The World Bank is cutting back a US$50 million project in China's Xinjiang region after a review prompted by allegations of abuses.
A statement from the bank dated Monday said it would close a component of the project to support vocational colleges involving partner schools that were the subject of the abuse claims.
It said that although visits to the partner schools "did not substantiate the allegations", they were too widely dispersed to be properly monitored for adherence to bank standards.
"In addition, the project will be placed under enhanced supervision to ensure that all applicable (World) Bank standards are adhered to," the bank said.
The statement said a review was ordered after serious allegations about the partner schools were received in August, but did not describe them in detail.
"The World Bank's work is driven by core principles of inclusion, with special consideration for the protection of minorities and other vulnerable peoples," it said. "When allegations are made, the World Bank takes them seriously and reviews them thoroughly."
While the partner schools account for just 1 per cent of the project's financing, the move is politically significant because China has been criticised for confining more than 1 million members of Muslim minority ethnic groups in Xinjiang.
China says they are being offered training to reduce poverty and extremism. Critics say they are political re-education camps where inmates are held indefinitely without due process, subject to abuse and forced to renounce their traditional religion and culture while pledging loyalty to Communist Party leader Xi Jinping.
There was no immediate comment from China on the bank's decision.
The World Bank project aimed to upgrade the curriculum, teacher skills and post-graduation employment opportunities offered by five long-established public vocational colleges in Xinjiang, the bank said.
World Bank lending to China has been criticised since the country is now the world's second-largest economy and is itself a major lender to poor nations, usually at market interest rates.
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