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p. 25 of 29 BACK | NEXT I. Key Aspects II. Inspection Procedures A. Introduction B. Scope of the Policy C. Structure of the Policy D. Parties Who Can Request an Inspection E. Requests That Can Be Entertained F. Processing of a Request for Inspection 1. Overview 2. Initial Complaint to Management 3. Management's Response to an Initial Complaint 4. Request for Inspection 5. Preliminary Review of the Request 6. Inspection by a Panel of Indepedent Experts 7. Consideration of the Panel's Report G. General Diagram of Inspection Process III. Sample Forms

ADB's Inspection Policy: A Guidebook : II. Inspection Procedures : F. Processing of a Request for Inspection

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Inspection by a Panel of Independent Experts

45. If the Board authorizes the inspection of a project based on a Request, the Committee will meet promptly after the Board's decision to select a panel of experts (the Panel) from the Roster to carry out the inspection, and to develop terms of reference for the Panel. SEC will assist the Committee in confirming the availability of the experts selected, in providing them with terms of reference and background materials, and in making travel and other arrangements for the experts in connection with the inspection.

46. A Panel will ordinarily be composed of three experts from the Roster, who will be selected on the basis of their aptitude to deal with the matter and their availability. An expert from the Roster may not serve on a Panel if the inspection to be conducted relates to a matter in which the expert has a personal or financial interest, which may be related to the country of which he/she is a citizen, or as to which the expert might otherwise appear to have a conflict of interest. In confirming the availability of each expert selected by the Committee, SEC will request the expert to confirm in writing that he/she does not have a conflict. If any of the selected experts has a conflict, SEC will promptly inform the Committee, which will select a substitute expert from the Roster to serve on the Panel.

47. The terms of reference developed by the Committee for the Panel will be based on the Board's decision with respect to the Request, as well as the general scope of the Policy and these Procedures, and will ordinarily include a proposed budget and timetable. Among other things, the terms of reference will specify that:

    1. the scope of the inspection extends only to the Bank's operational policies and procedures, and therefore the policies and procedures of other development finance institutions would be relevant only to the extent the Bank's own policies and procedures expressly refer to those of other institutions;

    2. for similar reasons, the laws, policies and regulations of a borrowing member country or executing agency should be considered only to the extent directly relevant to the Bank's compliance with its operational policies and procedures;

    3. the focus of the inspection is on the Bank's conduct, and therefore the conduct of parties other than the Bank should be considered only to the extent directly relevant to assessing the Bank's compliance with its operational policies and procedures; and

    4. due consideration should be given to the exercise of professional judgment by the Bank's Management, staff and consultants in interpreting and applying the Bank's operational policies and procedures.

48. Subject to these terms of reference, the Panel members may select from among themselves a Chairperson, and may determine the internal procedures they wish to follow in carrying out the inspection. SEC will provide secretariat services to the Panel.

49. Ordinarily, a Panel will meet promptly after its selection to review its terms of reference and to develop an initial work plan for the inspection. The Panel will submit its proposed work plan to the Committee for review and comment. If the Panel determines that it does not possess all the technical expertise required to conduct the inspection, it may propose the engagement of one or more consultants to the Chairman of the Committee for approval, indicating the type of expertise required, the work to be done and the likely duration of the assignment. If necessary, the Committee will meet with the Panel to clarify aspects of the proposed work plan and discuss the need for consulting services or other special arrangements.

50. If the Committee approves a Panel's proposal to engage a consultant, the Panel will prepare and rank a short list of candidates in consultation with SEC and the Consulting Services Division. From the Panel's ranked short list, the consultant will be engaged in accordance with the Bank’s standard procedures relating to staff consultants.

51. In conducting an inspection, a Panel will have access to all concerned Bank staff and pertinent Bank documents, and may consult as necessary with officers or staff from relevant Departments and Offices, as well as Management. The General Counsel will be responsible for providing, to the Committee or any Panel, advice concerning the Bank's legal status, rights and obligations under the Articles of Agreement Establishing the Bank and any agreement to which the Bank is a party.

52. As part of an inspection, a Panel may also visit the project area and meet with the requester, other local communities, organizations and groups, project managers and government officials in the country where the project is located (or in an adjacent member country, if relevant to the inspection). However, before the Panel or any of its consultants undertakes such activities, the Committee must confirm with the Director representing the relevant country that the government of the country has no objection. If the government objects to any such activities, the Panel will modify its work plan accordingly and carry out its review on the basis of reports and other information available to the Panel and the Bank.

53. In the performance of their functions, Panel members and their consultants will be entitled to enjoy the privileges and immunities accorded to experts performing missions for the Bank under the Articles of Agreement Establishing the Bank. In carrying out their activities, Panel members and their consultants will be required to adhere to the Bank's policy on confidentiality and disclosure of information.

54. During the course of its inspection, a Panel may request and/or accept additional information relevant to the inspection from the requester, Management or any other party.

55. A Panel will report periodically to the Committee on the progress of its inspection, and will advise the Committee promptly of any necessary changes in the Panel's work plan. If necessary, the Committee may also ask the Panel for interim reports.

56. At the conclusion of its inspection, a Panel will submit a written report to the Committee. The report will:

    1. identify all relevant facts;

    2. make a finding as to whether the Bank has complied with its operational policies and procedures in connection with the inspected project;

    3. in the event of noncompliance, make a further finding as to whether this noncompliance has resulted or may result in direct and material harm to the requester (or the group the requester represents); and

    4. make recommendations, if appropriate, for any remedial changes in the scope or implementation of the project.

57. A Panel should endeavor to arrive at its findings and recommendations by consensus. In the absence of consensus, its report will state the findings and recommendation(s), if any, of the majority together with the minority view.

58. Any information required to be kept confidential under the Bank's policy on confidentiality and disclosure of information will be segregated and submitted by the Panel to the Committee as a separate, confidential supplement to the Panel's report.

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