Statement by Eraldo Jose de Souza (Polo Sindical) to the World Bank Board of Executive Directors

 

February 3, 1998

Ten years has gone by since the Itaparica project began. Last year the government actually established an inter-departmental group, and for a year they have been working and preparing a report. To this day we haven’t received a copy of this report. All of these problems are compounded by the pending privatization that is due in October of this year. The workers that have an agreement with CHAS and the government, know already that it is going to be privatized.

Despite the fact that all the commitments had been already established, the situation was so confusing that we decided to actually come to the Panel because we think we should actually try to help the workers that after ten years did not see this work actually come through.

So we think that Itaparica is a singular case in the world, and since there is the participation of the World Bank in funding some work that the workers did not take part and there was a lack of funding for the completion of the project. As a result of these circumstances and knowing the limitations of the panel, as well as some of the advantages that. we can actually benefit from, and also in total awareness that it is the last resort, maybe we can come up with a solution.

I know that this had nothing to do with intervening with the Brazilian Government, but the objective is to resettle, the project of resettling these 20,000 families, and we hope that-you all can understand that this was a mechanism that could.. actually help the workers today.

After the results presented by the Panel in October, the Brazilian Government did not recognize the report of the inter-ministerial group in ‘87 and decided to establish a new executive group. This group to this day never showed up, and .we understand there is a deadline of a period of a year.

We have information that there was a commitment from the government with the World Bank to actually fund $90,000, but we have several months gone by—actually, I correct myself, $90 million. The group actually have been established, but they have not exchange the information with the workers at Itaparica with members of CHAS and the government. In order to maintain what is already in place, we need $142 million-. And what we know is that the Congress has $42 million available.

The cost of this project today is around 55, the fixed costs, just to maintain the project in place. How can we actually maintain a $55 million project with $42 million and if our budget is only $42 million for the first year?

So we understand that this is a very adverse picture, and we do not—it is not our intention to offend or insult any government or any institution. We know it has been an incredible struggle. There is a permanent tension in the area because this project has been going on without conclusion, and we are actually wondering what is going to happen.

We decided to actually come to the Panel, and we ask ourselves why the workers of the World Bank that were actually following up the missions in Brazil and this issue had been discussed and how come nothing major happened and why these employees are so afraid of the installation of this Panel.

After the panel had been actually instituted, we have absolutely no other intention but to actually conclude the project, and the government has to present its studies and should actually exchange—have some dialogue with the workers. We have 15 unions represented from all different counties and states. We have five cooperatives and 27 associations. And we don’t have any—they say there is no budget, so our doubt persists, and we to this day do not understand how come the Directors of the World Bank did not approve the panel for Itaparica, because it already knew that it was necessary and why it was—such an open business was approved.

And there was no commitment, so we feel that maybe what was approved was something very much in the open. So we would like to actually support the panel’s mechanism that was actually created by the Bank itself, and that is the reason why we are here today, and we have the freedom to actually denounce to the whole entire world what is going on in Itaparica. If the panel didn’t exist, we wouldn’t be able to do so.

It’s interesting that the panel needs to have firmer mechanisms and a follow-up mechanism to follow up what’s going on in this project, especially when we are dealing with complex projects.

What can we do about Itaparica? Is Itaparica going to be at the mercy of what the government wishes or wishes not to do? Yes, we understand that there is a responsibility from the Bank’s part, and we understand the panel actually has to be reinforced and strengthened to be able to monitor these projects, because we are aware that if the - Brazilian Government is part of the World Bank and it’s part of this project, we can’t be totally apart, but, of course, we need to make it clear that the Itaparica project is actually being delayed at the expense of several thousand families and--30,000 families at the mercy of this project, and we don’t know what’s going to happen.

There is an organized movement and there is a great tension among the population with the announcement of CHAS’ privatization. Who is going to actually be able to carry out the agreement that was actually signed? So this is the picture.

The government penalized CHAS, which was the company that was in charge of executing the project, and we are now playing a waiting game. None of the reports or none of the documents had been actually distributed to the workers, and we are now waiting, and maybe you can tell us what can be done so that the Brazilian Government can actually carry out the commitment that had been actually made with the Bank, because this is actually one of our rights.

Either with privatization or not, we don’t care if the company is going to be privatized. What we are interested in is in the conclusion of the project and the resettlement of the workers. That’s in a nutshell what it is all about.

I would like also to say that the mechanism of the Inspection Panel is fundamental. It is very important, and we were able to actually have access to the panel. And we believe it should be strengthened.

 

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