THE REQUEST
The Request for Inspection was submitted on October 1, 2020, by 10 community members from Omolokony Village, Uganda, who asked the Panel to keep their identities confidential. The Requesters claimed that the Project planned to use Oruja Rock, a large rock located near their village, at the Merok site—as a stone quarry for rehabilitation of the Tororo–Kamdini Road. They contended that the valuation of Oruja Rock had not been done properly, that they were coerced into signing 10-year lease agreements, and that the compensation received was insufficient. They also alleged that some of their crops, trees, and structures had been destroyed by Project land-clearing activities in the zone surrounding Oruja Rock, stating this process took place without prior notice or adequate compensation for losses incurred. They raised concerns about the non-disclosure of Project-related information. Finally, they alleged coercion, intimidation, and reprisals resulting from these issues. The Panel registered this Request on November 9, 2020.
MANAGEMENT RESPONSE
Management submitted its Response on December 11, 2020. It stated that some of the concerns raised by project-affected persons regarding Oruja Rock, the potential impact of quarry operations, and intimidation had been addressed, that the site would not be used as a quarry for the Project, and that the Project contractor’s staff and equipment had been demobilized. Management stated that it had informed the Uganda National Roads Authority (UNRA) that all works under the Project—with the exception of emergency works along the road corridor—would be suspended until several issues were resolved to the Bank’s satisfaction. Management stated that the Bank had made every effort to apply its policies and procedures to the issues raised in the Request and that it had asked the Borrower to take specific steps to address these issues in line with the project loan agreement.
PANEL RECOMMENDATION/BOARD APPROVAL/REFERRAL TO DISPUTE RESOLUTION
On February 26, 2021, the Panel recommended an investigation to the Board, which approved the Recommendation on March 12, 2021.
PANEL INVESTIGATON
The Panel submitted its Investigation Report to the Board on May 3, 2022. Immediately thereafter, the Panel team traveled to Uganda and shared its findings with the Requesters so that they could meaningfully engage with Management during its MAP development process.
The Investigation included five key findings and points. First, the Panel found the choice of frameworks to manage environmental and social (E&S) risks was justified. However, it noted that while the framework documents covered the basics, they did not address site-specific safeguard measures for acquiring quarry sites. The Environmental and Social Management Framework and Resettlement Policy Framework had several gaps, including the description of Uganda’s legal and policy frameworks, land acquisition by a private entity, the potential willing-seller-willing-buyer scenario versus application of the Involuntary Resettlement Policy (OP/BP 4.12), and E&S safeguard management. In this case, the contractor claimed that land acquisition was on a willing-seller-willing-buyer basis, while Bank Management maintained that the Involuntary Resettlement Policy (OP/BP 4.12) should have applied to land acquisition for quarries.
Second, during the negotiation of the Output Performance-based Road Contract (OPRC) between UNRA and the contractor, the key clause, 10.1, was modified with a no objection from Management. This had implications for the contractor’s responsibilities regarding application of the E&S requirements. The Panel found that the Bank’s no objection to the negotiated Clause 10.1 enabled the contractor to carry out activities and works at the proposed Merok quarry site prior to the preparation of safeguard documents, adversely affecting the community.
Third, this OPRC has a multi-level contracting structure. The Panel observed that the decision to adopt an OPRC modality for the Project was well-founded and aligned with the Project objectives. However, the Investigation Report concluded that when responsibility for implementing safeguards lies with various entities at different levels throughout the contracting line, a well-defined process is needed to help each entity understand the E&S risks and obligations pertaining to Bank policies, and that adequate capacity must exist to implement the safeguards along the entire contracting line. In this Project, poor contract management strategy created gaps of responsibility, leading to instances of non-compliance with the Bank’s E&S requirements and ultimately harming the project-affected persons (PAPs).
Fourth, the Bank’s decision to exclude the proposed Merok quarry site lacked basic analysis of potential impact on the PAPs, and the stakeholders were not consulted. The absence of a responsible disengagement or exit strategy further exacerbated the harm to the Requesters.
Lastly, the Panel noted the lack of urgency in addressing the impact caused by non-compliance observed by the Bank. The supervising engineer recorded several grievances from the community in October 2018. Approximately eight months after the land clearance activities, in November 2019, Management mentioned commissioning an independent E&S audit at the Merok quarry site to assess the impact of the contractor’s non-compliance. It was only after the Request was registered by the Panel that this audit was commissioned. When the Panel concluded its Investigation in May 2022, the audit had yet to be finalized.
MANAGEMENT ACTION PLAN
Management consulted the community and prepared a MAP agreed by UNRA, and on June 15, 2022, submitted to the Board its Report and Recommendation in response to the Panel’s findings. The MAP included compensation for the unaddressed damage to assets at the Merok site, informed by the Social Audit commissioned by the Bank, which will specifically include PAPs excluded from the original lease agreements, but who nonetheless suffered damage and disturbances as a result of contractor activities. UNRA will advise the contractor of its breach of Clause 10.1 and of the contractual remedies that UNRA may invoke as a result of that breach, and will instruct the contractor in writing to comply with the clause for the remainder of the Project. UNRA will review and update the Project’s Resettlement Policy Framework (RPF) in line with OP 4.12 in order to improve the acquisition process for quarries, including what qualifies as a willing-seller-willing-buyer transaction that falls outside the scope of OP 4.12. UNRA will review the Project’s existing reporting system between the Bank, UNRA, supervising engineers, and contractors, and identify areas for further improvement.
The Board met on September 30, 2022, to consider the Panel’s Investigation Report and approved the MAP. On March 16, 2023, Management submitted the initial and final progress report on MAP implementation to the Board, highlighting the successful completion of all the agreed actions outlined in the MAP.
The Panel’s Investigation Report (and an executive summary in the Kumam language), the Management Report and Recommendation including the MAP, and Management’s progress report can be found on the Panel’s website.
Learn more about the case here.