World Bank Board Of Directors Approves Management Action Plan For Two Projects In Cameroon

Washington, July 24, 2003 – The Board of Executive Directors of the World Bank has approved on July 22, the official response of its Management to the investigation report by the independent Inspection Panel on the Cameroon portion of the Chad-Cameroon Petroleum Development and Pipeline Project and the Cameroon Petroleum Environment Capacity Enhancement (CAPECE) Project.  During the discussion, Board members commended the thorough work of the Inspection Panel and the comprehensive response from Bank management. 

The Request for Inspection, submitted by the Center for the Environment and Development, a Yaounde-based NGO, and various individuals, raised questions about insufficient information during project preparation, consultation, occupational health and safety, compensation, HIV/AIDS and the adequacy of environmental and social impact studies. The Panel Report found that the Bank was in compliance with its policies on the majority of the issues raised but also identified areas of noncompliance, such as designation of an independent panel of experts as part of the environmental assessment process, adequacy of baseline data, attention to health and HIV/AIDS, assessment of cumulative project impacts, and weakness in government’s institutional capacity to monitor the pipeline project.

Chairman Edward S. Ayensu noted that Management and staff “have exhibited professional competence commensurate with the complexity of issues that the Pipeline Project has created.”  He also noted that “the Bank’s participation in this Project has been critical in its design and appraisal, and has been essential for its successful implementation.”

Management submitted an Action Plan outlining 15 specific actions aimed at enhancing project quality, including:

Additional Independent Experts. The Bank will work with the Cameroon Government who will contract several independent experts to address specific issues, such as review of the National Oil Spill Response Plan and additional monitoring to complement the responsibilities of the International Advisory Group (IAG) and the External Compliance Monitoring Group (ECMG). These groups have regularly monitored the two projects, since Board approval in June 2000. 

Additional Data Collection. Monitoring data will continue to be collected to facilitate ongoing assessment of impacts. The Cameroon Oil Transportation Company will also provide greater access to baseline data. Monitoring of the Indigenous People’s Plan will address any potential issues associated with the geographic scope of baseline data for indigenous peoples.

Analysis of Cumulative Impacts. The Long-Term Vision Study of the Environmental and Social Management of the Petroleum Sector, under the CAPECE project, will address the cumulative impact of the Pipeline Project on the overall economic and social development of Cameroon.

Health and HIV/AIDS. Agreement has been reached with the Ministry of Health to develop an action plan for health care facilities along the pipeline route and to contract NGOs and consultants on HIV/AIDS issues. CAPECE will finance part of the activities, while the IDA-supported national HIV/AIDS project will fund others.

Institutional Capacity. An action plan was agreed upon, during the CAPECE Mid-Term Review, to speed up implementation of capacity development activities, including acceleration of the procurement process and strengthening of field-based activities.

World Bank Managing Director, Shengman Zhang, who chaired the Board meeting on Tuesday, noted the convergence of views by the Inspection Panel and Management concerning the action plan and lessons learned.

The Inspection Panel is an independent entity within the World Bank that reports directly to the Board of Executive Directors. Its mandate is to ascertain, in response to requests related to specific projects, whether the Bank has complied with all applicable policies and procedures with respect to project design, appraisal, and supervision.

The complete Inspection Panel Investigation Report and the World Bank Management Report and Recommendation in Response will be posted today at the Inspection Panel and World Bank websites.

For more information on the Inspection Panel visit: http://www.inspectionpanel.org

For more information on the Chad/Cameroon Pipeline visit: http://www.worldbank.org/afr/ccproj

For more information on IAG-GIC visit: http://www.gic-iag.org