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Appendix F
With
the signing of the Paris Peace Accords in 1991 have come increased regional
cooperation and dialogue. A large number of international investment
initiatives in the lower Mekong Basin (Burma, Cambodia, Lao PDR, Thailand and
Vietnam) have begun since 1992, led by both private capital and major
multilateral and bilateral donors, of which the ADB, ASEAN, DANIDA, JICA, USAID
and the World Bank are amongst the most important.
These
investors often share a common approach to development and reconstruction: a
regional approach based on an understanding of the Lower Mekong as an economic
and geographical unit. This ‘basin’ or
‘watershed’ approach to reconstruction and development emphasises and
encourages the interdependence of the economy and environment of the
Indochinese countries. For investors,
the Mekong Basin is a “subregion ripe for economic growth”; the Mekong River is
a “corridor of commerce in one of the world’s fastest developing growth
circles”. Of the institutions whose investment programmes and projects take a
‘watershed’ approach, the ADB and JICA are perhaps the most significant for
Cambodia.
The Asian Development
Bank (ADB)
Under
its Greater Mekong Subregion initiative, the ADB has produced several long-term
plans for various sectors: transport; energy; human resource development;
environment; trade and investment; telecommunications; and tourism[1]. The ADB makes loans the various countries in
the region for technical assistance and subregional infrastructure development
projects; some of the ADB are
coordinated with these ‘masterplans’. The ADB plans to loan $380 million US to
Cambodia from 1997 - 2000[2]. Of this amount, $70 million in loans is
targeted for four environmental projects (see Appendix B for a partial list).
The Japanese
International Cooperation Agency (JICA)
The Japanese government and Japanese private
investors have been very active in the Mekong region. Japan’s Ministry of
Foreign Affairs (which controls Japan’s governmental aid agency, JICA) has
taken a regional approach and defined a “Greater Mekong Area”, including the 5
lower Mekong Basin countries and Yunnan, China , in its blueprint for Mekong
development. Within this area, various
infrastructure projects (roads, dams, irrigation, and energy) have been
prioritised[3]. In Cambodia, 100 million USD has been
invested in technical assistance projects, infrastructure projects (notably the
feasibility study for building a bridge across the Mekong), and aid. Although the Japanese government feels
that “the rich hydroelectric potential
of the Mekong should be developed and used as much as possible”[4],
JICA is not currently funding any dam projects.
Association of
South-East Asian Nations
ASEAN,
established in 1967, is a regional intergovernmental body which mainly promotes
political cooperation amongst its member states (Brunei, Indonesia, Malaysia,
Philippines, Singapore, Thailand, and Vietnam). ASEAN’s Fund for Mekong Basin Development (initiated in 1996) is
another important source of investment in the region. The ASEAN Working Group on Economic Cooperation[5]
will, together with the fund for Mekong Basin Development, be important for
Cambodia when it joins the group.
The Mekong River
Commission
In
addition to multilateral and bilateral investment and aid agencies, the Mekong
River Commission is an important institutional actor in regional Mekong
development. The Mekong River Commission is an intergovernmental organisation
created by a 1995 agreement signed by Cambodia, Lao PDR, Thailand, and
Vietnam. Its predecessor, the Mekong
Committee, was formed under the auspices of the United Nations and ECAFE (the
predecessor to ESCAP) in 1957 "to promote, coordinate, supervise, and
control the planning and investigation of water resources development projects
in the Lower Mekong Basin." The
Commission had two main objectives: (1) to investigate water resources for the
lower Mekong Basin; and (2) to identify the most suitable sites for water
resources development, with an emphasis on hydropower. In an era when dam-building was a global
trend, and with advice and support for Western dam engineers from institutions
such as the United States Federal Bureau of Reclamation, the MRC created
massive water diversion plans for Cambodia – plans which are now recognised as
too large, too expensive, and too environmentally damaging to be put into
place.
As
a result of regional conflict and instability, the MRC was largely dormant during the 1960s and 1970s. Following the Paris Peace Accords, a new
agreement was negotiated in 1995 amongst the four lower riparian states (see
Appendix C). The objective of the MRC is now
to cooperate and promote in a constructive and
mutually beneficial manner in the sustainable development, utilisation,
conservation and management of the Mekong River water and related resources for
navigational and non-navigational purposes for social and economic development
and well-being of all riparian States, consistent with the needs to protect,
preserve, enhance and manage the environmental and aquatic conditions and
maintenance of the ecological balance exceptional to this river basin.
The
MRC, together with its subcommittees in the various regional countries,
implements infrastructure projects, conducts research studies, and provides
technical assistance to member states.
Denmark, UNDP, ADB, and JICA are the current donors to the Cambodian
national counterpart of the MRC, the Cambodia National Mekong Committee[6].
The
new Mekong Commission Agreement is generally viewed as weaker than its
predecessor. Whereas the previous
agreement gave any one member country the right to veto another's project if
concerned about adverse impacts, the new agreement only gives member countries
the right to prior notification and consultation. In addition, the rules concerning water utilisation (see article
26, Appendix D) are unclear. Many new
dams are being planned and built upstream from Cambodia on tributaries of the
Mekong and the Mekong mainstream – 14 dams are planned for the Mekong in Yunnan
alone[7]. However, the definition of ‘minimum flow’
that upstream countries must guarantee for their downstream neighbours has not
been agreed upon by the member states.
Thus, under this new agreement, Cambodia is now in a much weaker
position from which to address concerns about water security and adverse
impacts of upstream dams and water abstractions.
A
second criticism often made of the MRC is that it is ‘donor-driven’. The MRC’s programme and project budget is
externally funded by several multilateral and bilateral organisations, which
impose their priorities on the development process as expressed through the
annual MRC ‘Workplans’. Increasingly,
donors and lenders are circumventing the MRC altogether, preferring to deal
directly with governments (as in the case of ongoing dam development in Lao). In this situation, the MRC does not play a
regional coordinating role; regional development and its agenda is motivated by
other institutions.
The
Cambodia National Mekong Committee
The
CNMC is the national-level counterpart to the MRC. It is a governmental body, specifically, an interministerial
committee, involving all ministries related to water: MPW, MAFF, MRD, Ministry
of Finance, Ministry of Planning, Ministry of Tourism, Ministry of Interior,
Ministry of Industry. The CNMC reports
to the Council of Ministers regarding water policy and development
strategy. Cambodian law does not define
ministerial responsibilities or mandate; however, the CNMC views itself as
playing a “coordinating” role amongst the “political” ministries. According to
many observers, however, the CNMC is a very weak institution. Decisions concerning water development are
likely to be made by or within RGC ministries or by the MRC at the regional
level, and tend to be dominated by political concerns. The CNMC itself as an institution has relatively little
influence, although it should be noted that its Chairman, Ing Kieth, Deputy
Prime Minister and Minister of Public Works, is one of Cambodia’s most powerful
government figures.
Aid and investment – a lack of
coordination
There
are many other institutions who are involved in Cambodia and in Mekong
Development. UNDP, for example, has
traditionally been one of the primary donors and advisors to the MRC, and is
currently working with the MRC to create a Mekong Basin Development Plan. DANIDA also provides support for fisheries
research within the MRC. Numerous other
institutions cooperate with governments and ministries for various projects.
In
addition, many countries and institutions encourage the participation of the
private sector in infrastructural development and investment. BOT (Build - Own/Operate - Transfer) schemes
are recommended as a means of providing governments with needed infrastructure
while avoiding the need for large amounts of capital – which most countries in
the region would not be able to raise themselves.
As
larger amounts of private capital are invested in the region, governmental and
coordinating bodies such as the MRC are becoming increasingly
marginalised. The large number of
projects and donors operate with little or no coordination and make haphazard,
inconsistent attempts at public participation. In Cambodia, for example,
investment is done on an ad hoc basis. Agreements tend to be made between an
investor and a governor or a ministry.
In this context, little information about planned projects is
disseminated, and planned impacts are difficult to anticipate.
Another issue is that of coordination of various
multilateral and bilaterally funded projects. Projects are often conceived,
funded, and implemented without reference to the activities of other
donors. Bi/multilateral programmes on
the Tonle Sap are a good example: at present, there are at least 12 different
agencies funding projects concerning the Tonle Sap with an aggregate budget of
over $20 million US. Attempts are being made to coordinate donor activities,
but the lack of a coordinating body to oversee research and share information
may result in fragmented and uncoordinated, programmes.
[1] ADB (1996) Economic Cooperation in the Greater Mekong Subregion: An Overview.
[2] Johnson, K. (27/07/97) “ADB Plans $380 million in loans.” Cambodia Daily. p., 11.
[3] Greater Mekong Task Force (1996) Strategies for the Development of the Greater Mekong Area. Japan: Ministry of Foreign Affairs.
[4] Greater Mekong Task Force (1996) Strategies for the Development of the Greater Mekong Area. Japan: Ministry of Foreign Affairs.
[5] The ASEAN Working Group on Economic Cooperation works in close conjunction with Japan’s MITI (Ministry of International Trade and Industry).
[6] See Appendix C and directory entry for CNMC.
[7] Greater Mekong Task Force (1996) Strategies for the Development of the Greater Mekong Area. Japan: Ministry of Foreign Affairs.