Summary: The multilateral development banks have been criticized for funding projects that imposed unacceptably high environmental costs on borrowing countries. GAO found that the banks, led by the World Bank, have taken significant steps to ensure that meaningful public consultation takes place on the environmental implications of the projects they fund. However, the banks could take further steps to (1) ensure that executive directors receive complete and accurate documentation about the consultation practices that have been used to develop proposed projects and (2) more consistently provide the public with timely access to environmental information on these projects. The banks have adopted guidelines that require sponsors to consult with the public in developing projects and created systems to provide worldwide public access to information on these projects--including information on their environmental impact. Generally, public consultation on the projects that GAO reviewed was adequate or better, and bank intervention improved sponsor practices on nearly every project. Nevertheless, consultation on 25 percent of the projects, mainly those supported by the International Finance Corporation or sponsored by the Chinese government, was less than adequate. Also, documentation given to the executive directors provided incomplete or inaccurate information about the consultation measures used on many projects. The banks' internet home pages were inconsistent in meeting their own guidelines for providing public information concerning public profiles and environmental assessment reports.
