Downtown Redevelopment, Modernization of Metropolitan Public Transport, and of Government Offices Project - Request II

Country: Paraguay

Reception date: May, 17 2016

Current Status: Closed


The Request is presented by 11 inhabitants of the City of Asuncion in Paraguay: Augusto Ríos Tonina, Edgar Javier Gill Penayo, Benicio Ayala, Norma Garcia, Feliciano Almeida, Gladys Mancuello, Celso Miranda, Jose Cirilo Rivas, Aida Liz Maciel, Nilo Salinas and Erika Kuster.

No confidentiality request made.


Summary of the Request


The 11 Requesters are merchants whose businesses are located at "Mercado 4" and around the  Eusebio Ayala Street at Asunción city center, where the IDB is financing a Metrobus system.

They allege that they were not consulted on the project, and for those that will need to leave the are, no alternative location nor compensation has been offered. They also comment that there are no environmental and cultural heritage impact studies.

As regards the alleged harm, they comment that the project will have a negative impact on their livelihoods in two aspects: the first, during execution, as they consider that sales will drop due to lack of access and that will in turn reduce their profits, lead them to fire personnel with the ensuing impact on family incomes; the second, comes from those that have been informed they have to leave the area and relocate somewhere else without any relocation plans or compensation.

This Request is linked to number MICI-PR-2016-0099 , which provides complementary information.

The Request includes testimonial videos available only in Spanish.


Recent actions


Management informed  MICI about the elimination of Component 2 of the Project “First Metropolitan Public Transport Corridor ”(Metrobús). Therefore, MICI considers that there are no conditions to continue with the follow-up stage of the Case and proceeds to close this Case. However, this closure is conditional, so that, if the circumstances of the operation of the Project are modified, MICI may examine the relevance to reopen it.


Past actions



The Board of Directors approved Management's Action Plan to address MICI's recommendations included in its Compliance Review Report. Since MICI will be responsible for monitoring the Action Plan, it will then proceed to develop a Monitoring Plan in consultation with relevant stakeholders.


On February 6, 2018, at the request of MICI, the Executive Board of Directors approved a third extension to the investigation stage and granted a temporary waiver for circulating the Draft Report with Requesters.

The Draft Compliance Review Report was distributed to the Bank’s Management for review and comments, which were received on 23 May 2018. On 29 May 2018, MICI concluded the investigation and finalized the Report to be submitted to the Board of Executive Directors for consideration.

On 10 December 2018, MICI published the Compliance Review Report, finding that the Bank:

In relation to OP-703 on Environment and Safeguards Compliance:

  1. Did not comply with Directive B.5 inasmuch as it did not ensure that the Project had, either overall or for Sections 2 and 3 of the route, environmental assessments that identified the potential risks and impacts of the Metrobus for the entire population in the area of influence and established specific measures and management plans to control these risks and impacts;
  2. Complied with Directive B.5 inasmuch as it ensured that the Project had an environmental assessment that identified the risks and impacts of the Project for Section 1;
  3. Did not comply with Directive B.6 inasmuch as it did not provide, as part of the dissemination processes for the Project, complete and specific information to affected population, pursuant to the consultation standards of Directive B.6.
  4. Complied with Directive B.4 inasmuch as it identified “other risk factors” regarding the governance capacity of the executing agency that could affect the viability of the Project and developed measures to manage them;
  5. Did not comply with Directive B.9 inasmuch as it did not identify potential impacts on critical and noncritical cultural sites and establish measures to protect their integrity during the Project preparation stage and within the framework of the environmental assessment process;

In relation to OP-710 on Involuntary Resettlement:

  1. Did not comply inasmuch as it did not have a resettlement plan prior to Project approval, as required in the time frames of this policy;
  2. Did not comply inasmuch as it did not have a resettlement plan for Section 1 after Project approval that satisfied the requirements of this policy;
  3. Complied inasmuch as it had resettlement plans for Subsections 3.1 and 3.2 of the Project; however, these plans do not comply with some requirements of OP-710;

In relation to OP-102 on Access to Information:

  1. Did not comply inasmuch as it did not publish all the documentation subject to mandatory disclosure under this policy;
  2. Given the above, Bank did not comply with Directive B.1 inasmuch as it financed an operation that did not comply with Directives B.3, B.5, and B.6 of OP-703 and was not consistent with various provisions of OP-710 and OP-102 (2006 and 2010 versions);

Based on the foregoing, MICI proposed seven recommendations, which were approved by the Board of Executive Directors on 6 December 2018.

The seven recommendations are:

  • Management should ensure that there is a resettlement plan in place as soon as possible for Section 1 that has been prepared in consultation with the affected parties, complies with the requirements of OP-710, and includes, in particular, mitigation and compensation measures that address the specific vulnerabilities of the affected parties and ensure the restoration of their situations.
  • Management should conduct an environmental and social audit to confirm whether the measures designed to address impacts during the construction stage have been implemented effectively and are sufficient to address impacts on the businesses in the area. If not, it should determine the necessary remediation or corrective measures.
  • Management should monitor the contractor’s actions to fulfill the guidelines of the socioenvironmental management plan regarding historic heritage assets and should evaluate, at the appropriate time, whether the proposed mitigation measures comply with the standards of Directive B.9.
  • Within the framework of OP-710 and within a reasonable period of time, Management should conduct an evaluation to determine the living conditions of the affected population, and depending on the results, should establish corrective measures compatible with the requirements of the Bank’s Relevant Operational Policies (ROP).
  • Disclose, in a timely manner, all documents produced in the future that are subject to mandatory disclosure and all updates to published documents.
  • Evaluate the relevance of introducing language specific to the issue of economic disruption in the Relevant Operational Policies (ROP), in order to resolve the current gap in the rules.
  • Management should prepare an action plan, in consultation with MICI, for implementation of the recommendations included in this report, containing an implementation schedule compatible with the Project, which MICI will monitor.

The Board of Executive Directors asked Management to submit an action plan and asked MICI to prepare a monitoring plan.


On November 8, 2017, at the request of MICI, the Board of Executive Directors approved an extension to the investigation stage. The new issue date for the Draft Compliance Review Report of this case will be January 8, 2018.

On August 28, 2017, at the request of MICI, the Board of Executive Directors approved a forty business-day extension to the investigation stage. The new issue date for the Draft Compliance Review Report of this case will be November 2, 2017.

 In March 2017, the independent experts Ione Jezler (Brazil) and Guillermo Tejeiro (Colombia) were hired to conduct the case investigation led by the Compliance Review Phase Coordinator.

On January 17, 2017 the MICI distributed the Recommendation for a Compliance Review and its Terms of Reference (TOR) to the Board of Executive Directors of the Bank for consideration by Short Procedure. The Board authorized the Recommendation without objection on January 25.


On December 6 and December 7, the MICI received comments from one of the requesters and from Management, respectively.

On November 14, MICI sent the Parties the draft of the Recommendation and Terms of Reference for a Compliance Review of the present case. As of this date, the Parties had 15 business days to comment on the document, which expired on December 7.

On September 29, the Consultation Phase issued its Assessment Report concluding that there were no conditions to carry out the Consultation Phase of MICI. Accordingly, at the request of the Requester, the Request was transferred to Compliance Review Phase.

According to the Requesters’ petition to go to the Consultation Phase, the Request was transferred to that Phase and the assessment process began.

On July 26, the MICI Director, in accordance with the section G of the MICI Policy, determined that the Request was eligible as it met the eligibility criteria established in the MICI Policy. The eligibility of the Request is not an assessment of its merits, nor a determination of the Bank’s compliance or noncompliance with its Relevant Operational Policies; and in no case it leads the suspension of the project or the disbursements made by the Bank.

On June 29, the Bank's Management submitted their Response to the Request, and as per MICI's Policy;an Eligibility Process was carried out to determine whether the Request is eligible or not.

The Request was filed on May 25th. The Requesters were notified as well Bank's Management.


Project Number:


Other related projects:

PR-L1056, PR-T1174

Environmental Category:


Project Name:

Downtown Redevelopment, Modernization Metropolitan Public Transport, Gov Offices



Project Type:

Loan Operation

IDB Financing:


Consultation Process
Recommendation for a CR and ToRs
CR Report


Consultation Phase (CP)

Compliance Review Phase (CRP)

Chronology and documents

Steps and milestonesDateRemarksDocuments


Request Receipt

2016-05-17Requests of a confidential nature are not published.


Notice of Registration

2016-05-255 business days from the date of receipt of the Request or 15 business days when further information is required from the Requesters.


Management Response

2016-06-2921 business days from the date of notice of registration. The response will be published as an annex to the Eligibility Memorandum.


Eligibility due date

2016-07-2621 business days from the date of receipt of Management Response or 45 business days after the Suspension is granted. 


Eligibility Memorandum Public Disclosure

2016-08-05As per the Access to Information Policy (OP-102) the disclosure of this document is done simultaneous to its distribution to the Board of Executive Directors.
Consultation phase


Deadline for Assessment

2016-09-2940 business days from the date of issuance of the eligibility memorandum. 


Assessment Report Public Disclosure

2016-10-12As per the Access to Information Policy (OP-102) the disclosure of this document is done simultaneous to its distribution to the Board of Executive Directors.
Consultation Phase Closure


Notification to Parties



Transfer to Compliance Review Phase

2016-10-14Only in cases where both phases have been requested and has not reached an agreement in the Consultation Phase.
Compliance review phase
Recommendation for a Compliance Review and Terms of Reference (ToRs)


Preparation of Draft Recommendation and ToRs due date

2016-11-1421 business days from the start date of the Compliance Review Phase. 


Due date for receiving comments on Draft

2016-12-07Management and Requesters have 15 business days to submit their comments to the Draft. 


Consideration by the Board of Executive Directors of the Recommendation and ToRs

2017-01-17Start date of Board consideration by short procedure.


Decision by the Board of Executive Directors regarding the Recommendation



Date of integration of Panel



Expected completion date of Investigation / Issuance of Draft Compliance Review Report

2018-05-29Third extension: February 9, 2018. Second extension: January 8, 2018. First extension: November 2, 2017.


Due date for receiving comments on Draft

2018-05-23Deadline for the 21 business days for comments. 


Distribution of the Compliance Review Report for consideration by the Board of Executive Directors

2018-11-02The consideration of the Compliance Review Report follows the standard procedure.


Public Release of the Compliance Review Report and final decision by the Board of Executive Directors

2018-12-10Disclosure of this document takes place after Board consideration.


Action Plan by Management

2020-10-07Management Action Plan
Closure of the Compliance Review Phase


Closing date of MICI process

2021-05-27Closing date of MICI process