NEW DELHI: World Bank Group’s audit arm has decided to probe whether IFC violated environmental and social impact compliance norms while providing advisory services for the Rs 7,500-crore Vizhinjam deep sea port project.
The Kerala government’s ambitious Vizhinjam port project was recently awarded to the diversified Adani Group.
International Finance Corporation (IFC) — an arm of the World Bank Group that lends to private sector — had taken up the advisory services project for Kerala government.
The mandate was to design and implement a bidding process for the development of the port through Kerala government’s wholly-owned arm, Vizhinjam International Seaport Ltd (VISL).
Following complaints that raised concerns about possible adverse impact of the port project on environmental and social aspects, World Bank Group’s audit arm — Compliance Advisor Ombudsman (CAO) — has now decided to investigate the issue with respect to IFC’s role.
“On the balance of considerations, CAO has decided to conduct a compliance investigation of IFC’s E&S performance in relation to this AS (Advisory Services) project,” CAO, who directly reports to the World Bank Group President, has said.
The “compliance investigation” would be to ascertain whether IFC breached environmental and social (E&S) assessment related norms while giving advisory services for the project.
