A controversial property development scheme in Boeung Kak has soured relations between Cambodia's government and the World Bank. Photograph: Heng Sinith/AP
Relations fray as thousands of residents are evicted to make way for Phnom Penh property development
Mark Tran
guardian.co.uk,
Wednesday 10 August 2011
The World Bank has suspended new lending to Cambodia in a dispute over the eviction of thousands of poor landowners to make way for a property development in the capital, Phnom Penh.
Relations between the bank and the Cambodian government have frayed over plans by a property developer to fill in a lake in the middle of Phnom Penh to build luxury flats and high-end shops. Thousands have been forced from their homes, with more facing eviction.
The World Bank responded to a critical internal review by calling on the Cambodian government to stop evictions and agree to fair compensation for remaining landowners. But the two sides have failed to reach agreement and the World Bank's patience has snapped.
In a statement on Tuesday, Annette Dixon, country director, said: "Until an agreement is reached with the residents of Boeung Kak lake we do not expect to provide any new lending to Cambodia. The government is continuing to implement existing programmes and we are working with the government to ensure that all its legal obligations under those projects will be met."
The suspension of new lending follows an investigation by the bank's inspection panel, an internal watchdog, in response to pressure from NGOs acting on behalf of lake residents.
3 comments:
Who care? Yes to loan, no to loan it your decision
Cambodia is giving the World Bank a middle finger at this point. At this point in time, I don't think Cambodia needs a hand out. What its need is foreigner investments and it is certainly not foreigners’ donations. The World Bank is just shooting itself on the foot.
More posturing by the World Bank. Get real Ms Dixon. Is this about concern for those evicted or about reputation.
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