Reference: SG/E/2017/05
Received Date: 27 January 2017
Subject: Armenia M6 Interstate Road
Complainant: Confidential
Allegations: Social impacts of road construction
Type: E - Environmental and social impacts of financed projects
Outcome*: Areas for improvement
Recommendations: yes
Admissibility*
Assessment*
Investigation*
Mediation*
Consultation*
Closed*
1/02/2017
21/04/2017
18/05/2017
4/07/2017
28/07/2017

* 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 27 January 2017, a hotel owner located close to the project's premises submitted a complaint to the European Investment Bank (EIB) in relation to the M6 Interstate Road project in Armenia. The project consists of the rehabilitation and upgrading of the M6 interstate road on a length of about 90 km between Vanadzor in central Armenia and Bagratashen on the northeastern border between Armenia and Georgia. The project is promoted and implemented by the Ministry of Transport and Communication of Armenia (the promoter).

The complainant claims that he has suffered economic losses due to the road construction works. The complainant has contacted the promoter to discuss possible mitigating actions, but they were unable to reach a solution. The complainant requests the Bank to ensure that his losses are reimbursed.

EIB-CM Action

To perform the Assessment, the EIB-CM carried out a desk review of the available information and held a meeting with the Bank’s services.

Conclusions

The EIB-CM found that the Land Acquisition and Resettlement Plan (LARP) was under preparation at the time of writing of the EIB-CM Conclusions Report, and this document will pronounce on claims for income restoration in accordance with the EIB Standard on Involuntary Resettlement. The promoter published a draft LARP in July 2016, where the hotel was not identified as a business actually operating in the project area, and the complainant as an affected person. The facts of the complaint indicate that the complainant may fall into the category of affected persons, eligible for income restoration under the Bank’s Standards. In this regard, the EIB-CM takes note that the EIB’s operational services have not taken a view on the draft LARP, and the finalisation of the LARP is currently ongoing. The Bank will grant non-objection to the final LARP pursuant to the Bank’s Standard on involuntary resettlement.

The EIB-CM concluded the case with a recommendation. The EIB-CM recommends that the Bank assesses, when granting non-objection to the final LARP, whether the complainant is listed among the affected persons and assigned to an appropriate mechanism. If the list does not include the complainant, the Bank should verify that the decision of the promoter is supported by a reasoned opinion and is consistent with the Bank’s Standards. Based on the Bank’s monitoring activity, the EIB-CM will submit a follow-up report to the complainant 8 months after the submission of the present conclusions report.

 

Project Information