On November 14, 2024, Orsolya Székely, the Accountability Mechanism Secretary (AM Secretary), informed the World Bank Executive Directors that the borrower and the affected community involved in the Pakistan: Khyber Pass Economic Corridor Project (the Parties) had voluntarily agreed to engage in a dispute resolution process to try to find a mutually acceptable solution to the issues raised in a complaint filed with the Inspection Panel.
The complaint was signed by 448 individuals living in the area considered for the Project in Khyber Pakhtunkhwa Province, and it raises five main concerns specific to the design and route alignment of a new four-lane road to be constructed as part of the Project, the Southern Link Road (SLR). The community alleges that: i) the road alignment of the SLR would result in involuntary resettlement and loss of livelihood, and it expresses concern regarding the potential resettlement process based on previous experience with other projects in the area; ii) there is a potential for heightened tension, conflict and violence, especially a risk of intensification of conflicts between land owners and land users that have not been addressed for decades; iii) there was a lack of meaningful consultation with relevant stakeholders; iv) the road design could negatively impact traditional values and culture, in that the proposed elevation of the SLR would compromise the privacy of women within their own homes and the current alignment has ignored the presence of private graveyards that would be uprooted during construction, and v) the SLR would lead to an increase of environmental and noise pollution, which is not reasonably addressed in the project documents.
The World Bank Executive Directors on October 11, 2024, approved an Inspection Panel recommendation to investigate the project, which identified eligible issues relevant to both compliance and dispute resolution options. On October 15, 2024, the AM Secretary wrote to the Parties, offering the opportunity for dispute resolution as per the Accountability Mechanism (AM)’s mandate. During a mission to Pakistan from November 5-8, 2024, the DRS team met with parties and primary stakeholders, providing detailed information on the AM process and dispute resolution option, after which the Parties informed the AM Secretary of their voluntary agreement to pursue dispute resolution.
Given that both parties have agreed to engage in dispute resolution, the Panel will hold its investigation in abeyance until the process is concluded, as per paragraph 32 of the Inspection Panel Resolution. If, at the end of the dispute resolution process, the parties reach an agreement on all eligible issues, and sign a dispute resolution agreement, the Panel will issue a memorandum closing the case and take no further action. However, if the parties do not reach an agreement, or reach a partial agreement, the AM Secretary will inform the Executive Directors and the Inspection Panel, upon which the Inspection Panel will commence its investigation on any unaddressed eligible issues.
The maximum length of the dispute resolution process is one year from when the AM Secretary reports on the parties’ willingness to pursue dispute resolution. If both parties agree, the process may be extended for up to an additional six months.
Case No. 24/04/DRS