Russian Federation: Russkiy Mir II-01/Taman

Date Filed
01 Oct 2007
Status
Closed
Phase
Compliance
Country
Russia

Case Tracker

Eligibility
Eligibility
Assessment
Transferred
Assessment
Dispute Resolution
Compliance
Appraisal
Closed
CURRENT Status
Appraisal (COMPLIANCE)
Closed

Complaint Overview

Complainant

Save Taman! and North Caucasus Environmental Watch

Cross-Cutting Issues
Risk Management Community Health and Safety Indigenous Peoples

Project Information

Region
Europe & Central Asia
Institution
IFC
Name & Number
Russkiy Mir II 23870
Company
JSC SFAT
Sector
Infrastructure
Department
Infrastructure
Category
B
Commitment

$45 million (A Loan) & $55 million (B Loan)

Synopsis

Complaint

The Russkiy Mir II project involves an IFC loan of up to $100 million to develop and build the Taman LPG/Fuel Oil terminal and port in the Black Sea, to purchase and expand rail maintenance facilities, to purchase locomotives and rail cars, and to purchase a wheel-making / spare-parts manufacturer and other rail-related infrastructure. A complaint filed in October 2007 by two NGOs – Save Taman! and North Caucasus Environmental Watch – raises concerns about the impacts of the project, and about IFC’s due diligence prior to Board approval of the loan. The NGOs believe the company’s activities pose a number of threats to the natural and social environment in the region surrounding the Taman Peninsula. They also question IFC’s environmental categorization of the project as “B” – rather than “A”, and believe that the environmental review process failed to comply with IFC performance standards.

CAO Action

In March 2008, a CAO Ombudsman team conducted an assessment and found that many project-impacted stakeholders who did not sign the complaint regard the issues of social development and community engagement as a high priority. Those stakeholders expressed their support for a facilitated community engagement process to address issues of social development and investment in the future of the peninsula. However, because those issues were not the focus of the complaint filed with the CAO by the two NGOs, the signatories requested that CAO’s involvement focus exclusively on the question of IFC’s categorization of the loan to Russkiy Mir, and requested a transfer of the case to CAO Compliance for appraisal. In accordance with CAO Operational Guidelines, the CAO Ombudsman concluded its assessment of the complaint and transferred it to CAO Compliance. CAO Compliance appraisal concluded that an audit of IFC was not merited.

Status

The case is closed.

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    Assessment Report, Regarding the Russkiy Mir II Project
    Jul 01, 2008
    English
    Assessment Report, Regarding the Russkiy Mir II Project
    Assessment Report, Regarding the Russkiy Mir II Project
    Jul 01, 2008
    Russian
    Assessment Report, Regarding the Russkiy Mir II Project
  • Appraisal Report(s)
    Appraisal Report for Audit of IFC
    Oct 16, 2009
    English
    Appraisal Report for Audit of IFC
    Appraisal Report for Audit of IFC
    Oct 16, 2009
    Russian
    Appraisal Report for Audit of IFC