The Inspection Panele 24977 September 2002 Annual Report August 1, 2001 to June 30, 2002 The Inspection Panel International Bank for Reconstruction and Development International Development Association The Inspection PanelI Annual Report August 1, 2001 to June 30, 2002 OWM- IMEO QW513 ni M X f lliatil>esEnl^n9@qiiei-- ' ~~~~~~~~~~ -- . I The Inspection PanelC The Inspection Panel 1818 H Street, N.W. Washington, D.C. 20433 USA Telephone: 202-458-5200 Facsimile: 202-522-0916 Email: ipanel@worldbank.org Internet: www.inspectionpanel.org C 2002 The International Bank for Reconstruction and Development The World Bank 1818 H Street, N.W Washington, D.C. 20433 USA All rights reserved Manufactured in the United States of America First printing September 2002 Printed on recycled paper A free publication Table of Contents Abbreviations and Acronyms .................................... v Letter of Transmittal .......................................... 1 Message from the Panel ....................................... 2 The Inspection Panel .......................................... 4 Formal Requests Received in Fiscal 2002 ........................... 8 Request No. 24, Uganda: Third Power Project; Fourth Power Project; and Bujagali Hydropower Project-Guarantee ............................ 8 Request No. 25, Papua New Guinea: Governance Promotion Adjustment Loan .................... 18 Request No. 26, Paraguay / Argentina: Paraguay: Reform Project for the Water and Telecommunications Sectors (formerly Asuncion Sewerage Project); Argentina: SEGBA V Power Distribution Project ............................... 24 Further Action on Earlier Requests .............................. 27 Request No. 22, Chad: Petroleum Development and Pipeline Project ................... 27 Request No. 23, India: Coal Sector Environmental and Social Mitigation Project ......... 32 Operations ................................................. 37 Outreach and Disclosure ...................................... 49 Administration and Budget .. 51 Annexes Annex 1: Resolution No. IBRD 93-10 / Resolution No. IDA 93-6, "The World Bank Inspection Panel" ..................... I .... 52 Annex 2: 1996 Clarification of Certain Aspects of the Resolution .......... 55 Annex 3: 1999 Clarification of the Board's Second Review of the Inspection Panel ................................. 56 Annex 4: Operating Procedures .................................. 59 Annex 5: Panel Budget ........................................ 71 Boxes Box 1: Inspection Panel Members .7 Box 2: Uganda Request for Inspection: Project Information at a Glance .8 Box 3: Violations of Operational Policies and Procedures Claimed by Requesters .9 Box 4: Uganda: Country Information.1 1 Table of Contents ii Table of Contents Box 5: Uganda Power Sector and IDA Assistance .................... 12 Box 6: Papua New Guinea Request for Inspection: Project Information at a Glance .18 Box 7: Violations of Operational Policies and Procedures Claimed by Requesters ......................... 19 Box 8: Papua New Guinea: Country Information .................... 20 Box 9: The Forestry Sector and Governance Issues .................... 21 Box 10: Paraguay/Argentina Request for Inspection: Project Information at a Glance ........................... 24 Box 11: Violations of Operational Policies and Procedures Claimed by Requesters ......................... 25 Box 12: The Yacyret6 Project ................................... 25 Box 13: Chad Request for Inspection: Project Information at a Glance ........................... 28 Box 14: Chad/Cameroon Petroleum Development and Pipeline Project ......................... 29 Box 1 5: Violations of Operational Policies and Procedures Claimed by the Requesters ..................... 30 Box 16: Chad: Country Information .............................. 31 Box 17: India Request for Inspection: Project Information at a Glance ........................... 32 Box 18: Violations of Operational Policies and Procedures Claimed by Requesters ................................. 33 Box 19: The India Coal Sector Environmental and Social Mitigation Project . .34 Box 20: The Coal Sector in India ................................ 35 Tables Table 1: Summary of Requests for Inspection as of June 30, 2002 ........ 37 Table 2: Alleged Violations of Policies and Procedures .46 Figures Figure 1: Inspection Panel Eligibility Phase .5 Figure 2: Inspection Panel Investigation Phase .5 Figure 3: Percentage of Requests Received by Region .48 Figure 4: Alleged Violations of Social and Environmental Policies - August 1994 to June 2002 .48 iv The Inspection Panel Annual Report 2002 Abbreviations and Acronyms AESNP AES Nile Power Limited CAO Compliance Advisor Ombudsman CAS Country Assistance Strategy CCL Central Coalfields Limited CDAP Community Development Action Plan CELCOR Center of Environmental Law and Community Rights, Inc. COTCO Cameroon Oil Transportation Company CSESMP Coal Sector Environmental and Social Mitigation Project CSRP Coal Sector Rehabilitation Project EA Environmental Assessment EBY Entidad Binacional Yacyreta EIA Environmental Impact Assessment FCP Forestry and Conservation Project FMA Forest Management Agreement GDP Gross domestic product GPAL Governance Promotion Adjustment Loan IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation IMF International Monetary Fund LDP Letter of Development Policy MASL Meters above sea level MW Megawatt NAPE National Association of Professional Environmentalists of Kampala NGO Nongovernmental organization OD Operational Directive OM Operational Memorandum OMS Operational Manual Statement Abbreviations and Acronyms v Abbreviations and Acronyms OP Operational Policy PAP Project-affected people PPA Power Purchase Agreement PRG Partial Risk Guarantee RAP Rehabilitation Action Plan SAR Staff Appraisal Report SBC Save Bujagali Crusade SDR Special Drawing Rights SEA Sectoral Environmental Assessment SEDD Summary of Economic Due Diligence TOTCO Tchad Oil Transportation Company vi The Inspection Panel Annual Report 2002 Letter of Transmittal e his Annual Report, which covers the period August 1, 2001 to June 30, 2002, has been prepared by the members of the Inspection Panel for the Interna- tional Bank for Reconstruction and Development and the International Devel- opment Association in accordance with the Resolution that established the Panel. The report is being circulated to the President and Executive Directors of both insti- Mission of the Inspection Panel tutions. The Panel would like to take this opportunity to thank the Executive Directors for their unfailing support. The Panel would also like to thank World Bank Group To provide Independent President Mr. James D. Wolfensohn and Senior Management for their continued support ofthe Panel as an integral component ofthe Bank's transparency and account- judgment in cases where it is ability efforts. Edward S. Ayens ua asserted that the rights and Chairman interests of parties are adversely June 30, 2002 affected because the Bank failed to follow its operating policies and procedures in the design, appraisal, and/or implementation of Bank lending operations. Letter of Transmittal Message from the Panel _ _ | -Es -_- s T his year marks the Panel's eighth . year of operation, and another 4OW ~ ~ ~ ~ ~~~~Ichange in the Panel's membership 'i i ... , f ........ x 1 as Mr. Jim MacNeill (a Canadian * - / K e ; - ........ \ W t national) completes his five-year term this July. Mr. MacNeill will be replaced by Ms. Edith Brown Weiss, a U.S. national. To bring the Panel's operational year i F ' - :- l in line with the World Bank Group's fis- f -. \ - - 'cal year, the Panel ended its annual oper- ational calendar one month earlier than in the past, on June 30, 2002. In fiscal year 2002, the Panel received and registered three new Requests for <, ,,/ > Inspection relating to (a) the Uganda Third Power Project and the subse- Panel members, left to right: Chairman Edward S. Ayensu, Maartje van Putten, and Jim MacNeill. quently approved Bujagali Hydropower Project, for which the Panel recom- mended and the Board authorized an investigation; (b) the Papua New Guinea Governance Promotion Adjustment Loan, for which the Panel did not rec- ommend an investigation; and (c) the Paraguay Reform Project for the Water and Telecommunications Sectors and the Argentina SEGBA V Power Distri- bution Project, for which the Panel reg- istered the Request for Inspection. The Panel completed the Uganda investigation and sent its report to the Board in May 2002. The Board consid- ered the Panel Investigation Report and the Bank Management recommenda- tions on the Bujagali Project, and on June 17, 2002, approved Management's recommendations to address the Panel's findings. In addition to these cases, the Panel continued work on the two Requests received in fiscal 2001: the Chad Petro- leum Development and Pipeline Project, 2 The Inspection Panel Annual Report 2002 and the India Coal Sector Environmen- eration Project in India, were limited in tal and Social Mitigation Project. The scope. Since the April 1999 Clarifica- Panel recommended, and the Board tions, the Board has authorized, on a approved, investigations concerning the non-objection basis, all of the investiga- matters alleged in both Requests. tions recommended by the Panel. In this year the Panel also continued The creation of the Inspection Panel work on revisions of its 1994 Operating remains a watershed event not only in Procedures; however, due to the Panel's the Bank's history, but also in the evolu- unprecedented caseload (three full-scale tion of international financial institu- investigations), the Panel is still in the tions. As the challenges of international process of conducting consultations. In development evolve and the Bank moves addition, in response to the Executive forward toward meeting its mission of Directors' stated desire to make the Panel fighting poverty, the work of the Inspec- better known, the Panel continued its tion Panel continues to be critical. outreach efforts. Openness, accessibility, and accounta- The claims made by the Requesters in bility continue to be keys to sound eco- this year's requests were generally typi- nomic development, and the demand for cal of the Panel's experience. The them remains. Moreover, the Panel con- Requesters alleged violations of some of tinues to provide support to the Bank's the Bank's safeguard polices, especially compliance with its policies and proce- Environmental Assessment, Involuntary dures, and in particular its environmen- Resettlement, Indigenous Peoples, and tal and social safeguard policies, which Disclosure of Information, as well as of are aimed at preventing and mitigating the Bank's Operational Directive on Pro- undue harm to people and their envi- ject Supervision. Also, issues of consul- ronment in the development process. tation or participation-or the lack In the eight years since its establish- thereof-continue to be raised. ment, the Panel has provided a direct To date, the Panel has dealt with 26 link between the Bank's highest govern- formal Requests for Inspection: nine in-g body and the people its projects are from Latin America, eight from Africa, intended to benefit. It has contributed seven from South Asia, and two from to improving the consultative process East Asia and the Pacific. Of the 26 for- available to people who have voiced con- mal Requests received, the Panel has rec- cerns about the impact of Bank-financed ommended investigations in a total of projects. In all of this, the Panel has twelve cases, six under the rules which assisted in enhancing the scope of Bank applied prior to the April 1999 Clarifi- accountability and increased the Bank's cations, and six since. The Board credibility in both its borrowing and approved only two of the six recom- non-borrowing member countries. mended investigations under the old rules. And both of these, the 1994 inves- Edward S. Ayensu tigation of the proposedArun III Hydro- Jim MacNeill electric Project in Nepal and the 1997 Maartje van Putten investigation of the NTPC Power Gen- Message from the Panel 3 The Inspection Panel T he World Bank created the Inspec- Panel Process Shortly after the Board decides tion Panel in 1993, on the eve of The Panel's process is straightforward. whether an investigation should be its 50th anniversary, to serve as an Any two or more individuals or groups carried out, the Panel's Report independent mechanism to ensure of individuals who believe that they or (including the Request for Inspection accountability in Bank operations with their interests have or are likely to be and Management's Response) is pub- respect to its policies and procedures.' harmed by a Bank-supported Project licly available at the Bank's InfoShop It was an unprecedented act in the his- can request the Panel to investigate their and the respective Bank Country tory of international financial institu- complaints. After the Panel receives a Office, as well as on the Panel's web- tions. Since its inception, the Panel has Request for Inspection, it is processed site (www.inspectionpanel.org). provided people affected by Bank- as follows: * If the Panel recommends an investi- financed projects with direct access to * The Panel decides whether the Request gation, and the Board approves it,3 the an international forum where their com- is not barred from Panel consideration. Panel undertakes a full investigation. plaints can be addressed. After almost . The Panel registers the Request- The investigation is not time-bound. ive years of the Panel's operation, in a purely administrative procedure. When the Panel completes an inves- importance of the Panel's function, its . The Panel promptly notifies the mem- tigation, it sends its findings on the independnce and inthegr ntit"2 bers of the Board that a Request has matters alleged in the Request for independence andintegrity,been received, and sends the Request Inspection to the Board and to Bank Subject to Board approval, the three- to them and to Bank Management. Management for its response to the member Panel is empowered to investi- them findings. gember Problems th rem leged to haves- -* Bank Management has 21 working Panel findings. gate problems that are alleged tO have days to respond to the allegations of * Bank Management then has six weeks arisen as a result of the Bank havpog - the Requesters. to submit its recommendations to the complied with its own operating poli- the Requesters. Board on what, if any, actions the cies and procedures. As directed by the * Upon receipt of Management's Re- Bank should take in response to the Resolution that established the Panel, sponse, the Panel has 21 working Panel's findings. the Executive Directors reviewed the days to determine the eligibility of the Panel's experience after two years of Requesters and the Request. The Board then takes the final deci- sion on what should be done, based operations. The review was concluded * The Panel delivers its eligibility report on the Panel's findings and Bank on October 17, 1996 with the approval and any recommendation on an inves- antagemn s rondi atns. of certain Clarifications of the Resolu- tigation to the Board. M tion. In March 1998, the Board * If the Panel does not recommend an * Shortly after the Board's decision, the launched a second review of the Panel's investigation, and the Board accepts Panel's Report and Management's operations, which ended in April 1999 that recommendation, the case is Recommendation are publicly avail- with the approval of the second Clarifi- tdered closed. The Board could, able through the Bank's InfoShop and cations of the Resolution (see Annex 1, nevertheless, decide and instruct the the respective Country Office. 2, and 3, respectively, for the full texts Panel to make an investigation. The Panel's Investigation Report of the Resolution and the 1996 and After the Board's approval of the is posted on its website, www.inspec- 1999 Clarifications). Panel's recommendation, the Re- tionpanel.org. questers are notified. I. See Resolutiotn No. IBRD 93-10; Resolution No. IDA 93-6, establishing 'The World Bank Inspection Panel." The Panel's 1994 'Op-raLing Piocedures" provide detail to rhe Resolutions. For rhe purposes of the Inspection Panel, the World Bank comprises both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). 2. Conclusions of tie Boards Second Review ofsthe Inspection Panel (hereinafter "1999 Clarifications"), IBRD anid IDA Board of Executive Directors. April 20, 1999, at paragraph I. 3. See Conclusions ofsthe Boards Second Rview ofsthe Inspection Panel. Paragraph 9: "If the Panel so recommends, the Board will authorize an investigation without making judgment on the merits of the claimant's request..." See, 1999 Clarifications, available at the Inspection Panels homepage (www.inspectionpanel.org). 4 The Inspection Panel Annual Report 2002 Figure 1 - Inspection Panel Eligibility Phase Figure 2 - Inspection Panel Investigation Phase Receives the Request Appoints Lead Inspector for Inspection |~ ve if Is the Request obviously Initiates headquarters work if YES |inadmissible? "t if NOT l Registers the Request, notifies 1 Collects official and Management and informs Board J unofficial documents Receives Management Response to Conducts interviews the Request within 21 working days Field visitif Eligibility determined 1 Conducts g Rosa. The Request also attached letters fact that for more than 20 years they have of evidence that the Mayors and Munic- owned and occupied lands affected by According to the Request, this picture shows ipal Councils of the Cityof Encarnaci6n the dam. (See Box 12 for more infor- According~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~ ~ato on the Yacyrest thispicurethow one of the areas being flooded by the closing and the District of Cambyreta have marion on the Yacyreta Project.) of the Yacyreta Reservoir at 76 meters above sea level. Box 10 Paraguay / Argentina Request for Inspection: Project Information at a Glance Project Name: Reform Project for the Water and Telecommunications Sectors (formerly Asunci6n Sewerage Project) Region: Latin America and the Caribbean Sector: Water, sanitation and flood protection Environmental Category: A IBRD. Loan Amount US$46,500,000 Board Approval Date: February 14, 1995 Effective Date October 13, 1995 Closing Date: December 31, 2003 Project Name: SEGBA V Power Distribution Project Region: Latin America and the Caribbean ISector: Environment Environmental Category: A IBRD Loan Amount US$60,483,346 Board Approval Date: June 23, 1987 Effective Date: September 30, 1988 Closing Date: October 31, 2002 24 The Inspection Panel Annual Report 2002 Box 11 - Box 12 Violations of Operational Policies and Procedures The Yacyreta Project Claimed by Requesters According to Managemnent, Safeguard Policies: Environmental Assessment ' Yacyreta is a multi-billion dollar Involuntary Resettlement hydroelectric facility constructed on Other: Environmental Policy for Dam and Reservoir Projects the Parana River, along the border Project Supervision between Argentina and Paraguay. Project Monitorinc and Evaluation At full capacity-(with a reservoir. Suspension of Disbursements level of 83 MASL), Yacyret6 will gen- erate 3,1'00 megawatts of electricity. Currently, it operates at 60 percent ____ ___ ____ ___ ____ ___ ____ ___of its capacity, with a reservoir level of 76 MASL. The project is the result of a joint venture established in a 1973 treaty between the countries. To implement the project, a semi- autonomous binational entity, EBY, was created in 1976, with equal rep- resentation of the two countries on its Board of Directors, as well as at all other administrative levels. The Yacyreta Project is partially financed I Left and top: Areas affected by the flooding. by a series of loans to the Argentine Republic from both' IBRD and the, Inter-American Development Bank. Paso, and San Bias, who are in no way The Government of Paraguay, while I- - | - alfected by the devastating situation participating in the management of being borne by those living on the the project'and sharing in.its-bene- creek banks, for whom this program fits, was not to contribute directly The Request cites, as an example, the was created. to any project costs.' case of 110 families who live in the dis- trict of Cambyreta on the banks of the The Request also complains about the environmental contamination and be lost for good, and numerous families Potiy Creek, who settled in the area.. arond198 ad hoar noafete aaverse health impacts caused by the ele- will be condemned to live in a vation of the reservoir. According to the polluted environment. by floods every time that it rains. The Request, this situation was further aggra- Request claims t Request also cites similar cases of fami- vated by the housing developments built The Request claims that the reservoir lies living on the banks of the creeks of by Entidad Binacional Yacyreta (EBY) has caused severe health problems. The Mboy Cae, Santa Maria, and Yacu Paso. irn Buena Vista and San Pedro, where the Requesters allege that the reservoir, filled The Request further claims that families wastewater spills into the Potiy, Santa withstagnantwater, pollutedwith sewage for whom the creek flood control pro- MIaria, and Mboi Cae Creeks, leaving waste, is an ideal habitat for microor- gram was established are being replaced them totally contaminated. The ganisms such as malaria, leishmaniasis, by families from the neighborhoods of Requesters believe that the chance to schistosomiasis, and dengue fever; and Pacu Cua, Santa Rosa, Mboi Cae, Ita recover or clean up these streams will they provide statistical data from the Formal Requests Received in Fiscal 2002 25 Paraguay / Argentina -~ -- .- _ r , - n. ,w,. -r~ ~ "- (-''8 ! w f''¢, Left and right: Areas that are being flooded and otherwise affected by the closing of the Yacyreta Reservoir (Photographs provided by the requesters.) Ministry of Public Health and Social assert that the amount of compensation ject Supervision; OD 10.70 on Project Welfare for the years 1990, 1992, and was negligible, and that the amounts Monitoring and Evaluation; and OD 1994, which shows that diseases related would, in noway, "make itpossiblefor the 13.40 on Suspension of Disbursements. to the reservoir's existence (diarrhea, ane- families to buy new land and rebuild their mia, parasitic infection, skin diseases homes. " Similarly, they allege that the such as pyoderma and ectoparasites) were Bank and EBY have no plans among the main causes for doctors' vis- to restore the families' productive infra- its. According to the Request, since the structure. reservoir was filled, people living in the Finally, the Request states that com- area have complained of a high incidence pensation and resettlement programs for of fevers. The Requesters also allege that brickmakers benefited only the owners there have been no programs for moni- of productive units and left their work- toring and controlling disease-causing ers unemployed and in a very difficult microorganisms, and if this remains unre- economic condition. solved, it could lead to an alarming and In its Notice of Registration, the Panel catastrophic health situation. stated that the Requesters claims could The Requesters claim that the Bank constituteviolationsofvariousprovisions has failed to ensure that EBY provides of the following Bank Policies and Pro- people with suitable compensation and cedures: OD 4.00, Annex B, on Envi- resettlement. As an example, they cite ronmental Policy for Dam and Reservoir the compensation approved for the fam- Projects; OD 4.01 on Environmental ilies living in the Santa Rosa, Arroyo Assessment; OD 4.30 on Involuntary Pora, and Ita Paso neighborhoods. They Resettlement; OD/OP/BP 13.05 on Pro- 26 The Inspection Panel Annual Report 2002 Further Action on Earlier Requests Chad Petroleum Development and Background In particular, the Requesters claim that Pipeline Project (Loan No. The Panel received the Request for thedevelopmentofpetroleumactivities, 4558-CD), Management of the Inspection dated December 15, 2000 on including development of the oil fields Petroleum Economy Project March 22, 2001, and registered the in southern Chad and the construction (Credit No. 3316-CD), and RequestonApril I1,2001. The Request of an oil pipeline between Chad and Petroleum Sector Management was submitted by Mr. Ngarlejy Yoron- Cameroon, represents a threat to local Capacity Building Project gar, who was acting for himself and on communities, their cultural property, (Credit No. 3373-CD) behalf of more than 100 residents living and to the environment. Specifically, the in the vicinity of three oil fields of the Requesters claim that people living in :Doba Petroleum Project in the cantons the Doba Basin are being harmed or are of Miandoum, Kome, Bero, Mbikou, likely to be harmed because of the - ^_8D Bebedjia, and Beboni, in the Bebedjia absence, or inadequacy, of compensa- ., _ - 1 sb- sub-prefecture of southern Chad. The tion and environmental assessment. The i f t" ) ~Requesters asked that their names be ReusclistaBnksm iorg made available only to the Panel. The and supervision policies and procedures ..,'Request related only to the Chad por- were violated and that the Requesters' r ' w tion of the Proj ect. innumerable attempts to bring theprob- lems associated with the Projects to the The Request claims that the Re- qusts r and interests had been, attention of Bank Management had not questers'.rights produced satisfactory results. or are likely to be, directly harmed as a - result of the Bank's actions in the design, Finally, the Request claims that proper appraisal, and supervision of the Pro- consultation with and disclosure of Esso staff explaining to Panel team the extent jects. It alleges that the Bank's failure to information to the local communities of the feeder line network. hsntt-e lc.TeRqetas comply with its policies and procedures has not taken place. The Request also on Environmental Assessment, Natural notes that the Requesters held the Bank Habitats, Pest Management, Indigenous accountable for what it had done as well Peoples, Involuntary Resettlement, as for what it had omitted to do. Forestry, Economic Evaluation of Management Response Investment Operations, Cultural Prop- Management submitted its Response to erty, Disclosure of Operational Infor- the Panel on July 20, 2001. Manage- mation, and Project Supervision had ment states that the Bank has complied resulted and would result in direct and with its operational policies and proce- adverse impacts on the Requesters. dures with regard to the environmental, Among the alleged impacts were pollu- social, cultural, and procedural matters tion and degradation of the environ- raised in the Request. Management ment, expropriation without com- explains that the Project preparation pensation, lack of respect for the usages process took several years and that an and customs of the Requesters, viola- extensive review of the environmental tions oftheir human rights, and bad gov- and social aspects of the Project was con- ernance reflected by the misappropria- ducted with the participation of Bank- tion of US$25 million in 2000 and its widespecialists. Managementstates that use for the purchase of weapons. this review led to significant changes in Project design, and notes that the pub- Further Action on Earlier Requests 27 Chad j,j,zJ- 0 lic debate around the Project-its ration- ale, its impacts, and it significance for Box 13 the development of Chad-involved a Chad Request for Inspection: Project Information at a Glance broad spectrum of civil society actors, Project Name: Chad-Cameroon Petroleum Development both in Chad and abroad. This debate, and Pipeline Project Management claims, provided and con- Region: Africa - Sub-Saharan tinues to provide insights and inputs to Sector: Oil & Gas further improve Project design and to Environmental Category: A identify issues during implementation. IBRD Loan Amount: US$39,500,000 Management notes that the Bank has Board Approval Date: June 6, 2000 taken the necessary measures to ensure Effective Date: August 10, 2001 that people in the Project area have not Closing Date: June 30, 2005 been directly and adversely affected as a Project Name: Management of the Petroleum result of the Project's design and imple- Economy Project mentation to date. Management adds Region: Africa - Sub-Saharan that it does not believe that the Sector: Public Sector Management Requesters will be adversely affected by Environmental Category: C the implementation of the Project in the IDA Credit Amount: US$17,500,000 equivalent future, since systems are in place to Board Approval Date: January 27, 2000 ensure that their views and concerns are Effective Date: September 21, 2000 adequately identified and addressed, and Closing Date: June 30, 2005 extensive monitoring arrangements and Project Name:. Petroleum Sector Management supervision activities will provide a chan- Capacity Building Project nel for addressing implementation Region: Africa - Sub-Saharan issues. With regard to the Requesters' Sector: Oil & Gas claims concerning the adequacy of the Environmental Category: C Project's environmental assessment, Pro- IDA Credit Amount: US$23,700,000 equivalent ject design, and location, Management Board Approval Date: June 6, 2000 states that it believes that all the policies, Effective Date: June 23, 2001 guidelines, and procedures pertaining Closing Date: December 31, 2005 to environmental matters raised by the Request were and continue to be fol- lowed. Management notes that the property, respect of local people, and In response to the Requesters' allega- Project was designed to minimize envi- public consultation, Management tion that their rights and interests have ronmental impacts. asserts that the Bank has and continues been or are likely to be harmed by the In terms of theRequesters'claims con- to follow all of its policies, guidelines, Bank'sfailuretoapplyitspoliciesongov- cerning resettlement and compensation, and p. , , ernance (with the Requesters citing as an and their specific claims (a) that national anduproeres Witha regard tolth example the Government's use ofa petro- legislation was not respected and that Requesters' claims that the Bank's poli leum bonus of US$25 million to pur- medicinal trees were not adequately cies and procedures on monitoring and chase weapons), Management stresses compensated for; and (b) about the evaluation aid supervision are not being that improving governance was one of extentofresettlementandthenon-appli- respected, Management asserts that it the central objectives of the Bank's cation of ODs pertaining to cultural does not believe that this is the case. Country Assistance Strategy for Chad. 28 The Inspection Panel Annual Report 2002 Box 14 Management emphasizes that the Chad / Cameroon Petroleum Development and Pipeline Project US$25 million bonus was not subject to any agreement concluded between the According to the Chad Project Information Document, the Chad/Cameroon Government of Chad and the Bank. Petroleum Development and Pipeline Project is the largest energy infrastructure Nonetheless, Management notes that, development in Sub-Saharan Africa. The objectives of the Project are to increase gov- in line with its overall policy of sup- ernment expenditures in Chad on poverty alleviation activities and to promote the porting the improvement of public economic growth of Chad and Cameroon through private sector-led development of financial management and governance Chad's petroleum reserves and their export through Cameroon. in Chad, the Bank, together with the The Project, which is expected to cost about US$3.7 billion, is being funded primarily IMF has taken strong measures to ensure by the private sector, with the World Bank Group providing only about 4 percent of that unspent funds from the petroleum the financing (the World Bank and IFC are lending US$39.5 million and US$100 mil- bonus were budgeted and, among other lion, respectively). The private sponsors, who have formed a consortium, are things, overseen by the Petroleum Rev- ExxonMobil of the United States (the operator), Petronas of Malaysia, and Chevron enue Oversight and Control Commit- of the United States. According to Bank Management, the Project was prepared tee, and that an audit of spent funds from 1993 to 1999 by the consortium and the Governments of Chad and Cameroon, would be carried out. with the help of the Bank Group. The Project is expected to yield approximately With regard to the Requesters' claims US$2 billion in revenues for Chad over its 28-year operating period. that their human rights were violated as The consortium will develop the three oil fields of Kome, Miandoum, and Bolobo a result of the Bank's failure to apply its (the "Field System") in the region of Doba, in southern Chad. The Project also entails policies, Management states that it does the construction of a 1,070 kilometer pipeline from the Doba oilfields to Cameroon's not believe this to be the case. Never- Atlantic coast at Kribi, three related pumping stations, ancillary facilities, infrastruc- theless, Management acknowledges that ture improvements, and installation of off-shore oil-loading facilities (the "Export the Bank "is concerned by human rights System"). Two joint-venture companies, the Cameroon Oil Transport Company in Chad as elsewhere," noting, however, (COTCO) and Tchad Oil Transportation Company (TOTCO), were established between that "its mandate does not extend to polit- the consortium and the governments of the two countries to own and operate the ical human rights. " Management adds Chad and Cameroon portions of the export system. that, in its opinion, the Project prepa- The Pipeline Project in Chad is accompanied by (a) the Management of the ration process has contributed to open- Petroleum Economy Project, which aims to build Chad's capacity to manage its oil ing and furthering the dialogue between revenues, and (b) the Petroleum Sector Management Capacity Building Project, Government and civil society in Chad,. which aims to assist the Government in carrying out its responsibilities under the and that it has served as a precursor to Pipeline Project. an increasingly participatory approach to public management. Participation by the World Bank has enabled the consortium and the Government of In conclusion, Management asserts Chad to agree to a "Revenue Management Plan" and, as a result, the Bank expects that it believes that the Bank has made that the oil revenue would provide resources to alleviate poverty by financing addi- that .it blevefforts to ank its made tional expenditures in health, education, rural development, and infrastructure. It considerable efforts to apply its policies would also provide needed additional Government revenues to Cameroon (as the and procedures and to concretely pur- transit country) of about US$500 million, which would be used to finance primary of this Project, and does not agree that expenditures to support the country's macroeconomic stability. the Requesters' rights or interests have Source: Project Appraisal Document, Report No: 19343-AFR. been, or will be, directly and adversely affected. Management notes that the Bank remains committed to a process of Further Action on Earlier Requests 29 Chad regular consultation and disclosure to ensure the environmental and social Box 15 esoundnes of ten Project .durngits Violations of Operational Policies and Procedures soundness of the Project during ItS implementation phase. Management Claimed by the Requesters adds that it intends to pursue the Safeguard Policies: Environmental Assessment improvement ofgovernance and the alle- Natural Habitat viation of poverty in Chad through the Cultural Property Project and other instruments of the Indigenous Peoples Bank's Country Program in Chad. Involuntary Resettlement Pest Management The Panel Eligibility Report/ Forestry Board Decision Other: Poverty Reduction The processing of the Request coincided Economic Evaluation of Investment Operations with the electoral and post-election Project Monitoring and Evaluation process in Chad, and therefore, the Panel Project Supervision . recommended that its report on the Disclosure of Operational Information eligibility of the Request be delayed for a period of about 90 days. The Board approved the Panel's recommen- dation for the 90-day extension on June 19, 2001. . The Panel found both the Request and ' the Requesters eligible, but found that the Request and Management Response ' I contained conflicting assertions and r interpretations. Therefore, the Panel rec- ommended an investigation into the matters alleged in the Request. The Panel sent its report on the Board on Septem- K r . 7 - i$ bet 12, 2001. The Board approved the Panel's rec- ommendation for an investigation on a non-objection basis on October 1, 200 1. The Reports were made public three .r v - days later, and are available on the ;Vxit Inspection Panel's website. At the time . . ofthis writing, the Panel is in the process of finalizing its investigation. Panel team consulting with the local people on the potential effects of the Project on their villages. 30 The Inspection Panel Annual Report 2002 Box 16 Chad: Country Information Chad is one of the least developed and poorest countries in the world. Its key poverty indicators are well below Sub-Saharan African averages, and it is ranked 167th among 174 countries by the United Nations Human Develop- ment Index 2000, down from the UNDP's 1998 rating of 163. Chad's underde- Population: 7.6 million velopment and poverty can be traced in large part to its difficult climate, Surface area (1997): landlocked position, and extended periods of civil strife. The country's growth 1,284.0 thousand sq. km and poverty reduction has been seriously hampered by a lack of financial resources and insufficient budget resources, which have forced the country to Population per sq. km (1997): 6 rely almost entirely on external financing for public investment. Chad, how- Population growth: 3 % ever, is endowed with considerable undeveloped petroleum resources, and the development and export of Chad's petroleum reserves from the south- GNI per capita: 200 US$ western (Doba Basin) part of the country could significantly improve its devel- GDP: 1.4 billion US$ opment prospects. Source: World Development Indicators With an estimated 80 percent of its population living below the poverty line, Database. oil development would provide a major opportunity for the country to achieve its central development objective of reducing poverty by accelerating sustainable economic growth, as well as providing financing for additional expenditures in health, education, rural development, and infrastructure. Source: Project Information Document, Report No. PID7288. L~~~~~~~~~~~~~~~~~~~~~_ -q.. Left: New housing with improved facilities. Above: Old housing in a project- affected area. Further Action on Earlier Requests 31 India Coal Sector Environmental and Background the Project was in the state of Bihar.) It Social Mitigation Project (Credit The Panel received the Request for is one of a number of coal mines in the No. 2862-IN) Inspection on June 21, 2001, and regis- area. The project-affected area of this tered it on June 22, 2001. The Request mine covers two villages, Parej and *. . J .. 12 | for Inspection was submitted by Ms. Durukasmar. Ii(sa~*pjj. - Bina Stanis of Chotanagpur Adivasi The Request claims that the Sewa Samiti (CASS), a local NGO in the Requesters' rights and interests had been A . Parej East coal mining project area. The adversely affected as a result of the Bank's Request was submitted on behalf of res- violations of its policies and procedures 4 ~r,l tiJ ~;;t t-^l tsi;'-- _- >o ' idents in the project area, who asked that on Involuntary Resettlement (OD 7 - i t n _ |their names be made available only to 4.30), Indigenous Peoples (OD 4.20), the Panel. Environmental Assessment (OD 4.01), The Request exclusively concerns the Disclosure of Operational Information * * >--.-; - ,~ t , _ _- preparation and implementation of the (BP 17.50), Management of Cultural 1^. ;Coal Sector Environmental and Social Property (OPN 11.03), and Project Mitigation Project (CSESMP) for the Supervision (OD 13.05). The Re- Parej East opencast mine, one of the 25 questers claim that they have suffered A village in Pare] East. mines that was slated to receive financial harm as a result of failures and omissions support for expansion under the subse- of IDA in the implementation of the quently financed Coal Sector Rehabili- CSESMP in the Parej East coal mine tation Project (CSRP). Parej East, which project area. began operation in 1993, is owned by Citing the objectives of the CSESMP, Central Coalfields Limited (CCL), a the Request points out that the project- subsidiary of Coal India. The mine is affected people (PAP) understood that located in the West Bokaro coalfield of theimplementationoftheProjectwould Hazaribagh District, near Ranchi, in the mean "that the quality oftheir lives would state of Jharkhand. (Until August 2000, improve, that they wouldshare in the ben- when the state ofJharkhand was created, efits of the mining project, that their dis- Box 17 India Request for Inspection: Project Information at a Glance Project Name: Coal Sector Environmental and Social Mitigation Project Region: South Asia Sector: Mining Environmental Category: C IDA Credit Amount: US$63,000,000 equivalent Board Approval Date: May 16, 1996 Effective Date: July 23, 1996 Closing Date: June 30, 2002 32 The Inspection Panel Annual Report 2002 legal title to land, where they can no longer use their farming skills. Their pro- ductive sources have been dismantled and their supporting networks and kin groups dispersed. They allege that they now suffer increased illnesses as a result of the pollution of water sources and wells in the resettlement colonies; that -- '.- t~there are no medical services to handle the increased illnesses, despite the build- ing of a dispensary; and that they now t->= ._~ inPare] East. _lack the capability to acquire other serv- ...4 -^ _ '* j v U 1Mine expansion ices, such as education. r . -I- - .l .-in Parej East. The Request asserts that there has been a lack of required consultation and par- Box 18 ticipation, especially on changes made Violations of Operational Policies and Procedures to Coal India's Resettlement and Reha- bilitation Policy during the life of the Claimed by the Requesters Claimed by the Requesters Project. The Request lists many viola- Safeguard Policies: Environmental Assessment tions of the Bank's Policy on Involun- Cultural Property tary Resettlement. Finally, the Request Cuiltural Pro pe.rty asserts that the self-employment Indigenous Peoples schemes-which the Bank had guaran- Involuntary Resettlement . teed would compensate for the loss of Other: Disclosure of Operational Information land and livelihood-were grossly fail- ing, and that the Requesters were unable Project Supervision.. Pro.ect S.pervision to participate in the new economy around the mines, and thus are suffer- placementandrelocation wouldbeunder- above were not respected. They also ing increasing poverty. The Requesters taken as a development programme, and claim that their rights to participation nonetheless called on BankManagement that theirformer living standards, income and consultation were effectively denied and the Board of Executive Directors to earning capacity and production levels them, and that their attempts to raise extend the CSESMP, with the remain- would be restored, if not improved." their concerns were not successful. ing money targeted toward the restora- Instead, they assert that as the end of the In particular, the Requesters claim that ton of the livelihoods of the project- CSESMP project is imminent, "it has failure to provide income restoration had affected people as well as environmental failed in itsprofessional aims andfailed in resulted in significant harm and remediation the guarantees that weregiven to the PAPs, destroyed their livelihoods, and that now Management Response guarantees that were used as levers to win without compensatory land, employ- Management submitted its Response to consent to give their land and livelihood ment, or self-employment, they subsist the Panel onJuly2O, 2001. Management for the project. " as casual laborers living at mere survival maintained that the Bank had complied, The Requesters claim that their rights levels. Formerly landowners, they now and intended to continue complying, under the World Bank policies noted live in resettlement colonies without with the relevant policies and procedures Further Action on Earlier Requests 33 India related to the design and implementa- agement decided to "continue to actively tion of the CSESMP. work with CIL to help develop practical t. Management acknowledges that solutions to improve environmental and throughout the Project, resettlement in social mitigation at the mtne and corpo- Parej East encountered a number of rate level, and to achieve compliance with problems,whichinitsviewresultedfrom Bank policiBes.e" Management believes -, an initial lack of flexibility and under- that since cancellation of the CSRP in . standing on the part of mine manage- 2000, there has been noticeable progress ment, and from resistance by the PAPs on implementation of the CSESMP. to resettlement. Nonetheless, Manage- Management maintains that it had mentclaimsthatwhiletheproblemshad devoted full attention to the intense not been entirely overcome, there has supervision effort required by the scale Mine expansion approaches village been progress. Management explains that the bor- Box 19 rower began to implement the CSESMP The India Coal Sector Environmental and later than anticipated, toward the end of Social Mitigation Project 1997, or about 18 months after the Credit became effective. Management In 1993, the Government of India requested that the Bank support Coal India's acknowledges that during 1998 and efforts to commercialize its mining operations. The Bank agreed to provide 1999krowdgress wabthat durmgl and uneven financing and technical support for Coal India's most profitable mines through 1999, progres was both slowand uneven the Coal Sector Rehabilitation Project (CSRP), which was initially to include an across the 25 mines under the Project. environmental and social component. The Government of India, Coal India, and Management notes that it was only in the Bank decided in November 1995 to separate the environmental and social the first half of 2000 that significant mitigation component from the investment component of the Project, bundling progress began on implementation the former under the Coal Sector Environmental and Social Mitigation Project throughout all the mines. Even so, how- (CSESMP). ever, economic rehabilitation remained According to Management, the objective of the CSESMP was to (a) enhance unsatisfactory. Management states that Coal India's capacity to deal more efficiently with environmental and social as a result of this, as well as for other rea- issues; (b) implement appropriate policies for environmental mitigation and sons related solely to the implementa- resettlement and rehabilitation of people affected by coal projects, and provide tion of the CSRP, that the CSRP was support to communities, in particular tribals living in coal mining areas; and (c) cancelled at the request of the borrower. test the effectiveness of these policies in the 25 mines slated to receive financial Managemen noesthtsupport under the proposed CSRP. The improvements Coal India is expected to Mansement noES tas thempur- make in its environmental and social polices-after they are tested and revised pose of the CSESMP was to mitigate as necessary in the 25 mines during the 5-year time period financed by the impacts of the CSRP and to strengthen Bank-are expected to affect all of Coal India's 495 mines (Staff Appraisal Coal India's capacity to manage such Report, Report No. 15405-IN). mitigation issues, the Bank's withdrawal The CSESMP became effective in 1996, nearly two years earlier than the CSRP, from the Project would not have pro- which became effective in June 1998. The CSRP was cancelled at the request of vided the context for a continued dia- Coal India and the Government in July 2000, in part because of implementation logue. Management further points out difficulties; nonetheless, Coal India decided to continue with the mitigation pro- that the Bank's withdrawal might have grams started under the CSESMP, and the credit was extended for an additional adversely affected "the considerable task year. The CSESMP closed on June 30, 2002. thatstill remained regarding improvement Source: Staff Appraisal Report, India Coal Sector Environmental and Social Mitigation Project, of mitigation efforts. Therefore, Man- Report No. 15405-IN. 34 The Inspection Panel Annual Report 2002 Box 20 the matter. Management also states that The Coal Sector in India . it is satisfied that compensation paid to entitled PAPs for agriculture land was According to the CSESMP Staff Appraisal Report, coal currently meets two-thirds equivalent to replacement costs. of India's energy needs, and India's coal resources are large enough to meet the According to Management, common country's projected demands for the next 250 years. Thus, indigenous coal is propertyresourceswereavailableforthose likely to remain the least costly option for the bulk of India's energy needs for choosing to shift to the resettlement sites, the foreseeable future. and Management is also satisfied that the compensation provided for houses In India, many of the coal reserves are situated in remote areas, and Coal India enabled the PAPs to construct replace- has found it increasingly difficult to acquire land for the expansion of its opera- ment houses at par with their original tions. Since coal mining depends on the availability of commercial reserves, Coal housing, as required under OD. 4.30. India has little choice in the location of its activities. Moreover, in recent years Management notes that itbelieves that the social and environmental costs of developing coal reserves have increased it is too early to judge whether efforts steeply, particularly in densely populated areas. made for income restoration would Several studies have shown that the expansion of coal mining into remote areas result in full income restoration as has an impact on local people and communities, who originally had only limited intended. Itacknowledges thatminejobs contact with the modern world and whose livelihood was mainly based on sub- are limited to the PAPs losing more than sistence agriculture, hunting, and foraging. In such areas, the opening of a coal two acres of land only, stating that oth- mine has brought a loss of land, housing, forest use, and common property erwise compensation consisted of train- resources, as well as an influx of 'outsiders' who sometimes disrupt local social ing and assistance for self-employment. and economic conditions. Such factors have changed traditional lifestyles and Nonetheless, Management acknowl- reduced the possibilities of employment based on traditional skills. Above all, edges that such schemes by themselves these changes affect tribals and women, who were the least likely to find could not bring about full economic employment in one of the industries that had moved into the area. comparable to working in the mines. Source: Staff Appraisal Report No. 15405-IN. Management also notes that availability of replacement land through market pur- and complexity of the Project's physical, tion to the general resistance that arises chase was limited and that the Bank was mitigation, and institutional activities. in every involuntary relocation, the still discussing the possibility of intro- Management further asserts that con- difficulties in Parej East also arose ducing land-based income generation sultations were adequate, but acknowl- because of the PAPs' changing demands, with CCL. edges that Coal India did not consult which undermined previous agree- According to Management, the Envi- the PAPs before it introduced changes ments reached between them and ronmental Assessment did not identify on eligibility and entitlements in its mine management. issues related to the Bank's policy on cul- Resettlement and Rehabilitation Policy In response to the Requesters' claim tural property and, therefore, the policy in the year 2000. that they were without legal titles or did not apply. However, Management Referring to the Requesters' right to long-term leases for house plots in reset- claims that when issues have arisen, they adequate and fair compensation for loss tlement sites, Management acknowl- have been dealt with in a "manner con- of villages and land, Management edges the claim. Management states that sistent with" the policy. explains that resettlement sites consti- the supervision team had raised the issue Management also asserts that the Bank tute the compensation for the loss of vil- during every Mission, and notes that it policy on disclosure of information had lages. Management asserts that in addi- would continue to seek a resolution to been complied with in Parej East, but Further Action on Earlier Requests 35 India - S ~ ~ ~ ~ ~ ~ 7 Finallyi t rics in te - T oard md th P l r agreed that the borrower had not per- mattersallegedbinrtheeRequest.ThenPanel mitted the release of the Project's mid- sent its report to the Board on August term review. 20, 2001. Finally, inerms of services in the reset- The Board approved the Panel's rec- tlement sites, Management asserts that ommendation for an investigation on a Top right: Temporary accommodaions for the a drinking water problem has been cor- non-objection basis on September 7) disptlaed eopltes. Lf n bv:PrEs rected,butrecognizesthattheschooland 2001. The Reports were made public health clinics are not yet staffed. Man- three days later, and are available on the agement states that the supervision team Inspection Panel's website. The Panel is would continue to follow up on the issue in the process of conducting its investi- with CCL. gation into the matters alleged by the Management also announced that the Requesters. Project was extended for an additional year and would close on June 30, 2002. The Panel's Eligibility Report/ Board Decision The Panel found both the Request and the Requesters eligible, but found that the Request and Management Response contained conflicting assertions and interpretations. Therefore, the Panel rec- ommended an investigation into the 36 The Inspection Panel Annual Report 2002 Operations Table 1 Summary of Requests for Inspection as of June 30, 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome Nepal / Arun III Investigation Approved (2/95) On the basis of an inde- Proposed Hydroelectricn Recommendation The Board limited investiga- pendent study commis- Pofec I ndA CReditruc0/94n Report 12/94 tion to substantial compli- sioned by the Bank, IDA of IDA Credit 10/94 Iest ance with ODs 4.01 on President decided to Rnepotig6/95 Environmental Assessment, withdraw financing 4.20 on Indigenous Peoples, for the project. and 4.30 on Involuntary Resettlement during the preparation and appraisal of the proposed project and implementation of the credit. * Ethiopia / Exportation _ The Request was found inel- - K~~} igible because the requester had not exhausted local 5/95 remedies and had failed to establish how the lack of compensation was a conse- quence of any alleged acts or omissions by IDA (5/95). Tanzania Emergency No investigation Approved 9/95 Power Project KY) Bank found in compliance The Board approved the with IDA Articles Panel's recommendationon 6/95 Agreement; Requesters a non-objection basis. found ineligible re: com- plaint on compliance with OP 4.01. Recommendation Report 9/95 Operations 37 Operations Table 1- continued Summary of Requests for Inspection as of June 30, 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome Brazil / Rond6nia Investigation Not Approved (9/95) Partial concessions to aNatural Resources Recommendation Initially, the Board decided affected people; limited Management Project 6/95 Report 8/95 that it could not make a Panel role in monitoring Additional Review decision without more factu- implementation. Report 12/95 al information, and asked the Panel to conduct an Review of Progress Additional Review (9/95). Report 3/97 After the Panel submitted its Additional Review Report and reiterated its recommen- dation for an investigation, the Board did not approve an investigation but asked the Panel to conduct a review of the progress in implementation of the project (1/97). Chile / Pangue / Ralco Inadmissible because IFC is President appointed exterr Complex of Hydroelectric > outside of the Panel's man- consultants to investigate Dams, BioBio River date, which is restricted to the matter. 11/95 IBRD and IDA projects. Bangladesh / Jamuna No investigation Approved (4/97) Project revised to respond Bridge Project X Recommendation The Board approved the to claim. 8/96 Report 11/96 Panel's recommendation Progress on Implementation in Nov. 1996. But asked Report 8/98. Management to submit a progress report on the imple- Panel found that the pro- mentation of the Revised ject's 1993 Resettlement Resettlement Action Plan Action Plan neither specifi- and the Environmental cally identified nor provided Action Plan, and asked the assistance for char dwellers Panel to assist the Board as project-affected people. in a review of progress in But the Panel was satisfied 12 months. that the Erosion and Flood Policy, issued Sept, 1996 (after the Request was filed) could constitute an ade- quate and enforceable basis for IDA to comply with its policies and address the char dwellers' concerns, thus making an investiga- tion unnecessary. 38 The Inspection Panel Annual Report 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome * Argentina/Paraguay: Investigation Not Approved (2/97) Panel report found Yacyreta Hydroelectric Recommendation The Board asked the Panel to significant policy Project 10/96 Report 12/96 review the existing problems violations. Review of Present Problems of the project in the areas of and Assessment of Action environment and resettle- Plans Report 9/97. ment, and to provide an assessment of the adequacy of the Action Plans agreed between the Borrower and the Bank to bring the project into corhipliance with Bank policies and procedures. f Bangladesh / Jute Sector No investigation Approved (4/97) Bank halted funding. Adjustment Credit Recommendation The Board accepted the 11/96 Report 3/97 Panel's recommendation The Panel found inadequa- on a non-objection basis. cies in program design, but felt that further review through a formal investiga- tion would serve no useful purpose. f Brazil / Itaparica Investigation Not Approved (9/97) Panel process bypassed. Resettlement and YX) Recommendation The Board decided-given Irrigation Project 3/97 Report 6/97 the government's action plan for completing the project, which included its own fund- ing, and its Request for con- tinued Bank supervision for two more years-that no investigation was needed and agreed to review progress on the Action Plan in 12 months with the Panel's assistance. Operations 39 Operations Table 1 - continued Summary of Requests for Inspection as of June 30, 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome m India / NTPC Power Investigation Approved (9/97) Management Action Plan Generation Project <- Recommendation After reviewing a remedial approved by the Board; 5/97 Report 7/97 Action Plan submitted by local independent monitor Investigation Management in Sept. 97, ing panel appointed. Report 12/97 the Board approved an investigation, but restricted it to a Desk Study in Washington, DC. India / Ecodevelopment Investigation Not Approved (12/98) Management asked to pre Project Recommendation The Board instructed pare a Status Report. 4/98 Report 10/98 Management to work with government officials at the state and federal level to find measures to address the Panel's initial findings, and to report back in six months. It was also agreed that the Panel would give its com- ments on Management's Report to the Board. m Lesotho / South Africa: No investigation Approved (9/98) Phase 1B of Lesotho a J Highlands Water Project Recommendation The Board approved the 5/98 Report 8/98 Panel's recommendation The Panel found no on a non-objection basis. prima facie evidence linking the claims in the Request to the Bank's decision to pro- ceed with financing of Phase 1 B, but felt that the Requesters' concerns about conditions on the ground were valid. 40 The Inspection Panel Annual Report 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome Nigeria / Lagos Drainage No investigation Approved (11/99) and Sanitation Project Recommendation The Board approved the 6/98 Report 11/98 Panel's recommendation The Panel found that most on a non-objection basis. of the operational policies were followed during the preparation of the project. However, sociological con- siderations did not appear to be fully integrated into the project design and there was an absence of appropri- ate measures in the project design to ensure the effec- tive maintenance of the drainage channels construct- ed under the project. The Borrower and IDA agreed on compensation measures for the resettlers identified by the Panel during its visit to the project site to ascer- tain eligibility of the Request. PvBrazil ALatd Reformoe No investigation Approved (6/99) Poverty Alleviation Project Recommendation The Board approved the 1/99 Report 6/99 Panel's recommendation The Panel found no evi- on a non-objection basis. dence of harm, especially since the terms and condi- tions of the program's loans under the pilot program substantially improved after the Request was filed. PrLesotho/Highlands Water Y No investigation The Panel found no direct Approved (8/99) Project from Swissborough Eligibility Report 7/99 link between any actions The Board approved the Diamond Mines Ltd & 5/99 and/or omissions of the Panel's recommendation on Others 5 Bank with the harm claimed a non-objection basis. by the Requesters. Operations 41 Operations Table 1 - continued Summary of Requests for Inspection as of June 30, 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome China / Western Poverty Investigation Approved (9/99) Finance request withdrawi Reduction Project Y Eligibility Report 8/99 The Board, six days after for Qinghai component. 6/99 The Panel found the Request the filing of the Request, Borrower will continue met he eigiblitycritria approved financing for the Project with their own . project with the condition financing. Panel Findings that no work would be done Investigation Report 4/00 and no funds disbursed for Management was substan- the $40 million Qinghai com- tially in compliance with the ponent of the project until provisions of Annex B of they decided on the results OD 4.00 on Environmental of any review by the Panel Policy for Dams and (6/99). Reservoir Projects, OP/BP The Executive Directors, 4.37 on Safety of Dams, after taking into account BP 10.00 on Investment the Panel's recommendation, Lending: Identification to decided "as a Board" to Board Presentation, and instruct the Panel to investi- OP/BP 12.10 on Retroactive gate Management's compli- Financing, and in apparent ance with certain policies violation of several provi- and procedures. sions of OD 4.01 on The Board met to consider Environmental Assessment, the Panel's Investigation OD 4.20 on Indigenous Report and Management's Peoples, and OD 4.30 on Response at a Board meeting Involuntary Resettlement, on July 8-9, 2000. During OP 4.09 on Pest the meeting the Borrower Management, OP 10.00 informed the Bank it would on Investment Lending, proceed with the component Identification to Board without Bank financing Presentation, and BP (7/00). 17.50 on Disclosure of Information. Argentina / Special No Investigation Approved (1/00) Structural Adjustment Eligibility Report 12/99 The Board approved the Loan 8/99 The potential harm feared Panel's recommendation by the Requesters seemed on a non-objection basis. to have been avoided by the favorable reaction of the Argentine authorities and Bank Management; therefore, in the Panel's view an investigation was unnecessary. 42 The Inspection Panel Annual Report 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome Brazil / Land Reform Not Eligible/No investigation Approved (1/00) Poverty Aleviation Project Eligibility Report 12/99 The Board approved the 9/99 The Panel was not satisfied Panel's recommendation that the Requesters had pro- on a non-objection basis. vided sufficient evidence that they had brought the matter to the attention of Bank Management as required by the Resolution. So the Request did not satis- fy this eligibility criteria. * Kenya / Lake Victoria ___ Investigation Approved (3/00) Management accepted Environmental Pj Eligibility Report 3/00 The Board approved the Panel findings and recom- 11/99 The Panel found the Panel's recommendation on mendations. The following Request met the eligibility a non-objection basis. mendeds criteria. The Board approved Panel Findings Management recommenda- (i) Continued monitoring tions on a non-objection (ii) Vigilant surveillance Investigation Report 12/00 basis on May 2, 2001. (iii) Community participa- The Panel concluded that tion Management was in compli- ance with OD 4.01 (iv) Cross-country participa- (Environmental Assessment) tion in supervision missions with respect to categoriza- (v) Panel of Scientists tion of the project, OD 4.15 (vi) Possible repeat pilot. (Poverty Alleviation) and OP 10.04 (Economic Evaluation of Investment Operations). Management was not in full compliance with OD 4.01 with respect to meeting the overall purpose and nature of,the OD including ade- quate consultations with affected groups and NGOs. Management was also found not in compliance with paragraph 42 of OD 13.05 on Bank Supervision. Operations 43 Operations Table 1 - continued Summary of Requests for Inspection as of June 30, 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome Ecuador / Mining Y Investigation Approved (5/00) Management accepted Development and Eligibility Report 4/00 The Board approved the Panel findings and pro- Technical Assistance 12/99 The Panel found the Panel's recommendation posed t e foloin Project Request met the on a non-objection basis actions and next steps: eligibility criteria. The Board approved (i) Monitoring of Panel Findings Management's recommenda- Information use tions on a non-objection (ii) Enforcement of LicensE Investigation Report 2/01 basis on April 18, 2001. Agreements The Panel concluded that (iii) Additional Publication Management was substan- and Workshops tially in compliance with the provisions of OD 4.01 on (iv) Development of Environmental Assessment Consultation Mechanisms (formerly OD 4.00, Annex (v) Support for Conservatii A), OPN 11.02 on Wildlands and Environmental (now OP/BP 4.04 on Natural Management in Ecuador Habitats), and OD 13.05 on (vi) Strengthening of Project Supervision. Environmental Institutions Management was found in But management did not apparent violation of certain propose any remedial provisions of the policies efforts with regard to and procedures on claims made by the Environmental Assessment Requesters. (OD 4.00, Annex A and OD 4.01) relating to processing, geographical scope, baseline data, and consultation during preparation. m India / NTPC Power The Request was not regis- Generation Project c} tered because the loan was (2nd Request) closed in March 1999. 12/99 l Chad Petroleum Investigation Eligibility Approved (10/01) Investigation underway Development K Report (9/01) The Board approved the Project, Management of the Petroleum Economy 04/01 The Panel found the Panel's recommendation Project, Petroleum Secnomy 0Request met the on a non-objection basis. Project, Petroleum Sector eligibility criteria. Management Capacity- Building Project 44 The Inspection Panel Annual Report 2002 Request Requests Panel Recommendation/ Registered Findings Reports Yes No Submitted Board Decision Outcome India Coal Sector Investigation Eligibility Approved (8/01) Investigation underway Environmental and Social Report (9/01) The Board approved Mitigation Project and 06/01 The Panel found the The Board approved the Project Request met the Panel's recommendation eligibility criteria. on a non-objection basis. 3 Uganda Third Power Investigation Eligibility Approved (10/01) Management accepted Project and proposed KU Report (10/01) The Board Approved the the Panel's findings and Bujagali Power Project 08/01 The Panel found the Panel's recommendation proposed several actions. Request met the eligibility on a non-objection basis. criteria The Board approved Panel Investigation Management's recommenda- Report (5/02). tions on June 17, 2002. s Papua New Guinea: No Investigation Approved (5/20) Governance Promotion Y Eligibility Report (4/02) The Board approved the Adjustment Loan 12/01 The Panel found that the Panel's recommendation evident harm suffered by on a non-objection basis. the Requesters was not related to an act or omission of the Bank. Paraguay: Reform Project Pending for the Water and Y Telecommunications Sector; Argentina: SEGBA 05/30 V Power Distribution Project Operations 45 Operations Table 2 Alleged Violations of Policies and Procedures Request Violations Claimed by Requesters Nepal / Arun IlIl Proposed Economic Evaluation of Investment Operations (OP / BP 10.04), Disclosure of Operational Information Hydroelectric Project and (BP 17.50), Outline for a Project Information Document (PID) (BP 10.00, Annex A), Environmental Restructuring of IDA Assessment (OD 4.01), Involuntary Resettlement (OD 4.30), Indigenous Peoples (OD 4.20) Credit Ethiopia / Exportation Dispute over Defaults on External Debt, Expropriation and Breach of Contract (OMS 1.28), Disclosure of Operational Information (BP 17.50) Tanzania Emergency Article V Section 1(c), IDA Articles of Agreement Article V Section 1(d), IDA Articles of Agreement Article V Power Project Section 1(g), IDA Articles of Agreement Environmental Aspects of Bank Work (OMS NO. 236), Environmental Assessment (OD 4.01) Brazil / Rond6nia Project Supervision (OD 13.05), Forestry Policy (OP 4.36), Wildlands Policy (OP 11.02), Indigenous People Natural Resources (OD 4.20), Involvement of NGOs in Bank supported Activities (OD 14.70), Project Monitoring and Evaluation Management Project (OD 10.70), Investment Lending: Identification to Board Presentation (BP 10.00), Suspension of Disbursements (OD 13.40) Bangladesh / Jamuna Environmental Assessment (OD 4.01 and Annexes), Involuntary Resettlement (OD 4.30), Involvement of Bridge Project NGOs in Bank supported Activities (OD 14.70) Argentina / Paraguay: Environmental Policy for Dam and Reservoir Projects (OD 4.00-Annex B), Environmental Assessment Yacyreta Hydroelectric (OD 4.01), Indigenous Peoples (OD 4.20), Involuntary Resettlement (OD 4.30), Project Monitoring and Project Evaluation (OD 10.70), Project Supervision (OD 13.05), Wildlands (OPN 11.02), Cultural Property (OPN 11.03); Environmental Aspects of Bank Work (OMS 2.36), Suspension of Disbursements (OD13.40) Bangladesh / Jute Sector Environmental Policy for Dam and Reservoir Projects (OD 4.00- Annex B), Environmental Assessment Adjustment Credit (OD 4.01), Indigenous Peoples (OD 4.20), Involuntary Resettlement (OD 4.30) Brazil / Itaparica Environmental Policy for Dam and Reservoir Projects (OD 4.00-Annex B), Environmental Assessment Resettlement and (OD4.01), Involuntary Resettlement (OD 4.30), Indigenous Peoples (OD 4.20), Project Supervision (OD 13.05) Irrigation Project India / NTPC Power Economic Evaluation of Investment Operations (OD/BP 10.04), Environmental Assessment (OD 4.01), Involunta Generation Project Resettlement (OD 4.30), Indigenous Peoples (OD 4.20), Project Supervision (OD 13.05) India / Ecodevelopment Indigenous Peoples (OD 4.20), Involuntary Resettlement (4.30), Forestry (OP 4.36) Project Lesotho / South Africa Environmental Policy for Dam and Reservoir Project (OD 4.00), Economic Evaluation of Investment Phase 1B of Lesotho Options (OD 10.04), Poverty Reduction (OD 4.15), Water Resources and Management (OP 4.07) Highlands Water Project 46 The Inspection Panel Annual Report 2002 Request Violations Claimed by Requesters Nigeria / Lagos Drainage Involuntary Resettlement (OD 4.30), Poverty Reduction (OD 4.15), Gender Dimensions of Development and Sanitation Project (OP 4.20), Project Monitoring and Evaluation (OD 10.70), Economic Evaluation of Investment Operations (OP / BP 10.04) Brazil / Land Reform Poverty Reduction (OD 4.15), Involvement of NGOs in Bank Operations (GP 14.70), Disclosure of Poverty Alleviation Operational Information (BP 17.50) Project Lesotho / Highlands Disclosure of Operational Information (BP 17.50), Disputes Over Defaults on External Debt, Expropriation Water Project from and Breach of Contract (BP 7.40) Swissborough Diamond Mines Ltd. & Others China / Western Poverty Disclosure of Operational Information (BP 17.50), Involuntary Resettlement (OD 4.30), Environmental Reduction Project Assessment (OD 4.01), Indigenous Peoples (OD 4.20), Pest Management (OP 4.09) Argentina / Special Project Supervision (OD 13.05), Poverty Reduction (OD 4.15), Project Monitoring and Evaluation Structural Adjustment (OP/BP 10.70), Suspension of Disbursements (OP / BP 13.40), Disclosure of Operational Information Loan (BP 17.50) Brazil / Land Reform Poverty Reduction (OD 4.15), Disclosure of Operational Information (BP 17.50), Project Supervision Poverty Alleviation (OD 13.05) Project (2nd Request) Kenya / Lake Victoria Environmental Assessment (OD 4.01), Poverty Reduction (OD 4.15), Economic Evaluation of Investment Environmental Projects (10.04), Project Supervision (OD 13.05) Management Project Ecuador / Mining Devel- Environmental Assessment (OD 4.01), Wildlands (OPN 11.02), Indigenous Peoples (OD 4.20), opment and Environ- Project Supervision (OD 13.05) mental Control Techni- cal Assistance Project India / NTPC Power Involuntary Resettlement (OD 4.30), Project Supervision (OD 13.05) Generation Project Chad / Petroleum Environmental Assessment (OD 4.01), Natural Habitats (OP / BP 4.04), Pest Management (OP 4.09), Development and Poverty Reduction (OD 4.15), Indigenous Peoples (OD 4.20), Forestry (OP 4.36), Disclosure of Operational Pipeline Project; Information (BP 17.50), Economic Evaluation of Investment Operations (OP 10.04,) Management of Cultural Management of Property in Bank-Financed Projects (OPN 11.03), Project Supervision (OD 13.05) Petroleum Economy Project; and Petroleum Sector Management Capacity Building Project Operations 47 Operations Table 2 - continued Alleged Violations of Policies and Procedures Request Violations Claimed by Requesters India Coal Sector Environmental Assessment (OD 4.01), Indigenous Peoples (OD 4.20), Involuntary Resettlement (OD 4.30), Environmental and Disclosure of Operational Information (BP 17.50), Management of Cultural Property in Bank-Financed Social Mitigation Project Projects (OPN 11.03), Project Supervision (OD 13.05) and Coal Sector Rehabili- tation Project Uganda / Third Power Environmental Assessment (OD / OP 4.01), Natural Habitats (OP 4.04), Indigenous Peoples (OD 4.20), Project; Fourth Power Involuntary Resettlement (OD 4.30), Safety of Dams (OP 4.37), Management of Cultural Property of Bank- Project; and Bujagali Financed Projects (OPN 11.03), Economic Evaluation of Investment Operations (OP 10.04), Poverty Hydropower Project Reduction (OD 4.15), Disclosure of Operational Information (BP 17.50), Project Monitoring and Evaluation Guarantee (OD 10.70), Project Supervision (OD 13.05) Papua New Guinea / Forestry (OP 4.36), Adjustment Lending (OD 8.60), Project Supervision (OD / OP / BP 13.05) Governance Promotion Adjustment Loan Paraguay / Reform Annex B, on Environmental Policy for Dam and Reservoir Projects (OD 4.00), Environmental Assessment Project for the Water (OD 4.01), Involuntary Resettlement (OD 4.30), Project Supervision (OD / OP / BP 13.05), Project Monitoring and Telecommunication and Evaluation (OD 10.70), Suspension of Disbursements (OD 13.40) Sectors; Argentina / SEGBA V Power Distribution Project Figure 3 Figure 4 Percentage of Requests Alleged Violations of Social and Environmental Policies - Received by Region August 1994 to June 2002 World Bank Policies South Asia Safety of Dams Africa Pest Management Cultural Property Forestry East Asia Indigenous People & Central Asia Involuntary Resettlement 35%- Latin America Environmental Assessment & Caribbean 0 2 4 6 8 10 12 14 Number of Allegations 48 The Inspection Panel Annual Report 2002 Outreach and Disclosure T he Inspection Panel continued its known, and emphasized the importance and (d) the Panel's website: www.inspec- internal and external outreach of prompt disclosure of information to tionpanel.org. campaign during this period in an claimants and the public. The Board also When permitted by the Resolution, effort to make its existence, role, and required that "such information be pro- the Bank makes documents relating to functions better known by all stake- rired thata"such iormatio bp each Request available to the public. holders within and outside the World vided by Management to claimants In Under Paragraph 25 of the Resolution, Bank. Internally, the Panel Members and their language, to the extent possible." Requests for Inspection, Panel Recom- staff of the Secretariat met with several The Panel has made every effort to mendations, and Board decisions are to Bank Regional Management Teams to keep its processes open and transpar- be made available to the public after the discuss the role of the Panel and the pro- ent-consistent with the ublic disclo- Executive Directors have considered a cedures to be followed after a Request Panel Recommendation on, or the for Inspection is filed. sure policy adopted by the Banks Board results of, an investigation. During the The Panel received invitations for and in 1993. The Inspection Panel's website 1996 review by the Board, the Directors participated inanumberof meetings and continually updates the status of Panel clarified that provision to ensure that seminars related to its role as an account- activities, and continues to receive a large Management Responses would also be ability mechanism available to people number of queries. made available within three days after that could be adversely affected by Bank- action by the Board, along with the doc- financed projects. In addition, for the 'The Panel Register uments already cited. The Board also second consecutive year, the Panel [n an effort to deal transparently with said that Management should make hosted approximately 40 human rights available any legal opinions issued by the lawyers from Latin America sponsored Requests, the Panel has maintained a Bank Legal Department related to by the American University, Washing- Register. The Executive Secretary records Inspection Panel matters promptly after ton College of Law Academy on Human the dates and all actions taken in con- Board action, unless the Board decides Rights and Humanitarian Law. The nection with the processing of a Request, otherwise in a specific case. Panel made a presentation on its proce- as well as the dates on which any formal Public Inquiries dures and the experience of the mecha- notification is sent or received. The Panel Given the unprecedented nature of the nism so far. keeps the Requester informed about the Panel mechanism in an international keep th Reuestr ifored aoutthe organization, there continues to be a Disclosure process. This Register is open to the pub- o substantial demand for general infor- The rules for disclosure of documents lic, and is also posted on the Panel's web- mation about the Panel and its activities generated by the Inspection Panel site to ensure wider disclosure. from the press, NGOs and other organ- process are stipulated in the Resolution proesbs thre stipulanelawe in the . A notice that a Request has been reg- izations, academics, Bank staff, and oth- establishing the Pa-nel as well as in the ers. The availability of The Inspection 1996 and 1999 Clarifications the Exec- istered, and all other notices or docu- Panel brochure in several languages utive Directors adopted. ments issued by the Panel, are made responds to the needs of many such In the 1996 Clarifications the Execu- available to the public at (a) the Bank's public inquiries. tive Directors instructed Management InfoShop in Washington, D.C.; (b) the "to make significant efforts to make the Bank's Resident Mission, Regional or Inspection Panel better known in bor- rowig contris.Inthe 999 lar- Country Office for the country where rowing countries...." In the 1999 Clar- tepoetrltn oteRqeti ifications, the Board underscored the the project relating to the Request is need for Management to make signifi- located, or at the relevant regional office; cant efforts to make the Panel better (c) the Bank's Paris and Tokyo offices; Outreach and Disclosure 49 Outreach and Disclosure Sources of Further Information The Inspection Panel's website www.inspectionpanel.org provides: * Current information on Panel cases and activities * Each step in the processing of Requests * Panel Reports * Panel Operating Procedures, the IBRD/IDA Resolution establishing the Panel, and the 1996 and 1999 Clarifications to the Resolution. World Bank InfoShop 701 18th Street, NW, Washington, D.C. 20433 Tel: (202) 473-2941; Fax: (202) 477-0604 Website: www.worldbank.org/infoshop World Bank Public Information Centers Paris Tokyo 66 avenue d'lena, 75116 10th Floor Fukoku-Seimei Building, Paris, France #2-2-2 Uchisaiwai-cho, Tel: (33-1) 40 69 30 26 Chiyoda-ku, Tokyo 100, Japan Fax: (33-1) 40 69 30 69 Tel: (813) 3597-6676 Email: pparis@worldbank.org Fax: (813) 3597-6695 Email: ptokyo@worldbank.org Bank Resident Missions, Regional or Country Office Where the project relating to a Request is located. All Requests for Inspection should be sent directly to: The Inspection Panel 1818 H Street, MC1O-1007 Washington, D.C. 20433. Email: Ipanel@worldbank.org Internet: www.inspectionpanel.org Any World Bank office around the world can be asked to forward a Request, unopened, to the Inspection Panel. 50 The Inspection Panel Annual Report 2002 Administration and Budget T he Resolution provides that the "Panel shall be given such budgetary resources as shall be sufficient to carry out its activities." The Panel's annual funding level has been set at about US$2 million in real terms. The administrative arrangements for the Panel provide for the Chairman to work on a full-time basis supported by a small Secretariat. He calls on the two part- time Panel members on a case-by-case basis as required by the Panel's workload related to Requests, public inquiries, and consultations, as well as institutional and admin- istrative matters. In practice the Panel has worked by consensus with the two part- time members fully involved in all activities related to Requests and informational, institutional, and administrative matters. The Resolution provides that if the work- load reaches a level that would make it reasonable for the Panel to recommend it, the Board would appoint one or both part-time members on a full-time basis. The Panel has not yet recommended this, even though the workload of the Panel has progres- sively increased during each year of its existence. The demand-driven nature of the Panel's work requires a flexible budgetary strategy to ensure that sufficient resources are available to process all Requests received. Annex 5 contains a breakdown of the Panel's budget and expenditures for fiscal 2002. Administration and Budget 51 Annex 1 Resolution No. IBRD 93-10 / Resolution No. IDA 93-6, "The World Bank Inspection Panel" September 22, 1993 Management, and their exposure to and immunities accorded to Bank offi- INTERNATIONAL BANK FOR developmental issues and to living con- cials, and shall be subject to the require- RECONSTRUCTION AND ditions in developing countries. Knowl- ments of the Bank's Articles of Agree- DEVELOPMENT edge and experience of the Bank's oper- ment concerning their exclusive loyalty INTERNATIONAL DEVELOP- ations will also be desirable. to the Bank and to the obligations ofsub- MENT ASSOCIATION 5. Executive Directors, Alternates, Advi- paragraphs (c) and (d) of paragraph 3.1 Resolution No. IBRD 93-10 sors and staff members of the Bank and paragraph 3.2 of the Principles of Resolution No. IDA 93-6 Group may not serve on the Panel until Staff Employmentconcerning theircon- two years have elapsed since the end of duct as officials of the Bank. Once they 'The World Bank Inspection Panel" their service in the Bank Group. For pur- begin to work on a full-time basis, they poses of this Resolution, the term 'staff" shall receive remuneration at a level to The Executive Directors: shall mean all persons holding Bank be determined by the Executive Direc- Hereby resolve: Group appointments as defined in Staff tors upon a recommendation of the Pres- 1Thereb rsesoalvse: nineenet Rule 4.01 including persons holditng ident, plus normal benefits available to 1. There is established an independent consultant and loal consultant appoint- Bank fixed-term staff. Prior to that time, Inspection Panel (hereinafter called the ments. they shall be remunerated on a per diem Panel), which shall have the powers and 6. A Panel member shall be disqualified basis and shall be reimbursed for their shatl hnction as stated in this resolu- from participation in the hearing and expenses on the same basis as the mem- tion. investigation of any request related to a bers of the Bank's Administrative Tri- Composition of the Panel matter in which he/she has a personal bunal MembersofthePanelmaynotbe 2. The Panel shall consist of three mem- interest or had significant involvement employed by the Bank Group, following bers of different nationalities from Bank in any capacity. the end of their service on the Panel. member countries. The President, after 7. The Panel member initially ap- 11. The President, after consultation consultation with the Executive Direc- pointed for five years shall be the first with the Executive Directors, shall assign tors, shall nominate the members of the Chairperson of the Panel, and shall hold a staff member to the Panel as Executive Panel to be appointed by the Executive such office for one year. Thereafter, the Secretary, who need not act on a full- Directors. members of the Panel shall elect a Chair- time basis until the workload so justifies. 3. The first members of the Panel shall person for a period of one year. The Panel shall be given such budgetary be appointed as follows: one for three 8. Members ofthe Panel may be removed resources as shall be sufficient to carry years, one for four years and one for five from office only by decision of the Exec- out Its activities. years. Each vacancy thereafter shall be utive Directors, for cause. Powers of the Panel filled for a period of five years, provided 9. With the exception of the Chairper- 12. The Panel shall receive requests for that no member may serve for more than son who shall work on a full-time basis inspection presented to it by an affected one term. The term of appointment of at Bank headquarters, members of the party in the territory of the borrower each member of the Panel shall be sub- Panel shall be expected to work on a full- which is not a single individual (i.e., a ject to the continuity of the inspection time basis only when their workload jus- community of persons such as an organ- function established by this Resolution. tifies such an arrangement, as will be ization, association, society or other 4. Members ofthe Panel shall be selected decided by the Executive Directors on grouping of individuals), or by the local on the basis of their ability to deal thor- the recommendation of the Panel. representative ofsuch party or by another oughly and fairly with the requests 10. In the performance of their func- representative in the exceptional cases brought to them, their integrity and tions, members of the Panel shall be offi- where the party submitting the request their independence from the Bank's cials of the Bank enjoying the privileges contends that appropriate representa- 52 The bnpecim Pang AuW Repwt 202 tion is not locallyavailable and theExec- subject matter of the request has been 15.The Panel shall seek the advice of the utive Directors so agree at the time they dealt with by the Management of the Bank's Legal Department on matters consider the request for inspection. Any Bank and Management has failed to related to the Bank's rights and obliga- such representative shall present to the demonstrate that it has followed, or is tions with respect to the request under Panel written evidence that he is acting taking adequate steps to follow the consideration. as agent of the party on behalf of which Bank's policies and procedures. The pr d the request is made. The affected party Panel shall also satisfy itself that the rocedures must demonstrate that its rights or inter- alleged violation of the Bank's policies 16. Requests for inspection shall be in ests have been or are likely to be directly and procedures is of a serious character. writing and shall state all relevant facts, affected by an action or omission of the 14. In considering requests under para- including, in the case of a request by an Bank as a result of a failure of the Bank graph 12 above, the following requests affected party, the harm suffered by or to follow its operational policies and shall not be heard by the Panel: threatened to such party or parties by procedures with respect to the design, the alleged action or omission of the appraisal and/or implementation of a (a) Complaints with respect to Bank. All requests shall explain the steps project financed by the Bank (including actions which are the responsibility already taken to deal with the issue, as situations where the Bank is alleged to of other parties, such as a borrower, well as the nature of the alleged actions have failed in its follow-up on the bor- or potential borrower, and which do or omissions and shall specify the actions rower's obligations under loan agree- not involve any action or omission taken to bring the issue to the attention ments with respect to such policies and on the part of the Bank. of Management, and Management's procedures) provided in all cases that (b) Complaints against procure- response to such action. such failure has had, or threatens to have, ment decisions by Bank borrowers 17. The Chairperson of the Panel shall a material adverse effect. In view of the from suppliers of goods and services inform the Executive Directors and the institutional responsibilities of Execu- financed or expected to be financed President of the Bank promptly upon tive Directors in the observance by the bythe Bank undera loan agreement, receiving a request for inspection. Bank of its operational policies and pro- or from losing tenderers for the sup- 18. Within 21 days of being notified of cedures, an Executive Director may in ply of any such goods and services, a request for inspection, the Manage- special cases of serious alleged violations which will continue to be addressed ment of the Bank shall provide the Panel of such policies and procedures ask the by staff under existing procedures. with evidence that it has complied, or Panel for an investigation, subject to the (c) Requests filed after the Closing intends to comply with the Bank's rele- requirements of paragraphs 13 and 14 Date of the loan financing the proj- vant policies and procedures. below. The Executive Directors, acting ect with respect to which the request 19. Within 21 days of receiving the as a Board, may at any time instruct the is filed or after the loan financing response of the Management as provided Panel to conduct an investigation. For the project has been substantially in the preceding paragraph, the Panel purposes of this Resolution, "opera- disbursed. I she detedine par the 1el tina poice an procedures"consist shall determine whether the request oftheBank's Operational Policies, Bank (d) Requests related to a particular meets the eligibility criteria set out in Procedures and Operational Directives, matter or matters over which the paragraphs 12 to 14 above and shall Procde aPanel has already made its recom- make a recommendation to the Execu- and similar documents issued before mendation upon having received a tive Directors as to whether the matter these series were started, and does not priorrequest, unlessjustified bynew should be investigated. The recommen- include Guidelines and Best Practices evidence or circumstances not dation of the Panel shall be circulated to and s ld mknown at the time of the prior the Executive Directors for decision 13. The Panel shall satisfy itself before request a request for inspection IS heard that the reuet wihi th.omldsrbto eid In case the request was initiated by an Annex 1 53 Annex 1 Resolution No. IBRD 93-10 / Resolution No. IDA 93-6 "The World Bank Inspection Panel" affected party, such party shall be consideration a report indicating its rec- 26. In addition to the material referred informed of the decision of the Execu- ommendations in response to such find- to in paragraph 25, the Panel shall fur- tive Directors within two weeks of the ings. The findings of the Panel and the nish an annual report to the President date of such decision. actions completed during project prepa- and the Executive Directors concerning 20. If a decision is made by the Execu- ration also will be discussed in the Staff its activities. The annual report shall be tive Directors to investigate the request, Appraisal Report when the project is sub- published by the Bank. the Chairperson of the Panel shall des- mitted to the Executive Directors for Review ignate one or more of the Panel's mem- financing. In all cases of a request made 27. The Executive Directors shall review bers (Inspectors) who shall have primary by an affected party, the Bank shall, the experience of the inspection func- responsibility for conducting the inspec- within two weeks of the Executive Direc- tion established by this Resolution after tion. The Inspector(s) shall report tors' consideration of the matter, inform two years from the date of the appoint- his/her (their) findings to the Panel such party of the results of the investi- ment of the first members of the Panel. within a period to be determined by the gation and the action taken in its respect, Panel taking into account the nature of if any. Application to IDA projects each request. 28. In this resolution, references to the 21. In the discharge of their functions, Decisions of the Panel Bank and to loans include references to the members of the Panel shall have 24. All decisions of the Panel on proce- the Association and to development access to all staff who may contribute dural matters, its recommendations to credits. information and to all pertinent Bank the Executive Directors on whether to records and shall consult as needed with proceed with the investigation of a the Director General, Operations Eval- request, and its reports pursuant to para- uation Department and the Internal graph 22, shall be reached by consensus Auditor. The borrower and the Execu- and, in the absence of a consensus, the tive Director representing the borrow- majority and minority views shall be ing (or guaranteeing) country shall be stated. consulted on the subject matter both before the Panel's recommendation on Reports whether to proceed with the investiga- 25. After the Executive Directors have tion and during the investigation. considered a request for an inspection as Inspection in the territory of such coun- set out in paragraph 19, the Bank shall tryshall becarriedoutwith its priorcon- make such request publicly available sent. together with the recommendation of 22. The Panel shall submit its report to the Panel on whether to proceed with the Executive Directors and the Presi- the inspection and the decision of the dent. The report of the Panel shall con- Executive Directors in this respect. The siderall relevantfacts, andshallconclude Bank shall make publicly available the with the Panel's findings on whether the report submitted by the Panel pursuant Bank has complied with all relevant to paragraph 22 and the Bank's response Bank policies and procedures. thereon within two weeks after consid- 23. Within six weeks from receiving the eration by the Executive Directors of the Panel's findings, Management will sub- report. mit to the Executive Directors for their 54 The Inspection Panel Annual Report 2002 Annex 2 1996 Clarification of Certain Aspects of the Resolution REVIEW OF THE RESOLUTION for a full investigation. If such a date is borrowers' obligations underloan agree- ESTABLISHING THE INSPEC- expected by the Panel to exceed eight ments, with respect to such policies and TION PANEL weeks from the date of receipt of Man- procedures. 1996 CLARIFICATION OF agement's comments, the Panel should No procurement action is subject to CERTAIN ASPECTS OF THE seek Board approval for the extension, inspection by the Panel, whether taken RESOLUTION possibly ona"no-objection"basis What by the Bank or by a borrower. A The Resolution establishing the Inspec- is needed at this preliminary stage is not separate mechanism is available for tion Panel calls for a review after tWo to establish that a serious violation of the addressing procurement-related com- years from the date of appointment of damages suffered by the affected parry, P the first panel members. On October 17, but rather to establish whether the com- Outreach 1996, the Executive Directors of the plaint is prima facie justified and war- Management will make its response to Bank and IDA completed the review rants a full investigation because it is eli- requests for inspection available to the process (except for the question of gible under the Resolution. Panel public within three days after the Board inspectiOn of\XWorld Bank Group private investigations will continue to result in has decided on whether to authorize the sector projects) by considering and "findings" and the Board will continue inspection. Management will also make endorsing the clarifications recom- to act on investigations on the basis of mede by Maaemn on tebss of g available to the public opinions of the mended by Mlanagement on the basis of recommendations of Management with General Counsel related to Inspection the discussions of the Executive Direc- respect to such remedial action as may Panel matters promptly after the Exec- tors' Committee on Development Effec- be needed. tiveness (CODE). The Inspection Panel and Management are requested by the Eligibility and Access involved, unless the Board decides oth- Executive Directors to observe the clar- It is understood that the "affected party" erwise in a specific case. ifications in their application of the Res- which the Resolution describes as "a Management will make significant olution. The clarifications are set out community of persons such as an organ- efforts to make the Inspection Panel bet- below. ization, association, society or other ter known in borrowing countries, but grouping of individuals" includes any will not provide technical assistance or The Panel's Function two or more persons who share some funding to potential requesters. Since the Resolution limits the first phase common interests or concerns. The word of the inspection process to ascertaining "project" as used in the Resolution has Composition of the Panel the eligibility of the request, this phase the same meaning as it generally has in No change in the composition of the should normally be completed within the Bank's practice, and includes proj- Panel is being made at this time. the 21 days stated in the Resolution. ects under consideration by Bank man- Role of the Board However, in cases where the Inspection agement as well as projects already Roe of the Board Panel believes that it would be appro- approved by the Executive Directors. The Board will continue tolhaveiauthor- priate to undertake a "preliminaryassess- The Panel's mandate does not extend .ir athori intprectith In ap n ment" of the damages alleged by the to reviewing the consistency of the Bank's the)autorieinspectio applying requester (in particular when such pre- practice with any of its policies and pro- P eluwi y t spit undest t, liminary assessment could lead to a res- cedures, but, as stated in the Resolution, subect topthe as iew.nAsrstate olution of the matter without the need is limited to cases of alleged failure by subiect to the Board's review As stated for a full investigation), the Panel may the Bank to follow its operational poli- inthe Resolutiono [thhe Paneleshall seek undertake the preliminary assessment cies and procedures with respect to the the advice of the Banles Legal Depart- * , . ., , . , .~~~~~~~~~~ ment on matters related to the Bank's and indicate to the Board the date on design, appraisal and/or implementation which it would present its findings and of projects, including cases of alleged rights and obligations with respect to recommendations as to the need, if any, failure by the bank to follow-up on the the request under consideration." October 17, 1996 Annex 2 55 Annex 3 1999 Clarification of the Board's Second Review of the Inspection Panel The Executive Directors approved today, ii. there are serious failures attribut- 7. For its recommendation on whether April 20, 1999, with immediate effect, able exclusively to its own actions or an investigation should be carried out, the report of the Working Group on the omissions in complying, but that it the Panel will satisfy itself that all the eli- Second Review of the Inspection Panel, intends to comply with the relevant gibility criteria provided for in the Res- as revised in light of the extensive con- policies and procedures; or that olution have been met. It will base its sultations that took place after the report iii. the serious failures that may exist recommendation on the information was first circulated. are exclusively attributable to the presented in the request, in the Man- The report confirms the soundness of borrower or to other factors exter- agement response, and on other docu- the Resolution establishing the Inspec- nal to the Bank; or that mentaryevidence. The Panel may decide tion Panel (IBRD Resolution No. 93- iv. the serious failures that may exist to visit the project country if it believes 10, IDA Resolution No. 93-6 of Sep- are attributable both to the Bank's that this is necessary to establish the eli- tember 22, 1993, hereinafter "the non-compliance with the relevant gibility of the request. In respect of such Resolution") and provides clarifications operational policies and procedures field visits, the Panel will not report on for its application. These clarifications and to the borrower or other exter- the Bank's failure to complywith its poli- supplement the clarifications issued by nal factors. cies and procedures or its resulting mate- the Board on October 17, 1996 and pre- The Inspection Panel may independ- rial adverse effect; any definitive assess- vail over them in case of conflict. The ently agree or disagree, totally or par- mentofaseriousfailureofrheBankthat report's recommendations approved by .. repoart are ationsa tially, with Management's position and has caused material adverse effect will be will proceed accordingly. done after the Panel has completed its 1. The Board reaffirms the Resolution, investigation the importance of the Panel's functlon, 4. When Management responds, admit- its independence and integriy. ' ting serious failures that are attributable 8. The original time limit, set forth in exclusively or partly to the Bank, it will the Resolution for both Management's 2. Management will follow the Resolu- provide evidence that it has complied or response to the request and the Panel's tion. It will not communicate with the intends tocomplywith the relevantoper- recommendation, will be strictly Board on matters associated with the ating policies and procedures. This observed except for reasons of force request for inspection, except as pro- response will contain only those actions majeure, i.e. reasons that are clearly vided for in the Resolution. It will thus that the Bank has implemented or can beyond Management's or the Panel's direct its response to the request, includ- implement by itself ing any steps it intends to take to address i . control, respectively, as may be approved its failures, if any, to the Panel. Man- 5. The Inspection Panel will satisfy itself by the Board on a no objection basis. saires, will hny, to Board an- as to whether the Bank's compliance or 9.IfthePanelsorecommends,theBoard agementwlreport to the B dany evidence of intention to comply is ade- recommendattons dt may have, after the e- r will authorize an investigation without recommendations ~ ~ ~ qate itd mayec have, aftermen thes .,, Panel completes its inspection and sub- q making a judgment on the merits of the mits its findings, as envisaged in para- reporting to the Board. claimants request, and without discus- graph 23 of the Resolution. 6. The Panel will determine the eligibil- sion except with respect to the follow- 3. In its initial response to the request ity of a request for mnspection 'ndepend- ing technical eligibility criteria: for inspection, Management will provide by Managews th res sec a. The affected party consists of any idence that ~~~by Management. With respect to mar- 'hcmo evidence that ters relating to the Bank's rights and obli- two or more persons with common i. it has complied with the relevant gations with respect to the request under interests or concerns and who are in Bank operational policies and pro- consideration, the Panel will seek the the borrower's territory (Resolution- cedures; or that advice of the Bank's Legal Department para. 12). as required by the Resolution. 56 The Inspection Panel Annual Report 2002 b. The request does assert in substance ance. However, the Board, acknowledg- tion may be available. Non-accomplish- that a serious violation by the Bank of ing the important role of the Panel in ments and unfulfilled expectations that its operational policies and procedures contacting the requesters and in fact- do not generate a material deterioration has or is likely to have a material findingon behalfofthe Board, welcomes compared to the without-project situa- adverse effect on the requester (Reso- the Panel's efforts to gather information tion will not be considered as a material lution paras. 12 and 14a). throughconsultationswithaffectedpeo- adverse effect for this purpose. As the c. The request does assert that its sub- pie. Given the need to conduct such assessment of material adverse effect in ject matter has been brought to Man- work in an independent and low-profile the context of the complex reality of a agement's attention and that, in the manner, the Panel - and Management - specific project can be difficult, the Panel requester's view, Management has should decline media contacts while an will have to exercise carefully its judg- failed to respond adequately demon- investigation is pending or underway. ment on these matters, and be guided by strating that it has followed or is tak- Under those circumstances in which, in Bank policies and procedures where rel- ing steps to follow the Bank's policies the judgment of the Panel or Manage- evant. and procedures (Resolution para. 13). ment, it is necessary to respond to the 15.Adistinctionhastobemadebetween d. The matter is not related to pro- media, comments should be limited to Management's report to the Board (Res- curement (Resolution para. 14b). the process. They will make it clear that olution para. 23), which addresses Bank the Panel's role is to investigate the Bank failure and possible Bank remedial e. The related loan has not been closed and not the borrower. efforts and "action plans," agreed or substantially disbursed (Resolution 13. As required by the Resolution, the between the borrower and the Bank, in para. 14c). Panel's report to the Board will focus on consultation with the requesters, that f. The Panel has not previously made whether there is a serious Bank failure to seek to improve project implementation. a recommendation on the subject mat- observe its operational policies and pro- The latter "action plans" are outside the ter or, if it has, that the request does cedures with respect to project design, purview of the Resolution, its 1996 clar- assert that there is new evidence or cir- appraisal and/or implementation. The ification, and these clarifications. In the cumstances not known at the time of report will include all relevant facts that event of agreement by the Bank and bor- the prior request (Resolution para. are needed to understand fully the con- rower on an action plan for the project, 14d). text and basis for the panel's findings and Management will communicate to the 10. Issues of interpretation of the Reso- conclusions. The Panel will discuss in its Panel the nature and outcomes of con- lution will be cleared with the Board. written report only those material sultations with affected parties on the 11. The "preliminary assessment" con- adverse effects, alleged in the request, action plan. Such an action plan, if war- cept, as described in the October 1996 that have totally or partially resulted ranted, will normally be considered by Clarification, is no longer needed. The from serious Bank failure of compliance the Board in conjunction with the Man- paragraph entitled "The Panel's Func- with its policies and procedures. If the agement's report, submitted under Res- tion" in the October 1996 "Clarifica- request alleges a material adverse effect olution para. 23. tions" is thus deleted. and the Panel finds that it is not totally 16. The Panel may submit to the Exec- 12. The profile of Panel activities, in- or partially caused by Bank failure, the utive Directors for their consideration a country, during the course of an inves- Panel's report will so state without enter-adequacy of tigaton, houl be ept a lowas pssi- ing into analysis of the material adverse reportothivewfteadqcyf tigation, should be kept as low as possi- effect itself or its causes. consultations with affected parties in the ble in keeping with its role as a preparation of the action plans. The fact-finding body on behalfof the Board. 14. For assessing material adverse effect, Board should not ask the Panel for its The Panel's methods of investigation the without-project situation should be view on other aspects of the action plans should not create the impression that it used as the base case for comparison, tak- nor would it ask the Panel to monitor is investigating the borrower's perform- ing into account what baseline informa- the implementation of the action plans. Annex 3 57 Annex 3 1999 Clarification of the Board's Second Review of the Inspection Panel The Panel's view on consultation with 18. The Board emphasizes the impor- clarificationsassumesadherencetothem affected parties will be based on the tance of prompt disclosure of informa- by all parties in good faith. It also information available to it by all means, tion to claimants and the public, as stip- assumes the borrowers' consent for field but additional country visits will take ulated in the Resolution (paras. 23 and visits envisaged in the Resolution. If place.ol by gv. 25) and in its 1996 Clarifications. The these assumptions prove to be incorrect, Board requires that such information be the Board will revisit the above conclu- 17. The Board underlines the need for provided by Management to claimants sions. Management to make significant efforts in their language, to the extent possible. to make the Inspection Panel better 19. The Board recognizes that enhanc- known in borrowing countries, as spec- ing the effectiveness of the Inspection ified in the 1996 "Clarifications." Panel process through the above 58 The Inspection Panel Annual Report 2002 Annex 4 Operating Procedures The Panel is currently in the process of Content revising its Operating Procedures to C)perating Procedures as adopted by the Panel on August 19, 1 994 reflect the 1996 and 1999 Clarifications Introduction to the Resolution that established the Cntrodion Panel, as well as lessons learned during Composition the first eight years of operation. Purpose the ~~~~~~~~~~Functions Participants Administration Subject Matter of Requests Scope Limitations Preparation of a Request A. Who Can File a Request B. Contents of a Request C. Form of a Request Written Format Language Representatives Document D. Delivery of Request E. Advice on Preparation Procedures on Receipt of a Request A. Register Contents of Notice B. Request Additional Information C. Outside Scope Records D. Need for Review E. Revised Request Management's Response Clarification Panel Recommendation A. Basis B. Required Criteria Criteria for Satisfactory Response Preliminary Review Initial Study C. Contents D. Submission Annex 4 59 Annex 4 Operating Procedures Board Decision and Public Release Notification Public Information An Investigation A. Initial Procedures B. Methods of Investigation Consent Required C. Participation of Requester D. Participation of Third Parties Panel Report Contents Submission Management's Recommendations Board Decision and Public Release General Business Days Copies Consultations Access to Bank Staff and Information Legal Advice Confidentiality Information to Requester and Public Guidance on How to Prepare a Request for Inspection Model Form 60 The Inspection Panel Annual Report 2002 Introduction alternative arrangements to the Execu- up to the time the Panel makes a rec- The Inspection Panel (the "Panel") is an tive Directors. ommendation to the Board on whether independent forum established by the or not the matter should be investigated Executive Directors of the International Purpose -the Panel will accept statements or evi- Bank for Reconstruction and Develop- rhe Panel has been established for the dence from (a) the Requester, i.e., either ment ("IBRD") and the International purposeofprovidingpeopledirectlyand the affected people and/or their duly Development Association ("IDA") by adversely affected by a Bank-financed appointed representative, or an Execu- IBRD Resolution No. 93-10 and the project with an independent forum tive Director; (b) Management; and, (c) identical IDA Resolution No. 93-6 both through which they can request the Bank any other individual or entity invited by adopted by the Executive Directors of to act in accordance with its own poli- the Panel to present information or the respective institutions on September cies and procedures. It follows that this comments. 22, 1993 (collectively the "Resolution"). forum is available when adversely During an investigation, any person The text of the Resolution is in Annex affected peopr h fleeve the Bank itself who is either a party to the investigation 1. References in these procedures to the has failedy or has failed to require oth- or who provides the designated Inspec- "Bank" includes the IBRD and IDA. ers, to comply with its policies and pro- tor(s) with satisfactory evidence that The Panel's authority is dictated by the cedures,andonlyaftereffortshavebeen he/she has an interest, apart from any Resolution: within that framework made to ask the Bank Management interest in common with the public, will these Operating Procedures are adopted ("Management") itself to deal with the be entitled to submit information or evi- by the Panel to provide detail to the oper- P dence relevant to the investigation. ational provisions. The text is based on Functions Administration the Resolution and takes into account The role of the Panel is to carry out The Panel has approved separate Admin- suggestions from outside sources. independent investigations. Its function, istrative Procedures which are available In view of the unprecedented nature which will be triggered when it receives from the Office of the Inspection Panel. of the new inspection function the cur- a request for inspection, is to inquire and (Please note that all headings are for rent procedures are provisional: the recommend: it will make a preliminary ease of reference only. They do not form Panel will review them within 12 review ofa request for inspection and the s X s g r * r ras X * ] J ~~~~~~~~part of these procedures and do not con- months, and in light of experience and response of Management, independent- stitute an interpretation thereof) comments received, will revise them if ly assess the information and then rec- necessary; and will recommend to the ommend to the Board of Executive Subject Matter of Requests Executive Directors ("Executive Direc- Directors whether or not the matters tors") amendments to the Resolution complained of should be investigated. If Scope that would allow a more effective role the Board decides that a request shall be 1. The Panel is authorized to accept for the Panel. investigated, the Panel will collect infor- requests for inspection ("Request(s)") mation and provide its findings, inde- which claim that an actual or threatened Composition pendent assessment and conclusions to material adverse effect on the affected The Panel consists of three Inspectors. the Board. On the basis of the Panel's party's rights or interests arises directly At the outset, one Inspector, the Chair- findings and Management's recommen- out of an action or omission of the Bank person, will work on a full-time basis: dations, the Executive Directors will as a result of a failure by the Bank to fol- the other two will work part-time. This consider the actions, if any, to be taken low its own operational policies and pro- arrangement is provisional. The Panel's by the Bank. cedures during the design, appraisal workload will be dictated by the num- and/or implementation of a Bank ber and nature of requests received. If Participants financed project. Before submitting a necessary, the Panel will recommend During the preliminary review period- Request steps must have already been Annex 4 61 Annex 4 Operating Procedures taken (or efforts made) to bring the mat- A. Who Can File a Request (d) adescriptionofhowthepartywas, ter to the attention of Management with 4. The Panel has authority to receive or is likely to be, materially and a result unsatisfactory to the Requester. Requests which complain of a violation adversely affected by the Bank's act or Limitations of the Bank's policies and procedures omission and what rights or interests LimiThePation is not authorized to deal from the following people or entities: of the claimant were directly affected; 2. The Panel is not authorized to deal with the following: (a) any group of two or more people (e) a description of the steps taken by in the country where the Bank the affected party to resolve the viola- (a) complaints with respect to actions financed project is located who believe tions with Bank staff, and explanation which are the responsibility of other that as a result of the Bank's violation of why the Bank's response was inad- parties, such as the borrower, or poten- their rights or interests have been, or equate; tial borrower, and which do not are likely to be adversely affected in a (f) in Requests relating to matters pre- involve any action or omission on the direct and material way. They may be viously submitted to the Panel, a state- part of the Bank; an organization, association, society or ment specifying what new evidence or (b) complaints against procurement other grouping of individuals; or changed circumstances justify the decisions by Bank borrowers from sup- (b) a duly appointed local representa- Panel revisiting the issue; and pliers of goods and services financed.. or expected to be financed by the Bank tive acting on explicit instructions as (g) if some of the information cannot onder expean/ctedito b greefi nced by t m Bthe agent of adversely affected people; be provided, an explanation should be underaloan/creditagreement, or from or included. losing tenderers for the supply of any such goods and services, which will (c) In exceptIonal cases, referred to In c. Form of Request continue to be addressed by Bank staff paragraph 1 1 below, a foreign repre- uonderestinge probeadures;ed byBankstaf sentative acting as agent of adversely Written (c)er Reqstsng fileduafterthes affected people; or 6. All Requests must be submitted in Dateqofsthe .lo ed tr thnaC sing (d) an Executive Director of the Bank writing, dated and signed by the Date of the loan/credit financing the project with respect to which the in special cases of serious alleged vio- Requester and contain his/her name projeqt wisl orwenpe tor moe lations of the Bank's policies and pro- and contact address. Request IS filed or when 95% or more cdrs of the loan/credit proceeds have been cedures. Format disbursed; or B. Contents of a Request 7. No specific form is necessary: a letter (d) Requests related to a particular 5. In accordance with the Resolution, will suffice. A Requester may wish to matter or matters over which the Panel Requests should contain the following refer to the guidance and use the model has already made its recommendation information: form specifying required information. after having received a prior Request, (a) a description of the project, stating [Attached] unless justified by new evidence or all the relevant facts including the Language circumstances not known at the time harm suffered by or threatened to the of the prior Request. afetdpry8. The working language of the Panel is of the rioReqestafectepaty;English. Requests submitted directly by Preparation of a Request (b) an explanation of how Bank poli- affected people themselves may be in 3. The Panel's operational proceedings cles, procedures or contractual docu- their local language if they are unable to begin when a Request is received. This ments were seriously violated; obtain a translation. If requests are not section of the procedures is primarily (c) a description of how the act or in English, the time needed to translate designed to give further guidance to omission on the part of the Bank has and ensure an accurate and agreed trans- potential Requesters on what facts and led or may lead to a violation of the lation may delay acceptance and con- explanations they should provide. specific provision; sideration by the Panel. 62 The Inspection Panel Annual Report 2002 Representatives resident representative in the country ed, and a brief description of the 9. If the Requester is a directly affected where the project is located. In the lat- Request; person or entity representing affected ter case, the resident representative shall, (c) notify the Requester that all com- people,writtensignedproofthattherep- after issuing a receipt to the Requester, munications in connection with the resentative has authority to act on their forward the Request to the Panel through Request will be sent to the address behalf must be attached. the next pouch. stated in the Request, unless another 10. IftheRequestissubmitted byanon- E. Advice on Preparation address is indicated to the Panel Sec- affected representative, he/she must pro- 15. People or entities seeking advice on retariat; and vide evidence of representational author- how to prepare and submit a Request (d) request Management to provide ity and the names and contact address may contact the Office of The Inspec- the Panel, within 21 days after receipt of the party must be provided. Proof of ton Panel, which will provide infor- of the notice and Request, with writ- representational authority, which shall mation or may meet and discuss the ten evidence that it has complied, or consist of the original signed copy of the requirements with potential requesters. intends to comply with the Bank's rel- affected party's explicit instructions and evant policies and procedures. The authorization, must be attached. Procedures on Receipt of a Request notice shall specify the due date of the 11. In addition, in the cases of non-local 16. When the Panel receives a Request response. representation, the Panel will require the Chairperson, on the basis of the B. Request Additional Information clear evidence that there is no adequate information contained in the Request, 19. If the chairperson finds the contents or appropriate representation in the shall either promptly register the oftheRequestordocumentationonrep- country where the project is located. Request, or ask for additional informa- tion, or find the Request outside the resentation insufficient, he/she may ask Documents Panel's mandate. the Requester to supply further informa- 12. The following documents should be tion. attached: A. Register 20. Upon receipt of a Request, the chair- (a) all correspondence with Bank staff; 17. If the request appears to contain suf- person shall send a written acknowledg- ( Ficient required information the chair- ment to the Requester, and will specify (b) notes of meetings with Bank staff; person shall register the Request in the what additional information is required. (c) amapordiagram, ifrelevant, show- Panel Register; promptly notify the 21. The Chairperson may refuse to reg- ing the location of the affected party Requester, the Executive Directors and ister a Request until all necessary infor- or area affected by the project; and the Bank President ("President") of the mation and documentation is filed. (d) any other evidence supporting the registration; and transmit to the Presi- complaint. dent a copy of the Request with the Outside Scope 13. If all the information listed cannot accompanying documentation, if any. 22. If the chairperson finds, that the mat- be provided an explanation should be Contents of Notice ter is without doubt manifestly outside be provlded an explanation should be Contents of Notice the Panel's mandate, he/she will notify included. 18. The notice of registration shall: the Requesters, of his/her refusal to reg- D. Delivery of Request (a) record that the Request is registered ister the Request and of the reasons there- 14. Requests must be sent by registered and indicate the date of the registra- for; this will include but not be limited or certified mail or delivered by hand in tion and dispatch of that notice; to the following types of communica- a sealed envelope against receipt to the (b) the notice will include the name of tions: Office of The Inspection Panel at 1818 the project, the country where the (a) Requests which are clearly outside H Street, N.W, Washington, D.C. project is located, the name of the the Panel's mandate including those 20433, U.S.A. or to the Bank's Requester unless anonymity is request- listed above at paragraph 2; Annex 4 63 Annex 4 Operating Procedures (b) Requests which do not show the Management' Response agement's response, the Panel shall make steps taken or effort made to resolve 27. Within 21 days after being notified a recommendation to the Executive the matter with Management; of a Request, Management shall provide Directors as to whether the matter (c) Requests from an individual or the Panel with evidence that it has should be investigated. from a non-authorized representative complied, or intends to comply with the A. Basis of an affected party; Bank's relevant policies and procedures. After the Panel receIves Management's 31. The Panel shall prepare its recom- (d) any correspondence, including but A mendation to the Board on the basis of , . . , . ,~~~ response, it shall promptly enter the date not limited to letters, memoranda, r the information contained in: opinions, submissions or requests on of receipt in the Panel Register. (a) the Request; any matter within the Panel's mandate 28. If there is no response from Man- (b) Managemest; which are not requests for an inspec- agement within 21 days, the Panel shall (b) Management's response; tion; and notify the President and the Executive (c) any further information the Panel (e) Requests that are manifestly frivo- Directors and send a copy to the may have requested and received from bous, absurd or anonymous. Requester. the Requester and/or Management Clarification and/or third parties; and Records Clarification (d) any findings of the Panel during 23. The number of such Requests and this stage. < ~~ommendation, the Panel may requestc communications received shall be noted o in the Register on a quarterly basis and clarification from Management; in the B. Required Criteria the yearly total included in the A-nnual light of Management's response, request 32. If, on the basis of the information Report. more information from the Requester; contained in the Request, it has not and provide relevant portions of Man- already been established that the Request D. Need for Review agement'sresponseforcomment.Atime meets the following three conditions 24. In cases where additional informa- limit for receipt of the information required by the Resolution, the Chair- tion is required, or where it is not clear requested shall be specified; and person, in consultation with the other whether a Request is manifestly outside (a) whether or not such clarification Panel members may, if necessary, desig- the Panel's mandate, the Chairperson or information is received within the nate a Panel member to conduct a pre- shall designate a Panel member to review time limit, make its recommendation liminary review to determine whether the Request. to the Executive Directors within 21 the Request: days after receipt of Management's (a) was filed by an eligible party; response; or (b) is not time-barred; and 25. If the Requester receives significant (b) in the event it is not possible for (c) relates to a matter falling within new evidence or information at any time the Requester to provide the informa- the Panel's mandate. after the initial Request was submitted, he/she may consider whether or not it is Requester to submit an amended Criteria for Satisfactory Response serious enough to)justify the submission Request; the Executive Directors and 33. The Panel may proceed to recom- of a revised Request. Bank management will be notified mend that there should not be an inves- 26. If a revised Request is submitted, the that the process will begin again when tigation, if, on the basis of the informa- time periods for Management's response the amended Request is received. tion contained in the Request and and the Panel recommendation will Management's response, the Panel is sat- begin again from the time such Request Panel Recommendation isfied that Management has done the fol- is registered. 30. Within 21 days after receiving Man- lowing: 64 The Inspection Panel Annual Report 2002 (a) dealt appropriately with the sub- quate to meet the concerns of the Panel to the Executive Directors for deci- ject matter of the Request; and Requester as to the application of the sion. The Panel will notify the Requester (b) demonstrated clearly that it has fol- Bank's policies and procedures. that a recommendation has been sent to lowed the required policies and pro- Initial Study the Executive Directors. cedures; or 36. If the Chairperson considers, after Board Decision and Public Release (c) admitted that it has failed to fol- the preliminary review and consultation 39. The Board decides whether or not low the required policies and proce- wvith theother Panel members, that more to accept or reject the Panel's recom- dures but has provided a statement of factual data not already provided by the mendation; and, if the Requester is a specific remedial actions and a time- Requester, Management or any other non-local representative, whether excep- table for implementing them, which source is required to make an informed tional circumstances exist and suitable will, in the judgment ofthe Panel, ade- recommendation to the Executive Direc- local representation is not available. quately correct the failure and any tors, he/she may designate a Panel mem- adverse effects such failure has already ber to undertake a preliminary study. Notification caused. The study may include, but need not be 40. The Panel shall promptly inform the Preliminary Review limited to, a desk study and/or a visit to Requester of the Board's decision on the project site. whether or not to investigate the Request 34. If, on the basis of the information and, shall send the Requester a copy of contained in Management's response C. Contents the Panel's recommendation. and any clarifications provided, the 37. On the basis of the review, the Panel Panel is satisfied that Management has shall make its recommendation to the Public Information failed to demonstrate that it has fol- Board as to whether the matter should 41. After the Executive Directors have lowed, or is taking adequate steps to fol- be investigated. Every recommendation considered a Request the Bank shall low the Bank's policies and procedures, shall include a clear explanation setting make such Request publicly available the Panel will conduct a preliminary forth reasons for the recommendation together with the Panel's recommenda- review in order to determine whether and be accompanied by: tion on whether to proceed with the conditions required by provisions of the (a) the text of the Request and, where inspection and the decision of the Exec- Resolution exist. applicable, any other relevant infor- utive Directors in this respect. 35. Although it may not investigate mation provided by the Requester; An Investigation Management's actions in depth at this (b) the text of Management's response stage, it will determine whether Man- and, where applicable, any clarifica- A. Initial Procedures agement's failure to comply with the tions provided; 42. When a decision to investigate a Bank's policies and procedures meets the (the tex d Request is made by the Board, or the following three conditions: Board itself requests an investigation, the the Bank's Legal Department; Chipro shl prmty (a) whether such failure has had, or Chairperson shall promptly: threatens to have, a material adverse (d) any other relevant documents or (a) designate one or more of the Panel's effect; information received; and members (Inspector(s)) to take pri- (b) whether, the alleged vioiation of (e) statements of the majority and mary responsibility for the investiga- b)twhether,s thies alleged violed satn o minority views in the absence of a con- tion; the Bank's policies and procedures are, on in the judgment of the Panel, of a seri- sensus by the Panel. (b) arrange for the Panel members to ous character; and D. Submission consult, taking into account the nature (c) whether remedial actions proposed 38. The recommendation shall be cir- of the particular Request, on: by Management do not appear ade- culated by the Executive Secretary of the (i) the methods of investigation Annex 4 65 Annex 4 Operating Procedures that at the outset appear the most (e) hiring independent consultants to berofthepublicmayprovidethelnspec- appropriate; research specific issues relating to a tor(s), either directly or through the (ii) an initial schedule for the con- Request; Executive Secretary, with supplemental duct of the investigation; (f) researching Bank files; and information that they believe is relevant (iii) when the Inspector(s) shall (g) any other reasonable methods the to evaluating the Request. report his/her (their) findings to Inspector(s) consider appropriate to 51. Information should not exceed ten the Panel, including any interim the specific investigation. pages and include a one-page summary. findings; and Supporting documentation may be Consent Required listed and attached. The Inspector(s) (iv) any additional procedures for the conduct of the investigation. 46. In accordance with the Resolution, may request more details if necessary. the codhe designated Invpetorsthatn, as physical inspection in the country where Panel Report 43. The designated Inspector(s) shall, as the project is located will be carried out needed, arrange for a meeting with the with prior consent. The Chairperson Contents Requester and schedule discussions with shall request the Executive Director rep- 52. The report of the Panel (the directly affected people. resenting such country to provide writ- "Report") shall include the following: 44. The name of the Inspector(s) and an ten consent. (a) a summary discussion of the rele- initial work plan shall be made public as(aasumr scsinothre- initial work plansshalle be madepublicas C. Participation of Requester vant facts and of the steps taken to soon as possible. 47. During the course of the investiga- conduct the investigation; B. Methods of Investigation tion, in addition to any information (b) a conclusion showing the Panel's 45. The Panel may, taking into account requested by the Inspector(s), the Re- findings on whether the Bank has the nature of the particular Request, use quester (and affected people if the complied with relevant Bank policies a variety of investigatory methods, Requester is a non-affected Representa- and procedures; including but not limited to: tive or an Executive Director) or Bank (c) a list of supporting documents (a) meetings with the Requester, staff may provide the Inspector(s) either whichwillbeavailableonrequestfrom affected people, Bank staff, govern- directly or through the Executive Secre- the Office of The Inspection Panel; ment officials and project authorities tarywithsupplemental information that and of the country where the project they believe is relevant to evaluating the (d) statements of the majority and is located, representatives of local Request. minorityviews in theabsenceofacon- and international non-governmental 48. The Inspector(s) may notify the sensus by the Panel. organizations; Requester of any new material facts pro- (b) holding public hearings in the vided by Bank staff or by the Executive bmission ;Director for, or authorities in the coun- 53. Upon completion of the Report, the project area; Director or, or athoritie inOcated t c Panel shall submit it to: (c) visiting project sites; try where the project is located. 49. To facilitate understanding (a) the Executive Directors: accompa- (d) requesting written or oral submis- cf po the Pnel scuss or pe- nied by notification that the Report is sions on specific issues from the clfic pointsithePanel maydscuss its pre- being submitted to the President on liminary findings of fact with the Requester, affected people, independ- Re 'sv.the same date; and ent experts, government or project (b) the President: accompanied by a officials, Bank staff, or local or inter- D. Participation of Third Parties notice against receipt that within 6 national non-governmental organiza- 50. During the course of the investiga- weeks of receipt of the Report, Man- tions; tion, in addition to any information agement must submit to the Execu- requested by the Inspector(s), any mem- tive Directors for their consideration 66 The Inspection Panel Annual Report 2002 a report indicating Management's rec- Copies express written consent of the party ommendations in response to the 59. Consideration of Requests and other concerned. Panel's findings. documents submitted throughout the Information to Requester Managements Recommendations process will be expedited if an original and Public and two copies are filed. When any doc- The Eeuivs 54. Within 6 weeks after receiving the ument contains extensive supporting 64. The Executive Secretary shall record Panel's findings, Management will sub- documentation the Panel may ask for in the Register all actions taken in con- mit to the Executive Directors for their additional copies. nection with the processing of the consideration a report indicating its Request, the dates thereof, and the dates recommendations in response to the Consultations on which any document or notification Panel's findings. Upon receipt of a copy 60. The borrower and the Executive under these procedures is received in or of the report, the Panel will notify the Director representing the borrowing (or sent from the Office of The Inspection Requester. guaranteeing) country shall be consulted Panel. The Requester shall be informed on the subject matter before the Panel's promptly. The Register will be publicly Board Decision and Public Release recommendation and during an investi- available. 55. Within 2 weeks after the Executive gation. 65. A notice that a Request has been reg- Directors consider the Panel's Report istered and all other notices or docu- , ~~~~Access to Bank Staff and and the Management's response, the ments issued by the Panel will be avail- Bank shall inform the Requester of the Information abletothepublicthroughtheBank'sPIC resultsoftheinvestigation and theaction 61. Pursuant to the Resolution and in in Washington, D.C.; at the Bank's Res- decided by the Board, if any. discharge of their functions, the mem- ident Mission in the country where the 56.ided Af the Boank,if hasinformd t bers of the Panel shall have access to all project is located or at the relevant , A r te BBank staff who may contribute informa- regional office; at the Bank's Paris, Lon- Requester, the Bank shall make publicly ion and to all pertinent Bankrecords and don and Tokyo offices; or on request available: shall consult as needed with the Direc- from the Executive Secretary of the (a) the Panel's Report; tor General, Operations Evaluation Panel. (b) Management's recommendations; Department, and the Internal Auditor. and Legal Advice (c) the Board's decision. 62. The Panel shall seek, through the These documents will also be avail- Vice President and General Counsel of able at the Office of The Inspection the Bank, the written advice ofthe Bank's Panel. Legal Department on matters related to 57. The Panel will seek to enhance pub- the Bank's rights and obligations with lic awareness of the results of investiga- respect to the Request under considera- * 1 r ~~~~~~~tion. Any such advice will be included tions through all available information y as an attachment to the Panel's recom- sources mendation and/or Report to the Execu- General tive Directors. Business Days Confidentiality 58. "Days" under these procedures 63. Documents, or portions of docu- means days on which the Bank is open ments of a confidential nature will not for business in Washington, D.C. be released by the Panel without the Annex 4 67 Annex 4 Operating Procedures Guidance on How to Prepare a These key questions must be Pleaseprovideasummaryoftheinfor- Request for Inspection answered: mation in no more than a few pages. The Inspection Panel needs some basic 1. Can you elaborate on the nature and Attach as much other information as you information in order to process a Request importance of the damage caused by the think necessary as separate documents. for Inspection: project to you or those you represent? Please note and identify attachments in 1. Name, contact address and telephone 2. Do you know that the Bank is respon- your summary. number of the group or people making sible for the aspects of the project that You may wish to use the following- the request. has or mayaffectyouadversely? Howdid model form. 2. Name and description of the Bank you determine this? project. 3. Are you familiar with Bank policies 3. Adverse effects of the Bank project. and procedures that apply to this type of 4. If you are a representative of affected project? How do you believe the Bank people attach explicit written instruc- may have violated them? tions from them authorizing you to act 4. Have you contacted or attempted to on their behalf. contact Bank staff about the project? Please provide information about all contacts, and the responses, if any, you received from the Bank. You must have done this before you can file a request. 5. Have you tried to resolve your prob- lem through any other means? 6. If you know that the Panel has dealt with this matter before, do you have new facts or evidence to submit? 68 The Inspection Panel Annual Report 2002 Model Form Request for Inspection To: The Executive Secretary The Inspection Panel 1818 H St., NW, Washington, D.C. 20433, U.S.A. (or to a World Bank Country/Regional Office) We, , and other persons whose names and addresses are attached live/represent others, living in the area known as: [and shown in the attached map or diagram] claim the following: 1. The Bank is financing the design/appraisal and/or implementation of a project [name and brief description] 2. We understand that the Bank has the following policy(ies) and/or procedures [list or describe]: 3. Our rights/interests are [describe]: 4. The Bank has violated its own policies/procedures in this way: 5. We believe our rights/interests have been, are likely to be adversely affected as a direct result of the Bank's violation. This is, or is likely to cause us to suffer [describe harm]: 6. We believe the action/omission is the responsibility of the Bank. 7. We have complained/made an effort to complain to Bank staff by [describe]: Please attach evidence or explanation. Annex 4 69 Annex 4 8. We received no response; or We believe that the response(s) (attached/not attached) is unsatisfactory because: [describe why]: 9. In addition we have taken the following steps to resolve our problem: We therefore believe that the above actions/omissions which are contrary to the above policies or procedures have materially and adversely affected our rights/interests and request the Panel to recommend to the Bank's Executive Directors that an investigation of these matters be carried out in order to resolve the problem. As advised in your Operating Procedures, this Request for Inspection is brief. We can provide you with more particulars. DATE: SIGNATURES:_ CONTACT ADDRESS: Attachments: [Yes] [No] We authorize you to make this Request public [Yes] [No] 70 The Inspection Panel Annual Report 2002 Annex 5 Panel Budget The Inspection Panel Budget August 1, 2001 to June 30, 2002 (thousands of U.S. dollars) Fees - Panel Members 424.0 Salaries* 640.8 Temporaries 36.1 Consultants Short-term 280.6 Overtime 3.8 Travel - Member/Staff 408.0 Benefits 320.4 Communications & IT 102.4 Equipment & Building Services 8.0 Representation & Hospitality 9.9 Contractual Services 25.6 Other Expenses 61.8 Office Occupancy 152.7 Total Expenses 2,475.0 Current Budget 2,573.9 Note: Numbers may not add to totals because of rounding. * Includes Chairman's salary. Annex 5 71 The Inspection PanelI International Bank for Reconstruction and Development International Development Association The World Bank 1818 H Street, N.W. Washington, D.C. 20433 USA Telephone: 202.473.1000 Facsimile: 202.477.6391 Internet: www.worldbank.org The Inspection Panel Email: ipanel@worldbank.org *z:IS7:t:. Strudwicke Internet: www.inspectionpanel.org *@1@1;1|1 ISN EsX1191*116111 WASHINGTON DC A Free Publication