Tag Archive for: Global Governance

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Access to information on projects with Chinese financing

Within the framework of the day of access to public information, we presented the document “Access to Information in Argentina. Difficulties and lessons learned accessing information on infrastructure and energy projects with Chinese financing in the country ”.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The People’s Republic of China is the second world economy, with great relevance in international trade and financing and the provision of direct foreign investment, being Latin America, and in particular Argentina, one of the largest recipients of investments in infrastructure of Chinese origin .

Despite this, one of the main challenges that arise when analyzing the growing Chinese financing of projects both in the region and in Argentina, is the lack of transparency and the difficulty in being able to access detailed, accurate and official information about of these projects. Thus, in many cases, the scant information available about the investment amounts, the actors involved, the financing conditions or even the particularities of the projects, make it difficult to carry out a detailed follow-up and monitoring of them and even their impacts. and implications for the country or region where it is carried out.

At the same time, the evaluation of China’s compliance with the principles enshrined in the Universal Declaration of Human Rights carried out by the United Nations in the framework of the Universal Periodic Review (UPR) shows that many development and infrastructure projects of Chinese companies are not compatible with human rights, nor respectful with the environment and the sustainability of natural resources, causing impacts not only economic but also social, environmental and cultural. Hence, the information on these projects must necessarily be transparent and provided in a timely and efficient manner, especially to those communities and populations that are affected by them.

Starting from this panorama, this publication seeks to identify difficulties and lessons learned from the practical experience of accessing information on infrastructure and energy projects with Chinese financing in Argentina. For this purpose, a series of requests for information were made within the framework of the Law on Access to Public Information No. 27,275 in force in the country. Likewise, the experience of access to information from state and non-state sources was evaluated, mainly portals and journalistic media that focus on Sino-Argentine ties.

Based on the identification of some of these existing difficulties when accessing information on the subject, reflections and lessons learned are provided that feed a list of recommendations aimed at strengthening the right of access to information in Argentina.
Transparency and correct and timely access to information are presented as key elements to better understand the growing participation of China in the financing of infrastructure and energy projects in our country. Precisely, access to information, transparency and infrastructure projects should go hand in hand if you want to achieve sustainable and quality infrastructure.

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Contact

  • Gonzalo Roza, gon.roza@fundeps.org

Access to information on projects with Chinese financing

This report seeks to identify difficulties and lessons learned from practical experience accessing information on infrastructure and energy projects with Chinese financing in Argentina.

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Civil society responds to the MICI evaluation

Last April 2021, the Office of Evaluation and Oversight (OVE) of the Inter-American Development Bank (IDB Group) published the Evaluation of the Independent Consultation and Investigation Mechanism (MICI). After the evaluation, the MICI has modified its policy, excluding the clause that prevents the registration of complaints that are part of open national judicial processes.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The evaluation carried out tried to determine if the MICI is effective and efficient in three areas: (1) the resolution of complaints, (2) the promotion of institutional learning, (3) accessibility, objective independence, impartiality and transparency. Finally, OVE made 5 general recommendations on how the Board, the Bank, and the MICI can improve the application of the IDB’s social and environmental safeguards.

In general, the document identified elements that impede the effective functioning of the MICI, including accessibility barriers, unnecessary limitations to its independence, and a systemic lack of remediation by the IDB Group when projects do not comply with safeguards. Fundeps, together with other civil society organizations, decided to publish a response and send recommendations / comments to the MICI.

Below, we summarize our points of discussion and concern for each of the recommendations made by OVE:

Recommendation # 1 – Implement and improve the Bank’s management system for environmental and social claims: We agree with OVE’s findings that show that the requirement for communities to make prior contact efforts with the Administration is a problematic barrier for access to the MICI. Affected persons who present complaints to the MICI have experienced first-hand the ineffectiveness of presenting certain complaints to the Administration. However, OVE’s proposal to establish a Bank’s own management mechanism is a measure that we consider incomplete. To ensure the effectiveness of the mechanism and the Bank, it would be best to remove the requirement that the communities first contact the Administration.

Recommendation # 2 – Repeal the legal exclusion: The report’s findings on the impropriety of the legal exclusion, and its severe restriction on accessibility, are clear. We applaud the report for mentioning that the legal exclusion should be removed. The role of an accountability mechanism within an institution is unique and different from judicial procedures. A mechanism should examine compliance with the institution’s own standards, a mandate that does not overlap with the courts or tribunals. With the approval of the OVE Evaluation by the Board, the decision to remove the legal exclusion becomes effective as of July 1, 2021. However, the resolution approving the removal of the legal exclusion should be publicized or published. to ensure that the decision to remove this requirement is widely known.

Recommendation # 3 – Strengthen the independence of the MICI: The importance of the independence of the MICI, as well as other accountability mechanisms, cannot be stressed enough. Independence is an essential condition for other attributes such as objectivity, impartiality, and transparency. The report finds the need for the MICI to ensure the approval of the Bank’s Board of Directors before starting the investigations, as a major problem that has generated “situations that compromise the independence of the mechanism.” From civil society we believe that to ensure its independence, the MICI should have the authority to determine when to initiate an investigation without approval from the Board. This is a good practice that, as noted by the report, is adhered to by many other mechanisms. As an alternative to the current policy, to mitigate the detrimental effect on the independence of the MICI, the policy should be updated by specifically and closely outlining the technical reasons for the Board to review the MICI’s decision to initiate an investigation.

Recommendation # 4 – Ensure corrective action when there are findings of non-compliance and associated damage: The Evaluation clearly stated the lack of remedy for cases of verification of compliance being that “they have not had concrete results for the applicants, despite the findings of non-compliance and related damages established by the MICI ”. We have seen this in our case work. The recommendation of the Evaluation so that all the actors – the Board of Directors, the Administration and the MICI – adhere to the practice of consistently providing corrective actions, is a step in the right direction. However, this result would be best achieved with a clear change in the policy that includes points such as: (a) Consultations during the development of corrective action plans, (b) approval of action plans based on their sufficiency, (c) monitoring compliance with action plans, and (d) alerting the Board of Directors in cases of non-compliance with the plans. Finally, while OVE’s assessment documents multiple instances in which communities have been left without remedy, despite compliance verification reports finding a cause of harm in the Bank’s non-compliance, unfortunately no recommendation is provided for these communities.

Recommendation # 5 – Strengthen the internal capacity of the MICI: One of the focuses of the MICI Evaluation of its internal functioning is the dependence on the model of consultants for the staff. The importance of MICI staff in relation to their effectiveness in resolving complaints is evident. The Bank should commit to providing the human and financial resources necessary to implement this change and avoid that the lack of human resources translates into delays during the complaint processes. The Bank should also ensure the increase of its capacity in terms of resources as necessary.

Now, from civil society we consider that public and inclusive consultations are required for the implementation of all the recommendations. Likewise, we believe that the implementation of these recommendations will require changes to the MICI policy. The steps taken to ensure compliance with social and environmental safeguards and accountability in cases of non-compliance should be reported by those affected by the projects (who live and work in the implementation sites). To hear from those affected and their representatives, the IDB and the MICI should consult publicly about their plans to implement the
OVE recommendations.

The MICI plays a fundamental role within the IDB, providing a channel for the people affected by the projects, beneficiaries of the Bank’s work, to file their claims in search of remediation. However, as OVE’s Evaluation makes clear, there are gaps in the current practices of the MICI – and related practices of the Board and Management – that prevent the effectiveness of the mechanism. To ensure the legitimacy of the MICI, the Bank has to act to address these issues fully.

More information:

Internal IDB evaluation raises the need for reforms in the operation of the MICI

Autora: 

Agustina Palencia

Contacto:

Gonzalo Roza – gon.roza@fundeps.org

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Sergio Díaz-Granados was elected the new Executive President of CAF

On July 5, the Board of Directors of CAF – Development Bank of Latin America – elected Sergio Díaz-Granados as the new Executive President of the institution by majority, in a blended meeting held at the National Palace of Mexico. Colombian Díaz-Granados will take office on September 1, 2021 for a period of 5 years.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

The Development Bank of Latin America, formerly known as Corporación Andina de Fomento (CAF), is a leading multilateral financial institution in Latin America whose mission, according to its website, is to support the sustainable development of shareholder countries and integration regional. Since 1970, the institution has served the public and private sectors, supplying multiple financial products and services to a wide portfolio of clients, made up of the governments of the shareholder states, financial institutions, and public and private companies.

CAF’s Board of Directors appointed Sergio Díaz-Granados as the institution’s new Executive President on July 5 at a blended meeting that took place at the National Palace of Mexico. In the election, the Colombian Díaz-Granados surpassed the Argentine candidate Christian Asinelli, current undersecretary of International Financial Relations for Development of the Secretariat of Strategic Affairs of the Presidency, who will occupy one of the vice-presidencies of the entity.

The election of the new president comes after the resignation of the previous Executive President, the Peruvian Luis Carranza, who retired from the entity a year before the end of his term amid allegations of abuse of power, forced resignations and strong internal in the multilateral credit organization.

Sergio Díaz-Granados, is a prominent lawyer who currently serves as Executive Director for Colombia in the IDB Group. He has an extensive career in public and private service, both nationally and internationally, with special emphasis on issues of development and regional integration. Throughout his career, Diaz-Granados has served as Minister of Commerce, Industry and Tourism of Colombia, Vice Minister of Business Development and President of the Boards of Directors of Bancóldex and ProColombia. He has also been a congressman and chairman of the Economic Affairs Committee of the House of Representatives.

More information:

Author:
Juliet Boretti

Contact:
Gonzalo Roza – Coordinator of the Global Governance Area
gon.roza@fundeps.org

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Internal IDB evaluation raises the need for reforms in the operation of the MICI

On April 1, the Office of Evaluation and Oversight (OVE) presented an evaluation report of the Independent Consultation and Investigation Mechanism (MICI) corresponding to the period 2015-2020. The evaluation examined the Mechanism’s policy and its application, with the aim of informing the Boards of the IDB and IDB Invest on the extent to which the MICI has been an effective and efficient mechanism in the resolution of claims associated with environmental and social impacts of projects financed by the Bank.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

In its report, the Office of Evaluation and Oversight (OVE) determined that the current MICI policy corrected important issues identified in its last evaluation of 2012. Among the main advances, it highlighted the solution to the problems of accountability and associated conflicts of interest. to the previous organizational structure, as well as the duplication problems of the eligibility instance; the establishment of deadlines for the management of requests; and the creation of instances for the participation of the administration. Likewise, he highlighted a greater consistency between the policy, the guidelines developed, and the associated processes.

The evaluation also highlighted the progress made in the internal functioning of the MICI, as a result of the restructuring of the mechanism, as well as the process of consolidation and institutional learning. The mechanism has been able to define its work plan and manage its human and budgetary resources independently of the IDB Group administration.

However, judicial exclusion, a key issue, remained pending. It is one of the exceptions of the internal policy to the eligibility of applications and establishes that those matters raised in an application that are being the subject of arbitration or judicial processes in a member country of the IDB Group are not eligible.

Although judicial exclusion was identified by OVE in 2012 as a limiting factor for the effective and independent functioning of the MICI, it was maintained in the reformulated policy in 2014. Likewise, there are other limitations that have emerged in the application of the policy in recent years. 5 years but that, to a large extent, have been paid for by the MICI. This shows that there is sufficient margin for the mechanism to manage the limitations of the current policy.

Access to the MICI

Regarding access to the mechanism, OVE identified that the MICI is not yet well known among applicants. Realizing that between the different institutional levels there is a lack of consensus on the importance of publicizing the mechanism and the way to achieve it. An issue that should not be overlooked, since access to the MICI depends on the knowledge that people have about the existence of the mechanism.
For their part, those who were able to access the MICI found that their applications were not registered due to the difficulty in complying with some requirements. In this regard, the IDB Group does not have a claims management system, which makes it impossible to know the number of concerns that the administration receives.

Case management

Regarding case management, although the MICI is operating in accordance with the principles established in its policy: independence, objectivity, impartiality, transparency and efficiency; Their ability to act independently is affected by being subject to the decisions of the Board of Executive Directors.

In accordance with its policy, the Board controls the possibility of initiating an investigation in the Compliance Verification Phase (FVO) and decides whether or not to approve the recommendations of an MICI investigation. Originally, the approval of the Board of Directors to continue with an investigation was thought as a short procedure but it has come to be conformed as a contentious procedure affecting the independence of the MICI.

Finally, many ongoing investigations have presented delays related to the complexity of the projects and themes. Complaints were also filed by the applicants about the length and slowness of the processes in the Compliance Verification Phase (FVO), which reduces the possibilities of effective redress.

Recommendations

After identifying the main difficulties in the current operation of the mechanism, OVE proposed a series of recommendations to be adopted by the MICI. Among the main ones, in the first place, the elimination of judicial exclusion and the strengthening of its internal capacities stand out. In turn, OVE highlighted the need to reinforce the independence of the mechanism and ensure the adoption of corrective measures when there are findings of non-compliance with the policies and related damages.

Remembering that one of the main objectives of the IDB Group is to improve the quality of life in the region, monitoring its policy is a key tool to guarantee compliance with socio-environmental safeguards and transparency in the development of projects. funded. If the recommendations made by OVE are applied, it would imply a declaration of commitment by MICI to the users, who, among other complaints, have systematically insisted on an improvement in the conditions for accessing the mechanism.

Based on this evaluation, one might wonder if the limitations of the current policy can be rectified by incorporating OVE’s recommendations or if these limitations, on the contrary, make a new comprehensive review of the policy necessary, a measure that has been ruled out by OVE until the moment.

At Fundeps, we consider that there are still many obstacles to overcome to guarantee an effective and independent action of the mechanism, especially regarding the need to nullify judicial exclusion. However, we highlight the importance of these types of entities that are beneficial for both the public and private sectors, and especially for the communities affected by IDB Group investments.

More information:

Authors:

Clara Labat 

Julieta Boretti

Contact:

Gonzalo Roza, gon.roza@fundeps.org

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Negotiations between Argentina and China continue for the construction of Atucha III

Argentina and China are advancing in the negotiations for the construction of Atucha III, the fourth nuclear power plant in our country, with Chinese technology and financing. US officials expressed their concern to the President of the Nation on a recent visit.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The Ambassador of Argentina in China, Sabino Vaca Narvaja, the Secretary of Energy of the Nation, Darío Martinez, and the director of Nucleoeléctrica Argentina, Isidro Baschar, held, on April 6, a meeting with the directors of the National Agency for Energía de China (NEA) and the China Nuclear Corporation (CNNC), in which they agreed to boost negotiations for the construction of the fourth nuclear power plant in Argentina.

The representatives of Argentina and China reviewed the status of the negotiations for the construction of the nuclear power plant in our country with Chinese technology. In addition, they explored the possibility of expanding the bilateral link in other areas of cooperation, such as the Argentine export of services and components for Chinese nuclear projects and the life extension of nuclear power plants in China.

The Secretary of Energy, Darío Martinez, affirmed that “the project of the IV Nuclear Power Plant has the full support of the President of the Nation and is on the list of priority projects between both countries.” Likewise, Sabino Vaca Narvaja explained that “Argentina has a highly developed platform in the nuclear sector with its own developments and a unique scientific base in the region. Achieving our fourth nuclear power plant, in addition to expanding our energy sovereignty, will place us at the forefront of a sector with historical development in our country ”.

For his part, the Deputy Director of the Department of Nuclear Energy of NEA, Qin Zhijun, stressed the importance of nuclear energy in the Chinese development strategy, in particular, considering the need to have a diversified energy matrix, as well as the importance of nuclear energy in the fight against climate change.

Worry in Washington

On April 14, two high-ranking officials of the United States government arrived in Argentina. The Director for the Western Hemisphere of the National Security Council, Juan Gonzalez, and the Acting Undersecretary of the State Department for Western Hemisphere Affairs, Julie Chung, shared a lunch with the President of the Nation, Alberto Fernandez at Quinta de Olivos . Also, in the evening, they shared a dinner with the President of the National Chamber of Deputies, Sergio Massa.

Joe Biden’s government officials asked the Argentine government for “prudence” in relation to China. Likewise, they expressed their concern about the project for the construction of the Atucha III nuclear power plant, with financing and technology from China.

The concern on the part of the United States in the construction of the nuclear power plant with technology and financing from China reflects that Argentina is not exempt from the current political dynamics characterized by competition between the two giants.

Atucha III, the fourth nuclear power plant in the country

The construction of this project is scheduled to be located at the Atucha Nuclear Complex, located in Lima, Zárate district, about 100 km from the City of Buenos Aires. In this same complex are the Atucha I and II nuclear power plants.

According to Nucleoeléctrica Argentina S.A, the negotiations contemplate that the reactor to be built in the new plant is a Hualong HPR1000 Pressurized Water Reactor (PWR) of Chinese origin. How do these reactors work? Basically they use enriched uranium as a source of heat (thermal energy), which is transported by high pressure water to a steam generator, which in turn converts that water into steam that drives an electricity generating turbine. This is the type of reactor most used in the world for electricity generation.

With regard to risks, NASA assures that “the safety levels of the Hualong reactor are significantly high and the risks of delay during construction are reduced.”

This new plant would be capable of generating 1200 MWe of gross energy. To put this in perspective, the Atucha I, Atucha II and Embalse reactors generate 362 MWe, 745 MWe and 656 MWe respectively.

Given the characteristics of the project in question, the type of energy to be used, the controversy regarding the technology to be used and its impact on the external positioning of the Argentine Republic in a context of dispute between the United States and China, from Fundeps we propose the need to that the national State faces the negotiation process in a transparent way and provides a broad framework for debate within Argentine society regarding the project and the use of atomic energy.

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Authors
  • Mariano Camoletto
  • Andres Paratz
Contact

Gonzalo Roza, gon.roza@fundeps.org

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We participated in a discussion with the new MICI director, Andrea Repetto

On April 27, we participated in a discussion with civil society organized by the Independent Consultation and Investigation Mechanism (MICI) of the IDB, on the occasion of the recent inauguration of its new director, Andrea Repetto. Civil society organizations, individuals and people from the public and academic sectors from different countries participated. One of the main points of discussion revolved around the evaluation of the Mechanism’s operation recently carried out by the Office of Evaluation and Oversight (OVE) of the IDB Group.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

The Independent Consultation and Investigation Mechanism (MICI) was established in 2010 as an instance of last resort so that people who consider themselves affected by projects financed by the IDB Group can turn to the mechanism in search of a solution. In this regard, it should be noted that the complaints submitted must relate to non-compliance with the bank’s operating policies and not to other national and / or international regulations.

At the beginning of the discussion, the new director introduced herself personally, conducted a review of the most outstanding events of 2020 and indicated what the priorities of the mechanism will be during 2021.

Case management in times of COVID-19 and management priorities during 2021

In 2020, the MICI took actions to mitigate the impacts of the pandemic on claims management. Managed a total of 21 claims from communities potentially affected by projects financed by the IDB Group in 9 countries: 17 claims refer to IDB projects with the public sector and four to IDB Invest operations with the private sector. In addition, the MICI began, for the first time, a completely remote dispute resolution process in Colombia (Ruta del Cacao).

Similarly, with the recent assumption of Repetto as director, 2 priority areas were identified during 2021: on the one hand, the opening of the mechanism, seeking to make it more accessible to the communities that need it and, on the other, institutional learning, with The objective of adding more value to the IDB Group and reinforcing its accountability and sustainability.

OVE’s evaluation of the MICI

OVE carried out a first evaluation of the MICI in 2012 and identified significant problems in terms of its policy, structure and operation, recommending ending the pilot phase of the MICI and reformulating its policy and structure. Thus, in December 2014, the Bank’s Board of Directors approved a new policy and structure for the mechanism and, since the beginning of 2016, the MICI is also responsible for managing requests related to IDB Invest operations, that is, the private sector.

In the following evaluation (2015-2020), 19 cases were analyzed (between December 2014 – June 2020) and it was concluded that the MICI, in general, is operating in accordance with the principles established in its policy: independence, objectivity, impartiality, transparency and efficiency and that the current policy corrected important issues identified by OVE in its 2012 evaluation as limiting the proper functioning of the MICI. Similarly, there was greater consistency between the policy, the guidelines developed, and the associated processes. OVE also highlighted the consolidation of capacities in conflict resolution within the MICI.

However, there is still room for the MICI to deepen its efforts to maximize its contribution to the IDB Group’s system of safeguards and environmental and social standards.

A key issue that remained pending is judicial exclusion, which continues to be an important factor limiting the effective and efficient functioning of the MICI.

OVE also found that some requirements to access the mechanism are difficult for applicants to meet, such as the need to present their concerns to management before resorting to the MICI. In this regard, it should be mentioned that the difficulty of complying with the requirement of prior contact with the administration had to do, to a large extent, with the lack of a complaints management system within the IDB Group during the period under evaluation (2015 -2020) and one of the OVE evaluation recommendations points towards that goal.

Promotion of access and risk of retaliation

OVE indicated that the mechanism is not yet well known despite the important efforts of the MICI to make it known, including important work in the area of ​​attention to the risk of retaliation that has important implications for safe access to the mechanism. Nor is it clear that at the institutional level there is consensus on the importance of publicizing the mechanism and how to achieve it. Not a minor issue, since access to the MICI depends on the knowledge that people have about the existence of the mechanism.

Finally, another point that the evaluation indicates that should be strengthened is the independence of the mechanism, a fundamental issue since the credibility of the mechanism depends on its ability to work independently. Although the MICI is an arm of the Board of Directors, its added value depends on the extent to which it can present you with frank and honest reports on complaints associated with IDB Group projects.

Based on these and other observations, OVE made 5 recommendations, directed both to the MICI and to the administration and the Boards of the IDB Group. These include: 1) implementing the management system for environmental and social claims of the IDB Group’s administration so that it is articulated with the MICI, 2) nullifying the judicial exclusion, 3) reinforcing the independence of the MICI, 4) ensuring the adoption of corrective measures when there are findings of non-compliance with the policies and related damages and, finally, 5) strengthen the internal capacities of the MICI.

One might wonder, however, if the limitations of the current policy can be remedied by incorporating OVE’s recommendations or if these limitations, on the contrary, necessitate a new comprehensive review of the policy, a measure that OVE has ruled out in its evaluation.

At Fundeps, we believe that this type of instance is essential to exchange opinions and positions in relation to how the Mechanism could be even more efficient and effective in its interventions to the problems that arise in our region. Likewise, we consider that a strengthening of the mechanism translates into an improvement in the accountability system of the IDB Group as a whole.

We hope that these instances will continue to be repeated over time and we celebrate that the MICI is willing to receive feedback from those who position themselves as users of the mechanism, being able to glimpse the shortcomings that the processes may have.

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Author
  • Camila Victoria Bocco
Contact
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Andrea Repetto Vargas began functions as the new director of the MICI

Andrea Repetto has been appointed by the Executive Board of the Inter-American Development Bank (IDB) as Director of the Independent Consultation and Investigation Mechanism (MICI) for the period 2021-2026 and began functions on March 16, 2021.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

On February 5, the IDB announced the appointment of the Chilean Andrea Repetto Vargas as the new Director of the MICI for the period 2021-2026. Repetto Vargas is a lawyer and has more than 15 years of experience in accountability mechanisms, promotion of human rights and mediation. He was a Human Rights Specialist at the Inter-American Commission on Human Rights of the Organization of American States (OAS) and worked as a conflict resolution specialist for the CAO, the independent accountability mechanism of the Group’s International Finance Corporation (IFC). World Bank. She has also led mediation and dialogue processes to address complex environmental and social project issues in Latin America and West Africa.

Upon assuming office on March 16, Repetto Vargas expressed his commitment to work for an MICI “even more open to all the people and communities in the region who need us”, emphasizing his will to “promote institutional learning, which allows us to contribute even more value to the institution and thus reinforce accountability and environmental and social sustainability of IDB Group projects. She, in turn, highlighted the work done by the outgoing director, Victoria Márquez-Mees, and her entire team, pointing out that she allowed the Mechanism to be strengthened and to position it as a benchmark.

From Fundeps we welcome the appointment of Andrea Repetto Vargas as the new Director of the MICI and we hope that this election will allow the process of strengthening and dissemination of the Mechanism that has been taking place since its creation in 2010 to continue.

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Author

  • Juliet Boretti

Contact

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Argentina seeks to agree with China an investment plan for 30 billion dollars

On the eve of the next trip to China, the Argentine government negotiates infrastructure investment agreements worth close to 30 billion dollars.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

The President of Argentina, Alberto Fernández, will visit the President of China, Xi Jinping, on May 5. One of the backbones of the meeting will be the negotiations for the entry of the South American nation to the Silk Road project and the landing of 5G technology from the hand of Huawei. In addition, it is expected that other important agreements for the bilateral relationship will be discussed, such as the expansion of the Caucharí solar energy park in Jujuy, infrastructure projects, livestock, investments and financing.

After a 2020 characterized by the health and economic crisis caused by the covid-19 pandemic, the Argentine government advances in investment agreements with China for a value close to 30 billion dollars. Argentina has 15 infrastructure projects on the list to present to China. These agreements are of great importance for the national government, mainly in view of the necessary reactivation of the Argentine economy.

The projects that Argentina prioritizes for investment from China are the rehabilitation plan of the San Martín Railway system, improvements to the Roca Railway line, infrastructure works on the Miter and Urquiza railway, the redefinition of the Belgrano Cargas railway network and the incorporation of rolling stock for passengers. In parallel, the installation of smart pig farms is being discussed. It is estimated that the value of the investment would be around 3.8 billion dollars for a period of four years, in addition to the objective of producing 882 thousand tons of meat for a value of 2.5 billion dollars.

Likewise, the landing of Chinese investments in mining is discussed, especially in the production of copper and lithium in northern Argentina. Regarding lithium, Argentina signed an agreement with Jiangsu Jiankang Automobile (JJA) for the production of vehicles and batteries in the country. The list of projects includes the remodeling of the Chaco-Corrientes bridge, the construction of an aqueduct and water treatment plants, road corridors and the development of a logistics hub in Tierra del Fuego.

Regarding investments in energy, the president has in his portfolio five main works that require large investments that he will request from the Asian giant. This plan prepared by the Secretary of Energy, Darío Martinez, and the Minister of Economy, Martín Guzmán, stands out for the non-inclusion of one of the most demanded works by China: the construction of the fourth nuclear power plant in the country with Chinese technology . This works plan includes the construction of the southern gas pipeline, the electric grid in AMBA, the electric grid in Patagonia, the Mesopotamia pipeline and the construction of a thermal power plant.

The construction of the fourth nuclear power plant began to take shape during the government of Cristina Fernández for a value of 12 billion dollars. With Mauricio Macri in power, the cost was lowered to 9 billion. However, with the economic crisis and Macri’s electoral defeat, the project came to a standstill. The arrival of Alberto Fernandez meant for China the possibility of discussing the realization of the project. Another work that does not appear in this plan is the construction of the Chihuido hydroelectric dam in Neuquén. This work claimed by Russia and China would remain in the hands of Germany.

One year after the start of the pandemic in Argentina and the measures that have been adopted to act accordingly, the link with China has deepened. The Chinese market has become the main destination for beef exports from Argentina. Bilateral trade between the two countries, which in 2000 was around 2 billion dollars, closed in 2019 at a value close to 16.3 billion dollars, with Argentine exports for 7 billion dollars and imports for 9 billion dollars. of dollars. In addition, the Argentine government closed an agreement with the pharmaceutical company Sinopharm in early February for the shipment of 1 million doses and the arrival of another 3 million doses is expected at the end of March.

This new boost to the relationship with China is expected to be strategic, commercially balanced and accompanied by the necessary responsibility in environmental and social matters.

More information

Author

Mariano Camoletto

Contact

Gonzalo Roza, gon.roza@fundeps.org

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The 2021 Annual Meeting of Governors of the IDB and IDB Invest was held

Between March 17 and 21, the Annual Meeting of Governors of the Inter-American Development Bank was held virtually. Different economic and financial leaders from member countries and the private sector discussed the pandemic and the economic recovery in Latin America and the Caribbean.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

Each year, the IDB holds its Annual Meeting of the Board of Governors in one of the member countries. This year, the Assembly was held in the city of Barranquilla, Colombia, and its agenda was crossed by two central themes: the economic recovery of Latin America and the Caribbean in the face of the crisis caused by the pandemic, and the capitalization of the Bank.

First, the Bank’s president, Mauricio Claver-Carone, affirmed the IDB’s commitment to helping countries recover from the current economic crisis, reaffirming support for the financing needs of governments and assistance for access and negotiation in the purchase of vaccines. Based on this, Claver-Carone is committed to promoting the agenda that the Bank baptized as “Vision 2025”: reinvesting in the Americas, a decade of opportunities ”.

This agenda establishes five areas in which the IDB will focus in our region. These areas are: regional integration, strengthening value chains, supporting small and medium-sized enterprises, promoting the digital economy and prioritizing responses to gender and climate change issues.

On the other hand, Claver-Carone emphasized the work of the IDB Group during 2020, which in response to the COVID-19 emergency, approved loans for almost US $ 24,000 million, both to companies and governments, reaching record levels in the granting of loans. Faced with this, the president referred to the Bank’s capitalization: “I ask you to reinvest in us so that we can decisively reinvest in the region (…) The region will have a committed partner to help countries face these historical challenges and be well equipped with the financial resources necessary to make a big difference ”.

The Assembly then approved a resolution authorizing the work necessary to consider a potential capital increase of around US $ 80 billion. This amount was authorized by the United States Senate and was described by the Bank’s president as “the largest capitalization in its history.” Capitalization is a process that will increase the IDB’s creditworthiness and lending capacity. Through this, the Bank’s capital will be revalued and will allow it to face its need to address the financing problems of the region.

Finally, Claver-Carone referred to the need for the participation of women in the labor market to promote economic growth in Latin America and the Caribbean and made known new contributions for the Amazon region between Colombia and Brazil to promote development sustainable through an environmental approach.

Undoubtedly, this year’s Assembly leaves us with a clear forecast of what the IDB Group will do in our region, crossed by the needs generated by the pandemic, by a new Bank presidency and by new agendas to be implemented, supported by the new capitalization. In this sense, it is worth noting that this capitalization process should be accompanied by a series of necessary internal reforms at the institutional level, which effectively ensure greater transparency and protection of social and environmental rights in projects financed by the Bank or its clients. .

At the same time, the process of citizen participation and relationship with civil society should be strengthened. The way in which spaces such as the Board of Governors are structured and planned, for example, reflect the Bank’s little predisposition to create effective spaces for exchange and dialogue with civil society and affected communities. We hope that these are some of the points to be reviewed by the Bank in view of a possible capitalization.

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  • Sofia Armando

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IDB Invest presented a revised version of the Implementation Manual for its Sustainability Policy

Through a virtual session, on February 25, IDB Invest presented the latest revised version of the Implementation Manual for its Environmental and Social Sustainability Policy. The document is key to achieving a correct and effective implementation of the policy approved in April 2020 and which came into effect last December.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

After being approved by the Board of Executive Directors on April 10, 2020, the new IDB Invest Environmental and Social Sustainability Policy came into effect on December 15. The latest revised version of the Implementation Manual for said policy was presented on February 25 through a virtual session in which more than 20 representatives of civil society organizations participated.

The new Implementation Manual is based on the Bank’s Sustainability Framework composed of the Sustainability Policy and the policies and standards that accompany it, such as the Access to Information Policy, the IFC Performance Standards, the MICI Policy, among others. The purpose of this Manual is to guide clients in their actions according to the different factors and environments that may arise, taking into account the principles and requirements of the IDB Invest Sustainability Framework. Also, the Manual addresses, in a general way, the activities that the project cycle contemplates and the accountability mechanisms that people and communities can access in case the project affects them.

On the other hand, it considers the risk factors that may occur or that already occur in the environment where the project is carried out. Among the topics and risk factors mentioned in the Manual are vulnerable groups, human rights, the inclusion and participation of stakeholders in the project, working conditions, among others.

An important advance is the incorporation of the Exclusion List that lists the activities that IDB Invest will not finance due to adverse environmental and social effects.

However, the application of the Manual is not mandatory for clients or the Bank since it constitutes rather a roadmap that contemplates the requirements of the Environmental and Social Sustainability Framework, and international good practices and lessons learned that clients may or may not apply. In addition, although it addresses the options available to the Bank in the event of non-compliance with the Sustainability Policy by its clients, there is little precision regarding the manner and requirements in which these options would be applied.

In this way, it remains to be seen if this manual ends up being really effective in filling the gaps left by the Sustainability Policy in force. Key to this will not only be a strong commitment on the part of the Bank and its clients, but also a work of monitoring and follow-up to the effective implementation of the policy by civil society.

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Gonzalo Roza, gon.roza@fundeps.org

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What has been the impact of COVID-19 on the Sustainable Development Goals?

We present a document analyzing the impact of the COVID-19 pandemic on the Sustainable Development Goals of the United Nations.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The Sustainable Development Goals (SDGs) were adopted in 2015 by the UN Member States, with the purpose of ending poverty, protecting the planet and guaranteeing peace and prosperity for all people by the year 2030. The SDGs There are 17 integrated objectives in which the actions or impacts on one will affect another / s.

The situation generated by the pandemic is not at all encouraging, since pre-existing unfavorable issues such as increasing poverty and hunger, increasing inequalities, rising unemployment, the health and sanitation crisis, the economic recession, restricted access to education, the setback regarding gender equality, among other aspects.

Thus, the document “Impact of COVID-19 on the Sustainable Development Goals“, prepared in a collaborative way, analyzes and reflects on the impact of COVID-19 on the SDGs, the positive and negative consequences of the global pandemic on each of the 17 objectives.

The current context has posed challenges for States and international organizations in decision-making, and in the establishment of truly effective actions to prevent this type of situation from recurring. In this way, the current context made us have to rethink whether the current system is effective or whether we should build another model for the future, one that is more equitable, inclusive, fair and sustainable. Therefore, the situation that the world is going through may mean an opportunity to rethink what future we want to build from now on.

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Gonzalo Roza, gon.roza@fundeps.org