new logging concessions,

 

* fully implementing the findings of the partial review including

requirements seeking remediation of illegal logging and,

 

* requiring a full review of existing concessions, constitutes:

 

- a violation of the contractual provision of the Governance

Promotion Adjustment Loan by loaning to the State who with bad faith 

defaults to implement its own promises,

 

- it also constitutes a violation of the World Banks Operational

Directors 13:05 on supervision because of poor judgement and

imprudent lending to a borrower who condones illegal logging

practices,

 

- furthermore, the landowners claim that the World Bank inaction is a

violation of its operation policy on forestry (OP 4.36) as the action

of the State shows that it did not implement, follow, adhere to or is

committed to sustainable forest management, conservation oriented

forest protection or good forest practices.

 

The PNG government failed to fulfil the loan conditions. It did not

demonstrate good faith on every single conditionality aimed at

improving forest governance imposed by the Bank on the Governance

Adjustment Programme Loan which also called the Structural Adjustment

Loan (SAL).

 

The landowners are calling on the World Bank to suspend the second

tranche of the loan and fulfil its responsibility as a major lender

to:

 

* stop illegal logging in the Kiunga-Aiambak area.

 

* Maintain the moratorium on new logging concessions until there is

transparency and effective forest sector reform.

 

"It is high time institutions such as the World Bank act accordingly

and follow their approved operational policies to deal with

governance issue and to help PNG to achieve its constitutional ideal

of fair and equitable society and sustainable development for all.

Sustainable economic and social goals will not be achieved until

there is transparency and accountability at all levels of

government", said Mr. Ase.

 

The landowners sought the assistance of CELCOR to lodge their claim

with the Inspection Panel because the State and the World Bank have

failed to address their concerns about the impacts of illegal logging

on their land and to stop the illegal logging operation. They have

used the Inspection Panel as a last avenue because the World Bank

staff have been unresponsive to their concerns. 

 

The World Bank Inspection panel was created in 1993 as part of an

effort to bring greater public accountability to World Bank lending.

The Inspection Panel provides an innovative and independent forum for

those people directly affected by a World Bank funded project to

raise concerns about the problems in the project. Two or more local

people can bring a claim to the Panel asking for an independent

analysis of the Banks role in the project. This is the first time

such a claim has been lodged by landowners in Papua New Guinea.

 

For further information or comments regarding the claim, contact

Damien Ase at CELCOR on phone: 3234509 or email: celcor@datec.com.pg.

 

Port Moresby, 7th December 2001.

 

Center for Environmental Law and Community Rights Inc

CELCOR

P.O. Box 4373,

BOROKO

National Capital

District

Papua New Guinea

Phone: 675 + 3234509

Fax:      675 + 3112106

Email: celcor@datec.com.pg

 

Suite 1, Level1, Malangan

Haus, Boroko, Port Moresby

 

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