http://www.financialexpress.com/fe_full_story.php?content_id=151924
<http://www.financialexpress.com/fe_full_story.php?content_id=151924>

ADB 'no' to change in Kerala loan agreement
FINANCIAL EXPRESS.
AM JIGEESH <http://www.financialexpress.com/about/feedback.html>  Posted
online: Wednesday, January 17, 2007 at 0048 hours IST

NEW DELHI, JAN 16:  The Asian Development Bank (ADB) on Tuesday made it
clear that no change is possible in the loan agreement it had signed with
the Kerala government in December 2006. This was in response to the claims
and counterclaims made by the two factions of the Kerala CPI(M) on certain
"anti-people clauses" in the agreement.
ADB's principal urban specialist Alex K Jorgensen said "there is nothing
anti-people in the agreement. No changes have been made in it. We don't have
an option. It is now for the Union finance ministry to decide whether any
changes should be made in loan agreements with state governments," he added
"ADB is a public bank in which the Indian government is also a major share
holder. We cannot change the fundamentals of the loan agreement in
accordance with the wishes of successive governments," Jorgensen said. He,
however, added that the bank could increase the scope of the agreement with
the Kerala government.
Though the controversy over the loan agreement has been there since 2005, it
was State finance minister TM Thomas Isaac who gave it a new twist , when he
declared in a press conference here, recently, that changes had been made in
the draft agreement, signed by the previous UDF government and the ADB.
"All the anti-people clauses in the agreement were removed," Isaac had said.
However, chief minister VS Achuthanandan sought to differ on the issue and
told reporters on Sunday that the agreement still had certain "dangerous"
points.
When asked whether the ADB would discuss the issue with the Kerala
government, ADB's India chief Tadashi Kondo said: "I think the state
government is contemplating on the (loan) agreement. Anyway, we are always
open to discussions on the issue."
The loans are given for urban development projects in various corporations
and municipalities in the country. "The West Bengal government is supporting
our programmes wholeheartedly," Jorgensen said.

Anivar Aravind
Global alternate Information Applications(GAIA)
Peringavu P.O
Thrissur-18
Kerala
Ph. +91 9446545336

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