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notification, exchange of information, and agreed-upon consultation on the potential environmental effects of activities under their control or jurisdiction which are likely to significantly affect other states or areas beyond national Jurisdiction. Principle 12

When information provided as part of an EIA'indicates that the environment within another State is likely to be significantly affected by a proposed activity, the State in which the activity is being planned should, to the extent possible:

(a) notify the potent ially affected State of the proposed activity:

(b) transmit to the potentially affected State any relevant information from the BIA, the transmission of which is not prohibited by national laws or regulations and

(c) when it is agreed between the States concerned, enter into timely

{ consultations. Principle 13

Appropriate measures should be estabished to ensure implementation of EIA procedures.

Note

In this document an assessment of the impact of a planned activity on the environment is referred to as an environmental impact assessment (BIA).

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experience with the National Environmental Policy Act (NEPA) and

our views concerning the environmental impact of projects funded

by multilateral development banks (MDBS) in developing countries.

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impacts is a development that we at EPA and our colleagues at CEQ

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Federal decision-making is better for having done it.

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thinking--to its wider acceptance at the international level.

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experience, enough perhaps to admit that we do not know all the

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nations world-wide for large and small development projects, many

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sufficiently assessed before these projects are funded by MDBS.

In the past, MDBS were guided in many instances by a narrow

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project funding should take into account the needs of the future.

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expressed by the U.N.-based World Commission on Environment and

Development.

In the recent past there has been a growing awareness of the

need

to bring proposed projects under

environmental scrutiny.

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whether it is the effect of forest destruction on global warming,

or nuclear fallout from the Chernobyl catastrophe.

Man's ability

to alter his environment is growing too.

A number of projects which have received MDB funding have

been criticized as having harmful environmental impacts, which in

some

cases also affected the economic viability of the projects.

For example, the Anchicaya hydroelectric dam in Columbia, which

received a world Bank loan, became unusable after only 7 years

due to siltation and has since been abandoned.

The Polonoreste

project in Brazil received $ 434 million in World Bank

loans

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resulted in increased logging, displacement of native peoples and

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became controversial after it was found that construction of the

road had started before the Inter-American Development Bank had

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decision-making.

Over the last

few years,

several initiatives

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colleagues from the Departments of State and Treasury to provide

details, I understand that the following efforts are being made.

The Working Group for Multinational Assistance (WGMA),

where Treasury, AID and several other agencies participate in the

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(State, Treasury, AID) has evolved, which meets weekly to examine

specific projects.

We are pleased to be a part on that process

now, and hope to be in a position to offer technical advice very

early in the project cycle.

The Appropriations Acts for 1987 and 1988 codified emphasis

on environmental concerns in the "Early Project" process.

They

required AID to explore developing a cooperative "Early Project"

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