Summary of the Request

The objective of the São José dos Campos Urban Structuring Program (BR-L1160) is to support the restructuring and management of that city’s urban development. Some residents of the community of “Jardim Nova Esperança o Banhado” allege that certain components of that Program, in particular the resettlement of families and the construction of a road next to the community’s current location, will have negative social and environmental impacts. The Requesters state that they have not been consulted regarding theProgram, or informed of the reasons for the resettlement and the options for financial compensation. They also allege that the only resettlement option offered by the Municipality would consist of moving to apartments in housing complexes far from the city center, an alternative that would make it difficult to access public services and employment and income opportunities, in addition to creating additional expenses for the families due to the costs of water, electrical power, and gas utilities, as well as public transportation. They further state that the creation of the Banhado Municipal Nature Park on the site where the community is currently located has not been properly discussed with the residents at public hearings. Finally, they allege that the road construction will have significant environmental impacts, such as the potential disappearance of rivers and lakes.

MICI actions

Recent Actions

On January 30, 2017, Management submitted a Work Plan to address the recommendations made by MICI in its Compliance Review Report for consideration of the IDB Board of Executive Directors.

On March 8, 2018, Management presented the Progress Report to the Board of Directors, and subsequently requested MICI to publish it on the Public Registry.

On August 24, 2018, Management presented to the Board of Directors the document "Final Report on IDB Management’s Actions to address MICI Compliance Review Report Recommendations on São José dos Campos Urban Structuring Program."

Given that for this case the Executive Board did not request MICI to follow up on Management’s actions, with the Case Closure Report presented by the latter, MICI closes the management of the case.

The Work Plan, the Progress and Final Reports presented by Management and the Case Closure Report are available in the case chronology.

Past Actions

The Request was declared eligible for the Consultation Phase. During the assessment stage it was determined that the process sponsored by the MICI was an opportunity for the Parties (the Requesters and the Municipality of São José dos Campos) to seek alternatives to resolve the concerns expressed in the Request. The primary actors stated their willingness to engage in dialogue, and in March 2012, they developed a joint agenda to begin the dialogue process. The process was postponed due to municipal elections, and was subsequently resumed in 2013 after the new municipal Government confirmed that it was willing to continue with the preparation of that process.

From that moment on, the MICI facilitated the dialogue process between the Parties, focusing on the availability of information and a review of the resettlement plan in order to bolster and build consensus for it with the affected population. In the context of the dialogue, sufficient trust was built to update a socioeconomic cadaster, which is a fundamental element of the resettlement plan.

Nonetheless, at the end of May 2015, the Requesters decided to suspend their participation in the process, on the grounds that the counterparty was not fulfilling the conditions agreed upon for it. Consequently, and given the voluntary nature of the process, the MICI concluded the Consultation Phase and transferred the Request to the Compliance Review Phase, as had been asked for by the Requesters.

As per the Transition Plan approved by the Board on February 2015, once in the Compliance Review Phase, the Request should be managed according to the new Policy. This meant that no additional eligibility would be required.

On January 2016, Requesters and Management received the DraftRecommendation for a Compliance Review and the Terms of Reference (ToRs) for their comments.

After receiving their comments, the MICI distributed the final Recommendation to the Board for consideration on March 16th, 2016. The Board stopped Short Procedure process for the Recommendation on March 22 and later authorized the Compliance Review investigation on May 11, 2016.

On June 2016, the independent experts, Philippe Hanna (Brazil) and Guillermo Tejeiro (Colombia) were hired to carry out the investigation of the case led by the Coordinator of the Compliance Review Phase. The team carried out a fact-finding mission to Brazil in late July 2016. The investigation lasted for 6 months, concluding in December 2016.

The Preliminary Compliance Review Report was distributed to the Parties for review and comments, which were sent to MICI before the due date on February 8, 2017. The MICI finalized the Compliance Review Report for its later consideration under a standard procedure by the Board of Executive Directors.

On May of 2017, MICI issued the Compliance Review Report for the “São José dos Campos Urban Structuring Program” (BR-MICI006-2011). The Report’s main findings are:

Regarding the Involuntary Resettlement Policy (OP-710), IDB Management failed to comply with the provisions set forth in this Policy by: i) not conducting adequate consultation with a representative sample of persons affected; ii) not establishing concrete and appropriate compensation and rehabilitation options; iii) failing to comply with the requirements for a final resettlement plan.

Regarding the Environment and Safeguards Compliance Policy (OP-703), IDB Management failed to comply with the provisions set forth in this Policy by: i) considering that the environmental and social impacts that would be generated were local and short-term, and not ensuring that effective mitigation measures were in place for the specific impacts expected; ii) failing toensure the provision of all the environmental assessments required for the Program; iii) failing to verify that the consultations conducted had been adequate and that those impacted by the Project were informed.

Regarding the Access to Information Policy (OP-102), the Bank failed to comply with the obligation to disclose the environmental and social information of the Project in a timely manner.

On June 19 of this year, the IDB Board of Executive Directors, in a session of the General Commission, considered this Report and expressed its support for the 7 recommendations contained within the Report.

The Report and the Final Decision of the Board are available in the chronology section below.  

In May of 2017, MICI issued the Compliance Review Report for the “São José dos Campos Urban Structuring Program” (BR-MICI006-2011). The Report’s main findings are:

Regarding the Involuntary Resettlement Policy (OP-710), IDB Management failed to comply with the provisions set forth in this Policy by: i) not conducting adequate consultation with a representative sample of persons affected; ii) not establishing concrete and appropriate compensation and rehabilitation options; iii) failing to comply with the requirements for a final resettlement plan.

Regarding the Environment and Safeguards Compliance Policy (OP-703), IDB Management failed to comply with the provisions set forth in this Policy by: i) considering that the environmental and social impacts that would be generated were local and short-term, and not ensuring that effective mitigation measures were in place for the specific impacts expected; ii) failing toensure the provision of all the environmental assessments required for the Program; iii) failing to verify that the consultations conducted had been adequate and that those impacted by the Project were informed.

Regarding the Access to Information Policy (OP-102), the Bank failed to comply with the obligation to disclose the environmental and social information of the Project in a timely manner.

On June 19 of this year, the IDB Board of Executive Directors, in a session of the General Commission, considered this Report and expressed its support for the 7 recommendations contained within the Report.

The Report and the Final Decision of the Board are available in the chronology section below.