Civil-society groups worldwide have expressed concern that the China-led Asian Infrastructure Investment Bank (AIIB) may be unnecessarily fast-tracking the drafting of its safeguards policy, considered an important aspect in multilateral lending.
The NGO Forum on ADB, a Manila-based civil-society network, urged the AIIB to open up its safeguards consultation process and give prospective member-nations ample for a more thorough discussion on the matter.
“Civil-society groups around the world are worried that the AIIB is fast-tracking a very opaque and unrealistic consultation process in order to set its ESF into stone for early operations in 2016,” NGO Forum on Executive Director Rayyan Hassan said.
“We appeal to the bank to ensure an inclusive and transparent consultation for the drafting of its safeguards policy, standards and processes,” he added.
The forum said fast-tracking the consultation process could silence the voices of Asia’s local communities and civil society when it comes to AIIB-funded projects in their locales.
They cited the absence of public announcement on the consultation process and the fast-track one-month consultation period with the stakeholders.
The forum added that the consultation process only used videoconferencing technology and English language as primary means for consultation. There was also limited information on the AIIB web site.
“A legitimate and acceptable safeguards process always takes into account the perspectives of all development actors, especially women, communities with natural resource-based livelihoods, indigenous peoples, fisher folk, farmers, trade unions, labor groups, migrants and disabled sector, among others,” Hassan said.
In April National Treasurer Roberto Tan said the national government’s commitment to the AIIB remains contingent upon the bank’s governance structure.
In October 2014 the Philippines signed a nonbinding memorandum of understanding to join discussions for the establishment of the AIIB.
The country is among 21 Asian countries that are participating in the process.
Tan explained that apart from the role of the AIIB Board of Directors, there is a need to ensure that transparent procurement processes are followed, as well as instituting safeguard measures for projects.
These safeguard measures are in place to protect the environment and a means of social protection for the borrowing countries.
At the establishment of the AIIB, the Asian Development Bank (ADB) advised the AIIB to follow international standards when funding projects.
ADB President Takehiko Nakao issued a statement saying the creation of AIIB was “understandable” given Asia’s mounting infrastructure financing needs.
Nakao, however, said it is important for AIIB to adopt international best practices in procurement, as well as environmental and social safeguard standards for the projects it will fund.