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Investigation of World Bank Adherence to its Policies and Procedures ( October 23 ,1997 )

Contact: Antonia M. Macedo: (202) 458-2597

Email: amacedo@worldbank.org

WASHINGTON, October 23, 1997-The Chairman of the independent Inspection Panel yesterday announced Mr. Ernst-Günther Bröder as lead Inspector and the Panel's agreed initial work plan for the limited investigation into the Bank's policy violations in the design and supervision of implementation of the NTPC Thermal Power Generation Project in Singrauli, India.

The World Bank's Board of Directors on September 11, 1997 agreed that in light of the conclusions and recommendation by the Panel, bearing in mind the preliminary review already undertaken by the Panel, an investigation should be conducted at the Bank's Headquarters in Washington to further determine the extent to which the Bank adhered to its own policies and procedures under the project.

Within the restrictions of this Board decision, the Panel's initial work plan shall further analyze its findings set out in its July 24, 1997 "Report and Recommendation to the Executive Directors." This will include:

a review of relevant material in Washington to further determine to what extent the Bank has failed to comply with policies and procedures on:

Involuntary Resettlement (OD 4.30) which Management claims to have complied with "substantially".Environmental Assessment (OD. 4.01) which Management claims to have complied with "partially".Indigenous Peoples (OD 4.20) which Management claims to have complied with "fully."Participation of and consultation with affected people in relation to the above.Bank Supervision (OD 13.05) which Management claims to have complied with "substantially"a review of those September 2, 1997 updated corrective actions proposed by Management, which respond to the Panel's findings in its Report and Recommendation of July 24, 1997.

The Panel will deliver a report on this investigation in December.

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The project, partly supported by a World Bank loan of US$400 million included measures to relocate people displaced and environmental management according to tough World Bank policy standards.

On April 25, 1997 a group of people living in the project area had filed a Request for Inspection claiming that they had suffered harm because they had not been resettled in accordance with Bank policies. Bank management acknowledged that adherence to its policies on involuntary resettlement, environmental assessment and project supervision had been incomplete. In its preliminary review of the situation the Panel found evidence on the ground of harm and concluded that it appeared to result from the Bank's shortcomings. The Panel on July 24, 1997 recommended that the World Bank Board authorized an investigation. Before the Board met to make its decision the Bank Management on September 2, 1997 presented to the Board an Updated Action Plan to correct the problems raised in the Panel's Report and Recommendation.

Copies of the Inspection Panel's Report and Recommendation on the Request for Inspection on the NTPC Thermal Power Generation Project in Singrauli, India are available from the World Bank's Public Information Centers and from the World Bank Office in New Delhi. About the Inspection Panel

The independent Inspection Panel was established by the Executive Directors in September 1993 to help ensure that Bank itself adhered to its own operational policies and procedures. Its establishment enables any group of individuals-who consider they may or might be harmed by Bank-supported projects-to ask the Panel to investigate their complaints that the Bank has failed to abide by its policies and procedures.

Detailed guidance for filing requests is provided in the Panel's Operating Procedures. These are available from the Panel's office in Washington, DC, the Bank's Bookstore, and the Public Information Center in Washington, DC, the Bank's offices in London, Paris, and Tokyo, field offices, and on Internet (http://www.worldbank.org/html/ins-panel/INS-PANEL.html).

In Washington contact:

World Bank Public Information Center

1818 H Street, NW , Washington, DC 20433

tel: (202) 458-5454; fax: (202) 522-1500