Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Foreign Affairs, upon notice, on 12 January 2011:

(1)   How much Australian aid funding has gone to Toll Holdings Limited, Toll Royal Railway and/or the Royal Group since the selection of Toll Royal Railway as the concessionaire of the Cambodian railways in November 2007?

(2)   Can a list be provided documenting correspondence between AusAID and Toll Holdings Limited and/or the Royal Group and/or Toll Royal Railway relating to the funding of the Asian Development Bank (ADB) Project 37269 'Supplementary Loan and Administration of Grant and Technical Assistance Grant Kingdom of Cambodia: Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia Project' (the project).

(3)   Can a list be provided outlining the items classified as 'institutional support and capacity building' and 'civil works' budget lines for AusAID's funding of the project.

(4)   What assistance did the Australian Embassy in Phnom Penh and/or the department provide to Toll Holdings Limited relating to the selection of Toll Royal Railway as the concessionaire of the Cambodian railways by the Cambodian Government in November 2007.

(5)   Did AusAID receive any advice raising concerns about the resettlement program managed by ADB and the Government of Cambodia before committing finding to the project; if so, how were such concerns addressed.

(6)   Has AusAID received advice regarding breaches of ADB resettlement guidelines in the project, specifically, involuntary relocations in Sihanoukville and Battambang; if so, what action did AusAID take.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The Minister for Foreign Affairs has provided the following answer to the honourable senator's question:

(1) None.

(2) The following is a list of correspondence between AusAID and Toll Royal Railways

(3) Total project financing USD2I .5 million.

Institutional support and capacity building (AusAID financing: USD3.0

Civil works (AusA1D financing: USD18.5

(4) DFAT have advised that the Australian Embassy in Phnom Penh provided assistance to Toll Holdings in support of its bid for the railway concession agreement, consistent with Australian Government policy of support for Australian business.

(5) Resettlement was identified as a risk during AusAID's routine and comprehensive assessment process for the Project. On joining the project partnership in late 2009, AusAID assessed the project's resettlement plan which was updated and approved by ADB and the Government of Cambodia in 2009. A risk management matrix was developed by AusAID outlining mitigation strategies. These strategies included that an independent monitor be in place to ensure that the project's resettlement plan be implemented by the Royal Government of Cambodia as intended fairly and without delay (in accordance with the Asian Development Bank's international resettlement policy). In addition, AusAID agreed to finance an external international resettlement adviser to make monitoring visits to resettlement sites, produce independent reports and provide advice to the Cambodian Government, the ADB and AusAID on the implementation of the resettlement plan and the resolution of any complaints.

(6) AusAID has monitored resettlement since the project began. The AusAID funded resettlement expert visited the Battambang resettlement site in April 2010 and identified actions that were required prior to resettlement commencing in late May. The expert visited the Battambang resettlement site again in July 2010. During this visit, the community raised concerns about inadequate services which were conveyed to ADB and AusAID. On 5 August 2010, a monitoring mission report signed by AusAID, ADB and staff from the Cambodian Government formally raised the lack of services at the Battambang site as a concern. The Cambodian Government was asked to prepare a time-bound action plan in response by 31 August 2010. On 8 September 2010, ADB wrote to the Cambodian Government seeking an update on the provision of water and electricity at the site. Electricity has now been connected at the

Battambang site and water is being provided by the Cambodian Government. A senior official from AusAID also visited the Battambang site in December 2010 to identify additional steps that need to be taken to ensure resettlement policies are adhered to. AusAID and ADB are working with the Cambodian Government to better manage the resettlement process for the whole of the railway project. The Cambodian Government has agreed to address all major actions recommended by the ADB and AusAID to improve resettlement for the project. This includes payment of compensation, additional monitoring, improved consultation and grievance processes and a requirement that adequate services are available at resettlement sites before people are relocated. A resettlement review mission was conducted by the ADB from 10 January to 3 February.