Togo: Togo LCT-01/Lomé

Date Filed
09 Mar 2015
Status
Open
Phase
Compliance
Country
Togo

Case Tracker

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

Complaint Overview

Complainant

Collectif des personnes victimes d’erosion côtière

Concerns

Land and livelihood

Cross-Cutting Issues
Risk Management Land Resettlement Land Water Loss of Livelihoods Private / Personal Property Damage

Project Information

Region
Sub-Saharan Africa
Institution
IFC
Name & Number
Togo LCT 29197
Company
Société Lomé Container Terminal
Sector
Infrastructure
Department
Infrastructure
Category
A
Commitment

$116.21 million

Synopsis

Project Overview

IFC has an active project with Lomé Container Terminal SA, a locally incorporated company which was awarded a 35-year concession by the Government of Togo to develop, construct, and operate a greenfield container terminal within the Port of Lomé in Togo. IFC invested €82.5 million for its own account in 2011, and mobilized the balance of €142.5 million from other lenders. The project is classified as Category A. A follow-on investment of €10 million from IFC’s own account was approved in August 2015 to contribute to the financing of additional equipment.

In March 2015, a complaint was lodged with CAO by the Collectif des personnes victimes d’erosion côtière—a group of riverine settlers who claim to be negatively impacted by the construction of the project. The complainants alleged that the project is causing land erosion issues in their communities and that they were not consulted or informed about the project. Issues related to the project’s Environmental and Social Impact Assessment (ESIA) were also raised.

 

Complaint

 

 

CAO Action

CAO found the complaint eligible for further assessment in March 2015 and conducted an assessment visit in June 2015.  During the assessment, there was a lack of consensus amongst the parties to engage in a CAO facilitated dispute resolution process.  In accordance with CAO’s Operational Guidelines, the complaint was therefore referred to CAO Compliance for appraisal. After completing the compliance appraisal in November 2015, CAO concluded that the issues raised warranted further investigation.

CAO’s compliance investigation was released on October 20, 2016 and made a number of findings in relation to IFC’s appraisal and supervision of the environmental and social (E&S) risks and impacts of the project:

IFC’s E&S Appraisal of the Project

- Review of the client’s E&S Assessment

CAO's compliance investigation noted that IFC’s E&S review did not identify coastal erosion as a risk of the project, although the ESIA acknowledged potential erosion impacts during construction and describes the history of coastal erosion since the port was constructed in the 1960s. CAO found IFC non-compliant with the 2006 Sustainability Policy on this issue. Further, CAO found that Performance Standard (PS1) requirements in relation to cumulative impact assessment were applicable and should have been addressed expressly in IFC’s E&S review. CAO also noted that IFC did not review the credentials and experience of the consultants who prepared the ESIA, nor the methodology used to assess the project’s potential impacts on coastal erosion. Considering these shortcomings, CAO found that IFC’s pre-investment E&S review of the project was not compliant with the 2006 Sustainability Policy.

- Disclosure and Consultation

CAO noted that IFC’s review of the client’s disclosure and consultation focused on the two groups that were economically and/or physically displaced by the project. IFC did not assure itself that information was disseminated by the client to other potentially affected communities in a manner that met the requirements of PS1. The lack of consultation and disclosure of information to communities living within the area of influence did not meet IFC’s PS1 requirements.

- Action Plan

CAO noted that the ESIA describes mitigation measures to be taken regarding the erosion risk, but the Action Plan agreed between IFC and its client did not include such actions. CAO found IFC to be non-compliant with the requirement to ensure that the Action Plan meets the requirements of PS1. CAO also noted that IFC did not assure itself that the client disclosed the Action Plan to affected communities or that it included a structure for reporting to affected communities.

IFC’s Supervision of the Project

CAO acknowledged that IFC and its client agreed on actions regarding the project’s impacts on coastal erosion in February 2016. However, CAO found these actions insufficient in several respects.

First, agreed actions do not represent a timely response to the issues, coming more than three years after the commencement of construction and more than two years after IFC became aware of concerns regarding the project’s impacts on coastal erosion. 

Second, while welcoming the Memorandum of Understanding (MoU) between the client and an academic institution to fund research on coastal erosion, CAO found that this agreement does not provide sufficient assurance that the analysis will meet the requirement for environmental assessment by the client under PS1 (paras 4ff). CAO also noted that there is no timeline for the production of this research.

Third, the agreed actions do not specify the need for consultation and disclosure required by PS1 (paragraph 20ff).

Fourth, IFC has not sought assurance that the revised Action Plan has been developed following consultation with, or disclosure to, affected communities as required by PS1. Similarly, the revised Action Plan lacks a mechanism for external reporting (paragraphs 16 & 26).

Fifth, IFC’s decision to rely on the Government and Port Authority of Lomé (PAL) to handle the concerns raised by the complainants was not supported by an appropriate assessment of their commitment or capacity to address the issues. It also lacked a framework for monitoring or follow up that would provide feedback on whether concerns regarding project related impacts were being addressed.

In this context, CAO found that IFC has not assured itself that the client is responding “to community concerns about the project” or engaging in consultation “on an ongoing basis as risks and impacts arise”, as per the requirements of PS1. Further, CAO found that IFC has not provided advice which would bring the client back into compliance as per the Sustainability Policy.

On April 2, 2018, CAO released its first monitoring report of IFC’s actions taken in response to the investigation. Overall, CAO’s monitoring report welcomed a number of actions proposed and taken by IFC. Nonetheless, the actions implemented at the time had not substantially addressed the investigation findings at project level. At the level of policies and procedures, CAO acknowledged IFC’s update of its EHS Guidelines for Ports, Harbors and Terminals, including a new section which provides useful guidance in relation to the assessment of project impacts on coastal processes and land erosion. CAO further noted that IFC contracted a third-party consultant to support expert reviews of projects with potential impacts on coastal erosion. 

CAO released a second monitoring report on April 22, 2019. At project level, the report recognizes IFC’s efforts to engage with the complainants and respond to their concerns since the publication of the investigation. While noting significant delays in implementation since CAO’s first monitoring report, CAO is encouraged by the progress made in early 2019. The commissioning of an environmental audit including a component on coastal erosion, as well as the initiation of a study on the contribution of different infrastructure projects on coastal erosion, which both envisage consultations with coastal communities, are positive steps towards bringing the project back into compliance. 

CAO will keep the investigation open for monitoring and plans to issue a follow-up monitoring report no later than April 2020.

All documents relating to this case are available under "View Documents" below.

Status

CAO continues to monitor IFC’s actions in response to the findings of the investigation. A third compliance monitoring report following its 2016 investigation of IFC's performance related to the Lomé Container Terminal in Togo. The report is available in English and French in the "Case Documents" section below. CAO will issue another monitoring report no later than June 2022.

 

Status as of August 17, 2021

Case Documents

  • Dispute Resolution

    Complaint
    Complaint
    Jan 27, 2015
    English
    Complaint
    Complaint
    Jan 27, 2015
    French
    Complaint
    Assessment Report(s)
    CAO Assessment Report - Togo Complaint
    Aug 19, 2015
    English
    CAO Assessment Report - Togo Complaint
    CAO Assessment Report - Togo Complaint
    Aug 19, 2015
    French
    CAO Assessment Report - Togo Complaint
    IFC Formal Response - Togo Complaint
    Aug 18, 2015
    English
    IFC Formal Response - Togo Complaint
  • Appraisal Report(s)
    CAO Compliance Appraisal Report - Togo LCT-01
    Nov 10, 2015
    English
    CAO Compliance Appraisal Report - Togo LCT-01
    CAO Compliance Appraisal Report - Togo LCT-01
    Nov 10, 2015
    French
    CAO Compliance Appraisal Report - Togo LCT-01
    Audit Report(s)
    Terms of Reference for CAO compliance investigation
    Jan 08, 2016
    English
    Terms of Reference for CAO compliance investigation
    Terms of Reference for CAO compliance investigation
    Jan 08, 2016
    French
    Terms of Reference for CAO compliance investigation
    CAO Communique, Publication of Compliance Investigation of IFC’s
    Oct 01, 2016
    English
    CAO Communique, Publication of Compliance Investigation of IFC’s
    CAO Communique, Publication of Compliance Investigation of IFC’s
    Oct 01, 2016
    French
    CAO Communique, Publication of Compliance Investigation of IFC’s
    CAO Compliance Investigation
    Oct 01, 2016
    English
    CAO Compliance Investigation
    CAO Compliance Investigation
    Oct 01, 2016
    French
    CAO Compliance Investigation
    IFC’s Response to CAO Compliance Investigation
    Oct 26, 2016
    English
    IFC’s Response to CAO Compliance Investigation
    IFC’s Response to CAO Compliance Investigation
    Oct 26, 2016
    French
    IFC’s Response to CAO Compliance Investigation
    Monitoring Report(s)
    CAO Compliance Monitoring Report, Togo LCT
    Mar 01, 2018
    English
    CAO Compliance Monitoring Report, Togo LCT
    CAO Compliance Monitoring Report, Togo LCT
    Mar 01, 2018
    French
    CAO Compliance Monitoring Report, Togo LCT
    Second CAO Compliance Monitoring Report, Togo LCT
    Apr 01, 2019
    English
    Second CAO Compliance Monitoring Report, Togo LCT
    Second CAO Compliance Monitoring Report, Togo LCT
    Apr 01, 2019
    French
    Second CAO Compliance Monitoring Report, Togo LCT
    Third CAO Compliance Monitoring Report, Togo LCT
    Aug 10, 2021
    English
    Third CAO Compliance Monitoring Report, Togo LCT
    Third CAO Compliance Monitoring Report, Togo LCT
    Aug 11, 2021
    French
    Third CAO Compliance Monitoring Report, Togo LCT