21 DECEMBER 2004
IFC Reformulates Draft Disclosure Policy, Slightly

The International Finance Corporation, having previously described its proposals for disclosure of information in a "concept paper" has now reformulated its thinking in a "working draft."

The Nov. 24 draft issued by the World Bank's private sector lending arm consists of three parts, each four pages long, and appears to make few substantive changes in policy from the earlier version. The first section outlines general principles and includes a list of the reasons why the IFC may not release a document. The second section describes what information about the IFC in general will be disclosed. The third section deals with projects.

Action Plans to Be Disclosed

In one apparent advance from the earlier draft, the IFC now indicates clearly that it will disclose Action Plans, developed by clients and reviewed by the IFC in advance of board consideration of a loan. The Action Plan summarizes how the prospective borrower would manage the social and environmental risks associated with its project.

This release would supplement the current disclosure of the Summary of Proposed Investment (SPI). The policy tasks the clients with engaging local communities early on and "timely" dissemination of the social and environmental risks of their projects. The latest draft does not seem to address disclosure in the local language, as suggested in the earlier version.

However, the working draft does not address release of the Internal Review Memo (IRM), a staff document evaluating the project.

Presumably this would be covered by one of the listed exceptions to disclosure. In protecting "the integrity of the IFC's deliberative process" the draft is explicit that "internal documents and memoranda written by IFC staff or members of the IFC's Board of Directors or their advisors to their colleagues, supervisors or subordinates are not publicly available."

There appear to be few exceptions to this nondisclosure policy, including the handling of larger nonproject policy decisions. The working draft says the final policies will be released after a board decision, and that the IFC "may" disclose drafts of policies likely to have a broad impact.

The disclosure of documents, according to the document, will occur "unless IFC determines that there is a compelling reason not to disclose."

The working draft lists seven considerations for not disclosing information, beginning with a statement that it "does not disclose non-public business information provided to IFC" unless the source consents to the disclosure.

Another exemption category covers any material "likely to have a material adverse impact on the interest of IFC, a member country or IFC clients or other stakeholders, or may affect negotiations in connection with an IFC-financed project."

There still appears to be no mechanism for appealing decisions not to disclose material.

The IFC is seeking comments on the new "framework" and then will move on to a draft policy for its board, to be followed by another draft and a public comment period. The IFC hopes to have a new policy in place before July 1, 2005.

By Toby McIntosh

Back to top