THE REQUEST
The Request for Inspection was submitted on December 19, 2022, by four Requesters who stated they are the leaders of four “Centrales Chiquitanos” (organizations of Chiquitano indigenous people) in the Chiquitania region of eastern Bolivia. They engaged two local civil society organizations to represent them and authorized the Bank Information Center—a US-based nongovernmental organization—to provide them with support and advice during the Inspection Panel (“the Panel”) process. The Requesters and their representatives asked the Panel to keep their identities confidential.
The Requesters claimed Project activities threatened their land and livelihoods by creating opportunities for illegal activities and for settlers to move into their area. The Requesters alleged that the road upgrade had increased the rate of illegal occupation and presents a risk to indigenous land titling efforts underway or planned. They claimed the road exacerbated activities such as agribusiness expansion and deforestation, and that this, in turn, allegedly raised the rate of wildfires, which endangered their land and livelihoods. The Requesters alleged that the original Indigenous People’s Plan (IPP) neither mitigated adverse impacts nor granted them access to Project benefits. According to the Requesters, they have been discussing these issues with the Bank and the implementing agency since 2018, but it took three years of engagement for their inputs to be included in the updated IPP agreed in December 2021. While the Requesters considered this updated IPP “relatively strong” and “much improved” compared to the original IPP, they complained about its remaining shortcomings and its ineffective implementation. They alleged that although road construction started in 2019, most of the measures intended to avoid, minimize, mitigate, or compensate for adverse impacts and provide social and economic benefits to the indigenous peoples were yet to be implemented, four years later. They believed that the Bank Policy on Indigenous Peoples (OP/BP 4.10) was being “violated.” They alleged that the Project has lacked meaningful consultation. They also claimed that Project workers have engaged in sexual exploitation, abuse, and harassment (SEA/H), including that of indigenous girls. Furthermore, they said that the Project contractor’s hiring conditions did not guarantee the labor rights of the Chiquitanos working at Project sites.
MANAGEMENT RESPONSE
The Bank Management (“Management”) Response stated that the Request focuses largely on broader economic and demographic developments that were not caused by the Project. According to Management, it was highly unlikely that the harm alleged by the Chiquitanos could have occurred at so early a stage of the Project. Management added that given the high prevalence of gender-based violence in Bolivia, addressing SEA/H had been recognized early in the Project design stage, for which reason Project documents included targeted measures to help prevent and respond to SEA/H. Management acknowledged its awareness of labor-related issues and explained that it had requested the implementing agency to ensure that these issues are quickly resolved and a labor and Occupational Health and Safety audit is undertaken. The full Management Response is available here.
PANEL RECOMMENDATION/BOARD APPROVAL/REFERRAL TO DISPUTE RESOLUTION
After visiting Bolivia in March 2023, the Panel submitted its Report and Recommendation on March 17, 2023, recommending an Investigation to the Board. During its field visit, community members in some of the villages the Panel visited, raised concerns about what they claimed were unmitigated impacts on community water sources, road safety, and areas used for the extraction of road materials such as borrow pits. During this field visit the Requesters and community members also raised concerns about land-take in relation to the right-of-way (RoW), lack of understanding on the compensation methodology and the basis of valuation. They claimed that some project-affected persons (PAPs) that had received not compensation before the Project acquired their land. The Panel also heard complaints that insufficient knowledge and information-sharing prevented the PAPs from meaningfully articulating more detailed concerns and priorities for the IPP. The Requesters and some of the impacted communities claimed that IPP implementation was slow, and that its measures were insufficient to achieve its stated objectives. The Panel heard of five cases of workers allegedly involved with girls younger than 18. The Panel was also told that adult women in some communities engaged in transactional sex with workers . The Panel in its eligibility report noted the concerns raised around labor and working conditions and acknowledged the upcoming labor and Occupational Health and Safety audit to be conducted by the Project. On March 31, 2023, the Board approved the Panel’s Recommendation to investigate.
As per the Inspection Panel and Accountability Mechanism Resolutions, following the Panel’s Recommendation, the Accountability Mechanism Secretary (AM Secretary) offered the Requesters and Borrower (the “Parties”) the opportunity to pursue dispute resolution. On May 12, 2023, the AM Secretary informed the Board, the Panel, and Management that no agreement had been reached to enter dispute resolution.
PANEL INVESTIGATION
Following the AM Secretary’s Notice of No Agreement to Pursue Dispute Resolution, the Panel commenced its Investigation in accordance with the Inspection Panel and Accountability Mechanism Resolutions. The Panel published its Investigation Plan on its website on May 16, 2023 and commenced its investigation. At the publication of this update the Panel is continuing its investigation.
Learn more about the case here.