Summary of the Request

The Request submitted to the ICIM presents concerns regarding the transfer and land titling of Finca 470 to the Ache Community in Paraguay. The program includes among its main objectives: “… (iv) increase by approximately 20,000 ha the area of land set aside as environmental reserves and begin regularization of ownership of some 11,000 ha by indigenous communities in the area of influence of Route 10 in the section of the highway corridor between Asunción and Salto del Guairá.”

MICI actions

The Request was declared ineligible for the Consultation Phase and transferred at the Requesters´ petition, to the Chairman of the Review Panel for consideration under the Compliance Review Phase. The Request was declared eligible for a Compliance Review by the Panel.

The IDB Board of Executive Directors approved the Panel's recommendation to carry out a Compliance Review under a “non-objection” basis. The Panel’s principal conclusion is that failure to enforce compliance with relevant Bank operational policies to ensure appropriate design and implementation of the offset provisions stipulated in the loan contract was an important contributing factor to the harm alleged by the Aché indigenous people. The report found inadequate monitoring of implementation of the Environmental Sub-Program, including land purchases and titling for indigenous communities. It also found that procedures for classifying and evaluating environmental effects of IDB operations were not adequately followed as required by the objectives of the Bank´s environment policy.

The Final Report was distributed to the Board of Executive Directors of the Bank on November 28, 2012, who took note of it. The final decision by the Board will be published in this registry once the ICIM is notified of it.