Bureau on Human Rights and Rule of Law

EBRD Annual Meeting, Zagreb, May 2010

OSH-ISFANA ROAD UPGRADING PROJECT,KYRGYZ REPUBLIC

EBRD - US$35 million sovereign loan

World Bank - US$13.75 million loan + US$11.25 million grant equivalent= US$25 million

EC – US$19 million

KR – US$5.76 million

TOTAL = about US$ 84.76 million

Implementing agency :Ministry of Transport and Communication of Kyrgyz Republic

EBRD - US$35 million sovereign loan

World Bank - US$13.75 million loan + US$11.25 million grant equivalent= US$25 million

EC – US$19 million

KR – US$5.76 million

TOTAL = about US$ 84.76 million

Implementing agency :Ministry of Transport and Communication of Kyrgyz Republic

PROJECT DESCRIPTION

EBRD’s IMPLICATION

The project has been categorized “ B”, we consider that for the public sector project EBRD should provide more information for the stakeholders and organize public consultations ( including EIA disclosure for comments):

General public was receiving condensed and unspecified information through the local media;A member of the interim government displayed lack of

understanding about project’ objectives, which may be excused but says a lot about level of public perception;Comparing to the World Bank‘s information about the same project EBRD displayed little transparency.

The project has been categorized “ B”, we consider that for the public sector project EBRD should provide more information for the stakeholders and organize public consultations ( including EIA disclosure for comments):

General public was receiving condensed and unspecified information through the local media;A member of the interim government displayed lack of

understanding about project’ objectives, which may be excused but says a lot about level of public perception;Comparing to the World Bank‘s information about the same project EBRD displayed little transparency.

MAIN CSO’S CONCERNS:

This non transparent practice leads to misunderstanding by the stakeholders of the project’aims and to further difficulties with public acceptance of unavoidable risks:

According to the World Bank’s EIA report (related to the same road project), “…Local people have expressed eagerness for the road to be completed as soon as possible, and when asked about the possibility to remove some remaining minor structures to achieve the full new road width and geometry, have even offered to give up their houses.” For us it means that people were misinformed about resettlements and compensation procedures. From our previous experience we know that local authorities will try to avoid this problem in order to foster the project. We urge EBRD not to use people naivety and organize extensive public information and consultation programmes.

This non transparent practice leads to misunderstanding by the stakeholders of the project’aims and to further difficulties with public acceptance of unavoidable risks:

According to the World Bank’s EIA report (related to the same road project), “…Local people have expressed eagerness for the road to be completed as soon as possible, and when asked about the possibility to remove some remaining minor structures to achieve the full new road width and geometry, have even offered to give up their houses.” For us it means that people were misinformed about resettlements and compensation procedures. From our previous experience we know that local authorities will try to avoid this problem in order to foster the project. We urge EBRD not to use people naivety and organize extensive public information and consultation programmes.

MAIN CSO’S CONCERNS:

Erosion in vulnerable terrain;

Usage of river bottoms as gravel pits which (common practice for many years). Reinforcing is needed;

Even a medium term water pollution resulting from rehabilitation and construction works (like possible spills of construction materials - gravel, sand, and fill), discharge of waste water and sewage from work camps and hydro-carbon leakage (especially near the Sokh river) could deeply affect local Kyrgyz population as well as the neighboring country’s population (Uzbekistan). Water resources are very important in this arid zone. Do not minimize the project activities’ negative effects.

Erosion in vulnerable terrain;

Usage of river bottoms as gravel pits which (common practice for many years). Reinforcing is needed;

Even a medium term water pollution resulting from rehabilitation and construction works (like possible spills of construction materials - gravel, sand, and fill), discharge of waste water and sewage from work camps and hydro-carbon leakage (especially near the Sokh river) could deeply affect local Kyrgyz population as well as the neighboring country’s population (Uzbekistan). Water resources are very important in this arid zone. Do not minimize the project activities’ negative effects.

ENVIRONMENT AND SOCIAL IMPACTS

ENVIRONMENT AND SOCIAL IMPACTS

Mainstream approach = “Privatization of the public infrastructure’’Mainstream approach = “Privatization of the public infrastructure’’

The EBRD loan was provided under conditions of fostering road sector reforms witch would mean “…introducing a more commercial approach to road maintenance, with greater reliance on the private sector; and finance

for the road sector based, so far as possible, on road user chargesthat reflect the real costs’’. Kyrgyz people already witnessed how such recommendations and subsequent “monetization and tariff increases”could affect socially and economically vulnerable people and break the public stability and trust to state institutions.

The EBRD loan was provided under conditions of fostering road sector reforms witch would mean “…introducing a more commercial approach to road maintenance, with greater reliance on the private sector; and finance

for the road sector based, so far as possible, on road user chargesthat reflect the real costs’’. Kyrgyz people already witnessed how such recommendations and subsequent “monetization and tariff increases”could affect socially and economically vulnerable people and break the public stability and trust to state institutions.

ENVIRONMENT AND SOCIAL IMPACTS

The roads that we do not choose