Summary of the Request

The Request presents a number of environmental concerns regarding the development of the Project, including, among others, the evaluation process related to environmental impact assessments, the siting of the plants, and the use of water. The Requesters also raised social concerns with respect to long term concessions. The Requesters alleged that the Project would have a negative impact on agricultural projects, damage roadways, and reduce the local economy; in addition they indicated that the siting of the Project raises security concerns, given the presence of the Baru Volcano, the possibility of earthquakes and other natural phenomena. They explicitly request that given that the environmental impact study was not participative in nature, the IDB considers their concerns prior to proceeding with Project financing.

MICI actions

The Project Ombudsperson declared the Request eligible for the Consultation Phase and given that the Project received financing from both by the International Financial Corporation (IFC) and the IDB, the ICIM and the CAO entered into an Agreement to conduct a joint dialogue process. Conditions were amenable to initiate the Dialogue process.

By the end of April, 2011, the Project sponsor Electron Investment, S.A. (EISA) indicated its decision to refrain from participating in the process; as a result the ICIM-CAO team determined that the conditions were no longer amenable to continue with the process of Dialogue. In the case of the ICIM, the Consultation Phase was deemed concluded and the Case transferred to the Compliance Review Panel.

The Request was declared eligible for a Compliance Review by the Panel. The investigation took place from November 2011 to April 2012. The Final Panel Report was distributed to the Board of Executive Directors and was considered by the Board on October 24, 2012. Notification to the ICIM of the decision taken by the Board was received on December 12, 2012 and communicated to the Requester, Management and the Executing Agency.

The action plan requested by the Board to Management proposes specific activities to solve issues related to the Ecological Flow, the road damage, erosion, water impurity, and related water quality. It also allocates responsibilities and sets realistic deadlines for its implementation.

On February 13, 2013, the IDB Board of Executive Directors approved the action plan presented by the Administration. During the Board meeting, the Administration was instructed to maintain the Executive Directors periodically informed about the progress of the implementation of the action plan. The case was declared closed by the ICIM.