HC Deb 21 March 1994 vol 240 cc18-20
43. Mr. Deva

To ask the Secretary of State for Foreign and Commonwealth Affairs what steps the Overseas Development Administration takes to ensure that all aid projects are assessed for their environmental sustainability.

Mr. Lennox-Boyd

All projects are subject to environmental assessment according to the guidelines and procedures set out in the ODA manual of environmental appraisal.

Mr. Deva

I thank my hon. Friend for that answer. Does he agree that environmental concerns in developing countries will be further strengthened by the recent signing of the global environmental facility? Will he elaborate on how that might help?

Mr. Lennox-Boyd

Yes. Following the recent negotiations in Geneva, I am delighted to report that the GEF was successfully restructured and replenished. Britain pledged £89.5 million worth of support. The global environmental facility will help to alleviate global environmental threats. The agreement must be good news for the implementation of the climate change and biodiversity conventions.

Mr. Campbell-Savours

When the Pergau dam proposal was first put to the ODA, did not it fail the appraisal procedure to which the Minister referred? On the so-called "loan" given to the Malaysians, who is paying the difference between the rate at which the Malaysians received the money and the cost of borrowing the money in the United Kingdom? Is not the difference paid by British taxpayers?

Mr. Lennox-Boyd

The hon. Gentleman is wrong. The environmental and social impacts of the Pergau project are negligible compared with other dam schemes. The review of environmental information concluded that there were no environmental issues that would prejudice funding. The project has incurred minimal adverse impact on primary rain forest and rare wildlife species. Obviously, taxpayers, through the aid budget, fund the concessional nature of the loan.

Mr. Jacques Arnold

Are not the various projects funded by Britain in the tropical rain forests in Brazil precise examples of the fact that our aid programme is devoted to environmental sustainability?

Mr. Lennox-Boyd

A great deal of care is taken to ensure that all projects are appraised for environmental impact. The ODA has an environmental appraisal manual, which was first published in 1989. Some 1,800 copies have been distributed, all staff are trained in using the manual and training is on-going.

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