KM Dubai Bureau August 4, 2004

Vietnam: Emergency Credit of $5 Million Supports Control over Avian Influenza Epidemic

Hanoi Aug 4: The World Bank's Board of Directors yesterday night approved a US$5 million emergency credit to support Vietnam's National Action Plan for the control of the avian influenza epidemic.

The Vietnam Avian Influenza Emergency Recovery project aims at a threefold target: (a) to strengthen disease surveillance and diagnostic capacity in the control of highly pathogenic avian influenza (HPAI); (b) to strengthen the poultry sector infrastructure to better cope with serious disease outbreaks; and (c) to safeguard human health by improving public awareness and information.

The recent avian influenza epidemic has been a financial disaster for Vietnam's commercial poultry industry and has also affected the livelihood of millions of small-holder poultry-keepers. Of a total of around 12 million farming households it is estimated that over 70% keep poultry, constituting an especially important source of household cash income, especially for women.

"The recent epidemic clearly revealed the inadequacy of veterinary and extension services to cope with an animal health epidemic of this nature," said Martin Rama, Acting Country Director of the World Bank in Vietnam. "The project will provide much needed technical advice to the Government on the strategy it should follow to recover from the present crisis and for the future control of avian influenza epidemics."

The main benefits to the national economy would be the restoration of productive assets and economic activities, mainly in rural areas, through: (a) the rehabilitation of the poultry sub-sector which was severely affected by the epidemic; (b) the strengthening of Vietnam's animal disease surveillance system, both public and private, and diagnostic capacity, to identify at the earliest time new HPAI outbreaks; and (c) the provision of information on infectious animal disease outbreaks and advice on animal health and safety to extension staff, poultry producers and the general public.

The project will benefit poultry farmers and traders who lost their poultry or ducks as the result of the avian influenza epidemic. The project will also help protect other farmers against such losses in future.

"The project supports the first phase of a longer-term program aimed at restructuring Vietnam's poultry sub-sector and strengthening the veterinary services system to deal with other potentially destructive infectious disease outbreaks. It will therefore serve as a pioneering effort to evaluate the methodologies most suitable for emergency preparedness and longer-term intervention," noted Rama.

The total cost of the project is estimated to be US$6.20 million, of which the World Bank contribute US$5 million of IDA emergency credit, FAO would finance US$0.55 million, mainly for technical assistance and training, and the Government put forward US$0.65.

The International Development Association (IDA) Credit is being extended at standard IDA terms, with a 40-year maturity and a 10-year grace period. -Keralamonitor.com


World Bank Group Board Agrees Way Forward on Extractive Industries Review


Washington Aug 3: The Board of the World Bank Group considered on Tuesday management's response to the Extractive Industries Review and internal reports on the Bank's Group's investments in the extractive industries - oil, gas, and mining - and broadly agreed that it represented a balanced way forward for the Bank Group.

"The proposals of management are built around the central theme that our investments and policy advice in the extractive industries should benefit the poor first and foremost," said James D. Wolfensohn, Chairman and President of the World Bank Group.

Board consideration of the management response is the culmination of a wide-ranging process of review that included multiple in-depth, independent technical reviews (see links below), project site visits, and a series of conferences around the globe to solicit the views of stakeholders in government, industry, civil society, and local communities.

Board members expressed a wide range of views on specific issues in the draft management response and, in response, management agreed to refine language on some issues and submit a final version of the text in the next few weeks. In addition, a Chairman's Summary of the Board discussion will be released.

"The role played by the stakeholder process led by Dr. Emil Salim was valuable in shaping our thinking and has contributed to global dialogue on extractive industries" Wolfensohn said. "That dialogue has produced higher standards on issues such as transparency, governance, local participation, disclosure, protection of the environment, and promotion of renewable energy."

Management, in its proposal to the Board, indicated that it would continue investments in oil, gas, and mining production, as these will continue to be an essential part of the development of many poor nations. Management also noted that as countries develop their resources, Bank Group capital and expertise can help ensure such projects meet high environmental, social, and governance standards, and that revenue from the projects is used transparently and effectively.

"The harsh reality is that some 1.6 billion people in the developing nations still do not have electricity, and some 2.3 billion people still depend on biomass fuels that are harmful to their health and the environment," Wolfensohn said. "That underscores the need for our continued but selective engagement in oil, gas, and coal investments."

"It is important to understand that the various reports and the management response do not end with today's meeting," Wolfensohn said. "We are engaged in a process aimed at improving the situation of those in poverty and ensuring that work with extractive industries and new initiatives on renewable energy continue to be developed. The Bank Group is committed to working with governments, the private sector, and civil society to improve outcomes and ensure it maintains its leadership role."

Management proposed, and the Board agreed, that the Bank Group would have an annual review with the Board of progress toward achievement of the objectives outlined in the management response and to remain engaged with all stakeholders.

The central message of the reviews was that while extractive industries investments can contribute to sustainable development, the Bank Group should further enhance its efforts in several areas: more explicitly identifying and tracking poverty reduction associated with its projects, the overall quality of governance in host countries, broader inclusion of local stakeholders, transparency of revenue management and project documents, and the promotion of renewable energy and cleaner fuel alternatives.

Among the reforms proposed:

Poverty Alleviation: The Bank Group is to develop new indicators of project-specific poverty reduction impacts, identify such indicators prior to project approval, and track progress against those indicators over the lifetime of a project.

Transparency: The World Bank Group has endorsed the Extractive Industries Transparency Initiative and is actively engaged with several developing nations - Nigeria, Azerbaijan, and Kyrgyzstan, among others -- to develop a more systematic approach to disclosure of revenues from extractive industries. In addition, the Bank Group will begin requiring disclosure of revenue figures for new major extractive industries projects immediately, and for all projects within two years. Said Wolfensohn: "We believe increased transparency to be absolutely essential to improving poverty impact."

Governance: The World Bank Group is committing to use explicit governance indicators - such as the quality of fiscal management, transparency, and anti-corruption policies - in determining whether to engage in extractive industries projects and how such projects should be structured. In project documents disclosed to the public, the Bank Group will describe its governance assessment of a project.

Renewable Energy: Following on the renewable energy conference held in Bonn, Germany earlier this year, "we intend to take a leadership role on this issue and work with stakeholders to ensure the renewable and energy efficiency agenda is central to an environmentally sustainable energy policy," said Peter Woicke, Executive Vice President of the International Finance Corporation. The World Bank Group will seek to scale up its activities in this sector, and management has set an initial target to increase its renewable energy and energy efficiency portfolios by 20 percent annually over the next five years, which will increase the level of investments in this sector to more than $400 million per year. This target will be reviewed on a regular basis.

Inclusion: The World Bank Group is to strengthen its procedures for local community participation with respect to extractive industries projects. The Bank Group will only support projects where affected communities, including Indigenous Peoples, are engaged through free, prior, and informed consultation, leading to broad community support.

Sectoral Composition: The World Bank Group will put an increased emphasis on the development of natural gas and other cleaner fuel alternatives, and has committed to working with stakeholders to update the Bank Group's renewable energy strategy, expand capacity, and identify opportunities for partnership. In addition, the Bank Group will put an increased emphasis on working with local and regional companies.

Environmental and Social Issues: The World Bank Group continues to refine and improve its approach to environmental and social issues. The private-sector lending arm of the World Bank Group, the International Finance Corporation, is currently revising its environmental and social safeguards to improve their clarity, accessibility, and implementation. In addition, the Bank Group will immediately put in place a process to ensure that the use of security forces to protect extractive industry project sites is in line with best practices.

"Altogether, these reforms put the World Bank Group at the forefront of the development community in addressing the complex challenges associated with these projects. It strikes a new and better balance in our approach, and we intend to monitor implementation so this can be an ongoing learning process," Wolfensohn said. -Keralamonitor.com


World Bank Supports Education Sector in Mauritania with US$15 Million Credit

Washington Aug 3: The World Bank Board of Executive Directors Thursday approved an International Development Association (IDA) credit* of US$15 million to support Mauritania's efforts to improve education service delivery.

The Higher Education Project will improve the quality of the learning environment and the relevance of education courses to the labor market. It will establish pedagogic, administrative, and financial management systems in the country's institutions of higher education. It will also help the government to implement its strategy of producing qualified graduates with the skills needed for increased productivity and diversification of the economy.

The first component of the project, which focuses on enhancing the quality and relevance of higher education, will contribute towards modernizing university education, making it more relevant to the needs of Mauritania's economy. The project will assist the university and institutions of higher education in developing professional links with key employers in different sectors of the economy. The latter will identify priorities and offer advice on course content and objectives.

Under the new University Master Plan, the project will finance the construction and equipment of a new central library and distance learning center to serve as the focal points for internet access and for university-wide dissemination of information.

The second component will help implement the new policy framework for higher education with an emphasis on the transfer of autonomy to the university and other institutions of higher education. Areas of support in autonomy administration will provide strategic goal setting, budget planning and management, educational programs, and personnel management.

Activities under the project will also include "the training and upgrading of the skills of administrative and managerial staff of institutions of higher education in the areas of planning, student services, finance, and personnel management," said Mercy Miyang Tembon, the World Bank Task Team Leader for the project. "High priority will be given to the development of new leaders at the rector and vice rector levels and to the training of deans of faculty in academic planning and human resource management. Special attention will be paid to collaborative team work."

Poverty reduction and social development have been a key part of the Mauritanian Government's economic development strategy. The combination of economic growth and increased education expenditures not only has improved access to basic and secondary education but has also had a positive impact on social welfare and significantly reduced poverty.

Between 1990 and 2000, the percentage of Mauritanians living below the poverty line fell from 56.6 percent to 46.7 percent. Gross enrollment rates increased from 46.7 percent in 1990/91 to 91.6 percent with near universal intake at the primary level in 2002/03. Gross enrollment rates at the secondary level rose from 14.7 percent to 24.5 percent during the same period.

The credit is on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent and a service charge of 0.75 percent. The credit's period of maturity is 40 years, including a 10-year period of grace. -Keralamonitor.com