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Chad-Cameroon Petroleum and Pipeline Project (Loan No

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Chad-Cameroon Petroleum and Pipeline Project (Loan No The Inspection Panel Investigation Report Chad-Cameroon Petroleum and Pipeline Project (Loan No. 4558-CD); Petroleum Sector Management Capacity Building Project (Credit No. 3373-CD); and Management of the Petroleum Economy (Credit No. 3316-CD) i About the Panel The Inspection Panel was created in September 1993 by the Board of Executive Directors of the World Bank1 to serve as an independent mechanism, which would ensure accountability in Bank operations with respect to its policies and procedures. The Inspection Panel is intended to be an instrument whereby groups of two or more citizens who believe that they or their interests have been or could be harmed by Bank-financed activities can present their concerns through a Request for Inspection. The Panel thus provides a link between the Bank’s highest governing body (the Board) and the people who are likely to be affected by the projects it finances. Members of the Panel are selected “on the basis of their ability to deal thoroughly and fairly with requests brought to them, their integrity and their independence from the Bank’s Management, and their exposure to developmental issues and to living conditions in developing countries.”2 The three-member Panel is empowered, subject to Board approval, to investigate problems that are alleged to have arisen as a result of the Bank having ignored its own operating policies and procedures. The Panel focuses on the Bank, not the Borrower. Its findings, which are presented in its Investigation Report, are sent to the World Bank Board of Directors. To date, the Panel has dealt with over 26 Requests for Inspection, including eight from Africa, seven from South Asia, nine from Latin American, and two from East Asia and the Pacific regions. While the majority of the cases brought before the Panel alleged violation of the Bank’s social and environmental policies (Figure 1 below indicates the number of alleged violations to such policies), others related to Bank policies on Project Supervision, Poverty Reduction, Economic Analysis, and Disclosure of Information have also been raised by Requesters. Figure 1: Alleged Violations of Social and Environmental Policies August 1994 to June 2002 Environmental Assessment 16 Involuntary 14 Resettlement 12 Indigenous People 10 Number of 8 Forestry Allegations 6 4 Cultural Property 2 Pest Management 0 EA IR IP For CP PM SD Safety of Dams World Bank Policies 1 Unless the context otherwise indicates, reference to the Bank includes IBRD and IDA. 2 IBRD Resolution No. 93-10; IDA Resolution No. 93-6. ii PROCESSING REQUESTS When the Panel receives a Request for Inspection, it is processed as follows: 1. The Panel decides whether the Request is prima facie3 not barred from its consideration. 2. The Panel registers the Request—a purely administrative procedure. 3. The Panel sends the Request to Bank Management, which has 21 working days to respond to the allegations of the Requesters. 4. On receipt of Management’s response, the Panel conducts a short (21 working-day) assessment to determine the eligibility of the Requesters and the Request. 5. If the Panel does not recommend an investigation, and the Board of Executive Directors accepts this recommendation, the case is considered closed. The Board, however, may approve an investigation against the Panel’s recommendation. 6. Three days after the Board decides on whether or not an investigation should be carried out, the Panel’s Report (including the Request for Inspection and Management’s Response) is made publicly available at the Bank’s InfoShop and the respective Bank Country Office. 7. If the Panel recommends an investigation, and the Board approves it, the Panel undertakes a full investigation, which is not time-bound. 8. When the Panel completes an investigation, it sends its findings and conclusions on the matters alleged in the Request for Inspection to the Board as well as to Bank Management. 9. Bank Management then has six weeks to submit its recommendations to the Board on what actions the Bank would take in response to the Panel’s findings and conclusions. 10. The Board thereafter takes the final decision on what should be done based on the Panel's findings and Bank Management's recommendations. 11. Shortly after the Board’s decision, the Panel’s Report and Management’s Recommendation are made available to the public through the Bank’s InfoShop and the respective Country Office. 3 Requests that are clearly outside the Panel’s mandate such as requests concerning projects with no involvement of the Bank, matters related to procurement decisions of the Bank or the borrower, etc. iii Acknowledgements The Panel had the opportunity to consult with the Executive Director and Alternate Executive Director representing Chad throughout the investigation process, including before and after the field visits to Chad, and wishes to convey its gratitude to them and their staff for their advice and assistance. It also wishes to thank the Requesters, the Government officials who gave freely of their time in N’Djaména and in the Project areas, the representatives of NGOs, and other local individuals who met with the Panel. It also extends thanks to the staff of ExxonMobil and Esso Exploration and Production Chad, Inc. and the Bank’s Resident Representative and his staff at the World Bank Office in N’Djaména for giving of their time and for providing logistical support during the field visit. Special thanks are due to former and current Bank staff, including IFC staff, associated with the Projects dealt with in this Report. Bank staff, in Washington D.C. and Chad, cooperated fully with the Panel. The Panel Members also wish to thank its consultants: Dr. Elliot M. Fratkin, Dr. Peter J. G. Pearson, and Mr. Miles Scott-Brown, as well as Mr. Serge Selwan and Ms. Alka Kothari, who provided the Panel with valuable insights and assistance as well as logistical support. Finally, the Panel wishes to express its thanks and appreciation to members of its Secretariat for their expert and professional support during the preparation of this Report. The Panel also wishes to express its thanks to Ms. Roopa Sukthankar for her assistance with translation during its missions to Chad. iv Abbreviations and Acronyms ACCORD Association for Cooperation and Development Research ASOSRP Area Specific Oil Spill Response Plan ASTM American Society for Testing and Materials BP Bank Policy CAR Central African Republic CPPL Commission Permanente Pétrole Local CTNSC Comité Technique National de Suivi et de Contrôle - National Technical Committee for Monitoring and Evaluation of the Pipeline Project COTCO Cameroon Oil Transportation Company, S.A. EA Environmental Assessment ECMG External Compliance Monitoring Group EMP Environmental Management Plan FACIL Fonds d’Actions Concertées d’Initiative Locale - Local Initiatives Social Fund GOC Government of Chad GOSRP General Oil Spill Response Plan GHG Greenhouse Gases HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome IAG International Advisory Group IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation IRR Internal Rate of Return NGO Non-Governmental Organization NPV Net Present Value OD Operational Directive OP Operational Policy OPN Operational Policy Note OSRP Oil Spill Response Plan PAD Project Appraisal Document RDP Regional Development Plan STD Sexually Transmitted Disease TOTCO Tchad Oil Transportation Company, S.A. UNDP United Nations Development Programme WHO World Health Organization v TABLE OF CONTENTS ABOUT THE PANEL ......................................................................................................................II PROCESSING REQUESTS ............................................................................................................... III ACKNOWLEDGEMENTS...............................................................................................................IV ABBREVIATIONS AND ACRONYMS............................................................................................... V TABLE OF CONTENTS .................................................................................................................VI EXECUTIVE SUMMARY ...............................................................................................................IX INTRODUCTION ............................................................................................................................IX ENVIRONMENTAL COMPLIANCE.................................................................................................... X SPECIFIC ENVIRONMENTAL CONCERNS.......................................................................................XII SOCIAL COMPLIANCE..................................................................................................................XV ECONOMIC COMPLIANCE ..........................................................................................................XVII PROJECT MONITORING AND SUPERVISION ..................................................................................XX PART ONE: INTRODUCTION............................................................................................... 2 1. PROJECTS EXAMINED IN THIS REPORT: CHAD CAMEROON PETROLEUM AND PIPELINE PROJECT (LOAN NO. 4558-CD); PETROLEUM SECTOR MANAGEMENT CAPACITY BUILDING PROJECT (CREDIT NO. 3373-CD); AND MANAGEMENT OF THE PETROLEUM ECONOMY (CREDIT NO. 3316-CD)..............................................................................................................
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