World Bank suspends funding for controversial tourist project

TIRANA, Feb 3 – The World Bank suspended funding secured from the International Development Association for a tourist project in southwestern Albania.
There were controversial results from an investigation of the project.
“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 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.
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 project immediately turned into a political issue as it was headed in the country by Prime Minister Sali Berisha’s son-in-law.
The opposition asked transparency on the project accusing the premier of trying to run the whole country through its clan.
The government turned down any suspicion on the project.
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.
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.