Uruguay: Celulosas de M’Bopicua (CMB) & Orion-01/Argentina and Uruguay

Date Filed
01 Sep 2005
Status
Closed
Phase
Compliance
Country
Uruguay

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Compliance
Appraisal
Investigation
Closed
CURRENT Status
Investi3gation (COMPLIANCE)
Closed

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Celulosas de M'Bopicua 23681
Company
Empresa Nacional Celulosa Espana
Sector
Manufacturing
Department
Manufacturing, Agribusiness & Services
Category
A
Commitment

$50 million (A Loan) & $150 million (B Loan)

Synopsis

Complaint

Both the Orion and Celulosas de M'Bopicua Projects are Greenfield eucalyptus kraft pulp mills. In September 2005, the Centre for Human Rights and Environment, an Argentine non-governmental organization, lodged a complaint with the CAO on behalf of the stakeholders in relation to the two proposed IFC projects. The claimants argued that the proposed projects posed serious social risks to the livelihood of local communities as well as detrimental environmental damage. Furthermore, they also sought a transparent and fair consultation process that gave all stakeholders the opportunity to raise concerns and have those concerns effectively addressed.

CAO Action

The CAO assessed the complaint in order to ascertain opportunities to negotiate a settlement. Given that a resolution could not be reached, a preliminary assessment report was produced and distributed to stakeholders. In November 2005, the CAO Vice President commenced a compliance audit surrounding internal due diligence in order to ensure greater clarity in the implementation of social and environmental appraisal procedures by both IFC and MIGA. In particular, the audit focused on public disclosure of environmental and social documentation.

Status

The compliance audit, completed in March 2006, recommended that IFC ensure that:

• A system of documentation of the adequacy of clients’ social and environmental processes is kept as well as an outline of procedure in relation to short-comings;

• In the cases of joint-projects with MIGA, a procedure for collaboration is established and all appropriate information is accessible and reliable. The audit emphasized the fact the absence of explicit procedures concerning public disclosure results in the process being unnecessarily unpredictable for stakeholders and project sponsors. Accordingly, greater clarity in relation to the application of social and environmental appraisal procedures by both IFC and MIGA would prove invaluable in assisting the dispute resolution process. The complaint was closed in March 2006.

Case Documents

  • Dispute Resolution

    Complaint
    Complaint
    Sep 01, 2005
    English
    Complaint
    Assessment Report(s)
    IFC's Response to Preliminary Assessment Report
    Jan 23, 2006
    English
    IFC's Response to Preliminary Assessment Report
    Preliminary Assessment Report
    Nov 01, 2005
    English
    Preliminary Assessment Report
    Informe de evaluacion preliminar
    Nov 01, 2005
    Spanish
    Informe de evaluacion preliminar
  • Audit Report(s)
    CAO Audit of IFC's and MIGA's
    Feb 22, 2006
    English
    CAO Audit of IFC's and MIGA's
    Auditoria de la CAO de la Diligencia Debida
    Feb 22, 2006
    Spanish
    Auditoria de la CAO de la Diligencia Debida
    IFC's Response to CAO Audit
    Mar 10, 2006
    English
    IFC's Response to CAO Audit
    Respuesta de la CFI a la auditoria de la CAO
    Mar 10, 2006
    Spanish
    Respuesta de la CFI a la auditoria de la CAO
    MIGA's Response to CAO Audit
    Mar 10, 2006
    English
    MIGA's Response to CAO Audit
    Respuesta del OMGI a la auditoria de la CAO
    Mar 10, 2006
    Spanish
    Respuesta del OMGI a la auditoria de la CAO
    CAO Releases Independent Audit of IFC's and MIGA's
    Mar 24, 2006
    English
    CAO Releases Independent Audit of IFC's and MIGA's
    CAO Releases Independent Audit of IFC's and MIGA's
    Mar 24, 2006
    Spanish
    CAO Releases Independent Audit of IFC's and MIGA's