Ecuador: Outcome of the Inspection Panel's investigation of the Ecuador Mining Development and Environmental Control Technical Assistance Project (PRODEMINCA)

Washington, May 7, 2001 - The World Bank Board of Executive Directors recorded their approval of the actions and next steps put forth by World Bank Management in response to the Inspection Panel's findings in its Investigation Report of the PRODEMINCA Project.

The Panel concluded in its report that Management was substantially in compliance with the provisions of OD 4.01 on Environmental Assessment (formerly OD 4.00, Annex A); OPN 11.02 on Wildlands (now OP/BP 4.04 on Natural Habitats); and OD 13.05 on Project Supervision. However, the Panel found that Management was in apparent violation of certain provisions of the policies and procedures on Environmental Assessment (OD 4.00, Annex A and OD 4.01) relating to processing, geographical scope, baseline data and concerning consultation during preparation.

In its report to the Board, Bank Management accepted the findings stated in the Panel's Investigation Report and described specific actions to address these findings.

The Inspection Panel's Report was prepared in response to a Request for Inspection filed by DECOIN (Defensa y Conservación Ecológica de Intag), a nongovernmental organization acting for and on behalf of people living in the Intag Area of Ecuador, and representatives of the Associación de Caficultores "Rio Intag." The Request was related to the social and environmental consequences of three sub-components of the geo-information part of this Project in an area of the Western Cordillera in Ecuador. The Requesters claimed that the communities they represented were likely to suffer material harm as a result of failures and omissions by the Bank in the design and implementation of the Project. In particular, they claimed that the public release of maps with mineral data collected under the Project's geo-information component would attract mining companies and "informal" miners, which, in turn would have a destructive impact in the areas where they lived and on the protected areas and buffer zones in the area. The Panel registered the Request on December 17, 1999 and the Board approved an investigation into the Project on May 15, 2000. The Panel sent its Investigation Report to the Board on February 23, 2001.

To read the Inspection Panel Investigation Reportclick here and the Management Report and Recommendationclick here.