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Chile - Pangue

Complaint

A group of indigenous women filed a complaint received July 1, 2002 regarding a series of proposed hydroelectric dams on the upper BioBio River. Complainants wanted to address outstanding problems from the initial Pangue complaint (filed in 2000) which included inappropriate and weak social mitigation measures, environmental mitigation and compensation issues.

IFC Interest

IFC held 2.5 percent of the equity interest in Pangue Hydroelectric Project from October 1993 until divestment in July 2002. IFC also invested and arranged loans of US$170 million in the project, which were prepaid in May 1997. IFC completed its exit from the project on July 12, 2002.

Background

At the time of the first dam's construction, a number of complaints were made to IFC by local people. After considerable pressure from international organizations in support of those complaints, the President of the World Bank Group asked Jay Hair, President of the International Union for the Conservation of Nature (IUCN), to undertake an independent inquiry into the complaints. The resulting Hair Report made a number of recommendations; none of which had been fulfilled, according to the allegations in this complaint.

The CAO accepted the complaint despite IFC's exit, as the CAO considered that the issues raised by the complaint related directly to IFC's role in the project over a number of years, to promises and commitments made and to previous opinion by independent investigations and consultant reports that IFC needed to undertake certain actions.

CAO Action

The CAO appraised the complaint, accepted it and assessed it. The assessment process included a visit to the Upper BioBio region.

An assessment report was issued by the CAO on May 5, 2003 , in which the CAO recommended that IFC publish the Hair Report and also that it publish documents it had commissioned - including emergency response plans and downstream impact studies.

Current Status

Settlement agreement has been concluded between UNIMACH - Educational Corporation Universidad Mapuche - and the CAO. UNIMACH will be the institution that will provide capacity strengthening programs to the indigenous Pehuenche communities, whose home is the Bio Bio watershed in Southern Chile.

 

Received

Appraisal

Assessment

Conciliation, Mediation, Settlement, Monitoring & Follow Up

5 days

15 days

30-90 days

As needed

Acknowledged
07-02-03

Accepted
07-02-03

 Assessed and Assessment Report Completed

10-17-03

 Settlement agreement concluded.

 

 

Documents

Pangue (2) Settlement Agreement Between CAO and UNIMACH- Translation From Spanish 2-9-2006

English/pdf

Original Pangue (2) Settlement Agreement Between CAO and UNIMACH 2-9-2006

Spanish/pdf

Pangue (2) Assessment Report May 2003

English/pdf

Pangue (2) Assessment Report May 2003

Spanish/pdf

Lessons Learned: Pangue Hydroelectric: Report by IFC Environment & Social Development Department
English/pdf

 

This page last updated: 4/24/2006