§ Mr. DenhamTo ask the Secretary of State for Foreign and Commonwealth Affairs what further assessment he has made of the World bank's appraisal of the Arun III hydro power project, including the economic analysis and justification; and if he will make a statement.
§ Mr. BaldryBefore completing our assessment, including reviewing the outcome of the inspection panel's investigation, we need to await a decision by the new Nepalese Government on whether they wish to request International Development Association financing of the project.
§ Mr. DenhamTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will instruct the United Kingdom executive director of the World bank to press for the inspection panel consideration of Arun III to be extended to include proper consideration of alternative schemes.
§ Mr. BaldryThe World bank board has authorised investigation of the three areas recommended by the inspection panel, namely whether the International Development Association policies and procedures have been observed with respect to environmental assessment, indigenous peoples and involuntary resettlement. The panel did not recommend investigation of IDA's compliance with policies for the analysis of alternatives to Arun III. In the circumstances, we see no case for re-opening the board's decision.