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REPORTAND RECOMMENDATION OFTHEINSPECTIONPANEL ARGENTINAIPARAGUAYYACYRETA IMIROELECTRICPROJECT Request forInspection InspectionPanel ("Panel") on whetherornot there shouldbe aninvestigation Below is (A) Background information,@) Discussion,and (C) Recommendation ofthe ("Recommend~tion'~)intoallegationsmade inthe above-referenced Request forInspection ("Request"). Annex 1containstheRequest. Management Responseto the Request isprovided inAnnex 2. A. Background Project2>to finance Yacyret