2007 Annual Meetings of the European Bank for Reconstruction and Development
5 June 2007
The European Bank for Reconstruction and Development (EBRD) held its Annual Governors Meeting in Kazan, Russia May 20-21, 2007. The NGO Programme organized by the Bank attracted a large array of civil society organizations from Russia and abroad. While many questions were left unanswered by the Bank, NGOs succeeded in raising issues of critical importance to civil society in Russia and elsewhere.
Overview
The EBRD chose Kazan, the capital of Tatarstan Republic, as the site of the meeting to symbolize its new emphasis on investing in more distant, “frontier” regions of Russia. Civil society organizations presented their concerns about human rights, environmental and social problems associated with the Bank’s projects, disbursement of annual profits, a review of the Bank’s environmental policy, and other issues.
Human rights were at the forefront of the concerns voiced by Russian NGOs. The Government’s restrictions on civil liberties and recent legislation targeting NGOs have made it very difficult and sometimes dangerous for civil society to operate in the country. The Russian NGO community asked EBRD to use its leverage to promote transparency, democracy and free speech in Russia. Although the Bank’s charter affirms its commitment to the principles of multiparty democracy and respect for human rights, and the Bank invests 38 percent of its portfolio in Russia, Bank officials made no commitments to pressure the Russian Government to change its policies toward NGOs. It promised only to continue the dialogue with Russian human rights advocates.
Revision of EBRD's Environmental Policy
EBRD’s revision of its Environmental Policy was also a central topic at the meetings. Shortly before the meetings, the Bank released a Discussion Paper, in Russian and English, which considers options for revision of its environmental and social policies. Among the options is a proposal to adopt a broad framework of Environmental and Social Sustainability Policy and Performance Standards similar to those of the International Finance Corporation. From the meetings, it became apparent that there may be strong disagreements within the Bank over the language and content of the new environmental policy. During discussions with EBRD Environmental and Social teams, the topics of project boundaries, Indigenous Peoples consent, and a two-pronged project classification system were highlighted as important for civil society support and input.
Russian and Central Asian NGOs expressed concerns about a wide array of problem projects financed by EBRD. Problem projects include Boguchanskoye Hydroelectric Power Station, Mittal Steel Temirtau Health & Safety Project in Kazakhstan, Kashagan Offshore Oilfield in the Caspian Sea, the Belgrade Bypass in Serbia, Ada Tepe Gold Mine in Bulgaria, among others. Further, there was increasing speculation that EBRD may reengage with Sakhalin II Oil and Gas project which has already caused considerable environmental and social damage.
Additional Resources
Disbursement of EBRD’s record net profits
The disbursement of EBRD’s record net profits of Euros 2.4 billion was a major issue of contention and political debate. Some member governments, including the United States, argue that the profit should be disbursed back as a dividend to member countries. Many NGOs advocate that the profits should be used to create a targeted energy efficiency fund to promote transition impacts in the regions—the core mandate of EBRD. The debate is ongoing for profits in FY07, while the FY06 monies will be placed back into the Bank.
Press release
Mongolia signs memorandum of understanding with World Bank Group, EBRD and ADB
Another major development, which unfortunately did not get significant attention, was the recent MoU signed by EBRD, ADB and the World Bank Group with the Mongolian Government to sustainably develop Mongolia’s mining sector. Civil society has not been able to obtain a copy of the Memorandum, raising concerns that the IFIs may proceed without fully integrating best practices in transparency and civil society participation in the strategy. Civil society should monitor the development of the mining sector in Mongolia and push both the government and the IFIs to promote revenue and contract transparency, clean energy investments and participatory decision making processes.
Press release