Summary of the Request

The Request alleges a potential damage to the economy of the Requesters due to the expropriation, without adequate compensation, of a strip of land, where a mining concession owned by the complainants. 

The Requesters allege that consequential damages, such as the destruction of infrastructure, the limitation of access to the mine and the cost of environmental license modifications, were not considered.

Likewise, the Request mentions that there was loss of profits since the expropriation of the land made it completely impossible to extract coal from the mine. All of the above, they allege, would constitute an alleged breach of the relevant policies of IDB Invest.

Recent actions

In the preparation of the Recommendation for a Compliance Review, the Phase reviewed public and confidential project documents, met with Management and the Requesters, and listened to their allegations to answer any questions. MICI concluded that Management had complied with the requirements of IDB Invest’s Environmental and Social Sustainability Policy, Performance Standard 1 (PS1, Assessment and Management of Environmental and Social Risks and Impacts), and PS5 (Land Acquisition and Involuntary Resettlement).

Following this analysis, the Phase submitted for consideration to the IIC Board of Executive Directors its recommendation to not conduct an investigation and urged Management to discuss with the Client the inclusion of risk management measures more aligned with the spirit of IDB Invest’s environmental and social policies.

On July 24, the Board approved, without objection, the Recommendation not to investigate. MICI notified the parties of this decision and closed the case.

Past actions

On June 20, 2023, MICI notified the Requesters and IDB Invest Management of the registration of the Request.

On August 21, 2023, the MICI determined that the Request was eligible because it met all the eligibility criteria set forth in the MICI Policy.

The eligibility determination process has at no time been an investigation of the Project or IDB Invest. The fact that the Request was declared eligible is not a determination of compliance or non-compliance by the institution with its Policies and/or Performance Standards.

The Request was referred to the Consultation Phase by decision of the Requesters.

On October 17, 2023, the Board of Executive Directors approved, by short procedure, an extension of the deadline for the Assessment stage until December 20. The objective of this extension is to continue exploring the viability of a dialogue process between the group of requesters, the client and IDB Invest's management.

On December 19, 2023, MICI submitted its Consultation Phase Assessment Report, concluding the inexistence of conditions to begin a dispute resolution process. The report was distributed to the IDB Invest Board of Executive Directors for information. The management of the case is transferred to the Compliance Review Phase.

The deadline for the elaboration of the Recommendation for a Compliance Review and Terms of Reference is February 8, 2024.

On February 13, 2024, the Board approved an extension of the deadline for preparing the draft of the Recommendation. The new deadline expires on February 23.