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Protest Against ADB in Kerala - cadtm

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Conditionalities of KSUDP<br />

• Facilitates Privatisation<br />

– by the mid term review the state government ‘will’ have to redef<strong>in</strong>e the role of<br />

the <strong>Kerala</strong> Water Authority <strong>in</strong>to ‘an enabl<strong>in</strong>g regulatory framework’ to facilitate<br />

private sector participation.<br />

• Underm<strong>in</strong><strong>in</strong>g Democracy<br />

– <strong>ADB</strong> makes it clear that the Government of <strong>Kerala</strong> and the municipal corporations<br />

have to fall <strong>in</strong> l<strong>in</strong>e. This is a direct attack on democracy and underm<strong>in</strong>es the<br />

ability of local governments to prioritise their annual budgets and revenue<br />

mobilisation accord<strong>in</strong>g to their specific political and developmental objectives<br />

– Loan Document Says “GoK will allocate, and ensure that municipal corporations<br />

allocate counterpart funds from their annual budget <strong>in</strong> order to meet the<br />

counterpart fund<strong>in</strong>g requirements of the Project. GoK will also ensure that each<br />

municipal corporation will make available all necessary land, staff<strong>in</strong>g and facilities<br />

as required for timely completion of subprojects.“<br />

– “GoK will ensure that all the municipal corporations pass a resolution by<br />

March2008 to <strong>in</strong>troduce service tax and/or other revenue mobilization measures<br />

<strong>in</strong> each municipal corporation to meet shortfall of revenues needed to fund O&M<br />

of the expanded water supply”.

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