We are the independent accountability office of the IDB Group. We receive complaints from communities in the region alleging that they have been harmed by projects financed by one of the Group’s institutions as a result of noncompliance with one or more of its operational policies.
Panama - Panama - Panama Canal Expansion Program
Country: Panama
Reception date: October, 10 2011
Current Status: Closed
Requesters:
Leila Shelton-Louhi on her own and on behalf of coalition Alianza Pro Panama
Ms. Leila Shelton-Louhi, Director of the “Comité Pro Defensa del Lago Gatún”, submitted a Request to the MICI on her own behalf and in representation of the non-governmental organizations coalition “Alianza Pro Panamá” (the Requesters). The Request alleges, among other things: (a) lack of transparency, incomplete disclosure of information and misrepresentation of Project-related facts among the local and international community; (b) the potential that the expansion of the Canal could lead to the increased inflow of salt water into the Panama Canal Watershed, adversely affecting biodiversity; (c) lack of adequate risk identification and appropriate mitigation measures related to a major seismic fault threatening the Canal’s Pacific end; and (d) potential insufficiency of water resources to manage the expansion of the Panama Canal efficiently and sustainably.
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.
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.
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.
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
A
Corporate Loan to ACP to Support the Panama Canal Expansion Program
Loan Operation
USD 400,000,000.00
| Steps and milestones | Date | Remarks | Documents |
|---|---|---|---|
| INTAKE | |||
| Filing of Request | |||
|
Request received by Executive Secretariat
|
October 10, 2011 |
|
|
| Registration | |||
|
Notice of registration of Request and transfer to the Consultation Phase
|
October 17, 2011 |
The document is available only in spanish |
|
| CONSULTATION PHASE | |||
| Eligibility for the Consultation Phase | |||
|
Eligibility due date
|
November 7, 2011 |
(15 business days from date of transfer to the Consultation Phase) |
|
|
Eligibility revised due date
|
January 17, 2012 |
Two 45-day pauses of the process for conversations between Requester and Management. |
|
|
Issuance of Eligibility Memorandum
|
February 12, 2012 |
The Eligibility Memorandum is published after it is distributed to the Board of Executive Directors. |
|
|
Eligibility memorandum distributed to the Board of Executive Directors
|
March 27, 2012 |
|
|
| Assessment | |||
|
Assessment due date
|
June 11, 2012 |
(120 calendar days from the date of issuance of the eligibility memorandum) |
|
|
Assessment revised due date
|
June 27, 2012 |
|
|
|
Issuance of Assessment Report
|
June 28, 2012 |
The Assessment Report is published after it is distributed to the Board of Executive Directors. |
|
|
Assessment Report distributed to the Board of Executive Directors
|
July 20, 2012 |
Assessment and Consultation Phase Report were presented in a single document. |
|
|
Issuance of Consultation Phase Report
|
June 28, 2012 |
The Consultation Phase Report is published after it is distributed to the Board of Executive Directors. |
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|
Consultation Phase Report distributed to the Board of Executive Directors
|
July 20, 2012 |
|
|
| COMPLIANCE REVIEW PHASE | |||
| Compliance Review Intake | |||
|
Notification received by Executive Secretariat indicating/ratifying Requester(s) desire to have a Compliance review by the Panel
|
August 15, 2012 |
|
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| Transfer Notice | |||
|
Notice of transfer
|
August 24, 2012 |
|
|
| Eligibility for the Compliance Review Phase | |||
|
Eligibility due date
|
September 14, 2012 |
(15 business days from date of transfer to the Compliance Review Phase) |
|
|
Issuance of Eligibility Memorandum
|
September 14, 2012 |
The Eligibility Memorandum is published after it is distributed to the Board of Executive Directors. |
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Eligibility Memorandum distributed to the Board of Executive Directors
|
October 11, 2012 |
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|
| Terms of Reference (TORs) | |||
|
Issuance of draft recommendation and TORs
|
December 10, 2012 |
|
|
|
Due date for Management and Requester’s comments to draft recommendation
|
January 18, 2013 |
(20 business days for submission of comments). Original date for submission of comments from Management and Requesters was January 11, 2013. Extension was granted till January 18, 2013. |
|
|
Submission of the final document to the Board of Executive Directors for consideration
|
April 1, 2013 |
April 17, 2013: Document considered by the Board, clarifications requested. August 7, 2013: Revised version of the document considered by the Board, further clarifications requested. September 12, 2013: Revised version of the document approved by the Board. |
|
|
Determination of the Board of Executive Directors to conduct a Compliance Review
|
September 12, 2013 |
The recommendation to conduct an investigation was approved. |
|
| Investigation | |||
|
Expected end date of review by the Panel
|
February 13, 2014 |
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Revised end date of review by the Panel
|
June 30, 2015 |
(if more than 30 calendar days from the date stated in the TORs) First extension: July 4, 2014. Second extension: October 31, 2014. Third extension: March, 2015. Fourth extension: June, 2015. |
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Distribution of Panel Report to the Board of Executive Directors
|
July 14, 2015 |
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Final decision of the Board of Executive Directors
|
July 29, 2015 |
Documents included: Notification of the Final Decision; Management Presentation to the Board of Executive Directors; IDB Report regarding Seismic Risk Categorization and Assessment for the Panama Canal Expansion Program. |
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Publication of Panel Report
|
August 4, 2015 |
20 calendar days from distribution to the Board of Executive Directors |
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| Closing of the Compliance Review Phase | |||
|
File transferred to the Executive Secretariat |
August 4, 2015 |
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