The cancelation, a rarity for the development bank, came after an early review of the Uganda Transport Sector Development Project (TSDP) uncovered numerous problems, the bank said. "The multiple failures we've seen in this project — on the part of the World Bank, the government of Uganda, and a government contractor — are unacceptable," said World Bank President Jim Yong Kim. "It is our obligation to properly supervise all investment projects to ensure that the poor and vulnerable are protected in our work. In this case, we did not."

The bank took action following complaints received by an independent board. Communities in western Uganda had complained of negative environmental and social impacts from the project's construction, including worrisome impacts on road safety. The complaint also outlined "serious allegations of road workers' sexual relations with minor girls in the community, and sexual harassment of female employees," the World Bank said.