MICI-CII-EC-2023-0218
Procesadora Nacional de Alimentos, C.A. (“PRONACA”) and La Estancia Investment Holding, S.L.(“La Estancia”)
Country: Ecuador
Reception date: September, 18 2023
Current Status: Open
Requesters:
Indigenous populations of Tsáchila nationality located in Santo Domingo de los Tsháchilas, Ecuador. These communities are being represented, for the purposes of the MICI process, by the Ecuadorian Coordinator of Organizations for the Defense of Nature and the Environment (CEDENMA) and advised by the organizations Friends of the Earth and the Bank Information Center.
Summary of the Request
The Request describes a series of environmental harm due to contamination of bodies of water and air in and around the Santo Domingo area, as well as impacts to the health and livelihoods of the communities allegedly linked to the Project.
Specifically, PRONACA's industrial farms are allegedly depositing solid waste (animal excrement) as fertilizer in areas near the communities settled along the Pove, Peripa, and Chigüilpe rivers, who use these bodies of water for subsistence activities (bathing, washing, cooking, etc.), agricultural production, fishing, and more recently tourism. These rivers, according to the group of claimants, have been polluted and the water quality has deteriorated to the point that the communities can no longer depend on them for any of their traditional uses. Additionally, they warn that residents in this area are experiencing higher rates of stomach, lung, and skin cancer, which they potentially link to PRONACA's operations.
Recent actions
On August 9, 2024, the Board approved the Recommendation to conduct a Compliance Review and ToR. The investigation is expected to last nine months from the date on which the investigation panel is formed, which will be made up of the MICI Director and two experts.
Past actions
On September 19, 2023, MICI notified the Requesters and IDB Invest Management of the registration of the Request.
On November 16, 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 January 25, 2024, 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 March 26, 2024. On April 2, 2024, the Board approved an extension of the deadline for preparing the draft of the Recommendation. The new deadline expires on May 16, 2024.
On April 25, 2024, the Phase Coordinator recused herself from the case due to a potential appearance of conflict of interest, in accordance with the IDB Group’s Code of Ethics. Since then, MICI's Director directly assumed the management of the Compliance Review process, supported by the previously assigned team. MICI notified the parties and the Board of the decision on May 13.
El 16 de mayo de 2024, la Fase compartió con la On May 16, 2024, the Phase shared with Management and Requesters the draft Recommendation for a Compliance Review and Terms of Reference. At the request of the parties, the deadline to submit comments on the draft was extended until June 20.
Environmental Category:
B
Project Name:
Procesadora Nacional de Alimentos, C.A. (“PRONACA”) and La Estancia Investment Holding, S.L.(“La Estancia”)
Sector:
Agriculture And Rural Development
Project Type:
Loan Operation
IDB Invest Financing:
USD 50,000,000
Registration Registered | Eligibility Eligible | Assessment | Consultation Process | Monitoring | Recommendation for a CR and ToRs | Investigation | CR Report | Monitoring |
Registration | Consultation Phase (CP) | Compliance Review Phase (CRP) | ||||||
Chronology and documents
| Steps and milestones | Date | Remarks | Documents |
|---|---|---|---|
| Registry | |||
37227 Request Receipt | 2023-09-18 | Requests of a confidential nature are not published. | |
37228 Notice of Registration | 2023-09-19 | 5 business days from the date of receipt of the Request or 15 business days when further information is required from the Requesters. | |
| Elegibility | |||
403 Management Response | 2023-11-02 | 21 business days from the date of notice of registration. The response will be published as an annex to the Eligibility Memorandum. | |
37229 Eligibility due date | 2023-11-17 | 21 business days from the date of receipt of Management Response or 45 business days after the Suspension is granted. | |
406 Eligibility Memorandum Public Disclosure | 2023-12-06 | As 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 | |||
| Assessment | |||
408 Deadline for Assessment | 2024-01-25 | 40 business days from the date of issuance of the eligibility memorandum. | |
444 Assessment Report Public Disclosure | 2024-02-26 | As 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 | |||
445 Notification to Parties | 2024-03-01 | ||
| Compliance Review Phase | |||
| Recommendation for a Compliance Review and Terms of Reference (ToRs) | |||
446 Preparation of Draft Recommendation and ToRs due date | 2024-05-16 | 21 business days from the start date of the Compliance Review Phase. On April 2, 2024, the Board approved an extension of the deadline for preparing the draft. The new deadline expires on May 16, 2024. | |
460
| 2024-05-13 | Recusal of the Phase Coordinator. | |
464 Due date for receiving comments on Draft | 2024-06-20 | Management and Requesters have 15 business days to submit their comments to the Draft. | |
494 Consideration by the Board of Executive Directors of the Recommendation and ToRs | 2024-08-05 | Start date of Board consideration by short procedure | |
495 Decision by the Board of Executive Directors regarding the Recommendation | 2024-08-09 | Approved | |