Rail project in ADB sights

The Asian Development Bank said yesterday problems with a railway rehabilitation project – funded by the bank and AusAID – identified by a local NGO that was suspended by the government last month “may require further investigation or analysis”. In July, STT released a report stating that compensation for villagers in four communities in the capital affected by the project might be insufficient due to a “systematic downgrade” of the value of their homes by the government. “In monitoring the implementation of resettlement under the project, STT identified issues and procedures that could be improved and, in some cases, may require further investigation or analysis,” Asian Development Bank country director Putu Kamayana said in an email yesterday.  He added that ADB reviews “have found that the living allowance set forth under the original Resettlement Plan is now insufficient due to rising food prices in recent years”.