Integrated Coastal Zone Management & Clean-Up Project (ICZMCP) Questions and Answers

Integrated Coastal Zone Management & Clean-Up Project (ICZMCP)
Questions and Answers
Last update, July 22, 2009

Q: What is the Integrated Coastal Zone Management and Clean-up Project (ICZMCP)?

A:  In early 2004, the Government of Albania asked the World Bank for support in designing a framework that would enable the country to develop its coastline in a sustainable manner.  In response, the World Bank worked with the Albanian authorities to put in place an Integrated Coastal Zone Management and Clean-up Project (ICZMCP) aimed at protecting coastal resources and cultural assets, while promoting sustainable land use, community participation and improved environmental conditions.  The Project was approved on June 21, 2005.

The project covers the geographical area from Llogora Pass to the Greek border, but also includes a component to clean up a polluted industrial site at Porto Romano near Durres.

The project included:

• preparation of the Southern Coast Development Plan (SCDP) and local land use plans;
• construction of a landfill and development of a solid waste management system;
• construction of a passenger terminal in the Saranda Port;
• water supply and wastewater investments in the city of Saranda;
• community-based investments in coastal villages; and
• cultural heritage preservation in Butrint National Park.

Q: How is the Project financed?

A:  The total cost of the Project is estimated at US$ 38.6 million.  Co-financiers are:

• US$ 17.5 million – World Bank - IDA credit 
• US$ 3.11 million – The Netherlands
• US$ 2.23 million – Japan
• US$ 5.20 million – European Commission
• US$ 2.60 million – Austria
• US$ 0.95 million – Global Environment Facility (GEF)
• US$ 5.71 million – Government of Albania
• US$ 1.26 million – local beneficiary communities

Q:  Why was there an Inspection Panel investigation into the ICZMCP?

A:  Responding to an August 2007 request from families in Jale, the Inspection Panel investigated the World Bank’s compliance with its operational policies on the design, appraisal and implementation of the project and harm or potential harm to locally affected people. The Inspection Panel presented its report on December 1, 2008.  The project was suspended by Bank Management on January 9, 2009.

Q:  What was the outcome of the World Bank Board of Executive Directors’ review of the Independent Inspection Panel’s report on the ICZMCP?

A: The World Bank Board of Executive Directors on February 17th considered a Management Report and Action Plan that responds to an independent Inspection Panel investigation of the Integrated Coastal Zone Management and Clean-Up Project in Albania, which was requested by families harmed by the April 2007 demolition of buildings in the Albanian coastal village of Jale. 

The Management Report acknowledges serious errors in project preparation and supervision, along with errors in communication with the Board of the World Bank, and presents an Action Plan for addressing those issues identified by the Panel.  

Under the Action Plan, a series of measures are being undertaken with support by the Bank, including: a case-by-case legal review of the April 2007 demolitions in the project area, the appointment of an Independent Observer to monitor the legal review and report back to the Bank, and the payment of legal aid for the review of each of the Requesters’ claims. Bank Management will continue to supervise the completion of a social and vulnerability assessment, and the retroactive application of the resulting assistance packages for the poor and/or vulnerable affected by the demolitions.

Q:  What errors did the Inspection Panel find in the project, and does World Bank Management agree with the findings?

A:  The Panel found that the project was linked to the demolitions that occurred in Jale in April 2007;  the project was not well designed and supervised; critical communications from Bank management to the Board were in error; and, Bank fact-finding efforts omitted key events and information.  Management agreed with the Panel’s findings in these areas.

World Bank management deeply regretted these events. Management acknowledged a series of errors were committed throughout the Project cycle, including during Project preparation, Board presentation, and Project supervision, as well as in the preparation of the first Management Response in September 2007 and the issuance of a Corrigendum to the Project Appraisal Document in September 2008. Management acknowledges that these errors are unacceptable and point to a serious breakdown of Management’s accountability, responsibility and oversight mechanisms for the Project.

In addition, the Panel found that the Bank’s policy on involuntary resettlement (OP/BP 4.12) should have applied to the preparation of the Southern Coast Development Plan (SCDP) and the Government’s ongoing demolition program, and therefore the Jale families would be covered.  At the time the Project was presented to the Board, Management judged that the policy did not apply to land use planning activities such as the SCDP.  Management acknowledges that relevant provisions of the policy are ambiguous and need to be clarified.

Management reviewed the safeguards policies and issued proper guidance on relevant policies applicable to land use planning projects.

Q: What progress has been made on the implementation of the Management Action Plan in response to the Inspection Panel Investigation Report for the ICZMCP? 

A: The World Bank is pleased to report that steady progress has been made in the implementation of the Management Action Plan in response to the Inspection Panel Investigation Report that was discussed by the Executive Directors on February 19, 2009.  Agreement has been reached with Government on an independently-monitored, case-by-case review before the Albanian Judiciary of the requesters’ claims that they were harmed by the April 2007 demolitions. An independent international observer for the court cases has been contracted.  The Bank has signed grant agreements with the affected families to provide support as per Management Action Plan. Work on the Social and Vulnerability Assessment (SVA) to develop criteria and an assistance package and procedures for poor and/or vulnerable that may be affected by demolitions began in March 2009.  A final report, acceptable to the Bank, is expected toward the end of 2009. Management gave the Board a technical briefing in early July on progress in implementing the Action Plan.

Q: What is happening with the Integrated Coastal Zone Management and Clean-up Project (ICZMCP)?

A:  The project was suspended by Bank Management on January 9, 2009. Based on the progress made since the Board meeting of February 19, 2009, the World Bank plans to restructure the Integrated Coastal Zone Management and Clean-up Project (ICZMCP).  The Bank will be working closely with the Government of Albania for the restructuring. 

Q:  When will the suspension be lifted?

A:  Until the restructuring is completed, the project will remain suspended, as per normal Bank procedures. 

Q: Has the Bank been in contact with the affected families in Jale?

A:  Yes – we can confirm there have been several meetings between the management and staff from both headquarters and the Bank’s Tirana office and the families in Jale.

Q: Is the Bank offering any financial aid to the affected families in Jale?

A: Bank is covering all the costs related to the court cases for the Requesters, including legal fees, court fees and other incidentals for the families related to attending court hearings.