IFIs redress mechanisms -

opportunities and challenges in

project campaign
Manana Kochladze
CEE Bankwatch Network

October 2010
 IFIs appeal and redress
mechanisms
• World Bank Inspection Panel (1994);
• IFC/MIGA Compliance Advisor/Ombudsmen ();
• EBRD PCM (2003)
• ADB Accountability Mechanism
• EIB – Inspector General office /EU
Ombudsmen (2007)
• OPIC Accountability Office (2005)
 IFI Redress
• Not provide legal remedy
• Based on violation of their own policies/standards
• Recommendations for Board of Directors and/or
management
• It is not mandatory to implement its
recommendations
• Problem-solving phase and Compliance review
phases
 Two major functions
• compliance review  - to assess whether a
Bank approved project complies with relevant
Bank policies;
• problem-solving - to restore dialogue
between the parties, where possible, to try to
resolve the underlying issues giving rise to the
complaint or grievance..
 How to use IFI redress
If project intends to be financed by any IFI,
consider how it would be better to use redress
mechanism despite it is not user friendly:
 it is time consuming;
 need knowledge of IFI safeguards
 lawyers may be needed to fill complaint
 Some times the direct and material damage
should be claimed;
• Some times the direct and
material damage should be Dniester Pumping Station
- Action in front of WB
claimed; office in Kiev
• Complainant should show so
called good-faith efforts to
address the problems first to
the Bank management before
filing complaint.
• The complaint parallel could
not be reviewed in court;
 Applied Redress
-
mixed results
BTC Pipeline Case
• OPIC accountability office
• IFC Ombudsman/EBRD IRM

Water in
village
Tsemi