Summary of the Request

The Request submitted to the ICIM made observations related to a Non-Reimbursable Technical Cooperation awarded to Loofah S.A. in 2005. A Loofah representative states that the company suffered a “tremendous damage” as a consequence of the partial cancellation of Technical Cooperation funding due to an apparent failure on the part of Loofah to meet the objectives set forth in the Grant Agreement signed with the IDB.

MICI actions

The Project Ombudsperson determined that the Request was eligible for the Consultation Phase. After a series of informational meetings, the Project Ombudsperson presented an Assessment Report, outlining the existence of the necessary elements to resolve the issues raised through a constructive dialogue among the interested Parties, element that had not been present in earlier stages of the project.

Among the first actions, Loofah S.A. submitted all the documentation required to receive the remaining funds of the Technical Cooperation ATN/SF-8984-PR. After reviewing the documentation, the Bank determined that certain items of expenditure could not be considered eligible, either because of insurmountable deficiencies or because they were not relevant. As a result of the dialogue process, the Parties signed an Agreement that contemplated coverage of eligible expenses incurred by Loofah S.A. from January 1, 2008 to December 31, 2009. Signing of the Agreement marked the end of the Consultation Phase.

At the request of Loofah S.A., the Project Ombudsperson monitored compliance with the terms of the Agreement, confirming its fulfillment on September 30th 2011 with the final disbursement of funds to Loofah S.A.