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Reference: SG/E/2009/09
Received Date: 02 December 2009
Subject: Bujagali Hydroelectric Project
Complainant: NAPE (Uganda), Counter Balance (Europe), CLAI (Italy), Sherpa (France), and legal representatives of locally affected people
Allegations: Non-compliance with a substantial number of the Bank's policies, standards, guidlines and procedures
Type: E - Environmental and social impacts of financed projects
Outcome*: Areas for improvement
Suggestions for improvement: yes
Admissibility*
Assessment*
Investigation*
Dispute Resolution*
Consultation*
Closed*
Escalated to EO*
8/12/2011
15/05/2012
4/07/2012
5/09/2012
Yes

* 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 2 December 2009, NAPE (Uganda), Counter Balance (Europe), CLAI (Italy), Sherpa (France), and legal representatives of locally affected people launched a complaint with the EIB Complaints Mechanism (EIB-CM). The complainants alleged non-compliance with a substantial number of the EIB's policies, standards, guidelines and procedures, leading to:

  • Failure to meet European development objectives
  • Failure to assess the economic and environmental soundness of the project
  • Failure to guarantee fair compensation to affected communities
  • Failure to ensure the implementation of the mitigation measures.

On that basis, the complainants asked to suspend disbursements on the project until the above issues had been satisfactorily addressed. 

EIB-CM Action

Having reviewed all available information, the EIB-CM launched an Initial Assessment which included a fact-finding visit to Bujagali. On the basis of an Initial Assessment, the EIB-CM identified the major areas of concern, including negative environmental, social and developmental impacts, mostly regarding the project implementation, for which specific investigation work was undertaken:  

  • Economic feasibility and affordability
  • Resettlement Action Plan (Naminya Community)
  • Compensation of T-line affected people
  • Spiritual matters
  • Blasting effects (mainly Malindi Community)
  • Kalagala Offset

In particular, the EIB-CM took the outcome of past investigations by the World Bank’s Inspection Panel (WB-IP) and by the African Development Bank’s Independent Recourse Mechanism triggered by a similar complaint into account.

Conclusions and Recommendations

The areas of concern identified during the EIB-CM Initial Assessment in 2010 regarding concrete environmental and social impacts have been the subject of dialogue and follow-up between the EIB-CM, the financiers, the borrower and the local authorities. All of those issues have been resolved in line with EIB-CM suggestions and/or recommendations:

  • Resettlement of project affected people - now fully addressed;
  • Impacts of project blasting activities – successfully concluded in May 2013 through a collaborative resolution process which was handled and facilitated by the EIB-CM;
  • Compensation of Transmission Line affected people (connecting Bujagali to the network) - now fully addressed by the national authorities in line with EIB-CM recommendations;
  • Implementation of the Kalagala offset - now fully addressed in line with EIB-CM recommendations;
  • Consideration given to spiritual issues - now fully settled.

Project Information