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Monitoring of The Phulbari Coal Project


Project Summary:

Phulbari Coal Project is located in northwest Bangladesh, and it plans to produce 520 million tons of coal (soft coal) by open-pit mining in a period of 30 year. The project aims to contribute to Bangladesh’s economy by providing and stabilizing energy source, and by promoting foreign direct investment in northwest Bangladesh through the establishment of a new import/export corridor.

Currently, Asian Development Bank (ADB) is considering a private sector loan (US$100 million) and political risk guarantee (US$200 million) to a UK based company, Asia Energy Corporation for this project. The ADB’s board approval for this project is expected in October 2007.

Problems:

JACSES is demanding for a rejection of the project, due to a number of issues large number of resettlements, serious human rights violation, inadequate consultation and information disclosure, inappropriate information collection ability of ADB, and low economical merit for Bangladesh.

Action Taken:

JACSES conducted interviews in Phulbari to research on human rights violation issues and social and environmental impacts of the project. It has become clear that the Asia Energy PLC and the Government of Bangladesh are making false statements and violating the disclosure policy of ADB.

Other Links:

Contact Person: Yuki Tanabe

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Japan Center for a Sustainable Environment and Society (JACSES)
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