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Summary: In response to our letter, above, the WB sent us this 'form' letter. It does not even respond to the issues we raised in our May 30th letter, let alone the 2-hour conversation we had with the WB in Washington in April

Dear Mr.Graham Russell:

I am responding to your letter to the World Bank about the human rights issues related to the Chixoy Dam in Guatemala. Please let me start by expressing my enormous respect for the Truth Commission, whose extraordinary work has been recognized worldwide. As a development institution, the World Bank is committed to assisting the Government of Guatemala in the implementation of the Peace Accords, and helping Guatemala recover from the years of violence.

As you know, the Truth Commission found serious human rights violations during the 1970s and 1980s in several departments of Guatemala. Baja Verapaz, where people affected by the construction of the Chixoy Dam were resettled, was one of the many areas affected by violence. In addition, it is clear that many activities promised under the Chixoy Dam Resettlement Plan were not carried out on time.

Both because of our overall commitment to helping Guatemala recover from the years of violence, and the more specific need to ensure that people resettled as a result of World Bank financed projects are treated justly, we have been working intensively over the past few years to help Guatemala address the human issues related to the Chixoy Dam.

In 1996, the World Bank sent a fact finding team to Guatemala, headed by the World Bank's Director of Social Development, Ms. Gloria Davis, to review the human issues related to the Chixoy Dam. As noted above, the team concluded that there was a significant number of tasks of the Resettlement Plan that had not been completed during the 1980s by the Government at that time, in particular by the National Electrification Institute (INDE), which had been the project executing agency. Pending work affected five communities: El Naranjo, Chicuxtin, San Antonio Panec, El Rosario and Pacux.

Shortly after this team finished its review, the World Bank and the Government of Guatemala, in consultation with local stakeholders, agreed on a program of activities to fulfill the promises of the Resettlement Plan. The completion of the pending tasks involved not only local efforts by INDE and the Guatemalan social fund, FONAPAZ, but work by Pastoral Social de las Verapace, an esteemed NGO with a well-proven record in dealing with displaced populations, and the beneficiary communities themselves.

I am pleased to advise you that the Resettlement Plan has now been implemented and supports five major programs: Land acquisition, land titling, housing construction, electric power and water supply. In less than three years, an investment of Q4.6 million has benefited about 2000 families and more than 10,000 beneficiaries. Overall, 537 land titles and 542 housing titles have been issued, and 200 water systems, and 300 power systems have been constructed. This is, of course, in addition to activities which were undertaken in the 1980s, during the original project execution period. Recently, the World Bank's Vice President for the Latin America and Caribbean Region, Mr. David De Ferranti, met with a group representing the Chixoy resettled villagers, who expressed support for the results achieved during the last couple of years.

Despite this progress, I want to assure you that our work is not over.

As part of our overall support for the Peace Accords, the World Bank is helping to develop new investment programs to support poor communities across Guatemala. Beyond these investment activities, the World Bank is also working in another area in which the Truth Commission has revealed weaknesses, namely the Guatemalan judicial system. As part of a joint effort with other donors, we are supporting a project to help modernize and improve access to the judicial system.

Please let me close by giving my assurance that our primary objective in Guatemala is to support the Peace Accords, and to help Guatemala build a peaceful, just and hopeful future.

Sincerely, Donna Dowsett-Coirolo
Director Central America Country Management Unit
Latin America and the Caribbean Region

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