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    Reference: SG/F/2015/04
    Received Date: 28 April 2015
    Subject: Transmission Line Yacyreta
    Complainant: Centro de Industriales Metalurgicos (the Complainant has waived the right to confidentiality)
    Allegations: Alleged irregularities in the monitoring of the EIB loan
    Type: F - Governance aspects of financed operations
    Outcome*: No grounds
    Suggestions for improvement: no
    Admissibility*
    Assessment*
    Investigation*
    Dispute Resolution*
    Consultation*
    Closed*
    6/05/2015
    10/06/2015
    5/08/2015
    5/10/2015
    30/09/2015

    * Admissibility date reflects the date the case was officially registered. All other dates pertain to the date in which a stage was completed.

    Case Description

    Complaint

    On 16 April 2015, a complaint was lodged with the EIB Complaints Mechanism (EIB-CM) concerning the EIB financed-project Transmission Line Yacyreta. The complainant alleges that the approval of the loan and guarantee agreement is not valid because the Act no. 5184/2014 does not meet the legal requirements established in the National Constitution. Moreover, the complainant alleges that the bidding process is in violation of the principles of transparency and equal treatment as well as the Constitution of Paraguay. As a result of these allegations, the complainant claims that the lack of information on these procedures constitutes a breach of Articles 6.13 (Formal declarations) and 8 (Information and Visits) of the EIB Finance Contract and, therefore, requests the EIB to suspend the implementation of the Finance Contract.

    EIB-CM Action

    In the course of the enquiry the EIB-CM reviewed the complaint to the EIB together with the rest of the material sent by the complainant. After having reviewed the complaint and all the elements provided by the complainant, the EIB-CM held internal consultation meetings with the relevant EIB services. Additionally, the EIB-CM reviewed the entire project's documentation and the relevant legal framework.

    At this point, and concerning the second allegation ("Unfairness of the bidding process") it is important to note that the EIB-CM inquiry dealt with the specific aspects of the procurement procedure raised by the complainant and a possible act of maladministration by the EIB services. In the case under consideration, the EIB-CM did not verify the validity of the whole process because at the time of the reception of the complaint, the EIB services had not reviewed the procurement procedure nor had given their non-objection to the procurement process. Any subsequent decisions taken by the Bank do not fall under the scope of the EIB-CM conclusions report and can be subject to a new inquiry, in case of a new complaint before the EIB-CM.

    Conclusions

    In light of the foregoing, the EIB-CM concludes that, based on the information available, its inquiry did not reveal any instance of maladministration by the EIB services. Additionally, contrary to the complainant's claim, the EIB-CM considers that there are no grounds to recommend suspension of the loan.

    Project Information