WRITTEN QUESTION P-1869/96 by Doeke Eisma (ELDR) to the Commission (28 June 1996)

Subject: Bakun Dam, Malaysia

In pursuance of the contribution of the Commission in the debate about the construction of the Bakun Dam in Malaysia on 18 April 1996 we have the following questions:

1. Is the Commission well informed about the procedure and results of the four-part environmental impact assessment (EIA)? What is the opinion of the Commission about the EIA? Is the Commission aware whether the results of the EIA will be available for public inspection?

2. In its cooperation with Malaysia, how did the Commission take into account the resolutions of the European Parliament about Sarawak dating back to 1988?

3. What are the results of the Commission's request to its delegations in South-East Asia to monitor the developments of the Bakun Dam?

4. What is the impact of the Bakun Dam on the projects the European Union is supporting in Sarawak, notably those concerning forest conservation and sustainable forest management?

5. Is the Commission willing to promote codes of conduct for all European companies operating in third countries?

6. What is the opinion of the Commission on the Bakun Dam?

Answer given by Mr Marín on behalf of the Commission (22 July 1996)

1. Generally speaking, the Commission considers the procedure of environmental impact assessment (EIA) as an important instrument for ensuring informed decision-making and high-quality design of development projects. Involving the public in the scoping and evaluation of the EIA reduces the risks of conflicts of interest and increases the likelihood of project success. This is especially pertinent when issues of resettlement are involved.

However, the Commission has no role in the preparation of the EIA for the Bakun hydro-electric power project in Sarawak, and is therefore not in a position to comment on the details of the four environmental studies that are being carried out for the project. It does not have any further information regarding the public availability of the result of the EIAs.

2. The Commission has adopted a policy of constructive dialogue and partnership with the Malaysian government to develop more sustainable and equitable land-use practices. It has been developing forestry projects that work with the Malaysians towards better logging practice and supply of land-use information which will lead to sustainable forest management.

3. The Honourable Member will be aware that the Commission does not have a delegation in Malaysia but the country is covered by the Commission's delegation situated in Bangkok. It is receiving regular reports (mainly in local and regional press) on all aspects surrounding the Bakun dam development in the absence of any official reports being made available.

4. The Bakun dam has had no direct impact on Community projects for forest conservation and sustainable management. General concern for unsustainable logging in Sarawak has led to the commitment of funds for a small training project aimed at improving logging practice in the state.

5. In relation to codes of conduct for European investors, the Commission reiterates its position in response to the Parliament's own initiative resolution on the Bakun dam ((PE 198.355-34-0496, 0500; 0522; E-0551/96 d/d 18.4.1996. )). The Commission feels it would be inappropriate to propose any additional measures, other than those which may already exist in Member States for European companies operating in Asia. The Community's interest in the region places a strong emphasis on joint-venture creation between European and Asian companies, transfer of technology, and improvement of economic cooperation activities consistent with the Community's development and economic strategies towards Asia.

6. At the moment the Commission is not in possession of sufficient credible technical information on the impact of the dam to be able to formulate a considered opinion. It will continue to follow the issue closely and respond should better quality information become available.

Given the scale of the construction, and the possible negative impact of this project on the people and forests of Sarawak, the Commission does share the Parliament's concerns about the dam. It is important that the project does not go ahead without full and open consideration of the technical feasibility of the project, the competence of the contractors, and most importantly the possible negative environmental and social impacts of the work to be undertaken. If after such consideration the dam is to be built, safeguards should protect the rights of indigenous people and minimise environmental damage.

International press reports of 20 June 1996 indicated that a Malaysian court has ruled that the country's government had violated environmental laws in approving the Bakun dam and hydroelectric scheme in the jungles of Borneo. A joint Swiss, Swedish and Brazilian consortium has recently won the main contract to build the Bakun dam. The Commission understands that it is the intention of the government of Malaysia to appeal this decision and that it has in the meantime postponed signing the main works contract.