72465
                Kingdom of Lesotho: Integrated Transport Project Restructuring

                                   SUMMARY OF DISCUSSION

                                 Meeting of the Executive Directors

                                         September 11, 2012


        Executive Directors approved the Restructuring of the Lesotho Integrated Transport
Project and Additional Financing on the payment terms and conditions set out in the President’s
Memorandum extending the project closing date retroactively until June 30, 2014 (IDA/R2012-
0216). The minutes will record that Mr. Solomon wished to be recorded as opposing and
Messrs. Huber, Treffers and Cipollone wished to be recorded as abstaining.

        Directors highlighted the importance of continued support of this project for Lesotho.
They expressed concerns over the association of the project with a debarred contractor and over
the timeliness and appropriateness of informing the Board. In this regard, Directors
acknowledged the importance of the progress achieved in the Bank since then in mainstreaming
and operationalizing the debarment policies and encouraged further efforts in this respect. They
also noted management’s recent actions to enhance the Bank’s internal monitoring by linking the
Bank’s loan accounting systems to the list of debarred firms. Directors also underscored the
importance of sound internal controls and accountability issues and urged Management to review
this case, to learn its lessons and further improve the relevant systems and corporate culture.
Finally, they stressed the importance of continued monitoring of results and impact of the
project.




  
      This summary is not an approved record.