The Requesters alleged that a project designed to protect the local ecosystem was in fact having the opposite effect—in particular, that the construction of roads was facilitating deforestation and environmental degradation.
Management asserted that the alleged harm was not caused by any failure on the part of the Bank but was the fault of the borrower.
Although the Panel recommended an investigation, the Board felt that the degree of harm alleged was unclear. The Board directed the Panel instead to conduct a special factual review of the issue. The Panel was asked to assess allegations that the project, designed to benefit local communities and indigenous peoples and the fragile natural environments they depended on for their livelihood, had not been adequately implemented.
The Panel’s second report confirmed that extensive environmental harm had been caused in the project area and noted that Management’s failure to properly supervise the project “had undoubtedly contributed” to the damage.
Inspection Panel process completed.
Policies and Procedures raised in Request:
- Project supervision (OD 13.05)
- Forestry (OP 4.36)
- Wildlands (OPN 11.02)
- Indigenous peoples (OD 4.20)
- Involving nongovernmental organizations in Bank-supported activities (GP 14.70)
- Project monitoring and evaluation (OD 10.70)
- Investment lending—identification to the Board presentation (BP 10.00)
- Suspension of disbursements (OD 13.40)
- Accounting, financial reporting, and auditing (OD 10.60)
- Procurement (OD 11.00)
- Use of consultants (OD 11.10)
- Borrower compliance with audit covenants (OD 13.10)
