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ADB Board of Directors Approves Recommendations on Samut Prakarn Wastewater Management Project in Thailand

Board also Welcomes Review of Bank Inspection Function

MANILA, PHILIPPINES (28 March 2002) -- The Asian Development Bank's Board of Directors on Monday approved the recommendations made by a Board standing committee, the Board Inspection Committee (BIC) concerning the inspection of the Samut Prakarn Wastewater Management Project in Thailand, in response to a request by the residents of the Klong Dan community in April 2001.

The Board noted the Report and approved three recommendations made by the BIC with one clarification. The Board also agreed that the Board decision in its entirety be made public.

Concluding the discussion, Board Chairman, Mr. Tadao Chino said: "While the recommendations approved today did not specifically mention the question of compliance with ADB's operational policies and procedures, views on that key question were divided. We all know the views expressed in the Panel's Report, Management's response, and the BIC report. Let me emphasize, however, that I respect their respective views and professional judgments. What is more important to me today, in my capacity as Chairman of the Board, is that I have heard the views of the Board of Directors. Your views and advice as the shareholders of this institution are most important."

"This first inspection case has provided a great learning opportunity," Mr. Chino said. "In fact, we had to learn, understand, interpret and clarify the working of the inspection process as we went along. Now that this inspection in respect of Samut Prakarn has been concluded, it is both timely and important that we move on, without further delay, to focus on the improvements of the Inspection Function, a key instrument of governance. You are aware that I have already created a Steering Committee and a Working Group for reviewing the current inspection policy. We must all participate actively in the ongoing review. I have placed utmost importance to ensuring that consultation both within and outside ADB is done conscientiously and diligently to fully reflect the views of all stakeholders. I have also asked Staff to ensure transparency and frequent consultation with the Board during the preparation of this very important policy paper."

"Concurrently with the review of the Inspection Policy, we are vigorously conducting a comprehensive and systematic review and updating of all Operations Manual (OM) sections to ensure that operational policies are properly incorporated into the relevant OM sections," he said.

"Finally, I would like to thank the Board members, the members of BIC and the Panel, officials of the Government of Thailand involved in this inspection, Management and Staff for their contribution and hard work. The Panel did what it had to do as an independent body. The Government provided its views as it considered appropriate. Management and Staff responded on the basis of their expertise and experience. BIC reflected their assessment in their Report. And the Board exercised its final responsibility. They all performed their roles. The beneficiary of all their views and hard work is ADB," Mr. Chino said.

The Samut Prakarn Wastewater Management Project, costing about US$750 million and partly financed by ADB (US$230 million), aims to improve the environment. It is designed to manage industrial, commercial, and residential wastewater that currently flows to the sea through open canals and rivers in a heavily populated area. Presently, the wastewater poses health hazards for up to a million people and pollutes large stretches of coastal areas in the Gulf of Thailand. The Project has adopted an integrated approach that tackles wastewater pollution both at source and final treatment point, representing a significant attempt to proactively minimize wastewater pollution.

Read the Chairman's Concluding Statement.

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