On May 4, 2026, the borrower and members of the affected community involved in the Mozambique: Cyclone Idai & Kenneth Emergency Recovery and Resilience Project (P171040) agreed to engage in a dispute resolution process facilitated by the World Bank Accountability Mechanism Dispute Resolution Service (DRS).
The Project supports post‑cyclone recovery of critical infrastructure and livelihoods in Mozambique, including civil works such as drainage rehabilitation that are alleged to have affected nearby communities through land acquisition, resettlement, and related impacts. Eligible issues identified by the Inspection Panel include concerns regarding the resettlement process and compensation, consultation and information disclosure, including access to documents and participation in decision‑making, as well as community health and safety.
The dispute resolution process provides a voluntary forum for the parties to engage directly, with the support of neutral facilitators, to seek a mutually acceptable resolution to the issues raised in a complaint submitted to the Inspection Panel concerning the Project.
The agreement to pursue dispute resolution follows the World Bank Board of Directors’ approval, on March 24, 2026, of an Inspection Panel recommendation to investigate the Project. On March 27, 2026, the Head of the DRS offered the parties the option of dispute resolution. Subsequent meetings with Parties and stakeholders with DRS were carried out, including a mission to Mozambique, to support informed decision‑making by both Parties.
With both parties having confirmed their willingness to participate, the dispute resolution process will now commence. In accordance with the World Bank Accountability Mechanism framework, the Inspection Panel’s investigation will remain on hold while the parties pursue dispute resolution. The Panel will take further action only if the dispute resolution process does not result in an agreement on the eligible issues raised in the complaint.
The maximum length of the dispute resolution process is one year from when the Head of DRS 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. 25/06/DRS
