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Arm-twisting intervention, says Bardhan

Special Correspondent

NEW DELHI: The Communist Party of India (CPI) has said that it will not stand in the way World Bank loans, but it was opposed to the conditions imposed as in the in the loan offer made to the Delhi Government for water sector reforms.

"The World Bank has been created for giving loans, but it should not dictate terms and suggest who to appoint as consultant and which company to be given the contract,'' CPI general secretary A.B. Bardhan told newspersons.

Citing the Delhi Jal Board (DJB) case, Mr. Bardhan said the World Bank had intervened at every stage. "It decides the terms of reference of every contract. It decides the eligibility and selection criteria for bidders. And then, it apparently forced DJB to subvert and manipulate the process of award of contracts to ensure that they were awarded to those it favours,'' Mr. Bardhan said.

Mr. Bardhan alleged that records indicated that the World Bank "blatantly and arbitrarily'' intervened in the award of a consultancy contract of Rs. 7 crores to favour PriceWaterHouseCoopers (PWC), although it had lost in the bidding process thrice. But the World Bank intervened every time. PWC finally got the contract despite strong protests from DJB officials.

The CPI leader further said that the World Bank's interference was not limited to ensuring contracts for its favourite firms. "They are setting the entire agenda of water sector reforms in Delhi. Such intervention is unacceptable."

In other countries, where World Bank-guided water reforms were carried out, tariffs increased, quality deteriorated and water was diverted from residential areas to amusement parks and five-star hotels.

"The bank has gone much beyond in arm-twisting DJB than is permissible under the conditions of the loan. India does not need such loans,'' he said.

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