Inspection Panel Report and Recommendation

India – Vishnugad Pipalkoti Hydro Electric Project

September 30, 2014

U.S. Position

The United States welcomes discussion of the Management Report and Recommendation (MRR) 

in response to the Inspection Panel Investigation Report for the India – Vishnugad Pipalkoti 

Hydro Electric Project. The United States welcomes the Panel’s finding that, for the most part, 

the Project has remained in compliance with World Bank policies and procedures and that 

Management has undertaken significant actions to introduce best practices in the context of 

hydropower development. 

The United States also appreciates Management’s constructive response to the Panel 

report. Specifically, the United States welcomes Management’s commitments in response to the 

Panel’s two findings of non-compliance and other issues of concern discussed in the Panel 

report. However, in the interest of clarity, accountability and continual improvement, the United 

States would also expect to see the following elements in each MRR:

1. A consolidated, detailed, time-bound action matrix; and

2. A clear roadmap (format and frequency) for periodic reporting to the Board on the 

progress of such actions.

Specifically, the matrix of proposed actions should identify – with respect to each issue of 

concern and Panel finding – the specific actions that have been or will be taken in response, by 

whom, and by when. The United States appreciates that many of these elements were included 

in the Summary of Management Actions that was recently provided, but a summary this 

important should be routinely included in the MRR itself.

Without this specificity, it is difficult to assess the adequacy of Management’s response. For 

example, the Panel report notes that Management had previously indicated that it will convey to 

the project implementing agency, Tehri Hydro Development Corporation Ltd (THDC), 

additional environmental protection measures based on the recommendations of the cumulative 

impact assessments. However, there was no discussion in the MRR on what, if any,

recommendations have been conveyed to THDC beyond the increase in minimum environmental 

flow; no proposed follow-up actions with respect to any of the recommendations; and no 

structured process or timeline for completion of any such actions. Would Management please 

explain this gap in its response, as the response currently does not provide sufficient assurances 

that these actions will happen.

Bank engagement in hydropower development must be held to the highest standards of project 

design and implementation, including meaningful consultations and full consideration and 

mitigation of environmental and social impacts, as required by Bank policies and 

procedures. The United States reaffirms our strong commitment to the Bank’s oversight and 

accountability mechanisms, including the Panel process, in helping to achieve these high 
standards. The United States commends the Panel for its careful analysis of the requesters’ 

claims with respect to the Project, and Management for its constructive response and 

commitment to fully compliant Project implementation. The United States looks forward to 

following the progress of these commitments through periodic reporting to the Board.