Rapport explicatif

Article 13, paragraph 4. Representatives emphasized that the operational and financial policies of the Bank, referred to in paragraph 4, would be subject to approval by the Board of Directors in accordance with Article 26 and should be based on international best practices. These policies would include, among others, environmental and social frameworks, disclosure, procurement, and debt sustainability. A policy on operations in disputed areas would provide that, for financing in a disputed area, member consent is obtained in accordance with paragraph 3, and the Bank does not take a position on territorial claims.

Article 15, paragraph 1. Representatives noted that the inclusion of “other similar forms of assistance” was intended to permit the possibility of investment grants and similar instruments commonly used in infrastructure financing by multilateral development banks and others. Project preparation support could also be provided under this paragraph.

Article 16, paragraph 1. Representatives noted that the reference to “relevant legal provisions” was not intended to restrict the Bank from the benefits of treatment commonly extended to multilateral development banks by member countries in their markets.

Article 16, paragraph 8. Representatives noted that this paragraph, together with paragraph 4 of Article 24, provided the framework for the establishment of subsidiary entities with the approval of the Board of Governors. The establishment of offices of the Bank under paragraph 2 of Article 32 would be regulated under the By-Laws of the Bank.

Article 25. Representatives noted that the Board of Governors would consider rules at its inaugural meeting to enable each Director in a constituency of more than a specified number of members to appoint an additional Alternate Director. Such rules would require a Director appointing an additional Alternate Director to designate which Alternate Director shall act for the Director: (i) in his absence; and (ii) when the office of the Director is vacant under sub-paragraph 5 (c).

Article 26. Representatives noted that major policies established by the Board of Directors under Article 26 (ii) would include such policies as environmental and social impact and procurement (Article 13) and disclosure (Article 34).

A higher three-quarters majority of total voting power would be required for decisions by the Board of Directors to approve major operational and financial policies, delegate authority to the President under Bank policies, and for decisions on delegation of the Board’s authority to take decisions on operations.

Representatives agreed that the oversight mechanism to be established by the Board of Directors under Article 26 (iv) would be designed in line with the principles of transparency, openness, independence and accountability, and would address such areas as audit, evaluation, fraud and corruption, project complaints and staff grievances, and reflect the Bank’s character as a multilateral