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    Reference: SG/E/2010/16
    Received Date: 26 October 2010
    Subject: MOZAL II, Mozambique
    Complainant: Coalition of Mozambican NGOs (Justiça Ambiental, Livaningo, Liga Moçambicana dos Direitos Humanos, Centro Terra Viva, Kulima and Centro de Integridade Pública)
    Allegations: Breach of EIB environmental policies
    Type: E - Environmental and social impacts of financed projects
    Outcome*: Areas for improvement
    Recommendations: yes
    Admissibility*
    Assessment*
    Investigation*
    Dispute Resolution*
    Consultation*
    Closed*
    26/10/2010
    1/12/2010
    1/06/2012
    1/06/2012
    1/04/2012
    4/05/2012

    * 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

    MOZAL II

    On 26 October 2010, a coalition of Mozambican NGOs (Justiça Ambiental, Livaningo, Liga Moçambicana dos Direitos Humanos, Centro Terra Viva, Kulima and Centro de Integridade Pública) lodged a complaint with a number of independent accountability mechanisms of financial Institutions including the EIB Complaints Mechanism (EIB-CM), the Office of the Compliance Advisor Ombudsman (CAO) for IFC & MIGA and the OECD UK National Contact Point. The allegations brought by the complainants mainly concerned the alleged breach by Mozal of the EIB Statement of Environmental and Social Principles and Standards - Mozal’s decision to operate under bypass for 6 months during the rehabilitation of the smoke and gas treatment centres and the alleged lack of transparency from Mozal despite various attempts to obtain documents and data related to the bypass.

    The EIB-CM performed its Initial Assessment, including an on-site assessment from 13 to 17 December 2010 in co-operation with the CAO to better understand the complainants’ allegations, the position of the project promoter and the environmental authorities, and the situation on the ground. A second objective was to determine if further work would be necessary and/or possible from EIB-CM side. Based on the outcome of this Initial Assessment it was agreed that the CAO would pursue its mediation process, while the EIB-CM would conduct a compliance review. From February to May 2011, the EIB-CM conducted a further assessment of a compliance review nature, which included a site visit in February 2011. During this visit, the EIB-CM participated in the first mediation meeting between the parties organised by IFTC CAO. The EIB-CM performed its Initial Assessment and its Compliance Review in full cooperation with the EIB’s operational services as well as with the other European Co-financiers (DEG and Proparco).

    The EIB-CM concluded that although the bypass can be considered justified and has not generated major negative impacts, there was room for improvement regarding (i) transparency and stakeholder engagement; (ii) management and monitoring of emissions to the environment; (iii) operational monitoring and maintenance of key mitigation equipment.

     

    Regarding the alleged breach of non-compliance with the EIB Statement of Environmental and Social Principles and Standards, the EIB-CM takes note that the initial transparency on the process and related stakeholders’ engagement revealed deficiencies. Also the monitoring and management of emissions revealed to be sub-optimal. Indeed, perceived lack of access to information on the environmental impacts and on management in relation with the bypass process, as well as a general perceived lack of transparency and initial unwillingness to engage with local NGOs from Mozal side, seem to have led to the initial manifested deterioration of the relationship between Mozal and the Coalition and to the confrontation thereafter.

     

    In view of the events surrounding the need for the bypass and the belated information received thereof by the EU co-financiers, as well as to attain confidence that such a situation does not happen again and that emissions will be adequately monitored and controlled, the EIB-CM recommened that an independent technical review and assessment will be undertaken into the existing environmental management and monitoring systems, and reporting mechanisms in place at Mozal.

     

    As a result of the outcome of the CAO mediation process, whereby a final agreement could not be reached between the parties, the EIB-CM asks the EIB services to ensure that Mozal reports regularly on future bypasses of mitigation equipments, above a reasonable threshold, and including communication to the public and description of possible impacts well in advance and the establishment and further development of a broad forum/mechanism of dialogue with the civil society in the context of management of environmental impacts.