Summary of the Request

The Request alleges the loss of the forms of subsistence of the requesting families, as a result of having been displaced from their lands in January of 2011 for the development of the Caracol Industrial Park (the Project) in the area located within close proximity to the Caracol Bay, which assists in the exportation objectives of the Park.

The Requesters, principally dedicated toward agricultural activities for their food security and economic sustenance, were land owners in the area selected for the Project. The Requesters allege that their displacement from the land had been carried out with minimal days’ notice, without consultation with the communities, and without information having been provided in this regard.

In addition, the Requesters signal that the compensation offered would have been received several years later, and that it would have been inadequate to ensure the quality of life of the requesting families. This, in turn, would have led to poorer living conditions, in comparison to the conditions existent prior to the displacement, due to the resulting situation that would not allow the Requesters to cover their cost of living. Furthermore, the Request alleges that some families have not, to date, received compensation, after six years of the displacement having taken place.

The Request also raises the issue of harm to the requesting families due to the lack of information regarding the environmental impacts on the Caracol Bay zone and the Troud-du North River, as a result of the construction and operation of the Park; such is also the case with respect to the social impacts experienced by the surrounding communities due to the introduction of the Project. Finally, the Request also presents information about the possible violations of labor codes in relation to the personnel that currently works in the Park.

The Project is financed through 5 loan operations and also has a series of technical cooperations.

Recent actions

On January 29, 2024, MICI submitted, for information, the Fifth Annual Monitoring Report to the Board of Executive Directors. The report notes that commitments on the distribution of specialized agricultural equipment and vocational training have already been fully met, while the graduation program with access to microcredit is at 89 per cent. By the end of 2023, 51% of access to land commitments had been implemented, an increase of 21 points compared to the previous year.

Past actions

On January 23, 2017, the Request was registered. Requesters and Management were notified.

On March 23rd MICI determined that the complaint was eligible, as it met the criteria established by the Mechanism’s Policy, with the exception of three operations related to the Project, to which some exclusions outlined in the Policy apply. For two of the three operations mentioned, the exclusion detailed in paragraph 19 (f) applies, which states that neither the Consultation Phase or the Compliance Review Phase shall be applicable to Requests submitted more than 24 months after the last disbursement corresponding to the operation financed by the Bank; for the third operation remaining, the exclusion detailed in paragraph 19 (e) applies, related to operations that have not yet been approved by the Board of Executive Directors.

This determination is not an evaluation of the merits of the Request, nor of the topics presented. Likewise, the determination is not an evaluation of the compliance or non-compliance of the Bank in relation to its relevant Operational Policies.

The Request was transferred to the Consultation Phase, in accordance with the wishes of the Requesters, and the assessment stage was initiated in order to determine whether or not carrying out the process of this Phase would be feasible.

On June 27, 2017 , MICI published the Assessment Report for the Consultation Phase, which determines that the parties agree to seek a resolution using consultation methods.

On May 17, 2018, at the request of MICI, the Board of Directors approved an extension to the Consultation process for an additional period of six months, with the objective of allowing the necessary time for discussing possible corrective and / or restoration measures based on the results of the independent evaluation of the Livelihood Compensation and Restoration Plan.

The new deadline for the Consultation Phase Process will be December 14, 2018.

On January 25, 2019, the Consultation Phase Report, including the Agreement reached on December 8 2018 and the Monitoring Plan, was distributed to the Board of Executive Directors for their consideration by short procedure. With the approval of the Monitoring Plan by the Board, the Monitoring stage begins. By disposition of the Parties, both the Agreement terms and the Monitoring Plan are confidential.

On January 21st 2020, MICI submitted, for information, the First Annual Monitoring Report to the Board of Executive Directors.

On February 23rd 2021, MICI submitted, for information, the Second Annual Monitoring Report to the Board of Executive Directors.

On April 25th 2022, MICI submitted, for information, the Third Annual Monitoring Report to the Board of Executive Directors.

On April 25th 2022, MICI submitted, for information, the Third Annual Monitoring Report to the Board of Executive Directors.

On May 25th 2023, MICI submitted, for information, the Fourth Annual Monitoring Report to the Board of Executive Directors.

On September 21, 2023, the organization Accountability Counsel, representing the group or requesters, requested an extension of the agreements' monitoring stage for an additional year to be able to finalize the implementation of the land-titling component and other additional activities that may not be implemented before December 8, 2023. To date, three of the five core components had been implemented in percentages close to 100%, thanks to the commitment and flexibility of the group of requesters, the Executing Agency and the IDB management. In the land access component, the Executing Agency reported a progress of 49% as of September 15, 2023, and three additional activities had yet to be implemented: the training of 100 people to facilitate access to employment in the Caracol Industrial Park, an event to present microcredit institutions, and an update on the PIC's social and environmental management. To address the complainant’s request, on October 19 the Board of Executive Directors approved an extension of the monitoring period until December 2024.