World Bank Halts Controversial Albania Project

The World Bank has announced the suspension of a loan from the International Development Association for a project that while meaning to safeguard Albania’s coast was found to have been used to demolish parts of a village and leave many families homeless.

“On January 9, the World Bank has suspended temporarily the disbursement of the IDA loan for the project for Coastal Zones Integrated Management and Clean-Up, due due to certain important outstanding policy and operational issues related to Project implementation, particularly, the relationship between Government efforts to control illegal construction along the Southern Coast and the land use planning activities supported by the Project," the bank said in a statement.

An internal report IDA report, obtained by Balkan Insight, shows that a World Bank project on coastal zones management in southern Albania aided the demolishment of informal settlements in the village of Jale, in disregard to the Bank's policies of forced displacement.

The investigation by an inspection panel found that World Bank management failed to comply with its policies with respect to the design, appraisal and implementation of the project, harming the local people affected by it. The probe also found that WB assisted the demolition by pressuring local construction police to take action and by supplying them with equipment and aerial photos.

In addition to the project's failure to comply with World Bank policies,  the investigators noted allegations of corruption and complaints that the demolition of the Jale settlements was part of a bigger scheme to develop the area as a tourist resort. While the panel does not evaluate these allegations, it concludes that the selective demolition carried out by construction police supports the intention to clear the area.  

The investigative panel also accused World Bank management of misrepresenting facts during the probe and hampering the investigation by withholding access to data, while it notes the unusual lack of recollection of facts and crucial events by staff. Investigators say that several WB staff members both in headquarters and on the field were “coached” to provide unusually consistent but factually incorrect or misleading information.     

In a statement for Balkan Insight the World Bank conceded “that mistakes were made in the project, and that ways to address the alleged grievances of those affected are under active consideration.”

“The World Bank is concerned about the errors that were made by management and staff in the context of the project.  In accordance with our internal processes, the Bank is reviewing actions of its staff, and, if warranted, will take appropriate action," the statement said. 

Read More: World Bank Project Demolished Albania Village

(Reporting by Besar Likmeta)