On September 8, 2026, the World Bank’s Board of Executive Directors (the “Board”) approved the Inspection Panel’s recommendation to investigate the Tanzania: Msimbazi Basin Development Project (P169425).

On April 14, 2026, the Panel had received a Request for Inspection from two individuals representing 412 people – including themselves – from Dar es Salaam, Tanzania (the “Requesters”). The Request alleges that the Project has caused significant harm to the Requesters “through the improper implementation of the compensation and resettlement process” as part of the Project’s efforts to conduct preventative resettlement of low-income flood-prone communities in the lower Msimbazi River Basin.  

The Panel registered the Request on May 29, 2026, and Management submitted its Response to the Request on June 30, 2026. Management asserted that the Bank correctly applied its policies and procedures applicable to the Project and to the matters raised in the Request. Management recognizes that the RAP and its entitlement framework are complex and may not be easily understood by the Project Affected People (PAP). To address the complexity of the RAP and its entitlement package, Management proposed to work with the Borrower to undertake the following actions prior to the commencement of civil works: developing and implementing an enhanced outreach and communications plan, conducting a third-party audit of the RAP implementation, and updating the RAP to provide further clarity on its implementation.  

The Panel team visited Tanzania from July 15 to 22, 2026 to conduct the Panel’s eligibility assessment of the Request and the Requesters, and on August 14, 2026, the Panel submitted its Report and Recommendation to the Board, recommending an investigation into the allegations of:

i) lack of compensation for land and inadequate compensation for structures,  
ii) depreciation being applied to the valuation of non-land assets and the related possible lack of clarity regarding the valuation methodology,  
iii) whether businesses have been considered in the compensation for non-land assets,  
iv) inadequacy of stakeholder engagement and disclosure of information, and  
v) unresponsiveness of the grievance mechanism

The Panel considers these allegations to be plausibly linked to the Project and may constitute significant harm and potentially serious policy noncompliance. The Panel considers the actions proposed by Management too general in nature to address the claims raised by the Requesters.

Specifically, the Panel recommended an investigation into the Bank’s compliance with its Environmental and Social Standards (ESSs), particularly ESS1 (Assessment and Management of Environmental and Social Risks and Impacts), ESS5 (Land Acquisition, Restrictions on Land Use and Involuntary Resettlement) and ESS10 (Stakeholder Engagement and Information Disclosure).  

According to the 2025 Accountability Mechanism Resolution, within 30 business days from the Board approval, the Head of the Dispute Resolution Service will offer the Requesters and the Borrower the option of dispute resolution and inform the Board, the Panel and Bank Management whether the parties voluntarily agree to pursue dispute resolution.

Learn more about the case here.