41998 INTERNATIONALBANK FORRECONSTRUCTIONANDDEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION THE INSPECTIONPANEL 1818 HStreet, N.W. Telephone: (202) 458-5200 Washington, D.C. 20433 Fax :(202) 522-0916 U.S.A. Email: ipanel@worldhank.org Werner Kiene Chairperson IPNREQUESTRQ07/08 December 21,2007 MEMORANDUMTO THE EXECUTIVEDIRECTORSAND ALTERNATES OF THE INTERNATIONALBANKFORRECONSTRUCTIONAND DEVELOPMENT Re:Requestfor Inspection Argentina: SantaFeRoadInfrastructureProject (LoanNo. 7429-AR)Extensionof ReportSubmissionDate 1. O n September 13, 2007, the Inspection Panel (the "Panel") received a Request for Inspection, dated September 7, 2007, related to the Argentina: Santa Fe Road Infrastructure Project (the "Project"). On September 26, 2007, the Requesters sent the Panel certain clarifications to the terms o f the Request for Inspection. They also asked the Panel to treat a letter addressed to the Panel, dated August 31,2007, and attached documents, as part of the Request for Inspection. The September 7 Request, the September 26 clarifications and the August 31letter constitute the Request for Inspection (the "Request"). 2. The Panel registered the Request for Inspection on the Inspection Panel Register and notifiedthe Board o f Executive Directors and Bank Management on October 19,2007. 3. On November 20, 2007, the Panel received the Management Response to the Request for Inspection. The main body o f the Response addresses the issues raised in the Request, and Annex Iresponds in detail to the Requesters' claims. Management states that the major concerns of the Requesters, which are analyzed in the Response, were also discussed in a meeting with the Requesters on October 31, 2007, inFranck, Argentina. The Response also includes a section specifically addressing the Bank compliance with the policies and procedures that, inthe Requesters' view, the Bank has violated. 4. According to the Management Response, no disbursements had been made under the loan, and road upgrading works had not commenced. Recently, the Provincial Government concluded the biddingprocess for upgrading Road 19. Management does note that civil works will commence only when the Resettlement Action Plan is carried out in a manner acceptable to the Bank.' 5. The processing o f this Request for Inspection, however, has coincided with the change o f the Provincial Government o f Santa Fe inDecember 2007, which has resulted in the appointment of new Government officials and, in the foreseeable future, possibly changes in the staff in charge o f this Project. Also, according to the Requesters, informal contacts with incoming Government officials would suggest that there may be changes in the Provincial Government's approach to the Project, which might satisfactorily address some o f their main concerns expressed inthe Request for Inspection. 6. Inview ofthe foregoing, and after discussing the matter with the Requesters andthe Executive Director representing Argentina, the Inspection Panel i s o f the view that the interests of all parties concerned with the Request would be better served if the Panel delays the issuance of its report on the eligibility of the Request andits recommendation on the need for an investigation for a period of about 90 days. As provided in the 1999 Clarifications2, this extension would be based on the fact that the establishment o f a new Provincial Government i s a fact beyondthe Panel's control. 7. Consistent with prior similar recommendations approved by the Board, in the absence o f objection by the Board o f Executive Directors, the Panel will so advise the Requesters and Management. i ,A /-*- &4- ,' Werner Kiene Chairperson * The 1999 Clarifications 'Management Response, 7 17. to the Resolution (hereinafter "the 1999 Clarifications") are contained inthe "Conclusions of the Board's Second Review of the Inspection Panel" dated April 20, 1999 2 -DINTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION THE INSPECTIONPANEL 1818 HStreet, N.W. Telephone: (202) 458-5200 Washington, D.C. 20433 Fax : (202) 522-0916 Email: ipanel@worldbank.org Werner Kiene Chairperson IPNREQUEST RQ07/08 December 21,2007 MEMORANDUM TO THE PRESIDENT OF THE THE INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOPMENT Re:Requestfor Inspection Argentina: Santa Fe RoadInfrastructureProject (Loan No. 7429-AR) Extensionof Report SubmissionDate 1. On September 13, 2007, the Inspection Panel (the "Panel") received a Request for Inspection, dated September 7, 2007, related to the Argentina: Santa Fe Road Infrastructure Project (the "Project"). On September 26, 2007, the Requesters sent the Panel certain clarifications to the terms o f the Request for Inspection. They also asked the Panel to treat a letter addressed to the Panel, dated August 31, 2007, and attached documents, as part of the Request for Inspection. The September 7 Request, the September 26 clarifications and the August 31letter constitute the Request for Inspection (the "Request"). 2. The Panel registered the Request for Inspection on the Inspection Panel Register and notifiedthe Board o f Executive Directors and Bank Management on October 19,2007. 3. On November 20, 2007, the Panel received the Management Response to the Request for Inspection. The main body o f the Response addresses the issues raised in the Request, and Annex Iresponds in detail to the Requesters' claims. Management states that the major concerns o f the Requesters, which are analyzed in the Response, were also discussed in a meeting with the Requesters on October 31, 2007, in Franck, Argentina. The Response also includes a section specifically addressing the Bank compliance with the policies and procedures that, inthe Requesters' view, the Bank has violated. 4. According to the Management Response, no disbursements had been made under the loan, and road upgrading works had not commenced. Recently, the Provincial Government concluded the biddingprocess for upgrading Road 19. Management does note that civil works will commence only when the Resettlement Action Plan is carried out in a manner acceptable to the Bank.' ManagementResponse, 7 17. 2 5. The processing o f this Request for Inspection, however, has coincided with the change o f the Provincial Government o f Santa Fe in December 2007, which has resulted in the appointment o f new Government officials and, in the foreseeable future, possibly changes in the staff in charge o f this Project. Also, according to the Requesters, informal contacts with incoming Government officials would suggest that there may be changes in the Provincial Government's approach to the Project, which might satisfactorily address some of their main concerns expressed inthe Request for Inspection. 6. Inview of the foregoing, and after discussing the matter with the Requesters and the Executive Director representing Argentina, the Inspection Panel is o f the view that the interests o f all parties concerned with the Request would be better served if the Panel delays the issuance o f its report on the eligibility o f the Request and its recommendation on the need for an investigation for a period of about 90 days, As provided inthe 1999 Clarifications2, this extension would be based on the fact that the establishment of a new Provincial Government i s a fact beyond the Panel's control. 7. Consistent with prior similar recommendations approved by the Board, in the absence o f objection by the Board o f Executive Directors, the Panel will so advise the Requesters and Management. /" Werner Kiene Chairperson The 1999 Clarifications to the Resolution (hereinafter "the 1999 Clarifications") are contained inthe "Conclusions of the Board's Second Review ofthe InspectionPanel" dated April 20, 1999