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Bank Of America Investment "Everybody is talking about development effectiveness, but the question is, how do you measure it? ...So what we are trying to do now is to pull together a meeting in June at which everybody can come in and take a look at how you judge development effectiveness." -- James Wolfensohn, President of the World Bank, at his Spring Meetings press conference, April 19.

These institutions', American Development Bank, World Bank, U.S. Overseas Private Investment Corporation, U.S. Import Bank, $352 million in approved financing for 18 projects; thus, fossil fuel financing in the Americas outpaces clean energy by a ratio of 63 to 1. Most of this investment in fossil fuels has come from US taxpayers, who are unwitting underwriters of loans, guarantees and subsidies to Big Oil. Although the Americas have obtained over $22 billion in public support for fossil fuels since the Rio Earth Summit in 1992, most of this oil and gas has been exported to the U.S.

Investment Opportunity The World Bank president's June meeting could do worse than to consider Uganda's Bujagali Dam project and Tanzania's Bulyanhulu Gold Mine.

The scary thing is that even if a country doesn' World Bank can potentially scare away foreign investments.

Banc Of America Investment The two large-scale projects are being supported by the World Bank's International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (Miga), as part of a broad strategy to increase economic growth and alleviate poverty.

Meanwhile, environmental groups want ABN Amro and all other Equator banks to withdraw their support for Sakhalin II. But despite concerns from green groups, public lenders and private banks are clamouring to fund oil and gas projects, hungry countries such as the United States, Japan and members of the European Union, who are also major shareholders in public banks. The United States, the main customer for the Sakhalin project, has been encouraging oil projects almost anywhere outside of the Arab Gulf as it tries to lessen its dependence on Middle Eastern oil, citing the region's instability and its population's anger at U.S. policies.

Banking Investment But the two projects have generated considerable controversy as a result of complaints that they will do little for the poor, will damage the economy and the environment and are not transparent.

The planned project financing has alarmed EU officials. The US Eximbank, sponsored trade bank, is lending $800m for the $2.5bn scheme. The transport ministry said it was negotiating with the International Monetary Fund and the European Investment Bank, the EU's infrastructure bank, about raising other finance. But the EIB said it did not finance contracts awarded without public tenders and the IMF said it did not finance projects.

Investment Solution Strategic As the World Bank and its affiliates search for better ways to promote development in Africa, both Bujagali and Bulyanhulu may offer valuable lessons for the future.

Key investment

Durban is South Africa's second most populous city after Johannesburg, Zulu Natal's largest city. The city is a major tourist attraction for both local and international tourists, due to Durban's warm subtropical climate and beautiful beaches. Durban has a marine life like no other and plays host to uShaka Marine World, one of the largest aquariums in the world. This, combined with its cultural background, makes it an ideal spot for fractional property investment.

Investment Banking Services In Uganda, the World Bank insists that the $500 million Bujagali hydro-electric Dam project is a "key investment" that will help reduce poverty in a country where less than three percent of the population has access to the national power grid.

Bank Investment Environmentalists in Uganda and internationally, have criticized the project as economically unsound, environmentally unsafe and perhaps a vehicle for corruption. The Bank has investigated these claims but in December said the project should go ahead. Construction began in late January 2002.

Alternative Investment But the controversy is not over. AES, the giant construction company expected to build the dam, announced in February that a shortfall in cash could result in new delays on the project.

Online Investment Services In addition, allAfrica.com has learned that an internal World Bank report to be published in May will again raise questions about the promised benefits of the project.

Accompany Essential Investment In Tanzania, Miga's decision to provide $115m in political risk insurance to a syndicate of banks that made loans to support the Bulyanhulu gold mining project, and an additional $56 million in risk insurance for the Canadian company developing it, has been applauded by the government.

Investment Company The mining project will create jobs, generate revenue for the government and improve access to water, electricity and other services for communities surrounding the mine, according to Miga.

Investment Management Solution "The insurance will cover the investment against the risks of transfer restriction, expropriation, and war and civil disturbance," said Miga in a statement describing the project.

'Dozens killed'

Investment Management Services But critics charge that in preparing the land for mining, previous owners killed dozens of people and displaced tens of thousands of others, violated Tanzanian laws and constructed the mine in a manner that will cause extensive damage to the environment.

Guide Investment Stock Tundu Lissu of the Lawyers Environmental Action Team told allAfrica.com that his group has filed a legal complaint with the office of the ombudsman at Miga, charging that the $56m credit to the Canadian Barricks Mining Company for development of this mine violates several mandatory World Bank requirements for such projects.

Investment Manual Solution The violations include forced relocation of Tanzanians without compensation or other assistance, the lack of any serious attempt to assess potential damage to the environment and a failure to approve the project with full transparency.

Investment Stock Miga has rejected these criticisms, but a World Bank official confirmed to allAfrica.com this week that a complaint has been filed with the office of the independent ombudsman and accepted for investigation.

Essential Investment Solution While cautioning that accepting a complaint for investigation does not constitute acceptance of the accuracy of the charges, this same official, who asked not to be named, said that the investigation of these charges has been largely completed and a final report on the accusations should be issued in May.

Citicorp Investment Services Financing for both the Bujagali and Bulyanhulu projects is going ahead. But Mr Wolfensohn may be about to get some answers to his questions about development effectiveness from within his own organisation.

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