The Request raises concerns regarding the implementation of the Bank-financed Tanzania: Msimbazi Basin Development Project (P169425), with Requesters alleging that the Project has caused significant harm to them and their community because of improper implementation of the compensation and resettlement process.
The Request alleges that a number of affected persons have not received compensation, despite their properties having been identified during the valuation process. It alleges that affected households have lost their land, building rights, and livelihoods without receiving lawful compensation as required under the Project’s Resettlement Action Plan (RAP) and applicable standards. This has caused serious economic hardship, insecurity, and loss of property for the affected families. The Request adds that compensation is currently being calculated using a flat-rate system that does not reflect actual market value, and that this is resulting in unfair and inadequate compensation for the affected persons. In addition, the Request alleges that the offered compensation packages included a depreciation factor for the valuation of structures and this is not in accordance with the Bank's policy.
The Panel conducted its initial due diligence for the Request and met with the Requesters on April 17 and May 14, 2026, and with Bank Management on May 19, 2026. The Panel determined that the Request meets all applicable admissibility criteria and on May 29, 2026, the Panel registered the Request. On June 28, 2026, Management submitted its Response to the Request for Inspection.
The Panel team visited Tanzania from July 15 to 22, 2026 to inform the Panel’s eligibility assessment, and on August 14, 2026 the Panel submitted its Report and Recommendation to the Board, recommending an investigation. 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).
On September 8, 2026, the World Bank’s Board of Executive Directors approved, on absence of objection basis, the Inspection Panel’s recommendation. According to the 2025 Resolution of the Accountability Mechanism, within 30 business days, 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.
