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Peoples’ Convention on Infrastructure Financing

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Invitation of the Peoples’ Convention on Infrastructure Financing

Concept Note of the Peoples Convention on Infrastructure Financing

Brochure

conferenceAt the Convention, there will be multiple workshops organised by the WGonIFIs in Mumbai during June 21-23, 2018. You can click here to participate as an individual or an organisation. You can also organise workshops.

Peoples’ Convention on Infrastructure Financing

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Tentacles of the International Finance in India

This document is an effort to compile data of investments coming into India from MDBs, ExIm banks and other bilateral investments, to help understand the landscape of financing from these institutions and helping to understand the overlaps of international financial institutions in certain key sectors.

Tentacles-of-International-Finance-in-India

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New Report Warns AIIB to do Due Diligence before Investing in NIIF

 

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A latest report has asked Asian Infrastructure Investment Bank (AIIB) to “tread carefully” on National Infrastructure and Investment Fund (NIIF), a fund of fund that seeks to create long-term value for domestic and international investors seeking investment in energy, transportation, housing, water, waste management and other infrastructure-related sectors in India.

The report, released by the Bank Information Centre-Europe and Centre for Financial Accountability, titled ‘Financing the future? The Asian Infrastructure Investment Bank and India’s National Investment and Infrastructure Fund’ warns that the AIIB do due diligence at all levels before approving a new $200m deal with India in April for fear of turning the key on some highly-controversial projects now being stalled by local community opposition.

The Prime Minister Narendra Modi has also vowed to revive long-stalled infrastructure projects, especially in the coal, power, petroleum, railways and road sectors. Quoting a recent data from the Centre for Monitoring Indian Economy Pvt. Ltd (CMIE), the report mentions that the value of stalled infrastructure projects in the quarter ended September increased to Rs13.22 trillion. The CMIE’s analysis shows that 39.04% of the total stalled projects were in the electricity sector by value.

The report observes that the first proposed Indian investment on the AIIB’s books in 2018 reflects both the Indian government’s prioritisation of infrastructure financing, and the interest of AIIB in both India and financial intermediary (FI) lending, a financial model involving investing indirectly through third parties such as an infrastructure or private equity funds — which makes it difficult to track the money — thus posing a substantial risk of being spent on the coal or other harmful projects by the back door.

The report observed that FI lending is becoming the dominant model of financing at development banks. The AIIB started FI lending in 2017, when it approved approving three FI investments: in Indonesia’s Regional Infrastructure Development Fund, the India Infrastructure Fund, and the Emerging Asia Fund. Next up is a potential $200 million commitment to India’s National Investment and Infrastructure Fund.

“Around the world, we have seen how extremely risky this model of ‘hands-off’ lending through financial intermediaries can be. Without stronger safeguards and transparency, the AIIB will simply lose sight of its original investment and the damage it could cause,” said BIC Europe Campaigns Director and co-author Kate Geary in a media release.

“The AIIB must tread very carefully here because it is still accountable for any project that harms local communities in India or damages the environment – regardless of how much distance the AIIB might claim to have from it,” Geary said.

Exhorting AIIB to learn from the IFC’s problematic experience with its FI portfolio and to avoid the associated social, environmental and reputational damage, the report recommends putting in place mandatory robust policies and systems around financial intermediary investments to ensure transparency, accountability and efficient channels of communication with all stakeholders.

The recommendations include: Scrutinising the existing project portfolio and pipeline of proposed FI clients; Reviewing the track record of the FI client in applying the environmental and social framework and making this assessment public; Ensuring that FI clients require sub-projects to be compliant with all AIIB policies especially the Environmental and Social Framework (ESF), Complaints Handling Mechanism (CHM), Public Information Policy, and all relevant sectoral strategies and guidelines; Monitoring the proposed client’s social and environmental due diligence and supervision of its investment; and Ensuring FI sub-project affected communities have access to redress, including through the AIIB’s accountability mechanism.

‘Innovative Financing’ of Bangalore Metro

Does metro help in decongesting traffic? How was Bangalore Metro financed?
Leo Saldanha of Environment Support Group, Bangalore, shares the history of Bangalore Metro and explains how it was ‘innovatively financed’.

ऊर्जा के क्षेत्र में वित्तीय संस्थाओं की भूमिका

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आमंत्रण
एशियाई इंफ्रास्ट्रक्चर इंवेस्टमेंट बैंक (AIIB) की भोपाल में आयोजित बैठक के संदर्भ में “ऊर्जा के क्षेत्र में वित्तीय संस्थाओं की भूमिका” विषय पर विमर्श

वक़्ता:
श्री सौम्या दत्ता, पर्यावरणविद एवं ऊर्जा विशेषज्ञ
श्री राजेंद्र कोठरी, लघु एवं माध्यम उद्योग संगठन
श्री राजकुमार सिन्हा, बर्गी बाँध विस्थापित एवं प्रभावित संघ
श्रीमती चित्तरूपा पालित, नर्मदा बचाई आंदोलन

26 मई 2018, वीरेंद्र तिवारी कक्ष,हिन्दी भवन, भोपाल

साथियों,

आगामी 21-22 मई को एशियाई इंफ्रास्ट्रक्चर इंवेस्टमेंट बैंक (AIIB) अपनी ऊर्जा संबंधी निवेश नीतियों के संदर्भ एक बैठक भोपाल में आयोजित कर रहा है। एआईआईबी दो वर्ष पुराना एक बहुपक्षीय बैंक है जिसका ना तो मजबूत ‘पर्यावरणीय-सामाजिक उत्तरदायित्व’नीति है, ना ही किसी प्रकार का शिकायत तंत्र है जिसके चलते इसे जबाबदेह ठहराया जा सके। हाल ही बना यह बैंक, भारत के विभिन्न राज्यों में आधारभूत संरचनात्मक विकास की कई परियोजनाओं में बड़े पैमाने पर निवेश कर रहा है जिसमें ऊर्जा प्रमुख रूप से है। भोपाल में आयोजित बैठक का उद्देश्य प्रदेश के ऊर्जा क्षेत्र में निवेश को बढ़ावा देना ही है। बैंक की कार्यप्रणाली और निवेश नीति पर कई लोग गंभीर सवाल उठा रहे है इसलिए हमें लगता है कि ऊर्जा जिसे हम बिजली के रूप में समझते है,और वित्तीय संस्थानों कि भूमिका के बारे में व्यापक और बहुपक्षीय चर्चा करने की आवश्यकता है।

हमारे प्रदेश में उपभोक्ताओं को देश में सबसे अधिक बिजली बिल का भुगतान करना पड़ता है जो दिल्ली की तुलना मे तीन गुना अधिक है । जबकि हम अन्य राज्यों को सस्ती दरों में बिजली बेचते है। प्रदेश में बिजली उत्पादन करने की क्षमता 20028 मेगावाट है जिसमें 9390 मेगावाट निजी क्षेत्र से आता है। लगभग 10638 मेगावाट का उत्पादन क्षमता रखने वाली प्रदेश कई सार्वजनिक इकाइयां कोयला इत्यादि के अभाव में बंद पड़ी हैं या अपनी क्षमता से कम उत्पादन कर रही है। निजी पॉवर हाउस कंपनियों से हुए करार के चलते राज्य सरकार निजी कंपनियों द्वारा उत्पादित बिजली खरीदने के लिए बाध्य है। ना खरीदने पर कंपनियों को बेवजह मोटी रकम का भुगतान करना पड़ रहा है। पीक आवर यानि जब प्रदेश को सबसे अधिक मात्र में बिजली की आवश्यकता होती है, के समय में हमारी जरूरत 11500 मेगावाट की है जो उत्पादन क्षमता का लगभग आधा है। प्रदेश में जरूरत से अधिक बिजली (सरप्लस) होने बाबजूद एक तिहाई गरीबों को बिजली नहीं मिल पा रही है। इसके बाबजूद बिज़ली उत्पादन के क्षेत्र में लगातार निवेश को प्रोत्साहित किया जाना कहाँ तक उचित है?

प्रदेश की मौजूदा परिस्थिति ऊर्जा क्षेत्र की जटिलताओं पर व्यापक बहस चलाने व अपनी समझदारी को अधिक साफ़ करने की मांग करती है इसलिए इसी क्रम में “ हम सब” जो की एक अनौपचारिक समूह है, द्वारा 26 मई2018 को वीरेंद्र तिवारी कक्ष, हिन्दी भवन,भोपाल में शाम 6 बजे से “ऊर्जा के क्षेत्र में वित्तीय संस्थाओं की भूमिका” विषय पर विमर्श का आयोजन किया जा रहा है । विमर्श को प्रसिद्ध पर्यावरणविद और ऊर्जा विशेषज्ञ सौम्या दत्ता, राजेंद्र कोठारी, राजकुमार सिन्हा,और नर्मदा बचाओ आंदोलन से चित्तरूपा पालित मुख्यरूप से संबोधित करेंगे ।

आप से आग्रह है इस महत्वपूर्ण विषय पर आयोजित विमर्श में अपनी भागीदारी सुनिश्चित करें ।

निवेदक

रघुराज सिंह (मो. 09425300846) , राजेंद्र कोठारी (मो.09893016682), गौरव (मो. 09425089369)

MASS welcomes the US Supreme Court’s Decision to Hear the Case Challenging World Bank Group Immunity

For immediate release

MAAS welcomes the US Supreme Court’s Decision to Hear the Case Challenging World Bank Group Immunity
This will be the first time the US Supreme Court will address the scope of international organisations’ immunity.
May 21, 2018, Mundra, Gujarat: Machimar Adhikar Sangharsh Sangathan (MASS) and the affected communities by the Tata Mundra Ultra Mega Project welcomes the historic decision of the US supreme court to hear the landmark lawsuit which challenged the immunity of powerful institutions like the International Finance Corporation (IFC), the private lending arm of the World Bank Group.
“This is a victory of our relentless struggle to bring to justice the crimes committed by the Tata against the fishing community. The IFC aided the process by turning a blind eye to it,” said Dr Bharat Patel General Secretary, Machimar Adhikar Sangharsh Sangathan, one of the petitioners in the case.
The case, Jam v. IFC, brought by fishermen and farmers affected by IFC-funded Tata’s Mundra Ultra Mega Project challenged the absolute immunity enjoyed so far by international organisations like IFC.
“International organizations like the IFC are not above the law and must be held accountable when their projects harm communities. The notion of ‘absolute immunity’ is inconsistent with Supreme Court precedent, and it is contrary to the IFC’s own mission as an anti-poverty institution. We are glad the Supreme Court has agreed to hear this case and hope it will correct this error,” said Richard Herz, Senior Litigation Attorney at EarthRights International (ERI).
The Supreme Court’s decision to hear their case means that it will consider international organisation immunity for the first time, and decide whether international organisations can be held accountable for their harmful conduct, or whether they enjoy the special status above the law that they claim.
Budha Jam, the main petitioner, said that “This decision on this case will be keenly awaited by not only by us but by the communities from across the world which are fighting the crimes of the international financial institutions in the name of promoting development. I am hopeful that the US Supreme Court will not let us down.”
International organisations like the IFC have long claimed they are entitled to “absolute” immunity from suit – an immunity far greater than any person, government, or entity enjoys – no matter how illegal their actions are or how much harm they cause.
“It is the time to start holding international financial institutions accountable. In this time and age when the human rights and accountability discourse has travelled far and wide, hiding behind the immunity clause is contrary to the “right to seeking justice” and “rights to remedy” of the communities,” added Patel.
Last year, the U.S. Court of Appeals for the D.C. Circuit ruled that IFC had “absolute immunity” and could not be sued for its role in the controversial Tata Mundra coal-fired power plant that has devastated communities in Gujarat. The D.C. Circuit recognised the “dismal” situation the plant has created for the complainants, including the destruction of their livelihoods and property and the serious threats to their health, and noted that the IFC had not denied those harms. The court found the IFC could not be sued based on prior D.C. Circuit decisions. One of the judges, however, expressed strong disagreement with IFC immunity and noted that another federal court had rejected the prior D.C. Circuit immunity cases, which she thought were “wrongly decided.”
“When at a time we thought that all doors for justice seemed closed, with this decision our faith in the judicial system is restored,” said Gajendrasinh Jadeja, head of a local village that is also a petitioner in the case.
Dr Bharat Patel (Mundra, Gujarat)
General Secretary, Machimar Adhikar Sangharsh Sangathan
+ 91 94264 69803

People’s Movements to Challenge AIIB’s Infrastructure Financing: Over 80 CSOs and Social Movements to Organize Events Parallel to AIIB’s AGM in Mumbai

Press Note | May 16, 2018 

People’s Movements to Challenge AIIB’s Infrastructure Financing: Over 80 CSOs and Social Movements to Organize Events Parallel to AIIB’s AGM in Mumbai

Raising the serious issues of social and environmental costs in infrastructure projects, its economic burden on public and financial non-viability, Civil Society Organisations and social movements are set to  organize a three day convention on Infrastructure Financing from June 21 – 23rd in Mumbai parallel to the Asia Infrastructure Investment Bank’s third Annual Governors Meeting slated for June 25-26 in the same city.

The movements and CSOs will hold the Convention under the aegis of  Working Group on International Financial Institutions (WGonIFIs), which include over 80 people’s movements and other CSOs, including National Alliance of People’s Movements, National Hawkers Federation,National Fishworkers Forum, Narmada Bachao Andolan, Ghar Bachao Ghar Bano Andolan, Soshit Jan Andolan, Samajwadi Jan Parishad, Bhumi Adhikar Andolan; Environment Support Group; North East Peoples Alliance, and others.

During the Convention, various discussions will be held on urban development, transportation, coastal protection and coastal communities, sustainable energy and equity, privatization, monitoring financial institutions and their policies and projects in the country. The registrations for the workshops have started.

The Peoples Convention intends to demand accountability from the development financial institutions, particularly AIIB which lacks robust policies on environmental-social safeguards, transparent public disclosure and a complaint handling mechanism. While the detailed information about the programme will be shared later, you can know more about the AIIB’s projects and Peoples Convention here.

Background:

Asian Infrastructure Investment Bank, the two-year-old multilateral bank, is investing in all major sectors, including energy, without robust policies on environmental-social safeguards, transparent public disclosure and an accountability/complaint handling mechanism. Out of the total 24 projects, it has financed, USD 4.4 billion has already been approved. India is the biggest recipient from AIIB with more than 1.2 billion USD supporting about six projects including Transmission lines, Capital City Development at Amravati, rural roads etc. with another 1 billion USD in proposed projects.

About Us: 

WGonIFIs, a network of movements, organisations and individuals to critically look at and evaluate the policies, programmes and investments of various International Finance Institutions (IFIs), and joining the celebration of the people and communities across the world in resisting them. A list of the network is available here.

Last year, when the Asian Development Bank completed 50 years, the WGonIFIs observed it by holding actions of protests in over 140 locations spread in over 21 states in India against the investment policies of ADB and other International Financial Institutions.

For further details, please contact: 

Working Group on IFIs | wgonifis@gmail.com

Website: https://wgonifis.net

Concept Note: https://wgonifis.net/2018/04/29/peoples-convention-on-infrastructure-financing-concept-note/

Registration: https://wgonifis.net/aiib-peoples-convention/

Maju Varghese | 8826249887 

Mecanzy Dabre | 9665006429 

Himshi Singh  | 9867348307

 

The Trends in Hydro Power Financing in India

Rajesh Kumar

 There has been a worldwide growth in hydropower development, with 31.5 GW new capacity installed in 2016. This figure includes 6.4 GW of pumped storage – nearly double the previous year – while there is a further 20 GW of pumped storage under construction globally.

This growth is indicative of impending pressure on hydropower in providing flexible support to renewable energy systems, as countries around the world take steps to meet the carbon reduction goals of the Paris Agreement. Paris agreement does not only push the sector, but it also pressures to finance this sector. Middle-income countries, especially the governments of Brazil, Russia, India, China, and South Africa (BRICS), are increasingly financing hydro and have become more assertive in advocating infrastructure development.

Financial institutions have financed a number of controversial hydropower projects without thinking about the destruction caused to forest, land and livelihood of people. As mentioned in the earlier article, categorizing all hydropower projects as renewable energy is not only government’s agenda, but also that of private players, Financial Institutions, and other actors. India is also committed to focus on clean energy expansion.

 Financing Hydropower in India

NHPC is a government-owned institution with an investment base of Rs. 38,718 crores. The authorized share of this Mini Ratna Category-1 Government of India enterprise is close to Rs. 15,000 crores, which is exclusively held by the Government. Apart from the central government funds, NHPC secures loans through commercial loan and bonds. As per the annual report of March 2017, long-term loan borrowing of NHPC stood at Rs. 17,246 crores, which comprised of Bonds, Secured Term Loans & Unsecured Foreign Currency Loans amounting to 8,493 crores, 4,479 crores and 4,274 crores respectively. The secured loans include borrowings from domestic banks and financial institutions like State Bank of India, Indian Overseas Bank, ICICI Bank Limited, Jammu & Kashmir Bank Limited, Bank of India, Axis Bank, State Bank of Patiala, State Bank of Bikaner & Jaipur, HDFC Bank, IndusInd Bank, Bank of Baroda, Central Bank of India, Kotak Mahindra Bank, RBL Bank, Life Insurance Corporation, Power Finance Corporation, and Rural Electrification Corporation.

A number of innovative funding sources for hydropower project financing are coming up. Off late, an emerging trend is the rapid growth of bonds like Green Bonds, which are fixed-income loans created to specifically finance projects that help address and reduce environmental and/ or climate risks. Over USD 80 billion of labelled green bonds were issued in 2016, nearly doubling the previous year, but the market is still in its infancy. The Green Bond market intends to reach USD 1 trillion of investment per year by 2020 to be compatible with the Paris Agreement. Led by multilateral development banks and corporate sector, Poland became the first country to issue a green sovereign bond in late 2016 by raising $750 million. France followed this in January 2017, where USD 7.5 billion was raised. Other countries including Sweden, Nigeria and Kenya are expected to follow suit. The Indian Green Bonds Council, formed in late 2017 as a joint project of Federation of Indian Chambers of Commerce Industry (FICCI) and Climate Bonds Initiative (CBI), has launched its 2017 programme. India also issued its global green bonds worth USD 3.2 billion in April 2017 and made a position in top 10 globally.

 International Financing in Hydropower

NHPC does not raise funds only from the domestic financial institutions but also from various international financial institutions, including export credit agencies. Multilateral Development Banks (MDB) like World Bank (WB), Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) can’t lend directly to NHPC. However, they (WB & ADB) have lent in a number of problem projects in India in the past. Apart from MDBs, there are a number of new bilateral agencies that are investing in hydropower through export credit agencies. As per the annual report of 2017, the current long-term borrowing from bilateral agencies — including lenders such as Deutsche Bank, Japan International Cooperation Agency (JICA), and Export Development Canada (EDC) — for NHPC stood at Rs 4,274 crores. In past, a number of other bilateral export credit agencies, like Germany’s KfW, Swedish International Development Corporation Agency (SIDA) and The Swedish Export Credit Agency (EKN), were involved.

In 1990, after resistance by the Narmada Bachao Andolan (NBA) in Sardar Sarovar Dam (SSD), World Bank and other bilateral institutions stopped funding large hydropower projects in India. Despite the mounting evidence of its negative environmental and human rights impacts, the World Bank has restarted giving loans for hydropower in the name of clean and renewable energy. It has become more active in funding large and smaller hydro projects. Since the 2003 Water Resources Strategy, which stated that the World Bank would re-engage in hydraulic infrastructure, about 150 projects related to hydropower – including rehabilitation, technical assistance and Greenfield projects – have been approved. This represents a total of USD 13.6 billion in financing (USD 7.8 billion for hydropower components) and includes IBRD/IDA, GEF and Recipient Executed Activities. Roughly half of the 15 projects in the pipeline are in Africa. The World Bank is not just lending money but is also pushing many policy changes in the energy sector through ease of doing business index, and through its technical and financial assistance. All this would help them to prepare the ground for private players and corporations.

World Bank’s ‘Ease of Doing Business’ initiative ranks countries on the basis of ten parameters. ‘Getting Electricity’ is one of them. For ‘Getting Electricity’, World Bank measures the performance on four parameters: (i) Number of procedures; (ii) Time for obtaining a commercial electricity connection; (iii) Cost for obtaining a commercial electricity connection up to 140 KVA; (iv) and Reliability of power supply. According to the Power Ministry’s website, India has made several reforms because of which India’s ranking has improved from 99 in 2015 to 26 in 2017. These reforms include regulatory easing as well as administrative easing measures.

Apart from World Bank, Asian Development Bank (ADB) is one of the major financial institutions in the energy sector and is funding many hydropower projects in India and South Asia. In 2013, ADB committed equity investment of $30 million to help support development of NSL Renewable Power Private Ltd.’s (NRPPL) 100-MW Tidong hydroelectric project in Himachal Pradesh. It was its first equity investment in an Indian private sector renewable power generation company and also its first investment into India’s hydropower private sector. In 2008, Himachal Pradesh developed a program called Himachal Pradesh Clean Energy Development Investment Program, which was approved by ADB to expand the supply of power in the state. Under this scheme, ADB, along with German Development Bank’s KfW, co-financed450 MW Shongtong Karcham hydroelectric project and three other run-of-the-river hydroelectric projects of Himachal Pradesh Corporation Limited.

ADB is not only financing hydro projects but also has a major influence on policymaking in the energy sector. According to ADB, South Asian countries will be greatly benefited by a single interconnected power market that will also give India a chance to replace its fossil fuel-based energy with cleaner hydropower from countries like Bhutan and Nepal. Towards this end, ADB has committed USD 120.5 million in a mix of loans and grants to build a run-of-the-river hydropower plant in central Bhutan through a public-private partnership. Clean power generated by the plant will be sold to India, which will help in reducing its carbon emissions.

ADBs-Infra-Investments

(Source: ADB)

Recently, a report published by ADB on Asia’s estimated infrastructure investment needs mentions that out of the total climate-adjusted investment needs of USD 26 trillion by 45 developing Asian member countries over 2016–2030, USD 14.7 trillion will be needed for power. If one looks at South Asia’s needs, its total requirement is USD 6.247 trillion, including USD 870 billion for climate adjustment at GDP growth rate of 8.8 percent in which major investment would be required for the power sector. ADB has invested on many controversial hydropower projects in Himachal and Uttrakhand in the Himalayan range in India. The above figures also indicate that lending of ADB in hydropower will grow in near future.

Emerging New Key Player in Hydropower Financing

Apart from the World Bank and ADB, there are a number of other emerging key players in hydropower. The new players could be more harmful than World Bank and ADB as they have financed many controversial projects across the border. Their mandate is to lend in infrastructure, especially the power sector. Though World Bank and other financial institutions took a step back from hydropower in 1990, Chinese banks have stepped in the shoes of World Bank and ADB during that period. International Financial Corporation (IFC), a member of the World Bank Group, is investing USD 100 million in the landmark 720-megawatt Karot run-of-river hydropower project in Pakistan. Karotis IFC’s largest investment in the hydroelectric power project to date and represents IFC’s first major collaboration with China’s Export-Import Bank, China Development Bank, and Silk Road Fund. A large number of Chinese banks are globally financing hydropower projects. These banks and other Chinese companies are involved in 330 dams in 74 countries. Between 2000 and 2016, the Chinese banks and companies were involved in 39 hydropower projects across South Asia with approximately 19,000 MW capacity and a loan of roughly USD 30 billion. Out of these 39 projects, 21 projects were in Pakistan, 15 in Nepal, and 4 in Sri-Lanka. Though political relation between India and China is not amicable, the intervention of Chinese banks and Chinese companies in India is growing. The Chinese banks come with certain conditions, like having a Chinese financer, Chinese equipment provider, and Chinese builder. These conditions push the borrower’s country to compromise with their labour rights.

The two new emerging Banks — New Development Bank, and Asian Infrastructure Investment Bank — are China-led banks with headquarters also located in China. Both the institutions aim to lend to infrastructure projects, particularly energy, in developing countries. These institutions are also pushing the hydropower in the name of clean and renewable energy.

The New Development Bank has financed construction of hydropower plants in Russia by intermediaries such as Eurasian Development Bank (EDB) and International Investment Bank (IIB). This project was earlier supposed to rope in intermediary in form of Brazilian bank which has financed several controversial projects like Belo Monte Dam, which involved corruption and host of human and environmental rights violations.

Similarly, the AIIB also wants to be ahead in the race to lend in hydropower. During its signing ceremony of MoU on the establishment of AIIB in Beijing, it had a USD 50 billion fund, which it planned to use to spur infrastructure growth in developing Asian countries with projects that include hydroelectric facilities. In 2016, AIIB’s President Jin Liqun and World Bank Group’s President Jim Yong Kim signed the first co-financing framework agreement between the two institutions to co-finance expansion of Tarbela hydropower plant in Pakistan. The World Bank and AIIB announced USD 720 million to help fund the fifth extension to the plant, which will add a further 1,140 MW in capacity.

It is important to note that even if initially AIIB and NDB were projected as an alternative to the Bretton Woods institutions in the developing countries, these institutions are not very different, This is reflected not only in the similar policies but also coming together for co-financing large projects in Asia, and particularly on South Asia.

The Paris Agreement not only pressurizes the countries to consider hydropower as renewable but also insists on finance it. At the same time, financial institutions are creating layers of financing model to escape from their accountability and transparency. It is important to keep eyes on emerging financial institutions and their nature of financing, which would do more harm to damage natural resources and peoples’ livelihoods. History has been witnessing displacement of millions of people, destruction of their livelihoods, and violation of human rights by these projects.

 

Ahmedabad: April 18, 2018

Bhopal: May 26, 2018

Chennai: June 2, 2018

Ranchi