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Mr. Enrique Iglesias
President of the Inter-American Development Bank

Mr. Omar Kabbaj
President of the African Development Bank

Mr. Tadao Chino
President of the Asian Development Bank

Mr. Jean Lemierre
President of the European Bank for Reconstruction and Development

Mr. Peter Woicke
Vice-President of the International Finance Corporation

Demands to MDBs
regarding the World Panel on Financing Water Infrastructure

Inter-American Development Bank, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development and International Finance Corporation (IFC) have committed to the World Panel on Financing Water Infrastructure (Camdessus Panel*), and were involved in creating the report of "Financing Water for All". This panel is attempting to influence the ministerial declaration at the Third World Water Forum. In this report, the above Multilateral Development Banks (MDBs) are promoting the role of private investment in the water infrastructure and "Public Private Partnerships".

However, rapid increase in water rates and the deterioration of water quality and water services has been caused by water privatization and commercialization, especially in the developing countries. There are many cases where privatization and commercialization of water have increased the financial burden on poor people, and worsened their health conditions. Water is a fundamental necessity for life, therefore, the management of water services should be conducted in a democratic and transparent way.

If MDBs consider poverty reduction as their primary objective, they should reconsider the non-transparent decision-making process with institutions such as the World Water Council (WWC) and the Global Water Partnership (GWP), and rather, should implement water resource policies with consideration to the following points:

1. MDBs often include water privatization and commercialization in their loan conditions, and promote water privatization and commercialization through technical assistance to developing countries. However, there are many cases where water management by the private sector has failed. Therefore, MDBs should not include water privatization and commercialization in loan conditions.
2. MDBs should prioritize improvement the poor's access to water. MDBs should evaluate development aid comprehensively with the participation of stakeholders, including those who are affected by the projects, to determine whether aid has been used appropriately to increase access to water by the poor.
3. The present development aid policies of MDBs support private enterprises through various means such as guarantees and debt relief. MDBs should give priority to water service management conducted by democratic and transparent public bodies and communities-not corporations.
4. Decision-making on water management should be conducted in a democratic and transparent manner. MDBs must recognize that privatized water services worldwide have often resulted in lower water quality and water rates that have further deepened poverty.
5. Water is a fundamental necessity for life, and should not be treated as a mere economic commodity. MDBs should not promote the indiscriminate full-cost recovery approach to water pricing.
6. MDBs should support the study and promotion of alternatives to privatization and commercialization of water including management, regulation and monitoring systems by public bodies and by communities.

*The Camdessus Panel was established by the GWP and the WWC towards the Third World Water Forum. The Chief of the panel is Camdessus who is the former Managing Director of the IMF, and this panel is composed of leaders from MDBs, private investment banks, private water corporations, experts and NGOs.

Endorsed by following individuals and organizations ( 10 organizations and 29 individuals as of 21 March 2003):

Alliance for Democracy, USA
AM-Net (Advocacy and Monitoring Network on Sustainable Development), Japan
Bank Information Center, U.S.A.
Environmental Foundation Limited, Sri Lanka
Freedom From Debt Coalition, Philippines
Friends of the Earth Sri Lanka, Sri Lanka
Friends of the Earth Japan, Japan
Japan Center for a Sustainable Environment and Society (JACSES), Japan
IBON Foundation, Philipines

Ahalid Hussein, Pakistan
Alhassan Adan, National Coalition Against Privatization of Water (NCAP), Ghana
Alsar H. Trfoi, RFSTE, India
Atuko Miwa, Japan
Aviva Imhof, International Rivers Network (IRN), U.S.A.
Brian Tomlinson, Reality of Aid, Philippines
Budi Widianarko, Coalition for Rights for Water, Indonesia
Eiji Ishikawa, Japan
Farhana Wagha, Action Aid, Pakistan
Joan Carhieg, Crdellera People Alliance, U.S.A.
Hiroshi Kanno, CCN, U.S.A.
Holly Wren Spauldin, Sweetwater Alliance, Philippines
Kazumi Sakamoto, ODA Watchers, Japan
Michael Simon, Australia
Michael Tugling, Clemonts National Welfare Rights Union, U.S.A.
Moses Kawbou, ORCADE, Burkina Faso
Nadia Hadad, International NGO Forum on Indonesian Development (INFID), Indonesia
Nagase Riei, Japan
Nancy Alexander, Citizens' Network on Essential Services, U.S.A.
Nila Ardhianie, Indonesian Forum on Globalization, Indonesia
Ohniwa Mariko, People's Forum on Water, Japan
Melita Grant, AID/WATCH, Australia
Olivier Hoedeman, Corporate Europe Observatory (CEO), Netherlands
Rod Harbinson, Friends of the Earth Netherlands, Netherlands
Simon Herskovlts, Western Environmental Law Center, U.S.A.
Stephen Gasteyer, U.S.A.
Tokuyuki Nakanishi, People's Forum on Water, Japan
You Thayoun, Indonesia Centre of Investigation, Indonesia
Yu Tanaka, Japan


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