Accountability Mechanism

The Accountability Mechanism of the Asian Development Bank (ADB) exists to provide an independent and effective forum for those affected by ADB-assisted projects to voice their concerns.

Compliance Review Function

Photo: Compliance Review Panel
The Office of the Compliance Review Panel has been diligently sharing these lessons with all internal and external stakeholders, together with several other awareness-raising and learning initiatives to contribute in improving the quality of future projects' design and implementation and in turn maximize development effectiveness and help avoid repetition of the same grievances in future. Photo: Compliance Review Panel

The compliance review focuses on the direct and material harm alleged by project-affected people, and whether this is caused by ADB’s violations of its operational policies and procedures in formulating, processing, or implementing the project. The compliance review is done by an independent Compliance Review Panel (CRP).

The compliance review starts with the CRP determining the eligibility of a request for compliance review and recommending to ADB's Board of Directors to authorize a compliance review. If authorized by the Board, the CRP conducts an independent investigation and makes recommendations to the Board to ensure project compliance, including remedial changes in the scope or implementation of the project. The CRP then monitors the implementation of its recommendations and any remedial actions approved by the Board of Directors.

 

Compliance Review Panel (CRP)

The CRP is an independent body appointed by ADB’s Board of Directors to carry out compliance review under the second phase of the ADB Accountability Mechanism. The CRP consists of three members—a full-time Chair and two part-time members. Two CRP members are from regional member countries, with one of them from a developing member country, and the third member from a nonregional country.

The CRP reports directly to the Board through the Board Compliance Review Committee (BCRC), and is supported by the Office of the Compliance Review Panel (OCRP).

The CRP undertakes the following activities:

  • determining the eligibility of a request for compliance review;
  • engaging all project stakeholders in understanding the issues during compliance review;
  • conducting thorough and objective reviews of policy and procedural compliance;
  • consulting with project stakeholders, including the Board representative of the concerned country, on its preliminary findings and recommendations during compliance review;
  • coordinating with the compliance review mechanism of other cofinancing institution conducting a separate compliance review of the same project;
  • issuing draft reports and seeking comments from the complainants, the borrower, the BCRC, Management, and the operations department concerned on its findings and recommendations on compliance review;
  • issuing final reports to the Board on its findings;
  • informing the complainants of the Board’s decision on compliance review;
  • monitoring the implementation of the Board’s decisions on compliance review and providing the complainants with copies of the monitoring reports;
  • issuing annual reports outlining lessons learned from past compliance review cases;
  • developing a roster of independent technical experts for carrying out is work; and
  • liaising with the accountability mechanisms at other institutions.
 

Fast Facts

(as of 30 September 2023)

Breakdown of Complaints, 2004-2023

By Issues

Subject of Complaints Compliance Review Share (%)
Resettlement, compensation, land acquisition, and valuation 21 24.4
Information, consultation, and participation 22 25.6
Environment¹ 18 20.9
Community and social issues² 13 15.1
Village infrastructure3 3 3.5
Others4 4 4.7
Livelihood 5 5.8
TOTAL 86 100

1 Includes those with issues pertaining to biodiversity conservation and sustainable management of natural resources, pollution prevention and abatement, occupational and community health and safety, and conservation of physical cultural resources.
2 Includes issues on gender, health, social uplift program, environmental studies, social impact assessment, grievance redress, customary land, and indigenous people.
3 Includes school and road reconstruction and rehabilitation, bus stops, multipurpose hall, toilets and cowsheds, bridges, beaten tracks, underpass for agricultural machinery, cattle pass, and distributary links.
4 Includes issues on high electricity rates, grid network fee, power sector reform, procurement, loans and contract matters, project monitoring, etc.

By ADB Operations Departments

By Sectors

Office of the Compliance Review Panel

Compliance Review Panel

 

The Compliance Review Process


Compliance review process

Step 1: Requesting Management response

  Management is to respond in 21 days

Within 5 days of receiving the complaint, the Compliance Review Panel (CRP) carries out an initial assessment of the complaint and determines whether it falls within its mandate.

  • If the complaint falls within its mandate, the CRP forwards it to Management for response, with a copy to the Board Compliance Review Committee (BCRC).
  • The CRP informs the borrower and the Board member representing the borrowing country concerned about receipt of the complaint.
  • The CRP ensures confidentiality of the identities of complainants, if requested.

Step 2: Determining eligibility

  Within 21 days of receiving Management response
  • The CRP reviews the complaint, Management response, and other relevant documents; talks to the complainants, the borrower, and the ADB project team; and determines the eligibility of the complaint.
  • The CRP informs the complainants, borrower, Board member representing the country concerned, Management, and operations department of its determination concerning eligibility.

Note: The CRP forwards the complaint to the operations department if complainants did not make prior good faith efforts to resolve the issues with that department.

Step 3: Board authorization of compliance review

  Within 21 days of receiving Management response
  • The CRP submits its eligibility report through the BCRC to the Board.
  • If the CRP determines that the complaint is eligible, it will recommend—through the BCRC—that the Board authorize a compliance review.
  Within 7 days from receipt of Board authorization

The Board decides whether to authorize a compliance review.

  Within 21 calendar days from receipt of the CRP recommendation

The Office of the Compliance Review Panel (OCRP) informs the complainants of the Board’s decision.

Step 4: Conducting compliance review

  Within 10 days from receipt of Board authorization
  • The CRP prepares—and the BCRC clears—the terms of reference (TOR) for the compliance review.
  • OCRP provides the TOR to the Board for information, with a copy to Management.
  • The CRP begins the compliance review upon TOR clearance by the BCRC.
  The time required for compliance review depends on the nature of the project, complexity, and scope, and the alleged noncompliance
  • The CRP consults all relevant parties.
  • The compliance review may include desk reviews, meetings, discussions, hiring of technical experts, and a site visit.

Step 5: Compliance Review Panel draft report

  Upon completion of the compliance review
  • The CRP issues a draft report of its findings to the complainants, borrower, and Management for comments and responses.
  • The CRP provides the draft report to the BCRC for review.

Note: Comments and responses to be given within 45 days of issue of the draft report.

Step 6: Compliance Review Panel final report

  Upon completion of the compliance review
  • The CRP considers all comments received and revises the report as it finds warranted.
  • The CRP issues a final report to the Board through the BCRC.

Step 7: Board consideration of the Compliance Review Panel report

  Within 21 calendar days of receiving the CRP final report

The Board considers the CRP report.

  Within 7 days after Board consideration of the CRP report

OCRP releases the CRP report to the complainants and borrower.

Step 8: Management remedial actions

  About 60 days after Board consideration of the CRP report
  • If the CRP report concludes that ADB noncompliance caused direct and material harm, Management proposes remedial actions.
  • Management may consult the CRP in preparing the remedial actions.
  • Management must obtain borrower agreement on remedial actions.
  Within 5 days of Management submission of draft remedial actions

The CRP comments on proposed remedial actions of Management.

  About 60 days from step 7

Management submits a report on proposed remedial actions to the Board, with the CRP comments attached.

Step 9: Board decision

  Within 21 calendar days of receiving the Management report

The Board decides on remedial actions proposed by Management.

Step 10: Monitoring and conclusion

  Generally not longer than 3 years
  • The CRP monitors the implementation of remedial actions and prepares annual monitoring reports (or at such other times as specified by the Board).
  • The CRP finalizes draft reports in consultation with the BCRC. OCRP makes the reports available to the complainants, borrower, Board, Management, staff, and public.