THE INSPECTIONPANEL OFFICE MEMORANDUM DATE: September29,2004 TO: Mr. Paatii Ofosu-Amaah FROM: Eduardo Abbott, Executive Secretary, IPN EXTENSION:82617 SUBJECT: Request for Inspection BURUNDI-Public Works and Employment Creation Project (CreditNo. 3460-BU) Attached for distribution to the Executive Directors and Alternates please find a memorandumfrom the Chairperson of the InspectionPanel entitled "Request for Inspection: BURUNDI - Public Works and Employment Creation Project (Credit No. 3460-BU)" dated September29,2004. Attachment INTERNATIONAL BANKFOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION THE INSPECTIONPANEL 1818 H Street,N.W. Telephone:(202) 458-5200 Washington,D.C.20433 Fax :(202) 522-0916 U.S.A. Email: ipanel@worldbank.org Edith Brown Weiss Chairperson September29,2004 MEMORANDUM TO THEEXECUTIVE DIRECTORS AND ALTERNATESOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION SUBJECT: Request for Inspection BURUNDI-Public Works and EmploymentCreation Project (Credit No.3460-BU) In accordance with paragraph 17 of IDA Resolution No. 93-6 that established the Inspection Panel (the `Resolution') and paragraph17of the Inspection Panel'sOperatingProcedures (the `Operating Procedures'), I herebyinformyouthat on September 17, 2004, the Inspection Panel (the `Panel') received a Request forInspection(the `Request') related to the above- referenced Project. The Panel did not register theRequest in the Panel's Register. As detailed below, the Request did not meet the eligibilitycriteriabecause it relates to procurement actions. The Request for Inspection was submitted by AFOPROCA (l'Associationpour laformation, la production des ouvrages de carrieres et la lutte contre le SIDA sur les chantiers h haute intensite`demaind'oeuvre - Association for training, stone and quarryworkandAIDS prevention on labor-intensiveworksites) andits legal representatives. According to the Requesters, a few months after theDevelopmentCreditAgreementwas signed, the Republic of Burundi entered into a concession agreement with AGETIP (Agence d'execution des travaux d'interetpublic - public works agency,later called ABUTIP) givingit primary responsibility in accomplishing the infrastructureworks.TheRequesters also state that AGETIP contractedin turn with AFOPROCAto provide stone pavements for the Project. According to the Requesters several contractual provisions, not included in the bidding process, were added to the contract. The Requesters state that the contract between AGETIP andAFOPROCA was improperly terminated, AFOPROCA'sassetswereseized,and persecution took place against itslegalrepresentative, which resulted in his imprisonment. The Requesters add that AFOPROCAhasdenouncedalleged embezzlement andmoney launderingoccurringthrough the Project. The Requestersbelieve that their rights andinterestshave been harmed becauseof violations of the followingBank'sPolicies and Procedures: - OP/BP 13.05concerningproject supervision; - OP/BP 11.OO concerningprocurement; - Violations of Bank guidelineson procurement under IBRDloans and IDA credits; - Violations of guidelinesconcerning the selectionand employmentof consultantsby World Bank Borrowers. The Requesters also assert that on several occasions theyinformedandexchanged correspondence with the WorldBankand the Government of Burundi without findingany attempt to remedy the situation. The Requesters hold the Bank responsible for the problems they believe emanate from the Project. Theyalso consider that the Bank's actions and omissions, contrary to the Bank's Policies and Procedures, haveharmed their rightsand interests, and therefore request the Panel to recommend an investigation to theBoard of Executive Directors. I have advised the Requesters that, in accordance with paragraph14 (b) of thePanel's Resolution and its subsequent 1996and1999 Clarifications, the Request did not fulfill the eligibility criteria because it relates to procurement. As stated in the 1996 Clarifications"[n]o procurement action is subject to inspectionbythePanel,whethertakenbytheBankorby a borrower. A separate mechanism available is for addressing procurement-related complaints." The Panel, therefore, referred the Request to the Department of Institutional Integrity andto the ProcurementPolicy and ServiceGroupfor their consideration. I have also delivered a copy of the Request to the President of IDA pursuant to paragraph 17 of the Resolution. Enclosed for your information is a copy of the Memorandum to the President. Sincerely yours, Enclosure 2 INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOPMENT 1818 H Sheet,N.W. Telephone:(202) 458-5200 Washington,D.C. 20433 FaX (202) 522-0916 Email: ipanel@worldbank.org September29,2004 NDUM TO THE PRESIDENTOF THE INTERNATIONALDEVELOPMENT ASSOCIATION est for Inspection- s and Employment Creation Project (CreditNo. 3460-BU) In accordance with paragraph 17 of IDAResolution No. 93-6 that established the InspectionPanel (the `Resolution') and paragraph17of the Inspection Panel's Operating Procedures (the `OperatingProcedures'),Iherebyinformyouthat on September 17, 2004, the InspectionPanel (the `Panel') received aRequest for Inspection (the `Request') related to the above-referencedProject. The Paneldid not register the Request in the Panel's Register. Asdetailedbelow, the Request did not meet the eligibility criteria because it relates to procurement actions. The Request for InspectionwassubmittedbyAFOPROCA (I'Association pour la formation, la production des ouvragesde carrieres et la luttecontre le SIDA sur les chantiers ii haute intensite` de main d'oeuvre - Association for training, stone and quarry work and AIDS prevention on labor-intensive worksites) andits legal representatives. Accordingto the Requesters, afew months afterthe Development Credit Agreement was signed, the Republic of Burundienteredintoa concession agreementwithAGETIP (Agence d'execution des travaux d'interet public - public worksagency,latercalled ABUTIP) giving it primary responsibilityin accomplishing the infrastructure works. The Requesters also state that AGETIP contractedin turnwith AFOPROCA to provide stone pavements for the Project. According to theRequesters several contractualprovisions, not included in the bidding process, were addedto the contract.The Requesters state that the contract between AGETIPAFOPROCA and was improperly terminated, AFOPROCA's assets were seized, and persecution took place against its legal representative,which resulted in his imprisonment. The Requestersadd that AFOPROCA has. denounced allegedembezzlementandmoneylaunderingoccurringthrough the Project. The Requestersbelieve thattheir rights andinterestshave been harmed becauseof violations of the followingBank's Policiesand Prccedures: - OP/BP 13.05concerningproject supervision; - OP/BP 11.OO concerningprocurement; - Violationsof Bank guidelines on procurement under IBRD loansandIDA credits; - Violations of guidelines concerningthe selection andemploymentof consultants by ank Borrowers. The Requesters also assert that on'several occasions theyinformed and exchanged correspondence with the World Bank and the Government of Burundi without finding any attempt to remedy the situation. The Requesters hold the Bank responsible for the problems theybelieve emanate from the Project.They also consider that the Bank's actions and omissions, contraryto the Bank'sPolicies and Procedures,have harmed their rights and interests,and therefore request the Panel to recommend an investigationto the Board of ExecutiveDirectors. I have advised the Requesters that, in accordance with paragraph 14 (b) of the Panel's Resolution and its subsequent 1996 and 1999 Clarifications, the Request did not fulfill the eligibility criteria because it relatestoprocurement. As stated in the 1996 Clarifications "[n]o procurementactionissubjecttoinspectionbythePanel,whether takenbytheBank or by a borrower, A separatemechanism is availablefor addressing procurement-related complaints." ThePanel, therefore, referred the Request to.the Departmentof Institutional Integrity andto the ProcurementPolicyand ServiceGroup for their consideration. Please note that the Request asks that the names of the signatories tothe Request be kept confidential. Enclosed is the Memorandumto the Executive Directorsand Alternates. Sincerely yours, To: Mr. James D. Wolfensohn President InternationalBank for Reconstructionand Development Room MC12-750) cc: Mr. ShengmanZhang Mr. CallistoMadavo