Sri Lanka STDP transport project complaint: draft report finds ADB violated 7 policies

Asian Development Bank Compliance Review Panel releases draft report in response to Sri Lanka Southern Transport Development Project complaint.

On May 6, the ADB’s Compliance Review Panel issued its draft report on the Southern Transport Development Project request, and has sent it to ADB Management and Requesters for comment over a 30-day period. This comes 4 months after the ADB Board of Directors authorized the CRP to conduct the compliance review.

In the draft report, the CRP concludes that “there have been, at one time during the project, lapses of compliance with the following ADB policies:” Involuntary Resettlement, Environmental Considerations, Gender and Development, Benefit and Monitoring, Formulation and Implementation of Loan Covenants, and Incorporation of Social Dimensions.

To bring the Project back into compliance, the CRP listed 13 recommendations for the ADB, including:

  • establish well-staffed monitoring of resettlement activities by an independent institution,
  • insist that all affected persons (APs) be fully compensated by actual payment before they are moved,
  • require immediate provision of utilities and infrastructure to resettlement sites, and
  • become more directly involved in the income restoration program and the establishment of household benchmarks.

Within 14 days from receipt of comments from Management and the Requesters, the CRP will consider their responses and make any changes it deems necessary before issuing to the Board its final report, with its findings and recommendations to ensure project compliance.