Board approves Panel recommendation to investigate whether the Bank has observed its policies and procedures in the Kenya Lake Victoria Environmental Management Project

WASHINGTON, April 10, 2000¯The World Bank's Board of Executive Directors has approved the independent Inspection Panel's recommendation for it to conduct an investigation into aspects of the Lake Victoria Environmental Management Project in Kenya. The Executive Directors' decision was taken on a no -objection bases. The Panel will be making the plans for its investigation in the near future.

The Panel report concluded (1) that the Request for Inspection met all eligibility criteria required under the Resolution establishing the Panel; and (2) that the Request for Inspection and the Management Response to it "contain a wide range of conflicting assertions and interpretations about issues, the underlying assumptions, the facts, compliance and harm." The Panel therefore recommended that the Executive Directors authorize an investigation "into the matters alleged in the Request." The Panel will looking into whether or not the Bank has observed its own policies and procedures on, inter-alia, Environmental Assessment (OD 4.01), Poverty Alleviation (OD 4.15), Economic Evaluation of Investment Projects (OP 10.04), and on Project Supervision (OD 13.05).

The Panel's report was prepared in response to a Request for Inspection submitted by RECONCILE (Resources Conflict Institute), a Kenyan non- governmental organization, acting for and on behalf of persons in the area known as the Nyanza Gulf of Lake Victoria within the Republic of Kenya (the Requesters). RECONCILE is also authorized to represent OSIENALA (Friends of Lake Victoria) an NGO located in Kisumu, and the Kenya Chapter of Ecovic (the East African Communities Organization for Management of Lake Victoria Resources) who represent communities living along the Kenya side of Lake Victoria.

The Requesters claim that the communities they represent are likely to suffer harm as a result of failures and omissions of IDA and the International Bank for Reconstruction and Development (the Bank)--the implementing agency of the GEF--in the design and implementation of the water hyacinth management component (Part B) of the Project in Kenya.

1. Specifically, the Requesters claim that the proposed use of a mechanical method of shredding water hyacinth and letting it sink to the bottom of the Lake will result in ecological decay and environmental degradation that, in turn, will adversely affect communities living on the shores at the Nyanza Gulf. These communities depend directly on the Lake for their livelihoods, since the Gulf is home to fresh water fish and the source of water for domestic use and these, and the ecosystem, will be endangered by the resulting pollution.

They claim that the method was selected without a prior Environmental Impact Assessment (EA) or appropriate community consultation, as required by the loan documents.

Copies of the Inspection Panel Reports are available on the Panel's web site and from the World Bank's InfoShop, Public Information Centers in Paris and Tokyo, and the Bank's field office in Beijing. In Washington: World Bank InfoShop, 1818 H Street, NW, Washington, DC 20433 tel.: (202) 458-5454; fax: