Board of Directors
Inter-American Development Bank
1300 New York Avenue, NW
Washington, DC

Dear Executive Director:

We are writing to express our serious concerns regarding the IDB's decision to draft and adopt a new Energy Policy, without any public consultation or input from stakeholders. A letter from Mr. Enrique Iglesias, dated March 19, 2004 informs us that the IDB is currently reviewing its energy policy. Given that the current version of the Bank's energy policy is outdated, and in need of revision, we are pleased to learn that the Board of Directors will potentially approve a new policy. However, we are concerned about the timing and process that the IDB has chosen for this endeavor.

As you are aware, the IDB is currently conducting a process of revision of its Environment Policy. The Bank has a consultation plan established and has asked for civil society input regarding the process, as well as the substance of the Policy. It is troubling to learn that the Board may be considering and approving an Energy Policy while the Environment Policy is being reviewed given that the two policies have serious implications for one another.

As you may know, the World Bank's Extractive Industries Review recently concluded a two-year process of evaluating the World Bank's involvement in the extractive industries. The final report makes a series of recommendations regarding policies and procedures that the Bank should adopt and that must be established in-country prior to investing in oil, gas and mining. The IDB should review these recommendations closely as part of its Energy Policy update process.

In a meeting with Mr. Antonio Vives of IDB's Sustainable Development unit during the IDB's Annual Meeting of Governors in Lima, we were informed that only the Board of Executive Directors has the authority to: (1) disclose the policy to the public, and (2) instruct IDB staff to hold a consultation on the policy's revision.

In the interest of ensuring the revised energy policy reflects the needs of the people you are serving in Latin America, we request two things: 1) We would like to request that the Board of Directors release a copy of the draft policy for public review; and 2) we would like you to delay Board approval of the energy policy until adequate public consultations on the policy have taken place.

If you need a point of contact in Washington, DC, please contact Nadia Martinez of the Institute for Policy Studies at 202-234-9382 or nmartinez@seen.org.

Thank you for your consideration and we look forward to hearing from you promptly.

Sincerely,

Alcides Faria, Coalición Rios Vivos, Brazil

Nadia Martinez, Institute for Policy Studies, USA

Carlos Zorrilla, DECOIN, Ecuador

Ikuko Matsumoto, Friends of the Earth-Japan

Jorge León T., CEDIME, Ecuador

Isaac Rojas, COECO Ceiba- AT, Costa Rica

Hildebrando Velez, CENSAT Agua Viva, FoE-Colombia

Jorge Acosta Arias, Centro de Derechos Económicos y Sociales, Ecuador

Jaroslava Colajacomo, Campagna per la riforma della banca Mondiale, Italy

Dr.Walter Mena, Sociedad Ecuatoriana de Medicina Ecológica, Ecuador

Emily Caruso, Forest Peoples Programme, United Kingdom

Abigail Parish, Bank Information Center, USA

Francis Grant-Suttie, World Wildlife Fund, USA

Cc: Enrique Iglesias, President, IDB
Dennis Flannery, Vice-President, IDB
Carlos Jarque, Manager, Sustainable Development Department, IDB
Antonio Vives, Deputy Manager for Private Enterprise and Financial Markets, IDB
Janine Ferreti, Chief of Environment Division, IDB
Lara Levinson, Chief Environmental Staff Advisor to Member of Congress Nancy Pelosi
Keith Kozloff, Environment Division, Department of the Treasury