Board Approves Panel Recommendation to Investigate Khyber Pass Economic Corridor Project in Pakistan
The World Bank Board of Executive Directors on October 11, 2024, approved an Inspection Panel’s recommendation to investigate the Khyber Pass Economic Corridor Project in Pakistan.
On June 1, 2024, a Request for Inspection was submitted, signed by 448 individuals living in the area that is considered for the Project in Khyber Pakhtunkhwa Province, Pakistan (the “Requesters”).
The Request raises five main concerns specific to the design and route alignment of a new four-lane road to be constructed as part of the Project, the Southern Link Road (SLR). First, the Request raises concerns about the impact of the road alignment on land take and displacement, Project-affected people losing livelihoods, the determination of adequate compensation, and the prospect of delayed receipt of compensation payments based on previous experience with another project in the area. Second, it raises concerns that the road supported by the Project will heighten tensions, conflicts, and violence in the area considered for the Project. Third, it contends that the SLR’s design, particularly the indicated elevation levels of the road, will impact traditional, cultural practices and damage physical, cultural resources. Fourth, it claims that community members and elected members of local authorities were neither informed nor meaningfully consulted about the construction of the SLR, including the road’s proposed alignment, its viability, and its economic benefits. Fifth, the Requesters raise concerns about environmental and noise pollution worsening because of the SLR, and they claim the publicly disclosed Project documents lack feasible solutions to these concerns.
The Panel registered the Request on July 8, 2024. Management submitted its response to the Request and an Addendum on August 9 and September 17, 2024, respectively. A Panel team visited Pakistan August 18-23, 2024, to inform its eligibility assessment. The Panel submitted its Report and Recommendation to the Board on September 27, 2024, with the recommendation to carry out an investigation into the alleged issues of harm and related non-compliance with Bank policies and standards. The Board approved the Panel’s recommendation on October 11, 2024.
Under the updated Inspection Panel resolution and the resolution creating the World Bank Accountability Mechanism (AM), the complainants and the Borrower are offered the option of dispute resolution. The AM Secretary will inform the Board, the Panel and Bank Management within 30 business days whether the parties have voluntarily agreed to pursue dispute resolution. More