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Objections To Bank-Financed Projects

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Chapter Summary

This Chapter describes the procedures, which the Bank follows if one of the riparians objects to a Bank-financed project. The policy requires the Country Director, in collaboration with the Legal Vice Presidency and other departments to send a memorandum on the objection to the Regional Vice President. The notifying state and the notified state shall enter into consultations and negotiations with a view to arriving at an equitable resolution of the situation. The procedures established by the Bank are less complex than those proposed by the ILA or ILC. The Bank has received very few objections for the projects it has been financing on international waterways. Objection by one riparian state to the project when some of the other riparian states have responded positively, usually indicates the weak basis for the objection. Agreements on shared watercourses are increasing, and the dispute settlement provisions are becoming more novel and complex.

Keywords: Bank-financed projects; ILA; ILC; riparians

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