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4th ISSUE | View Archive
April - June 2010
REVIEW OF THE ADB ACCOUNTABILITY MECHANISM
 
The President announced during ADB’s 43rd Annual Meeting in Tashkent, Uzbekistan the review of the ADB Accountability Mechanism Policy, and a joint Board-management review was officially launched on 14 May 2010. The Review is led by a working group, consisting of four Board members and one member from Management, namely, Executive Director Eduard Westreicher as Chair, Executive Director Siraj Shamsuddin, Alternate Executive Director Dereck Rooken-Smith, Alternate Executive Director Govinda Thapa, and Managing Director General Rajat Nag. The Strategy, Policy, and Interagency Relations Division of the Strategy and Policy Department is the secretariat to the review. The terms of reference, timetable, and consultation plan for the review are available at http://www.adb.org/AM-REview/.

The review will take into account lessons learned from ADB’s own experience and the experiences of other international financing institutions. ADB is now inviting public comments up to 11 September 2010 (go to http://www.adb.org/AM-REview/). Comments received from the public will be considered by the Working Group in preparing its draft report.

The review of the Accountability Mechanism is expected to be completed in the second quarter of 2011.
 
 
CRP Concludes Monitoring of Pakistan Chashma Right Bank Irrigation Project (Stage III)

The Compliance Review Panel, for the first time under the ADB's Accountability Mechanism policy, has completed a full, five-year monitoring mandate for the Pakistan Chashma Right Bank Irrigation Project (Stage III). After five years of monitoring, the Panel concluded that ADB complied with 24 of the original 29 recommendations and partially complied with four recommendations, while one recommendation had already been superseded by events. Of the four recommendations where ADB had achieved partial compliance, the Panel concluded that sufficient progress is being made and that there is no need for the Panel to extend its monitoring mandate beyond the standard five-year period. The Panel’s fifth and final monitoring report was circulated to ADB’s Board of Directors on 17 June 2010. The report includes lessons learned among them:
  • that the most effective approach to compliance is to address environmental and social safeguards issues at the earliest stage of the project cycle;
  • that the Panel should limit so-called "general recommendations", which should be directly related to improving compliance and accountability rather than attempting to deal with standard project administration rules and procedures;
  • that the Panel's project-specific recommendations should distinguish those that are directly related to policy compliance and those that are essentially about project administration;
  • that the lack of access to the project site, for any reason, and the early disengagement of requesters may affect the depth of monitoring that can be undertaken by the Panel
  • that implementation of remedial works will almost certainly have cost implications for any borrower, and ADB may want to consider this consequence as part of the review of the Accountability Mechanism; and
  • that the support and cooperation from ADB's operations staff, as well as the borrower and project executing and implementing agencies, are essential and contribute to the success of the remedial works and the Panel's monitoring activities.
The final annual monitoring report of the Panel is now available online at www.compliance.adb.org.
 
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CRP meeting with project executing agency staff in SLRM office in Colombo.
CRP Conducts Fourth Monitoring of Sri Lanka Southern Transport Development Project

Chair, Compliance Review Panel Rusdian Lubis and Panel Member Anne Deruyttere visited Sri Lanka on 19-24 April 2010 for the Panel’s Fourth Monitoring of the Sri Lanka Southern Transport Development Project. The Panel held discussions with ADB staff from the Sri Lanka Resident Mission, Secretary of the Ministry of Highways and Road Development, project officials and staff from the Road Development Authority (executing agency), project consultants, and co- financiers. The Panel also visited the resettlement sites in Diyagama, Dozartwatte, and Kakirihena. The Panel then convened in Manila and was joined by third Panel Member Antonio La Viņa to conclude their report on the progress of the Board-approved remedial actions for the project. The Panel’s Fourth Monitoring Report is expected to be released in July 2010.
 
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CRP Annual Meeting 2010

The Compliance Review Panel held its 2010 Annual Meeting on 24 June 2010 in Manila, Philippines and on 27 June 2010 in Tokyo, Japan. The meeting in Manila was attended by Rusdian Lubis, Chair, the two part-time members, Antonio La Viņa and Anne Deruyttere, CRP Secretary Bruce Purdue, and staff from the Office of the Compliance Review Panel (OCRP). The annual meeting continued in Tokyo, Japan on 27 June 2010 and was attended by Rusdian Lubis, Bruce Purdue, and Teresita Capati, Compliance Coordination Officer of OCRP. The CRP Chair led the discussions and the CRP Secretary facilitated the meetings proceedings in accordance with the agenda provided to the Panel members prior to the annual meeting. The Panel discussed its ongoing compliance reviews on Sri Lanka Southern Transport Development Project and People’s Republic of China Fuzhou Environmental Improvement Project, the ongoing review of the ADB Accountability Mechanism, outreach strategy and program, the Panel’s work program and budget utilization for the year, and its attendance to the 7th Annual Meeting of Independent Accountability Mechanisms held on 28-29 June 2010 in Tokyo.
 
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7th Annual Meeting of the Independent Accountability Mechanisms

The 7th Annual Meeting of the Independent Accountability Mechanisms (IAMs) was held on 28-29 June 2010 in Tokyo, Japan. The Chair, Compliance Review Panel (CRP), the Office of the Compliance Review Panel (OCRP), and the Office of the Special Project Facilitator (OSPF) attended the meeting hosted this year by the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). Principals of IAMs from various international financing institutions attended among them the AfDB, ADB, EBRD, EIB, IBRD/World Bank, IDB, CAO/IFC/MIGA, JBIC, NEXI, OPIC, and for the first time, the European Ombudsman. Topics discussed during the 2-day session include outreach activities, harmonization among the IAMs, internal governance, use of country systems, evolution of the IAM group and links with Private Equator Banks as well as the climate change policy and environmental dispute resolution in Japan. OSPF’s Karin Oswald did a presentation on OSPF’s outreach activities while Special Project Facilitator Robert May facilitated the discussion on this topic. CRP Secretary Bruce Purdue reported on the progress of the pilot community of practice (CoP) of the IAMs, known as IAMnet, and circulated a compendium of the CoP’s first online discussion on the use of country systems and its implications to the accountability mechanisms held online in April-June 2010. IAMnet is being hosted by OCRP under TA 7349-REG: Piloting a Community of Practice for Independent Accountability Mechanisms.

As a side event to the annual meeting, ADB and the World Bank gave a joint presentation of their accountability mechanisms to Japan-based nongovernmental organizations, academics and representatives of Japanese government bodies. The side event forum was organized by JBIC and NEXI together with ADB’s Japanese Representative Office and was also attended by the IAM principals. The forum was held at the ADB Institute on 29 June 2010. Robert May and the World Bank Inspection Panel’s Eimi Watanabe delivered the formal presentations and answered queries during the ensuing open forum. Bruce Purdue facilitated the event.

Principals of the Independent Accountability Mechanisms during the 7th Annual Meeting in Tokyo, Japan.
 
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Dr. Maartje van Putten, IAMnet online facilitator.

Compendium of online discussion.
IAMnet Holds its First Online Discussion on the Use of Country Systems and its Implications to the Accountability Mechanisms

The Community of Practice for Independent Accountability Mechanisms, or IAMnet, held its first online discussion on the Use of Country System (UCS): What Does it Mean for the Accountability Mechanisms. The online forum, launched from 16 April to 24 June 2010, was facilitated by Dr. Maartje van Putten, Member of the African Development Bank’s Independent Review Mechanism. Dr. van Putten stated “Any Accountability Mechanism, as soon as it is confronted with a request related to a project with the UCS, has to determine if management had enough proof and trust to accept the borrowing countries system equal to that of the MFI. So in the first place the work of the Accountability Mechanisms will be of a rather scientific and legal basis for what a lot of knowledge on the ground is necessary. However this implies that complaints still will arrive at the mechanisms offices.” A compendium of the online discussion is now available upon request at OCRP, Extension 6941.
 
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Board Compliance Review Committee Annual Report 2008-2009

On 24 June 2010, the Board considered the BCRC Annual Report 2008-2009. BCRC Chair Eduard Westreicher gave the opening remarks. The report covers BCRC’s activities for the period 1 November 2008 to 30 April 2010 and includes the Committee’s reports on the Compliance Review Panel’s monitoring activities for the Pakistan Chashma Right Bank Irrigation Project (Stage III) and Sri Lanka Southern Transport Development Project as well as the ongoing compliance review for the People’s Republic of China’s Fuzhou Environmental Improvement Project. The Annual Report is now available at the CRP website - http://www.compliance.adb.org
 
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NGO/CSO participants during the side-event meeting with Mr. Lubis and Mr. May.
NGO/CSO Side Event during ADB's 43rd Annual Meeting in Tashkent, Uzbekistan

On 3 May 2010 during the 43rd Annual Meeting of the ADB Board of Governors in Tashkent, Uzbekistan, the Chair, Compliance Review Panel Rusdian Lubis and Special Project Facilitator Robert May met representatives of nongovernmental organizations (NGOs) and civil society organizations (CSOs) in a side-event meeting as part of the CSO Program facilitated by ADB's NGO Center. With the exception of three local NGOs from the Environmental Law Center, Mahalla, and Armon in Tashkent, most participants were labor-based CSOs from Australia, India, and the Philippines. Mr. Lubis and Mr. May explained the Accountability Mechanism (AM) and its activities in 2009. Public Services International suggested that the AM should extend its scope to deal with core labor standards. On the other hand, an Indian-based CSO complained about the difficulty of lodging a grievance or complaint with the ADB resident mission in New Delhi. A European network NGO requested information on the review of the AM (for example, when it will take place, who will conduct it, and how ADB will carry out the review) and stressed the need for transparency, public consultation, and communication with NGOs and CSOs during the review process.
 
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Participants during CPRM meeting in Jakarta.
Accountability Mechanism Outreach in Indonesia

Compliance Review Panel Secretary Bruce Purdue and Special Project Facilitator Robert May held two outreach sessions on the ADB Accountability Mechanism (AM) in Jakarta, Indonesia on 26-27 April 2010. The first session was made during the kick-off meeting for the Country Portfolio Review Mission on 26 April 2010 and was a good opportunity to reach out to government representatives and to explain how the AM works, some of the issues involved, and facts on ongoing AM cases. The meeting was well-attended. It was co-chaired by the government and Indonesia Resident Mission (IRM) and included about 50 representatives from BAPPENAS, Ministry of Finance, Bank Indonesia, BPKP and from various executing agencies responsible for ADB-assisted projects. Mr Lukita Dinarsyah Tuwo, Vice Minister of National Development Planning/Vice Chairman of BAPPENAS, chaired the session.

The second session was held for about 20 ADB staff from IRM. The meeting prompted interesting questions and stimulating discussions. Robert May and Bruce Purdue explained the AM and highlighted some of the features, issues and implications that all ADB staff must face when considering accountability and compliance. ADB Staff were interested to discuss issues such as the operational policies and procedures covered by the AM; the differences between evaluation and compliance review; the involvement (or not) of senior staff and Vice Presidents under the AM; the consequences, if any, for staff associated with any case that goes to the Compliance Review Panel; ADB's ability to "control" the way in which ADB safeguard policies and procedures are to apply to any given project; and how the AM may be triggered during project preparation. Robert and Bruce discussed the apparent inequity of a project having to bear the cost of implementing remedial work to bring ADB back into compliance as this may mean that the host government bears the cost of ADB's non-compliance.
 
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VISITORS, 2nd QUARTER
  • Professor Seumas Miller, Director of Australian National University Division, Criminal Justice Ethics, Business and Professional Ethics, Ethical Issues in Political Violence and State Sovereignty, 23 June 2010
  • Ken Norman, Managing Director, Pario Solutions Group Lty. Inc., 18 May 2010
  • Graham Poon, CEO, TropLinks Inc, 18 May 2010
 
Compliance Review Quarterly is published by the Office of the Compliance Review Panel. If you have comments or queries, please contact Teresita Capati at: tcapati@adb.org