Panel Issues Notice of Non-Registration in Peru Case
The Inspection Panel on November 20, 2017, issued a Notice of Non-Registration in response to a complaint filed about the Peru Boosting Human Capital and Productivity Development Policy Financing (DPF) with a Deferred Drawdown Option. The Panel had received a Request for Inspection about the program on October 13, 2017, from leaders of two local indigenous organizations who claimed harm from Peru’s Law No. 30230, which they alleged was supported by the DPF operation. Specifically, they claimed that the law significantly weakens Peru’s environmental and social regulations, and has reduced the country’s capacity to guarantee the territorial rights of indigenous peoples and to provide regulatory oversight of the extractive industry.
After speaking with the Requesters’ representative and Bank management, and receiving additional clarifications from management, the Panel noted the Bank program is neither supporting Law No. 30230 as a whole, nor is it supporting any of the provisions of the law that the Requesters allege cause negative impacts to the environment and land rights. The Panel determined that it is not possible to identify a Bank program linked to the Request, and deemed the complaint inadmissible.
Despite its decision to not register this particular case, the Panel noted that in cases of Development Policy Financing in general serious social and environmental impacts can occur, and in accordance with its Operational Policy 8.60 the Bank needs to conduct adequate assessments of the risks and impacts of the policies supported by its operations and propose appropriate mitigation measures.