MICI-CII-GU-2018-0136

Generadora San Mateo S.A. y Generadora San Andrés S.A.

Country: Guatemala

Reception date: August, 6 2018

Current Status: Open

Requesters:

Confidential. 

Summary of the Request

The Request describes the situation of residents of various communities in Northern Guatemala, in the area where the Generadora San Mateo and Generadora San Andrés Hydroelectric Power Projects are located.

According to the Requesters, IDB Invest has not complied with its Operational Policies, nor with the International Finance Corporation (IFC) Performance Standards. This alleged non-compliance refers to a series of actions and omissions, including the absence of an adequate and complete assessment of the environmental and social impacts that may have prevented the complete identification and characterization of the impacted population. Also, they claim that the Projects did not carry out adequate prior consultation and access to information procedures.

Regarding the harm allegations, the Request describes various environmental impacts including the pollution of water sources that are essential to the survival of the region residents; its potential impact on the livelihood activities of the Requesters and its potential impact on the biodiversity. These negative impacts may be impacting women in an exacerbated manner, because of a lack of gender perspective for both Projects.

Also, the Requesters report aggressions to the security and integrity of the region residents, in the context of the serious public- order situation in which the Projects are developed. They describe an increase in the level of security issues and rupture of the family and community fabric. They underscore the situation of violence and reprisals against those who have shown opposition to the Projects, reporting on human rights violations, death threats and killings. Finally, the Request alleges harm against the traditional culture and way of life of the indigenous peoples, including impact to sacred sites, and archaeological sites close to the Projects.

In relation to the MICI process, they state that they wish to resort to the Compliance Review Phase, in case their Request is declared eligible.

Recent actions

On September 21, 2021, the Board of Directors endorsed the findings contained in the Compliance Review Report and accepted the 29 recommendations made by MICI. For its implementation, the Board instructed Management to prepare an Action Plan in consultation with MICI .

On September 28, 2021, MICI published the Compliance Review Report.

Past actions

On August 13, 2018, MICI notified the Requesters and IDB Invest Management that the Request was registered.

On October 16, 2018, the MICI Director requested an extension for the eligibility determination period to be approved by the Board of Executive Directors (paragraph 59 of the MICI-CII Policy). The Board of Executive Directors approved the extension, therefore the new deadline to issue the Eligibility Determination Memorandum will be November 30, 2018.

On November 26, 2018, the MICI Director requested an extension for the eligibility determination period to be approved by the Board of Executive Directors (paragraph 59 of the MICI-CII Policy). The Board of Executive Directors approved the extension, therefore the new deadline to issue the Eligibility Determination Memorandum will be January 31, 2019.

On January 31, 2019 MICI determined that the Request was eligible as it complied with the criteria set forth by the MICI-IIC Policy.

The analysis of compliance with the performance of Free, Prior and Informed Consent (FPIC), as established by the Indigenous and Tribal Peoples Convention 169 of the International Labor Organization (ILO), is excluded from a MICI process, as it is currently part of active judicial processes in Guatemala.

In accordance with the Requesters' wish to use the Compliance Review Phase, the Request was transferred to that Phase, starting the time period for MICI to prepare a draft of Recommendation and Terms of Reference for a Compliance Review.

This determination of eligibility and the start of the MICI process do not halt the Project or its disbursements. It does not determine compliance or non-compliance by the Bank with respect to its Relevant Operational Policies.

On March 29, 2019, IDB Invest Management requested MICI for a 15 business days extension to send its comments on the "Draft Recommendation and Terms of Reference for a Compliance Review" sent to the Parties on March 19th.

On April 5, the Board of Executive Directors approved this extension, so the new deadline for receiving comments from the parties will be April 30, 2019.

On June 3, 2019, the Bank’s Board approved the Recommendation and Terms of Reference to carry out a Compliance Review for the “Generadora San Mateo S.A.” and “Generadora San Andrés S.A.” Projects (GU3794A-01 and GU3798A-01 respectively). MICI anticipates that the investigation will last 6 months from the moment the investigation panel is formed. The panel consists of the Phase Coordinator and two experts.

On August 26, 2019, Jay Paul Wagner (Canada), Jean Roger Mercier (France) and David Nyheim (Norway) were hired as independent experts to conduct the investigation led by the Compliance Review Phase Coordinator.

Between February 2020 and March 2021, the investigation process required several extensions of the deadlines established in the MICI policy. In particular, the circumstances generated by the COVID -19 pandemic, a transition process of the MICI due to a change of its director and the environmental and social supervision of the Operations in 2020, among others, generated the need to extend the investigation period until April 19, 2021.

On April 19, 2021 the Preliminary Compliance Review Report was sent to Management and the Requesters for their comments.

On June 8, 2021, the Administration and the Requesters submitted their comments to the Preliminary Report, after an extension requested by the Administration, and on July 12, 2021, the Final Report was distributed to the Board of Executive Directors for their consideration.

Project Number:

GU3794A-01

GU3798A-01


Environmental Category:

B


Project Name:

Generadora San Mateo and Generadora San Andres


Sector:

Energy


Project Type:

Loan Operation


IDB Invest Financing:

13,000,000.00


Registration
Registered
Eligibility
Eligible
Assessment
Consultation Process
Monitoring
Recommendation for a CR and ToRs
Investigation
CR Report
Monitoring

Registration

Consultation Phase (CP)

Compliance Review Phase (CRP)

Chronology and documents

Steps and milestones Date Remarks Documents
Registry

24393

Request Receipt

2018-08-06

Requests of a confidential nature are not published.

24394

Notice of Registration

2018-08-13

5 business days from the date of receipt of the Request or 15 business days when further information is required from the Requesters.
Elegibility

24395

Management Response

2018-09-19

21 business days from the date of notice of registration. The response will be published as an annex to the Eligibility Memorandum.

24396

Eligibility due date

2019-01-31

21 business days from the date of receipt of Management Response or 45 business days after the Suspension is granted.

24946

Eligibility Memorandum Public Disclosure

2019-01-31

This determination is not an assessment of the merits of the Request or the issues presented in it.
Compliance review phase
Recommendation for a Compliance Review and Terms of Reference (ToRs)

25159

Preparation of Draft Recommendation and ToRs due date

2019-03-19

21 business days from the start date of the Compliance Review Phase.

25160

Due date for receiving comments on Draft

2019-04-30

Management and Requesters have 15 business days to submit their comments to the Draft. An extension was requested and approved.

26639

Consideration by the Board of Executive Directors of the Recommendation and ToRs

2019-05-24

Start date of Board consideration by short procedure.

25947

Decision by the Board of Executive Directors regarding the Recommendation

2019-06-03

Approved.
Investigation

26640

Date of integration of Panel

2019-08-26

26641

Expected completion date of Investigation / Issuance of Draft Compliance Review Report

2021-04-19

The conclusion date of the investigation is set in accordance to the ToRs and subsequent extensions.

30724

Due date for receiving comments on Draft

2021-06-08

Management and Requesters have until this date to submit their written comments to the Preliminary Report.

31034

Distribution of the Compliance Review Report for consideration by the Board of Executive Directors

2021-07-12

The consideration of the Compliance Review Report follows the standard procedure.

31415

Public Release of the Compliance Review Report and final decision by the Board of Executive Directors

2021-09-21

Disclosure of this document takes place after Board consideration.