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The Inspection Panel Investigation Report 20739 The Inspection Panel Investigation Report The Qinghai Project A Component of the China: Western Poverty Reduction Project (Credit No. 3255-CHAand Loan No. 4501-CHA) April 28, 2000 l I INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION 3 THEINSPECTION PANEL 1818 H Street,N.W. Telephone:(202) 458-5200 Washington, D.C. 20433 Fax (202) 522-0916 Intemet: http://www.worldbank.orglinspectionpanel Jim MacNeill,Chairman Edward S. Ayensu Maartje van Putten INSP/R2000-4 I [Reprinted June 23, 2000] IPN REQUEST RQ99/3 April 28, 2000 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND ALTERNATES 3 SUBJECT: The InspectionPanel InvestigationReport CHINA: Western Poverty Reduction Project (Credit No. 3255-CHA and Loan No. 4501-CHA) Pursuant to paragraph 22 of the IBRD Resolution 93-10 and IDA Resolution 93-6 establishing the Inspection Panel, and paragraph 53 of the Panel's Operating Procedures, and in I accordance with the terrns of the decision of the Board of Executive Directors dated September 9. 1999 that authorized the investigation, please find attached the above-referenced Report. I The Report concludes that Management is substantially in compliance with the provisions of Annex B of OD 4.00 (Environmental Policy for Dam and Reservoir Projects), OP/BP 4.37 (Safety of Dams), BP 10.00 (Investment Lending: Identification to Board Presentation), and OP/BP 12.10 (Retroactive Financing), but is in apparent violation of several provisions of OD 4.01 (Environmental Assessment), OD 4.20 (Indigenous Peoples), OD 4.30 (Involuntary I Resettlement); OP 4.09 (Pest Management), OP 10.00 (Investment Lending: Identification to Board Presentation), and BP 17.50 (Disclosure of Information). 5 Please be advised that a copy of the Report has today been delivered to the President of IBRD and IDA, and that according to paragraph 23 of the Resolutions that established the Panel "within six ; eeks from receiving the Panel's findings, Management will submit to the Executive I Directors for their consideration a report indicating its recommendations in response to such findings." It is our fervent hope that our Report and findings will be of value to the Bank. I .\ ,C ,sŽi\ XfAtc5X | ~~Attachmnent *~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. l About the Panel The InspectionPanel was created in September 1993 by the Board of Executive 3 Directors of the World Bank to serve as an independent mechanismto ensure accountabilityin Bank operationswith respect to its policies and procedures. The InspectionPanel is an instrumentfor groups of two or more private citizens who I believethat they or their interestshave been or could be harmedby Bank-financed activities to present their concerns through a Request for Inspection.In short, the | Panelprovides a link betweenthe Bank and the peoplewho are likelyto be affectedby the projectsit finances. I Membersof the Panelare selected"on the basis of their abilityto deal thoroughlyand fairly with the requestbrought to them, their integrityand their independencefrom the Bank's Management,and their exposure to developmentalissues and to living conditionsin developingcountries."' The three-memberPanel is empowered,subject to Board approval,to investigateproblems that are allegedto have arisen as a result of the Bank havingignored its own operatingpolicies and procedures. I Processing Requests After the Panelreceives a Requestfor Inspectionit is processedas follows: I * The Panel decides whether the Request is prima facie not barred from Panelconsideration. I . The Panelregisters the Request-a purelyadministrative procedure. * The Panelsends the Requestto Bank Management,which has 21 working- 3 days to respondto the allegationsof the Requesters. * The Panel then conductsa short 21 working-dayassessment to determine the eligibilityof the Requestersand the Request. I . If the Panel does not recommend an investigation,and the Board of Executive Directors accepts that recommendation,the case is considered closed. The Board,however, may approvean investigationagainst the Panel's recommendationif it so warrants. Three days after the Board decides on whether or not an investigation 3 should be carriedout, the Panel'sReport (includingthe Requestfor Inspection and Management'sResponse) is publiclyavailable at the Bank's InfoShopand the respectiveBank CountryOffice. IBRD Resolution No. 93-10: IDA Resolution No. 93-6. I l * If the Panel recommendsan investigation,and the Board approves it, the Panelundertakes a full investigation,which is not time-bound. * When the Panel completes an investigation, it sends its findings and I conclusionson the matters alleged in the Requestfor Inspectionto the Board as well as to Bank Management. * The Bank Managementthen has six weeks to submit its recommendations to the Board on what actionsthe Bank would take in responseto the Panel's findingsand conclusions. I * The Board then takes the final decisionon what should be done based on the Panel'sfindings and the Bank Management'srecommendations. Three days after the Board's decision, the Panel's Report and Management's Recommendationare publicly available through the Bank's InfoShopand the respectiveCountry Office. I l I I I I I l I I I l l iv N Acknowledgements When the Board of ExecutiveDirectors of the World Bank decided on September9, 1999 to ask the Inspection Panel to conduct an investigation of the Qinghai component of the China: Western Poverty Reduction Project, the multifaceted nature of the assignment was only dimly appreciated. The issues ranged from seemingly mundane and simple to some of the most complex and difficult that the Panel has encounteredover the past five years of its existence. The Panel could not have undertaken and completed the investigationwithout the very kind assistance of a large number of people in Washington, D.C., Beijing, Qinghai and elsewhere, and it wishes to acknowledge this and express its appreciationfor their cooperationand support. The Panel wishes to thank especially the Requesters,other NGOs and individuals for their assistance, and for the hundreds of people it met in the Project areas who sharedtheir hopes and aspirationsand, in some cases,their homeswith us. The Bank staff involved in this Project are an exceptional group of people. Under the Resolutionestablishing the Panel, the Bank and the Bank alone is the object of this and any investigation. Even though staff members were under the spotlight, they worked long and hard to respondto the Panel's many requests for documents and other informationand they patiently and often eloquently expressed their own assessment of the Project in interviews. The Director and staff of the Bank's ResidentMission China could not have been more helpful and the Panel wishes to recognizetheir enterprise,hospitality and assistancethroughout the investigation. The Panel also wishes to thank the ExecutiveDirector representingChina and his office for their advice and assistance especially concerning the field visits. The Chinese Governmentofficials in Beijing (including those of the Ministry of Finance, the State Ethnic Minorities Commission,and the State Council Leading Group on PovertyAlleviation) were very helpful in assisting the Panel to place the Project in the broader context of Chinese Governmentpolicies. Specialthanks are also due to the Qinghai Provincial Government staff in Xining, especially the Executive Vice Governor of Qinghai, the Provincial Project Management Office and the Qinghai Research Institute of Plateau Geography, including the social and environmental staff, for their generous assistanceand for creating a congenial atmospherefor the InspectionTeam during its visits to the Project areas. l l v~~ Representativesand officials of the following embassiesin Beijing deservea special word of gratitude for sharing with the Panel Members their views and insights: Australian Embassy, British Embassy,Canadian Embassy, European Commission I Delegation, French Embassy, German Embassy, Swiss Embassy, and the U.S. Embassy. The Panel also wishes to thank the staff in the Beijing offices of the United Nations Development Programme (UNDP), the United Nations Office for Project Services (UNOPS), the Development Cooperation office for the European Commission Delegation, Australian Development Cooperation, World Food Programme, Ford Foundation,and other organizationswho helped the Panel Team to compare this Project with poverty alleviation projects undertaken in Qinghai Province by other internationalaid donors and organizations. The Panel wishes to express its appreciationand admirationto the membersof its own Team; our consultantsVernon Heywood, Richard Fuggle, Paul Taylor, Robert Wade and RichardTillman, and our Chinese,Mongol and Tibetan interpreters. The Panel owes a debt of gratitudeto EduardoG. Abbott, Antonia M. Macedo, and Claudio L. Vasconcelos for their expert and professional assistance during the preparation of this Report. The Panel also wishes to thank Pamela Fraser and NimanthiA. Attapattufor their logisticalsupport. Finally, the Panel could not have completed this investigation without the kind assistance and guidance of many people. They should share any credits given to this work but, of course, the Inspection Panel remains solely responsible for its findings, and conclusions. Photo Credits: Eduardo Abbott: Figs. 2a. 8a-b, 13a, 22, 25b; Edward S. Ayensu: Figs. 1, 2 b, 3, 4a-b, 5, 6, 7, 9a-b, lOa-d, I Ia- d, 12a-d, 13b, 14a-b, 16, 17, 18, 19, 20. 21, 23, 24, 25a; Vernon Heywood: Fig. 15. I I vi Table of Contents I I About
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