World Bank Board of Executive Directors Reviews Independent Inspection Panel Report on Coastal Zone Management Project in Albania

"The Chair of the Inspection Panel, Werner Kiene, stated, “While the Bank’s non-compliance with its policies in the present case is extremely troubling, the Panel applauds the leadership of the President and Senior Management in acknowledging errors and in initiating corrective measures once the Panel issued its Report.”

WASHINGTON, February 17, 2009—The World Bank Board of Executive Directors today 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 will be 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 also supervise 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. Management will report back to the Board in three months on progress.
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