"Management believes that the bank has made exceptional efforts to apply its policies and procedures and to pursue concretely its mission statement," the conclusions of the report, a copy of which was obtained by Reuters said.

"Given these actions, Management does not agree that, as a result, the Requestors' rights or interests have been, or will be, directly and adversely affect by these projects."

The document is scheduled for discussion among shareholders at the World Bank's decision-making board on Thursday.

The bank is funding $140 million of the $4 billion project to develop the oil fields of Doba in southern Chad and construct a 1,070 km pipeline to offshore oil-loading facility on Cameroon's Atlantic coast. The project is sponsored by a consortium led by U.S. oil company Exxon Mobil Corp. and including ChevronTexaco Corp. and Malaysian oil company, Petronas.

The report said the bank would carry out regular consultations with regard to the social and environmental impact of the project and would work to improve governance and reduce poverty.

Nongovernmental organizations criticized the bank's response.

"Management's response... is an exercise in damage control that is lacking in substantive and bold approaches to solving the problems which are now engulfing the region and its inhabitants as a result (of the project)," said Korinna Horta, of Environmental Defense in Washington.