WB Group charges RIMES over Bhutan and South Asia Climate Projects on violating project agreements and charging inflated salaries
The World Bank (WB) Group has reached a settlement with the Regional Integrated Multi-Hazard Early Warning System for Africa and Asia (RIMES) concerning sanctionable practices related to two key projects: the Bhutan Hydromet Services and Disaster Resilience Regional Project (Bhutan Project) and the Climate Adaptation and Resilience for South Asia Project (CARE Project), which involved Pakistan, Nepal, and Bangladesh.
Under the Bhutan Project, the goal was to enhance Bhutan’s capacity for hydrometeorological services and disaster preparedness. RIMES breached project agreements by replacing a key expert without obtaining prior approval from the client.
Similarly, under the CARE Project, the initiative was aimed to foster climate-resilient policies and investments across South Asia. RIMES were found to have charged inflated salaries under the project, retaining the excess amounts as revenue.
Both of these actions were deemed sanctionable under the World Bank Project Agreements.
RIMES, a regional intergovernmental organization providing early multi-hazard warning services to its member countries, has been sanctioned with an 18-month conditional non-debarment. This sanction allows RIMES to continue participating in World Bank-financed projects, provided it complies with the terms of the settlement agreement.
Under the agreement, RIMES acknowledged its responsibility for the actions in question and committed to strengthening its internal controls to improve integrity compliance.
Key projects involved under the agreement are the Bhutan Project and the CARE Project.
RIMES’ Cooperation and Remedial Actions
RIMES demonstrated full cooperation with the World Bank Group’s Integrity Vice Presidency (INT) and acknowledged its responsibility. In response, it has voluntarily implemented remedial measures to strengthen its internal integrity compliance framework and address the identified deficiencies.
Conditions of the Settlement Agreement
As part of the conditions of the settlement agreement, RIMES must continue developing and implementing integrity compliance measures consistent with the World Bank Group’s Integrity Compliance Guidelines.
Additionally, RIMES must address the practices that led to the sanctions, ensuring greater transparency and accountability in project execution. It should fully cooperate with the INT throughout the 18-month conditional non-debarment period.
According to the World Bank, failure to comply with these conditions could lead to further sanctions, including full debarment.
Context and Impact
This settlement underscores the World Bank Group’s commitment to ensuring accountability and integrity in its projects. According to the World Bank, the Bhutan Project plays a vital role in enhancing disaster preparedness and early warning systems in Bhutan, while the CARE Project is instrumental in building climate resilience across South Asia.
“The sanctions serve as a reminder of the importance of adhering to project agreements and maintaining high standards of integrity, particularly in initiatives that address critical global challenges, such as disaster preparedness and climate adaptation,” it stated.
Strengthening Accountability
By adhering to the settlement terms, RIMES has the opportunity to rebuild trust and align its future work with international standards of governance and transparency. This settlement reflects the World Bank Group’s broader commitment to safeguarding the effectiveness and credibility of its development projects worldwide.
The Disaster Resilience Regional Project (Bhutan Project) and the CARE Project are both World Bank-supported projects that aim to improve resilience to natural disasters and climate change in Bhutan and South Asia.
The Bhutan Project aims to strengthen Bhutan’s capacity for disaster preparedness and Hydromet services. The project’s goal is to integrate resilience into decision-making and investments. The project is aligned with Bhutan’s 12th Five Year Plan and the Bhutan Economic Contingency Plan 2020.
Likewise, the CARE Project aims to strengthen resilience in South Asia by improving climate-informed planning and decision-making. The project’s goal is to translate policy into action by developing standards and guidelines for climate-resilient planning and investments. The project is implemented by the Asian Disaster Preparedness Center (ADPC) and the RIMES.
Meanwhile, the World Bank’s Board of Executive Directors on December 11, 2024, approved $40 million in financing to help the Royal Government of Bhutan strengthen its institutional and technical capacity to manage the increasing risks of climate change and natural disasters.
“This operation will significantly contribute to realizing Bhutan’s 13th Five-Year Plan, which aims to safeguard and strengthen the country’s resilience by focusing on mitigating and managing disaster risks to its economy, infrastructure, institutions, and people. It will provide us with the necessary financial protection and immediate liquidity in the aftermath of disasters, ensuring that we can respond swiftly and effectively to protect our people and infrastructure,” said the Finance Minister, Lekey Dorji.
“Bhutan is among the most vulnerable countries to natural disasters and climate-related hazards, and its economy is highly reliant on the hydropower sector that faces high climate risks,” said Abdoulaye Seck, World Bank Country Director for Bhutan. “Building on our long partnership with the Royal Government of Bhutan, the operation will help enhance the country’s capacity to ensure that critical infrastructure and communities are better prepared to withstand the impacts of climate change and natural disasters, or a health emergency caused by a biological event.”
Tashi Namgyal from Thimphu