World Bank Group Reaches Settlement with RIMES Over Bhutan and South Asia Climate Projects

RIMES, a regional intergovernmental organization providing early multi-hazard warning services to member countries, was sanctioned with an 18-month conditional non-debarment.

The World Bank Group announced a settlement with the Regional Integrated Multi-Hazard Early Warning System for Africa and Asia (RIMES) regarding sanctionable practices under 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) involving Pakistan, Nepal, and Bangladesh.

RIMES, a regional intergovernmental organization providing early multi-hazard warning services to member countries, was sanctioned with an 18-month conditional non-debarment. This means RIMES can continue participating in World Bank-financed projects provided it adheres to its obligations under the settlement agreement.

Under the agreement, RIMES acknowledged responsibility for its actions and committed to strengthening its internal controls related to integrity compliance.

Projects in Focus

• Bhutan Project: Aimed to enhance Bhutan’s capacity for Hydromet services and disaster preparedness. RIMES breached project agreements by replacing a key expert without seeking prior approval from the client.
• CARE Project: Focused on fostering climate-resilient policies and investments across South Asia. RIMES was found to have charged inflated salaries under the project, keeping the excess amount as revenue.

Both instances were deemed sanctionable practices under the World Bank Project Agreements.

RIMES’ Cooperation and Remedial Actions

RIMES demonstrated cooperation with the World Bank Group Integrity Vice Presidency (INT) and acknowledged its responsibilities. It has voluntarily taken remedial measures to strengthen integrity compliance, including enhancing its internal controls and addressing deficiencies identified in the projects.

Settlement Agreement Conditions

As part of the settlement, RIMES must:

1. Continue developing and implementing integrity compliance measures consistent with the World Bank Group Integrity Compliance Guidelines.
2. Address the practices underlying the sanctions, ensuring greater transparency and accountability in project execution.
3. Fully cooperate with the INT throughout the conditional non-debarment period.

Failure to comply with these conditions may result in additional sanctions, including full debarment.

Context and Impact

The settlement reflects the World Bank Group’s commitment to ensuring accountability and promoting integrity in its projects. The Bhutan Project plays a crucial role in improving disaster preparedness and early warning capabilities in Bhutan, while the CARE Project contributes to building resilience against climate change 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 addressing critical global challenges like disaster preparedness and climate adaptation.

Strengthening Accountability

By complying with the settlement terms, RIMES has the opportunity to rebuild trust and ensure its future contributions align with international standards of governance and transparency. This settlement underscores the World Bank Group’s broader commitment to safeguarding the effectiveness and credibility of its development projects worldwide.