Independent Investigation Mechanism

Yacyretá Hydroelectric Project--Second Case

(Project No. RG-0004; Loan No. 760/OC-RG)

Notice

 

On May 16, 2002, the Coordinator for the Bank's Independent Investigation Mechanism received a request dated April 26, 2002, from the Federación de Afectados por Yacyretá de Itapúa y Misiones (FEDAYIM) for an investigation pursuant to the Mechanism. The request concerned possible violations of Bank environmental and resettlement policies in relation to the Yacyretá Hydroelectric Project. The project, which straddles the Paraná River, on the border between the Republic of Argentina and the Republic of Paraguay, was funded in part by the World Bank.

Bank financing for the principal civil and electromechanical works for the project was through Loans 346/OC-RG, 555/OC-RG, and 583/OC-RG, which have been fully disbursed. Bank Loan 760/OC-RG, in progress since 1994, was approved to address environmental and social impacts associated with the project. A previous review of the Yacyretá project, in response to a request on behalf of affected individuals filed by the nongovernmental organization, SOBREVIVENCIA, was conducted pursuant to the Mechanism in 1997. The request submitted by the FEDAYIM in 2002 includes new issues not included in the 1997 review.

The request was determined to have satisfied all of the procedural requirements for operation of the Mechanism. As required by paragraph 4.3 of the Mechanism, the request was reviewed by a consulting member of the Mechanism Roster, who determined the request to be substantive and not frivolous.

Pursuant to paragraph 4.4 of the Mechanism, Bank management submitted a response to the request on February 14, 2003. The consulting member of the Roster submitted a report and recommendation concerning the request and management response on April 24, 2003.

Pursuant to the recommendation of the consulting member of the Roster, the Bank's Board of Executive Directors decided on July 9, 2003, to authorize an independent investigation in response to the complaints submitted with respect to the Yacyretá project. In its meeting of October 7, 2003, the Board of Executive Directors approved the Terms of Reference for the investigation.

 

October 27, 2003