On July 29, 2015, the Board of Executive Directors considered the Compliance Review Report for case PN-MICI002-2011 presented by the Panel. After taking note of it, it issue its final decision with regard to the three areas covered by the investigation:
About seismic risk and compliance with the Disaster Risk Management Policy (OP-704):the Board concluded that Management had not complied with the Policy requirement to report the level of risk. Therefore, it instructed Management to produce a report consolidating (a) Management Response to the Compliance Review Report; (b) the result of the seismic classification given to the project, and; (c) the steps that the Bank has taken to ensure that seismic risks have been appropriately managed.
About water availability and compliance with the Environment and Safeguards Compliance Policy (OP-703): the Board concluded that the Bank complied with the Policy and therefore does not accept the findings or the recommendations made by the Panel
About the Western Watershed: The Board confirmed based on the Panel Report that the area of the Western Watershed is not within the scope of the project and therefore concluded that any finding made by the Panel is not a matter in which the Bank can intervene or make recommendations.
For more information access the following documents in the Case Chronology:
- Compliance Review Report for Case PN-MICI002-2011
- Management Presentation to the Board of Executive Directors
- IDB Report regarding Seismic Risk Categorization and Assessment for the Panama Canal Expansion Program
End of Process:
On August 4, 2015, after the disclosure of the Compliance Review Report and the Notification of the Final Decision of the Board to the Requester, the Borrower and the Public, the processing of this Request by MICI is concluded.
Less - 2014
The investigation was slated to conclude in February 2014, but the Panel requested various extensions to clarify and supplement its findings. The Compliance Review Phase Report was scheduled to be released in June 2015 and Management had already sent the comments on the Draft of the Report.
Less - 2013
On February 24, 2013, the Panel presented a Recommendation and Terms of Reference for a Compliance Review to the Board of Executive Directors for consideration, which were revised to address some requests for clarification and subsequently approved on September 12, 2013. Given that the Panama Canal Expansion is also being financed by other Multilateral Development Banks to which the Requesters also submitted claims, the MICI’s investigation was conducted in close cooperation with the Independent Accountability Mechanisms of the European Investment Bank and the Japan Bank for International Cooperation.
Less - 2012
The Request was declared eligible for the Consultation Phase. Nevertheless, the Executing Agency, the “Autoridad del Canal de Panamá”, indicated its unwillingness to engage in the dialogue process. Consequently, in June 2012, the Project Ombudsperson issued the Assessment and Consultation Phase Report concluding that the dialogue was not feasible and declaring the Phase concluded. The Requesters asked the MICI to transfer the case to the Compliance Review Phase, and on September 20, 2012, the Request was declared eligible for this Phase