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Establishment of An Inspection Function : Proposal for an ADB Inspection Function
Processing of a Request for Inspection7(a) Management's Initial Consideration of a Grievance32. The grievance of an affected group concerning a proposed or ongoing Bank project will not be investigated unless it has first been raised with the Bank's Management. (This requirement also applies to a request for inspection of an ongoing Bank project made to the BIC by one or more Directors, as provided in paragraph 29). Initial complaints concerning Bank projects shall be submitted to the President. Within 45 days after receiving an initial complaint concerning a Bank project, Management shall complete its review of the grievance and provide the applicant with a formal response. This response, a copy of which will be furnished to the BIC, shall indicate what actions, if any, Management intends to take with respect to the complaint, and shall advise the applicant of its right to appeal Management's decision by filing a request for inspection with the BIC. 33. In the case of a project not yet circulated to the Board of Directors for consideration, any remedial steps proposed in Management's response will be taken into account in the relevant RRP presented to the Board for approval. If legal documents have already been negotiated with the relevant borrower or grant recipient, Management will obtain such party's consent to any necessary changes in the legal documents. If a project has already been approved by the Board, any remedial steps will be addressed through normal Bank procedures relating to changes in project scope or implementation arrangements (which require the consent of the relevant borrower or grant recipient, except as otherwise provided in the Bank's Loan Regulations or other relevant legal documents). (b) BIC's Preliminary Review of a Request34. Requests for inspection shall be filed with the BIC. If it is not shown that the grievance asserted in a request has been presented to Management, the BIC will promptly refer the request to Management for consideration as an initial complaint under the 45-day period described in paragraph 32 above. In all other cases, the BIC will promptly forward the request to Management for a written response, due within 30 days after Management's receipt of the request. However, if the BIC concludes that the request is clearly frivolous, it shall inform Management that a written response to the request is not required. 35. On the basis of its review of the request and Management's response (if required), the BIC will decide whether to recommend an inspection to the Board of Directors. In its deliberations, the BIC may consult with a member of the Roster designated for this purpose by the Chairperson of the BIC. If necessary, the BIC may also request additional information from the applicant or Management. If a request relates to a matter in which any member of the BIC has a personal or financial interest, which may be related to the country of which he/she is a citizen, or as to which he/she might otherwise appear to have a conflict of interest, such member must abstain from participating in the review of the request and any subsequent activities related to it. 36. Within 14 days after receiving Management's response to a request, the BIC shall submit a written recommendation to the Board of Directors (except that, if the BIC has requested additional information from the applicant or Management, the 14-day period will start from the date of receipt of such information or the date of receipt of Management's response, whichever is later, and if the BIC has informed Management that a written response to the request is not required, the 14-day period will start from the date that Management was so informed). In the absence of consensus, the recommendation will convey the majority finding together with the minority view. Prior to making a recommendation that an inspection is not warranted, the BIC must consult with a member of the Roster, and its recommendation to the Board of Directors must recite that such consultation has taken place. 37. The President shall place the BIC's recommendation on the agenda for Board consideration within 21 days after circulation of the recommendation to Board members. Within seven days after the Board's decision thereon' the BIC shall notify the applicant in writing of the Board's decision and, if the decision is that an inspection is not warranted, the reasons therefor. 38. The filing of a request for inspection, and the authorization of an inspection by the Board, will not suspend or otherwise affect the processing or implementation of a Bank project unless Management (in the case of a proposed or ongoing project) or the Board (in the case of an ongoing project) expressly directs otherwise. In exceptional circumstances, preliminary review of a request for inspection may, depending on the seriousness of the alleged violation of the Bank's operational policies and procedures and the extent of the possible harm caused or likely to be caused, suggest that interim measures should be taken to prevent or minimize such harm. In the case of a proposed project involving allegations of potential harm to a particular group, the urgency for interim measures is unlikely, and concerns relating to potential harm can be addressed at the time of Board consideration of the project for approval. In the case of an ongoing project, one interim measure would be for the Bank to suspend disbursements in respect of project activities pending an inspection of the project. However, this is an extraordinary step that would be authorized by the Board only in extreme circumstances, and after full consideration of the cost and other implications. Moreover, under Bank procedures, such a step would require the consent of the relevant borrower or grant recipient (except as otherwise provided in the Bank's Loan Regulations or other relevant legal documents). (c) Inspection by the Independent Panel39. In the event that the Board of Directors authorizes an inspection upon the recommendation of the BIC, the BIC will promptly select a panel (the Panel) from the Roster to conduct the inspection, and will provide the Panel with appropriate terms of reference and a suggested time period within which to conduct the inspection. A Panel will be composed of at least three individuals from the Roster, selected on the basis of.13 their aptitude to deal with the matter at hand. An individual from the Roster may not serve on a Panel if the inspection to be conducted relates to a matter in which he/she has a personal or financial interest, which could be related to the country of which he/she is a citizen, or as to which a conflict of interest might otherwise appear to exist. Subject to the terms of reference provided by the BIC, the Panel members may select from among themselves a Chairperson, and may determine the procedures to be followed to conduct the inspection and prepare their report. The Office of the Secretary will provide the Secretariat for the Panel. 40. In conducting an inspection, the Panel shall have access to all Bank staff and pertinent Bank records, and may consult as necessary with officers or staff from relevant Departments, Divisions and Offices, as well as Management. In the conduct of its activities, the Panel will be required to adhere to the Bank's policy on confidentiality and disclosure of information.8 If the Panel determines that it does not possess all the technical expertise required to conduct an inspection, it may propose the engagement of one or more consultants to the Chairperson of the BIC for approval.9 In the event that a cofinancing institution is conducting a separate inspection of the same project, the Panel, with the support of the BIC, shall coordinate its activities with those of the other inspection team to the extent appropriate. 41. The borrowing member country to which a Bank project under inspection relates, and the Director representing that country, shall be consulted during the inspection and given an opportunity to record its views. Any part of the inspection to be conducted by the Panel or its consultants in the territory of a borrowing country will be carried out only if the country has no objection. If the country raises an objection, the inspection nevertheless will continue to the extent feasible on the basis of reports and other information otherwise available to the Bank. 42. In the performance of their functions, Panel members will be entitled to enjoy the privileges and immunities accorded to experts performing missions for the Bank under the Bank's Charter. Panel members will be compensated for actual work performed, and reimbursed expenses, at a level or levels to be determined by the Board of Directors upon recommendation of the President. 43. In conducting an inspection, a Panel should endeavor to arrive at its findings and recommendations by consensus. !n the absence of consensus, the view of each member of the Panel shall be expressly stated. Each Panel shall submit a written report to the BIC, with a copy provided to Management. This report shall
In arriving at its findings, the Panel shall give due consideration 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 to the inspected project. Any information required to be kept confidential under the Bank's policy on confidentiality and disclosure of information shall be segregated and submitted as a separate, confidential supplement to the report. The complete report (excluding any such confidential supplement) shall be given to the applicant for inspection as provided in paragraph 44 below and will become publicly available as provided in paragraph 46 below. (d) Board Decision44. Management shall submit to the BIC a written response to a Panel's report within 30 days after receipt thereof. In the event the Panel finds that the Bank has failed to follow its operational policies and procedures, to the material detriment of the applicant, the BIC will consult with both Management and the Director representing the relevant country concerning remedial steps that can be taken to address this failure. Within 14 days after receiving Management's response to the Panel's report, the BIC shall submit the report and Management's response to the Board of Directors together with a recommendation on the matter. The President shall place the matter on the agenda for Board consideration within 21 days after circulation of the report, response and recommendation to Board members. Within seven days after the Board's consideration of the matter, the BIC shall provide the applicant with complete copies of the Panel's report, Management's response and any Board decision with respect thereto. 45. If a Panel report recommends changes in the formulation of a proposed project, Management shall discuss the Panel's recommendations, and any actions taken during project preparation in response to those recommendations, in the relevant RRP. If a Panel report recommends changes in the scope or implementation of an ongoing project, and the Board accepts the Panel's recommendations, Management shall implement these recommendations within the period designated by the Board as appropriate to the circumstances. Any remedial changes in project scope or implementation (or, if warranted, the suspension or cancellation of the project) will be carried out in accordance with applicable Bank procedures (which require the consent of the relevant borrower or grant recipient, except as otherwise provided in the Bank's Loan Regulations or other relevant legal documents). (e) Reporting46. It is proposed that upon completion of an inspection, the full text of the Panel's report (excluding any confidential supplement), Management's response, the BIC's recommendation and any Board decision thereon will be made publicly available at the same time that those documents are provided to the applicant for inspection. 47. It is also proposed that the Office of the Secretary, as Secretariat for the BIC, will issue an annual report concerning requests received, inspections undertaken and their results. This annual report will be addressed to the Board of Directors and Management, and will also be made publicly available. Budget and Resource Implications48. It is proposed that the yearly operating expenses of the BIC and any Panels will be funded out of the Board of Directors' budget and administered by the Office of the Secretary. For as long as the inspection function is in operation, the Board will allocate a portion of each year's budget to pay the operating expenses of the BIC and any Panel conducting an inspection during that year. These operating expenses will include
In addition, the BIC and related inspection procedures will require additional staff time (particularly from staff of the concerned Projects Department, Office of Environment and Social Development, Office of the General Counsel and Office of the Secretary) to prepare Management's responses to initial complaints from affected groups, requests for inspection from such groups and any Panel reports thereon, and to communicate with the BIC and the Board of Directors concerning inspection requests and the results of inspections. (Based on the recent experience of the WB Panel, it can be expected that the Office of the Secretary and the Office of the General Counsel will be required to devote substantial additional resources to handling informal inquiries and requests as well as formal requests for inspection.) The inspection function will also entail certain start-up costs, including the staff time required to prepare an informational brochure relating to the inspection function. 49. A budget request of $500,000 is included in the 1996 budget documents that are to be presented to the Board, to cover the compensation and expenses of Panel members and consultants (if required), as well as the administrative expenses of the Secretariat for the BIC and any Panel. The Office of the Secretary will also require an additional staff position to fulfill its obligations as Secretariat for the BIC and any Panel, which position will be filled by redeployment from other areas of the Bank. 50. As mentioned above, Panel members will be compensated at a level or levels to be determined by the Board of Directors upon the recommendation of the President, and any consultants engaged to assist a Panel will be engaged on the same terms as the Bank's staff consultants. ___________________________________
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