Basic Documents - Independent Consultation andInvestigation Mechanism

Independent Consultation and Investigation Mechanism

Basic Documents

Board of Executive Directors GN-1830-49

4 February 2010

Original: English For consideration

To: The Board of Executive Directors

From: The Secretary

Subject: Policy establishing the Independent Consultation and Investigation Mechanism

Inquiries to: Ana-Mita Betancourt (extension 2712)

Remarks: Distributed herewith is a document that sets forth a final version of the Policy

establishing the Independent Consultation and Investigation Mechanism of the Bank.

Reference: GN-1830-46(11/09), GN-1830-47(11/09), GN-1830-48(1/10)

DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK

POLICY ESTABLISHING THE

THE INDEPENDENT CONSULTATION AND INVESTIGATION MECHANISM

FEBRUARY 4, 2010

CONTENTS

EXECUTIVE SUMMARY

ANNEX I: POLICY ESTABLISHING THE INDEPENDENT CONSULTATION AND INVESTIGATION

MECHANISM OF THE INTER-AMERICAN DEVELOPMENT BANK .............................. 1

POLICY ESTABLISHING THE INDEPENDENT CONSULTATION AND INVESTIGATION MECHANISM

EXECUTIVE SUMMARY

This document sets forth a final version of the Policy Establishing the Independent Consultation and

Investigation Mechanism of the Inter-American Development Bank.

Action Requested of Board

Management recommends that the Board of Executive Directors approve the Policy establishing the

Independent Consultation and Investigation Mechanism of the IDB, as set forth in Annex I of this

document.

ANNEX I

POLICY ESTABLISHING THE

INDEPENDENT CONSULTATION AND INVESTIGATION MECHANISM OF THE

INTER-AMERICAN DEVELOPMENT BANK

Introduction and objective.

During the discussions regarding the Eighth General Increase in the Resources of the Bank, the

Board of Governors of the Inter-American Development Bank (the “IDB” or the “Bank”) mandated

that the Bank establish an independent inspection function in order to “increase the transparency,

accountability and effectiveness of the Bank's performance”. The Governors directed that such a

function would “be performed independently from Management, [and] would investigate

allegations by affected parties that the Bank had failed to apply correctly its own operational

policies.”1

In 1994, the Bank’s Board of Executive Directors established the Independent Investigation

Mechanism, which created a process for the investigation of allegations by parties claiming to be

adversely affected by Bank-financed operations in which the Bank had failed to comply with its

own operational policies.

This Policy (the “Policy”) for the Independent Consultation and Investigation Mechanism (the

“Mechanism”) of the Bank responds to a mandate from the IDB Board of Executive Directors for the

establishment of an enhanced Mechanism, and reflects the lessons learned from the Independent

Investigation Mechanism, the developments in the international accountability mechanisms of other

multilateral development banks and the input received during the public consultation process for the

Mechanism proposal.

Consistent with the mandate from the Bank’s Board of Governors, this Policy has been developed to

provide a forum and process to address complaints from parties that allege that they are or might be

adversely affected by IDB operations.

This Policy supersedes the Independent Investigation Mechanism policy (see IDB document GN-

1830-11). The Mechanism shall have the powers and shall function as stated below.

A. Definitions.

As used in this Policy, the following terms shall have the following meanings:

1. Bank or IDB: The Inter-American Development Bank.

1 See Agreement regarding the Eighth General Increase in the Resources of the Bank, AB-1704, par. 2.97 (Aug. 1994).

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2. Bank-Financed Operation: Covers all Bank investment or other financing activities, whether

with or without sovereign guarantee (public or private sector), and includes any operational activities

involving loans, grants, technical cooperation assistance and guarantees financed or to be financed in

whole or in part from Bank funds or from funds administered or guaranteed by the Bank, including

MIF operations. Requests may be filed with respect to operations not yet approved by the Board (a)

after the signing of the mandate letter, for non-sovereign guaranteed operations, or (b) after the project

number has been issued, for sovereign guaranteed and MIF operations.

3. Board: The Board of Executive Directors of the Bank.

4. Borrower/Recipient: A party that has received financing in connection with a Bank or MIF

operation and that has entered into a loan, technical cooperation or guarantee agreement with the Bank.

In the case of operations not yet approved by the Board or the Donors Committee, as the case may be,

references to “borrower/recipient” are intended to cover the party or parties expected to receive the

financing in connection with the proposed operation.

5. Chairperson: The person serving as Chairperson of the Panel.

6. Compliance Review: Involves a formal investigation of whether the Bank violated its own

Relevant Operational Policies. The investigation is conducted by the Chairperson and two other

members of the Panel and results in a report.

7. Compliance Review Phase: The process whereby a Compliance Review is conducted by the

Panel.

8. Consultation Phase: The process conducted by the Project Ombudsperson, which involves one

or more consensual methods of addressing the concerns of a Requester. The Consultation Phase

precedes the Compliance Review Phase.

9. Days: Calendar or business days, as indicated. A business day refers to a day in which the IDB

is open for business in Washington, D.C.

10. Disclosure of Information Policy: The Bank’s policy on Disclosure of Information (OP-102),

as it may be amended from time to time.

11. Donors Committee: The Donors Committee of the MIF.

12. Executing Agency. The entity designated in the relevant legal documentation to execute all or

part of the project.

13. Executive Secretary: The person appointed to serve as the Executive Secretary of the ICIM

Office pursuant to Section 85.

14. ICIM: The Independent Consultation and Investigation Mechanism of the IDB.

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15. ICIM Office: The office of the Independent Consultation and Investigation Mechanism at the

IDB.

16. IIC: The Inter-American Investment Corporation.

17. Management: The Bank Manager or Managers in charge of the relevant Bank-Financed

Operation, or his or her delegate(s).

18. Mechanism: The Independent Consultation and Investigation Mechanism; the Mechanism

process includes both the Consultation and the Compliance Review Phases.

19. MIF: The Multilateral Investment Fund.

20. Panel: The five-person body established pursuant to Section 77. With respect to a Compliance

Review, references to the “Panel” shall mean the Chairperson and the two other persons selected to

conduct the Compliance Review.

21. Policy: This ICIM Policy.

22. President: The President of the Bank.

23. Project: A specific project or technical assistance and in support of which a Bank-Financed

Operation, or MIF funding, as appropriate, is outstanding or may reasonably be expected.

24. Project Ombudsperson: The person appointed to serve as Project Ombudsperson pursuant to

Section 74.

25. Registry: The public registry established pursuant to Section 95.

26. Relevant Operational Policies: The ICIM applies to all “Relevant Operational Policies”, which

initially will be deemed to include only the following: those Board-approved environmental and

associated safeguards, equality in gender, and information disclosure policies, as they may be amended

from time to time (currently codified as OP-102 (Disclosure of Information), OP-703 (Environmental

and Safeguards Compliance Policy), OP-704 (Disaster Risk Management Policy), OP-761 (Women in

Development), OP-765 (Indigenous People), and OP-710 (Involuntary Resettlement)), which apply to

the design, appraisal, approval and/or implementation of Bank-Financed Operations, as well as those

relating to the enforcement of compliance with a borrower/recipient’s obligations required by such

policies. In addition, “Relevant Operational Policies” will be deemed to include other Board-approved

Bank operational policies that relate to the design, appraisal, analysis and/or implementation of Bank-

Financed Operations, as well as those relating to the enforcement of compliance with a

borrower/recipient’s obligations required by such policies, as such Bank operational policies are

approved by the Board following the effectiveness of the ICIM; and will include all such other

operational policies that are in effect three years from the effectiveness of the ICIM. The Relevant

Operational Policy that shall be applicable shall be the version in effect at the time of the Request (for

projects not yet approved by the Board) or, for projects approved by the Board, the version in effect at

the time of Board approval of the operation that is the subject of the Request, unless the relevant policy

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or legal documentation provides otherwise. Guidelines, procedures or norms approved only by the

Management of the Bank are not subject to the Mechanism.

27. Request: Any communication relating to this Policy from a Requester.

28. Requester: Any one or more persons, groups, associations, organizations or entities residing in

the country(ies) where the Bank-Financed Operation is or will be implemented, or a duly appointed

representative in accordance with Section 30.

29. TOR: The Panel’s terms of reference prepared in accordance with Section 58.

B. Requests to the Mechanism.

30. Who can present a Request? A Request may be presented by one or more persons, groups,

associations, entities or organizations (including, without limitation, from groups, associations, entities

or organizations that are community based, or that are formed by indigenous or Afro descendant

peoples or entities that are organized as non-governmental organizations), residing in the country(ies)

where the Bank-Financed Operation is or will be implemented. A Request may be presented through a

representative located in the project host country or elsewhere, but any such Request must identify the

person(s) on whose behalf the representative is acting and provide evidence of the representative’s

authority to represent them.

31. Content and form of a Request. A Request need not follow any particular format. Guidance on

how to complete and file a Request will be available to prospective Requesters by accessing the ICIM

website (www.iadb.org/mecanismo) or by contacting the Executive Secretary. Requests can be

processed more expeditiously if they include relevant facts, such as contact information for the

Requester, the identity and location of the Bank-Financed Operation, a clear explanation of the harm

alleged, an allegation that the Bank failed to apply one or more of its Relevant Operational Policies, the

alleged act or omission of the Bank in contravention of its Relevant Operational Policies, the steps

taken to discuss the matter with Management and its response, and a statement of the outcome that the

Requester would like to see. Requesters will be advised that the purpose of the Mechanism is not the

award of compensation or similar benefits.

32. How to submit a Request.

a. Requests may be received in writing, via electronic or regular mail, fax, or

text message to the ICIM Office phone number. Oral Requests will be

accepted, subject to subsequent receipt of a signed communication.

b. The official languages of the IDB are Spanish, English, Portuguese and

French. Requests will be processed if received in other languages, although

additional time for processing and translations may be necessary.

c. Requests may be delivered to the ICIM Office at the address that follows or

to any IDB Office (attention ICIM Office), which shall direct the Request to

the ICIM Office. The ICIM address is Independent Consultation and

Investigation Mechanism Office, Inter-American Development Bank, 1300

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New York Ave., N.W., Washington, D.C. 20577 USA; Email:

[email protected]; Telephone: 202-623-3952; Fax: 202 312-4057.

33. Confidentiality. Anonymous Requests will not be accepted. The Office will protect the

confidentiality of a Requester if so requested in the Request and will consult with the Requester about

the process for handling a confidential Request.

34. Acknowledgment of Requests. The Executive Secretary shall acknowledge receipt of a Request

within five (5) business days. This acknowledgment is purely for administrative purposes.

Acknowledgments shall be issued by electronic mail, or regular mail if no electronic mail address is

available.

35. Sequencing of Requests. A Request may request that both a Consultation Phase exercise and

Compliance Review be undertaken, but the Consultation Phase Request will be processed first... See

Section C of this Policy for requirements under the Consultation Phase and Section D for requirements

under the Compliance Review Phase.

36. Reporting on Requests. The Executive Secretary shall keep track of the number and nature of

eligible and ineligible Requests and report on the same in the ICIM’s annual report and via the

Registry.

37. Exclusions. Neither the Consultation Phase nor the Compliance Review Phase will be applied

to:

a. actions that are the responsibility of parties other than the Bank, such as a

borrower/recipient, technical cooperation beneficiary, or executing agency,

and that do not involve any action or omission on the part of the Bank;

b. Requests related exclusively to the laws, policies or regulations of the host

country(ies), borrower/recipient or the executing agency;

c. actions or activities that do not relate to a Bank-Financed Operation or that

are not subject to the Bank’s Relevant Operational Policies;

d. procurement decisions or processes (in which case the Executive Secretary

shall redirect the Request to the appropriate office within the Bank);

e. a particular matter or matters that have already been reviewed pursuant to the

Mechanism, or its predecessor, unless justified by new evidence or

circumstances not available at the time of the initial Request;

f. Requests dealing with a Bank-Financed Operation that are filed after twenty-

four (24) months of the last disbursement;

g. ethics or fraud questions, specific actions of Bank employees, non-

operational matters such as internal finance or administration, allegations of

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corrupt practices, or other matters subject to review by other bodies

established by the Bank (in which case the Executive Secretary shall redirect

the Request to the appropriate office within the Bank);

h. any Request that on its face (i) is without substance, or (ii) has been

submitted to gain a competitive business advantage; and

i. Requests that raise issues under arbitral or judicial review by national,

supranational or similar bodies.

C. The Consultation Phase.

38. Purpose of the Consultation Phase. The purpose of the Consultation Phase is to provide an

opportunity, applying consensual and flexible approaches, to address the concerns of a party that

believes it has been or could reasonably be expected to be directly, materially adversely affected by the

failure of the IDB to follow its Relevant Operational Policies in a Bank-Financed Operation.

39. Registration of a Request under the Consultation Phase. The Executive Secretary shall forward

all Requests to the Project Ombudsperson no later than five (5) business days following receipt. Within

fifteen (15) business days of receipt by the Project Ombudsperson, he or she shall determine the

eligibility of the Request for purposes of the Consultation Phase. If a Request is deemed eligible, the

Project Ombudsperson shall cause the Executive Secretary to promptly register it in the Registry and

notify the Requester, Board (or the Donors Committee, in the case of a MIF-funded operation), the

President, and the project execution agency and/or borrower/recipient.

40. Eligibility criteria for the Consultation Phase. Requests shall be deemed eligible for the

Consultation Phase if the Project Ombudsperson determines the following, either via the Request or via

IDB records:

a. the names and contact information for the Requester are available;

b. the names and contact information for the Representative, if any, and proof

of the authorization are available;

c. the Bank-Financed Operation(s) at issue has been identified;

d. the Requester resides in the country where the relevant Bank-Financed

Operation is or will be implemented (or a qualified Representative has been

appointed);

e. none of the exclusions set forth in Section 37 applies;

f. the Requester has reasonably asserted that it has been or could be expected to

be directly, materially adversely affected by an action or omission of the IDB

in violation of a Relevant Operational Policy in a Bank-Financed Operation

and has described in at least general terms the direct and material harm

caused or likely to be caused by such action or omission in the Bank-

Financed Operation;

g. the parties are amenable to a Consultation Phase exercise, and, with respect

to an issue raised in the Request, a Consultation Phase exercise , may assist

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in addressing a concern or resolving a dispute or is likely to have a positive

result; and

h. the Requester has taken steps to bring the issue to the attention of

Management. The Project Ombudsperson shall consult with Management as

to its response and if Management is involved in addressing the concerns

raised, the Project Ombudsperson shall allow forty-five (45) calendar days

from the date of acknowledgment by the Executive Secretary of the Request

before it is registered pursuant to Section 39.

41. Requests ineligible for the Consultation Phase. Prior to making a determination of ineligibility,

the Project Ombudsperson shall provide a Requester reasonable opportunity to complete or correct a

Request. If a Request is deemed ineligible, the Project Ombudsperson shall in writing notify the

Requester, the Board (and the Donors Committee, in the case of a MIF-funded operation), the

President, the borrower/recipient and/or executing agency and the public, including the reasons for the

ineligibility determination. Unless the Requester has already indicated that it wishes to proceed with a

Compliance Review in the Request, the Executive Secretary will promptly contact the Requester and

inquire whether the Requester desires that the Request be considered for a Compliance Review. If the

Requester wishes to proceed under the Compliance Review Phase, the Executive Secretary will

forward the Request to the Panel Chairperson for a determination of eligibility under the Compliance

Review Phase.

42. Assessment. Following registration, the Project Ombudsperson shall conduct an assessment.

The purpose of the assessment is to clarify the issues and concerns raised by the Request, identify and

gather information from stakeholders, including potentially other parties similarly situated to the

Requester, inquire as to the views and incentives of all stakeholders, and help determine whether a

resolution to the issues raised can be reached and what is the best process for doing so. Any party,

except the Project Ombudsperson, that does not wish to proceed with a Consultation Phase exercise

may unilaterally opt out at any time during the assessment.

43. Nature of assessment. The nature and extent of the assessment will be determined by the Project

Ombudsperson based on the issues raised by the Requester. An assessment may involve a desk review,

a site visit, discussions with the Requester, Management, or other relevant parties, public meetings,

retainer of experts, or other steps.

44. Result of the assessment. Based on the results of the assessment, the Project Ombudsperson will

either (a) work with the stakeholders to produce an explicit agreement to proceed on a Consultation

Phase exercise, establishing a process for addressing the issues raised by the Requester or identified

through the assessment, or (b) determine that a collaborative resolution is not possible, in which case

the Project Ombudsperson will deliver the Request and all pertinent information to the Executive

Secretary for forwarding to the Panel. The assessment will conclude with a decision whether or not to

proceed in a Consultation Phase exercise, and, as appropriate, a clear outline of the course of action

proposed and agreed to by the parties.

45. Timeframe and reporting. The assessment will be completed within one hundred and twenty

(120) calendar days of the date the Request was determined eligible. The Project Ombudsperson will

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provide an assessment report to the stakeholders, the President, the Board (or the Donors Committee in

the case of a MIF-funded operation) and the public via the Registry.

46. Consultation Phase exercise. The objective of a Consultation Phase exercise is to address issues

raised by the Requester. There is no guarantee that the Consultation Phase will resolve all issues to the

satisfaction of the parties. Consultation Phase exercises will be tailored to the individual Request,

depending on factors such as its urgency, principal parties, potential or actual harm involved, remedies

sought and the likelihood that the consultation will have positive outcomes. For example, any or more

of the following could be used: fact-finding, promoting further discussion and negotiation among the

parties to stimulate self-generated solutions; retainer of experts; and more active, consensual, problem-

solving approaches such as facilitation, conciliation or mediation or review or investigation. Because

the Consultation Phase process is intended to be flexible and tailored to the needs of each operation,

there are no standard rules, timeframes or procedures for this phase, except as otherwise explicitly set

forth in this Policy.

47. Voluntary nature. Any party, except the Project Ombudsperson, can opt out of any part of the

Consultation Phase process at any time, in which case the Consultation Phase shall be deemed

concluded. A Consultation Phase exercise requires the consent of the Requester, the project executing

agency or borrower/recipient and any other parties deemed essential by the Project Ombudsperson. All

parties must consent to their participation in the Consultation Phase exercise by approving the

recommended course of action, including reaching agreement on the approach and method of

consultation, funding arrangements, timing and binding nature of the outcome, as applicable.

48. Impact of Consultation Phase. The fact that a Consultation Phase exercise is initiated or ongoing

does not halt the processing or execution of the Bank-Financed Operation, including disbursements by

the Bank or the MIF, as the case may be. In cases where the Project Ombudsperson believes that

serious, irreparable harm may result if processing or execution of a Bank-Financed Operation continue,

the Project Ombudsperson may recommend to the President, the Board or Donors Committee, as

appropriate, that processing or execution be halted. The decision on the recommendation will be made

by the body vested with the power to make such decision, subject to applicable Bank policies and legal

documentation.

49. Country non objection for site visit. Any part of the Consultation Phase process to be conducted

in the territory of the borrower/recipient country may be conducted only after obtaining the written non

objection of the country, which must be requested in advance of the visit through the office of the

relevant Executive Director.

50. Limitations. The Project Ombudsperson will not support agreements that would be coercive to

one or more parties, are contrary to Bank policies or its code of ethics, or that would violate domestic

laws of the parties or international law. Neither the Project Ombudsperson (nor any expert participating

in the Consultation Phase) may interfere with the processing or execution of a Bank-Financed

Operation. The Consultation Phase, by itself, shall not result in the award of compensation or any other

benefits to any person, entity or government. This does not preclude, however, the possibility of

compensation or other benefits that may be expressly contemplated in any relevant Bank policy and

legal documentation or as may be duly and explicitly agreed to by the parties involved.

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51. Consultation Phase report. The Project Ombudsperson shall be required to prepare a report on

the Consultation Phase exercise and its results, which will be distributed to the President, Board (and

the Donors Committee, in the case of a MIF-funded operation), Requesters, and posted on the Registry.

The terms of a settlement agreement or approved recommendation will be made public via the

Registry, unless all of the signatory parties agree on confidentiality, in which case the Project

Ombudsperson shall cause an abstract to be posted on the Registry.

52. Monitoring. The Project Ombudsperson is responsible for making arrangements to provide for

(a) direct or outside monitoring of any agreement reached by the parties to the consultation and

(b) adequate measures to determine whether such agreement is being implemented in an appropriate

manner. The Project Ombudsperson shall consult with the Requester with respect to the monitoring

measures. Monitoring reports shall be issued at least semi-annually for so long as the Project

Ombudsperson deems appropriate. Monitoring protocols and reports shall be made public via the

Registry. The Project Ombudsperson will notify the President, Board (and the Donors Committee, in

the case of a MIF-funded operation), the Requester, and other relevant parties of the results of its

periodic monitoring exercises and of any recommendations that may result therefrom.

D. The Compliance Review Phase.

53. Purpose of the Compliance Review Phase. The purpose of the Compliance Review Phase is to

establish a process (a “Compliance Review”) that enables a Requester to request an investigation of a

Bank-Financed Operation by a Panel of independent experts if the Requester reasonably asserts that its

rights or interests have been, or could be expected to be directly, materially adversely affected by the

failure of the IDB to follow its Relevant Operational Policies in a Bank-Financed Operation. The

objective of a Compliance Review investigation shall be to establish whether (and if so, how and why)

any Bank action or omission, in respect of a Bank-Financed Operation, has resulted in non compliance

with a Relevant Operational Policy and direct, material adverse effects (potential or actual) to the

Requester.

54. Prerequisites for a Compliance Review. A Request will proceed from the Consultation Phase to

consideration under the Compliance Review Phase if the Requester has expressed a desire for a

Compliance Review and if:

a. the Consultation Phase has been terminated or concluded for any reason, or

b. the Request was deemed ineligible under the Consultation Phase.

55. Eligibility review by the Chairperson. The Executive Secretary shall forward all Requests to the

Panel Chairperson no later than five (5) business days after they meet the criteria set forth in Section

54. Within fifteen (15) business days of receipt by the Panel Chairperson, he or she shall determine the

eligibility of the Request for purposes of the Compliance Review Phase. The Project Ombudsperson

will deliver to the Panel Chairperson all materials and analyses relating to the Request at the

Consultation Phase, including the Project Ombudsperson’s determination on the eligibility criteria. The

Panel Chairperson will review the Request for eligibility, independently of the determination of the

Project Ombudsperson. If a Request is deemed eligible, the Panel Chairperson shall cause the

Executive Secretary to promptly register it in the Registry and notify the Board and the Donors

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Committee, in the case of a MIF-funded operation, the President, and the project execution agency

and/or borrower/recipient.

56. Eligibility criteria for the Compliance Review Phase. Requests shall be deemed eligible for the

Compliance Review Phase if the Panel Chairperson determines the following, either via the Request or

via IDB records:

a. the names and contact information for the Requester are available;

b. the names and contact information for the Representative, if any, and proof

of the authorization are available;

c. the Bank-Financed Operation(s) at issue has been identified;

d. the Requester resides in the country where the relevant Bank-Financed

Operation is or will be implemented (or a qualified Representative has been

appointed);

e. none of the exclusions set forth in Section 37 applies;

f. the Requester has reasonably asserted that it has been or could be expected to

be directly, materially adversely affected by an action or omission of the IDB

in violation of a Relevant Operational Policy in a Bank-Financed Operation

and has described in at least general terms the direct and material harm

caused or likely to be caused by such action or omission in the Bank-

Financed Operation;

g. with respect to an issue raised in the Request, a Compliance Review may

assist in determining whether (and if so, how and why) any Bank action or

omission, in respect of a Bank-Financed Operation, has resulted in non

compliance with a Relevant Operational Policy and direct, material adverse

effects (potential or actual) to the Requester; and

h. the Requester has taken steps to bring the issue to the attention of

Management. The Panel Chairperson shall consult with Management as to

its response and if Management is involved in addressing the concerns

raised, the Panel Chairperson shall allow forty-five (45) calendar days from

the date of receipt by the Executive Secretary of the Request for purposes of

the Compliance Review before it is deemed eligible. The Panel Chairperson

may waive this requirement in his or her discretion if the 45-day period has

been invoked by Management during the Consultation Phase.

57. Results of the eligibility review. Within 15 business days, the Chairperson shall instruct the

Executive Secretary to notify the Requester whether the Request has been deemed eligible for purposes

of the Compliance Review Phase or not. Prior to making a determination of ineligibility, the Panel

Chairperson shall provide a Requester reasonable opportunity to complete or correct a Request. If the

Request is deemed ineligible, the Requester, the other Panel members, the Board (and the Donors

Committee, in the case of a MIF-funded operation), the President, the borrower/recipient and/or

executing agency and the public (via the Registry) shall be notified in writing, including the reasons for

the determination of ineligibility.

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58. Scope of investigation. If a Request is deemed eligible for purposes of the Compliance Review

Phase, the Chairperson will identify two other members of the Panel to serve on the investigative team

for such Request, based on their expertise and availability. The Chairperson and the two other members

will then act as a Panel and will prepare terms of reference (“TOR”) for conducting the Compliance

Review. The TOR shall include: the objectives of the investigation, the specific investigative criteria

identified, a brief description of the Bank-Financed Operation, proposed schedule and budget for the

investigation, anticipated use of consultants, and a statement of the deliverables, which shall comprise

the Panel report described in Section 64. In preparing the TOR, the Panel shall consult with the

Requester and Management, who shall each have twenty (20) business days to provide comments in

writing on the TOR. The comments from the Requester and Management are for the Panel’s

information and will not be considered binding. As limited information is available to the Panel prior to

its investigation, the TOR are intended solely to guide the Compliance Review process.

59. Panel recommendation. The Panel shall submit a recommendation to conduct a Compliance

Review and the TOR to (a) the Board (and the Donors Committee, in the case of a MIF-funded

operation), or (b) the President, with a copy to the Board (and the Donors Committee, in the case of a

MIF-funded operation), if the Request relates to a Bank-Financed Operation that has not been approved

by the Board or the Donors Committee, as the case may be. In considering the recommendation, the

Board, the Donors Committee or the President, as the case may be, shall either (a) approve the

recommendation and the TOR on a “non objection” basis, or (b) object, in which case the

recommendation and the TOR shall be considered by the Board or the Donors Committee, as the case

may be, in accordance with their respective regulations. Any decision by the President concerning a

Compliance Review shall be immediately communicated to the Board (or the Donors Committee, in

the case of a MIF-funded operation). Notice of the action by the Board, Donors Committee or the

President, as the case may be, shall be posted on the Registry and communicated to the project

executing agency, borrower/recipient, Requester and public (via the Registry).

60. Panel review. The Panel shall conduct the Compliance Review in accordance with the TOR and

any administrative procedures adopted by the Panel. The Executive Secretary has no substantive role in

the conduct of the investigation, and shall serve in a purely administrative fashion as Panel Secretary.

61. Input for Panel. In discharging its functions, the Panel must consult all concerned stakeholders,

including Management, the Requester, the borrower/recipient or executing agency, and the relevant

Executive Director. All will be given an opportunity to record their views in writing and written

submissions will be annexed to the final Panel report. The Panel may make site visits, arrange to have

outside expert technical advice, and take any other action as may be required to complete the

Compliance Review.

62. Timing. The Panel’s investigation and deliberations are not time bound because the amount of

time will vary depending on the nature, complexity and scope of the Bank-Financed Operation and

Relevant Operational Policies involved. The Panel shall cause a notice to be posted on the Registry and

inform the Requester, Management, the borrower/recipient or executing agency, the Board (or the

Donors Committee, in the case of a MIF-funded operation) and President if it appears that completion

of the Compliance Review will require thirty (30) calendar days or more than the maximum time

contemplated in the TOR.

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63. Country non objection for site visit. Any part of the investigation to be conducted in the territory

of a borrowing/recipient country may be conducted only after obtaining the written non objection of

the country, which must be requested in advance of the visit through the office of the relevant

Executive Director.

64. Report. In preparing its report, the Panel shall take into account all relevant facts that may have

an impact on the case at hand. The report shall include the Panel’s findings as to whether (and if so,

how and why) any Bank action or omission in respect of a Bank-Financed Operation has resulted in

non compliance with a Relevant Operational Policy (identifying each such Policy and describing any

such non compliance) and direct, material adverse effects (potential or actual) to the Requester

(including a description of any such effects), and a description of the Panel’s methodology used to

determine its findings of harm, causality and the link to each Relevant Operational Policy with which

there may have been non-compliance. The Panel may also include its recommendations, views or

observations in regard to its findings or systemic or other issues, subject to consideration of applicable

Bank policies and legal documentation. Recommendations, findings and views of the Panel shall be

strictly impartial.

65. Fact-finding nature. In deciding on the content of its report, the Panel should consider that the

Mechanism is not a judicial process designed to establish guilt or innocence or to adjudicate fault or

apportion blame among the various parties involved. In addition, it is not within the Panel’s mandate

to: (a) investigate actions of any party other than the Bank, such as government or local authorities,

borrower/recipient, other lenders, sponsors or other investors in connection with the Bank-Financed

Operation; or (b) allocate responsibility for any adverse effects among the Bank, the borrower/recipient

or other parties. The Panel’s report should be designed to provide the factual and technical basis for a

decision by the Board, Donors Committee or President, as the case may be, on preventive or corrective

action in connection with the Bank-Financed Operation under investigation.

66. Impact of Compliance Review. In cases where the Panel believes that serious, irreparable harm

may result if processing or execution of a Bank-Financed Operation continue, the Panel may

recommend to the President, Board or Donors Committee, as appropriate, that processing or execution

be halted. The decision on the recommendation will be made by the body vested with the power to

make such decision, subject to applicable Bank policies and legal documentation. The Panel shall not

recommend the award of compensation or any other benefits to any person, entity or government. This

does not preclude, however, the possibility of compensation or other benefits that may be expressly

contemplated in any relevant Bank policy and legal documentation.

67. Panel decision-making. The Panel must try to arrive at its findings by consensus; but, if this is

not possible, the views of each participating member of the Panel must be expressly stated in its report.

68. Management and Requester input. At the completion of its Compliance Review, the Panel will

issue a draft report or outline of its principal findings of fact to Management and the Requester for

comments. Both Management and the Requester will have forty five (45) calendar days from receipt of

the draft or outline to provide their comments in writing to it. The Panel may make changes before

issuing its final report, which shall be the sole responsibility of the Panel, but which shall include in an

annex the comments received and any written submissions pursuant to Section 61. The Panel shall

distribute its final report to (a) the President (with a copy to the Board or the Donors Committee, in the

13

case of a MIF-funded operation), if the relevant Bank-Financed Operation does not require Board or

Donors Committee approval, as the case may be, or has not been approved by the Board or Donors

Committee, or (b) the Board or the Donors Committee, in the case of a MIF-funded operation (with a

copy to the President) if the Bank-Financed Operation has been approved by the Board or the Donors

Committee, as the case may be.

69. Receipt of Panel report. Once the Board (or the Donors Committee, in the case of a MIF-funded

operation) or the President, as the case may be, has received the report of the Panel, the Board, Donors

Committee or the President, as applicable, shall take note of the report. The Board, Donors Committee

or the President, as the case may be, may meet with the Panel regarding the report.

70. Publication. Within twenty (20) calendar days from distribution of the Panel report, the Panel

report, with the comments from the Requester or Management and any other written submissions

pursuant to Section 61, will be posted on the Registry and delivered to the Requester.

71. Final decision. The Board (or the Donors Committee, in the case of a MIF-funded operation) or

the President, as the case may be, shall make the final decision regarding any actions that may be

deemed appropriate or necessary in light of the Panel findings, and instruct Management to carry out

such actions. The Board (or the Donor Committee, in the case of a MIF-funded operation) or the

President, as appropriate, shall notify the Panel and ICIM Office of such decision and instruct

Management to inform the Panel of any resulting action plan. The Executive Secretary shall make

public such decision and any resulting action plan via the Registry and shall inform the Requester,

borrower/recipient and other stakeholders.

72. Monitoring. At the request of the Board (or the Donors Committee, in the case of a MIF-funded

operation), the Panel will monitor implementation of any remedial or corrective actions agreed upon as

a result of a Compliance Review. The Panel will consult with the Requester, Management and other

stakeholders, as appropriate, with respect to its monitoring activities and will prepare monitoring

reports. The Panel will distribute monitoring reports at least semi-annually to the Board (or the Donors

Committee, in the case of a MIF-funded operation) and the President, for so long as the Panel deems

necessary or appropriate. Monitoring reports shall be posted on the Registry.

E. Institutional and Administrative Aspects.

73. The ICIM Office. The Bank will establish and maintain an office (the “Office of the

Independent Consultation and Investigation Mechanism” or the “ICIM Office”) to serve as the

executive secretariat for the Mechanism and perform the functions set forth in this Policy. The Office

shall report to the Board, not to Management. The Project Ombudsperson, the Panel and the Executive

Secretary and any other employees or consultants assigned to the Mechanism shall constitute the ICIM

Office staff.

74. The Project Ombudsperson. The Consultation Phase shall be managed by a Bank employee

designated as Project Ombudsperson. The Project Ombudsperson shall be a full time employee, at a

level equivalent to an executive level. The Project Ombudsperson shall be appointed by the Board,

following a selection process similar to the one used for the Director of the Evaluation and Oversight

Office of the IDB. The Project Ombudsperson will be appointed for a period of three (3) to five (5)

14

years, renewable by mutual consent. The Project Ombudsperson shall be independent of any unit or

official of the Bank and shall act on his or her own initiative, consistent with this Policy.

75. Qualifications for the Project Ombudsperson. The Project Ombudsperson should have

knowledge of and experience with environmental sustainability and social issues, international

development organizations, and civil society, preferably in Latin America and the Caribbean, and

flexible dispute resolution methods. Integrity, empathy and the ability to engage with civil society are

also preferred. If the Project Ombudsperson at any time experiences a conflict with respect to a

Consultation Phase exercise, he or she shall notify the Board, in which case an alternate Project

Ombudsperson may be appointed.

76. Duties of the Project Ombudsperson. The duties of the Project Ombudsperson shall include:

a. assessing eligibility for the Consultation Phase and processing Requests

thereunder;

b. conducting the Consultation Phase, including contracting outside experts, as

appropriate, and providing information to prospective Requesters;

c. conducting, in coordination with the appropriate Bank units, training and

providing advice to operational units in their problem-solving activities, but

not for specific cases under review or that may reasonably be expected to

come under review by the Mechanism;

d. undertaking contacts with the public, publishing periodic reports,

disseminating lessons learned, and conducting the outreach and training

activities described in Section 92;

e. adopting administrative procedures for the operation of the Consultation

Phase; and

f. undertaking any other tasks that may be necessary or incidental to the

Consultation Phase.

77. The Panel. The Bank will establish an independent Panel whose main function is to carry out

Compliance Review Phase investigations pursuant to this Policy. The Panel will report to the Board.

The Panel shall be independent of any unit or official of the Bank and shall act on its own initiative,

consistent with this Policy.

78. Composition and selection. The Panel shall be composed of five (5) individuals appointed by

the Board. Panel members shall be selected for their recognized technical competence, integrity and

independent judgment, and knowledge of economic, social and sustainable development, preferably in

Latin America and the Caribbean. The Panel members will be nationals from different member

countries of the Bank. The Board shall appoint the initial Panel Chairperson and thereafter the Panel

members shall select the Chairperson. The Chairperson shall serve in such capacity for the duration of

his or her appointment.

15

79. Term. The Panel members shall be appointed for a non-renewable term of five (5) years, with

the exception of the first Panel, the members of which shall be appointed for staggered non-renewable

terms of three or four years. The first Panel Chairperson shall be appointed for a non-renewable term of

three (3) years.

80. Eligibility for Panel service. Executive Directors, Alternate Executive Directors, Counselors,

Advisers, or any employee of the Bank or persons holding consultant appointments shall not serve on

the Panel until two (2) years have elapsed from the end of their service to the Bank. If a Panel member

is called to work for the Mechanism during his or her term, the Panel member shall not entitled to work

for the Bank (either as employee, consultant, Executive Director, Alternate Executive Director, or

advisor, assistant or consultant thereto) in any capacity for five (5) years after the expiry of his or her

term.

81. Nature of service. The Chairperson of the Panel and the other members of the Panel shall render

their services on an as-needed basis. The Chairperson shall serve on each Compliance Review that is

ongoing during his or her term. Contracting for services of Panel members will follow Bank rules for

contracting consultants, except as expressly otherwise determined by the Board. In the performance of

their functions, Panel members shall be considered officials of the Bank entitled to enjoy the privileges

and immunities accorded to Bank employees under the Agreement Establishing the Inter-American

Development Bank.

82. Remuneration. Panel members shall be paid an annual honorarium and remuneration for work

performed on a Panel at levels to be determined by the Board. They shall be reimbursed for their travel

and expenses on the same basis as the judges of the Bank’s Administrative Tribunal.

83. Training of Panel members. Panel members shall be required to attend meetings for at least five

(5) calendar days in each calendar year to enhance their knowledge of the Relevant Operational

Policies and discuss the functioning of the Mechanism.

84. Resignation or removal from office. Members of the Panel may resign or be removed for cause

by the Board, without cost or liability to the Bank. In the event a member is removed or resigns from

the Panel, a replacement may be appointed by the Board to complete that term or appointment.

85. The Executive Secretary. The day to day administrative duties of the ICIM Office shall be

managed by a Bank employee designated as Executive Secretary. The Executive Secretary shall be

appointed by the Board, following a selection process similar to the one used for the Director of the

Office of Evaluation and Oversight of the IDB. The Executive Secretary shall be a full time employee

of the IDB, at a level equivalent to an executive level.

86. Duties of the Executive Secretary. The Executive Secretary shall have overall responsibility for

the day to day activities of the ICIM Office, which shall include:

a. receiving and acknowledging Requests;

b. creating and maintaining the Registry;

16

c. providing administrative support to the Project Ombudsperson in connection

with the Consultation Phase and other Project Ombudsperson activities,

including contracting, travel, and any training for Bank units;

d. providing administrative support to the Panel in connection with the

Compliance Review Phase and other Panel activities, including contracting,

travel, and coordinating training for the Panel with the appropriate Bank

units;

e. preparing, in consultation with the Project Ombudsperson and the Panel

Chairperson, an annual budget indicating the level of resources required for

the forecasted activities of the ICIM Office, the Consultation Phase and the

Compliance Review Phase for the coming year;

f. coordinating with peer institutions concerning potential harmonization of

accountability mechanisms and sharing of experiences;

g. in coordination with the Project Ombudsperson and the Panel, undertaking

contacts with the public, publishing reports and materials, disseminating

lessons learned, and conducting the outreach and training activities described

in Section 92;

h. coordinating with the Board, the Office of the President, the Secretariat and

other Bank units to facilitate communications, document distribution and

reporting to/from the Panel and the Project Ombudsperson;

i. adopting administrative procedures, in conjunction with the Project

Ombudsperson and the Panel Chairperson, as appropriate, for the operation

of the Mechanism and the ICIM Office; and

j. undertaking any other tasks that may be necessary or incidental to the

administration of the Mechanism or the ICIM Office.

87. Adherence to Bank policies. The Panel, Project Ombudsperson, Executive Secretary and any

staff of the ICIM Office are subject to all Bank policies and codes of ethics, and shall protect against

conflicts of interest that could weaken the objectivity and integrity of the ICIM Office and the

Mechanism.

88. Authority to consult experts. The Executive Secretary, Project Ombudsperson and the Panel will

have the authority to hire independent experts and/or other consultants when needed to supplement

their expertise and/or resources. In addition, the Executive Secretary, Project Ombudsperson or the

Panel may seek the advice of the Bank’s Legal Department with respect to legal questions that may

arise concerning the Mechanism or any matter under consideration.

17

89. Authority to adopt administrative procedures. The Project Ombudsperson and the Panel will

have the authority to establish and adopt procedures for the administration of their respective

Consultation Phase or Compliance Review Phase activities.

90. Access to staff and information. When conducting any review, investigation or assessment for

the Mechanism, the Project Ombudsperson, the Panel, Executive Secretary, ICIM Office staff and any

consultants working with any of them shall have full access to relevant IDB staff and files, and IDB

staff shall be required to cooperate fully with the Mechanism.

F. General.

91. Time periods. Any time period referred to in this Policy may be extended by the Project

Ombudsperson or Panel Chairperson, as appropriate, for as long as is strictly necessary to ensure the

full and proper processing of Requests. The Requester and other relevant parties shall be notified of

any extension and it shall be noted on the Registry.

92. Outreach and training. The ICIM Office will conduct outreach throughout Latin America and

the Caribbean and among civil society generally. With the assistance of the Executive Secretary, the

Project Ombudsperson and the Panel will develop and implement an outreach strategy to inform civil

society and potential Requesters about the Mechanism. Outreach efforts will be developed for a variety

of locations and tailored to different audiences, and use different approaches. Outreach may include

cooperation with other institutions’ accountability mechanisms or alliances with educational

institutions, national or local ombudspersons, and others, as appropriate. The ICIM Office will

coordinate with other Bank units, as appropriate, to ensure that the Mechanism’s information

dissemination and public outreach are integrated with the IDB’s activities designed to promote

information about the Bank, its projects and policies, interaction with civil society and project

stakeholders, and dissemination of lessons learned. In addition, the ICIM Office will conduct training

about the Mechanism and lessons learned within the IDB.

93. Publications. The Executive Secretary, with input from the Project Ombudsperson and the

Panel, shall prepare an annual report describing the activities of the Mechanism during the preceding

year, and will create and distribute printed materials about the Mechanism, including an information

pamphlet for IDB staff and clients about what is required once a Request is registered and materials for

potential Requesters with information about how to file a Request. The ICIM Office may also develop

and publish case studies and information on lessons learned. The annual report and other materials will

be available on the Mechanism website. The Mechanism may maintain its own website.

94. Transparency. The Mechanism, its activities and staff shall be subject to the Bank’s Disclosure

of Information Policy. Decisions regarding the confidentiality of information required by the

Disclosure of Information Policy to be kept confidential shall be made by the Project Ombudsperson or

the Panel, as the case may be. In case of a conflict between the provisions of the Disclosure of

Information Policy regarding the Mechanism and this Policy, this Policy shall prevail. Materials or

information submitted to the Bank or the Mechanism on a confidential basis from any party may not be

released to other parties without the consent of the party that submitted it.

18

95. Public Registry. The ICIM Office shall establish a public Registry to provide information on the

status of Requests under the Mechanism, including notices as of the date of any decision or report

made public hereunder. The Registry will be accessible to the public electronically. Upon request

and/or via the Bank’s Public Information Centers, the ICIM Office will also make available “hard

copies” of documents posted on the Registry and distributed to the public electronically.

96. Communications with the media. The ICIM Office shall issue its own press releases and public

communications. Prior to any such release the ICIM Office will inform the Bank’s Office of External

Relations. Neither the Project Ombudsperson, Panel nor Executive Secretary shall give any media

interviews with respect to ongoing Consultation Phase exercises or Compliance Reviews, including

monitoring. The Project Ombudsperson, Panel and ICIM Office staff shall maintain a low profile in the

host project country, with the understanding that their activities may require them to undertake

consultations with the public.

97. IDB Group entities. The Executive Secretary, ICIM Office staff, Project Ombudsperson and the

Panel may perform services with respect to MIF-funded projects, in which case they will also report to

the Donors Committee. The Executive Secretary, ICIM Office staff, Project Ombudsperson and Panel

may also perform services for the IIC, subject to such agreements as may be necessary and appropriate

between the IDB and IIC.

98. Cooperation with other institutions. Where a Request or Bank-Financed Operation involves

another international financial institution or entity, the ICIM Office, Project Ombudsperson or Panel, as

appropriate, shall endeavor to collaborate with such institution or entity.

99. Review of the Mechanism Policy. Two (2) years after the effective date of the Mechanism, the

Board shall request an independent evaluation of the Mechanism. On the basis of such evaluation, and

any comments thereon from Management, the Board will assess the experience with Mechanism.

100. Effectiveness. The Mechanism will become effective ninety (90) calendar days after the Board

has given its final approval to this Policy, unless otherwise extended by the Board. During this

transition period from the Independent Investigation Mechanism to the Independent Consultation and

Investigation Mechanism, Requests for the activation of the Mechanism process will be accepted but

they will not be processed until the Independent Consultation and Investigation Mechanism becomes

effective. The eligibility of Requests filed during the transition period will be determined as of the date

of the Request. Any Requests filed prior to the Board’s final approval of this Policy will be processed

under the rules and procedures of the Independent Investigation Mechanism.

Board of Executive Directors GN-1830-55

4 May 2010

Original: English For consideration

To: The Board of Executive Directors

From: The Secretary

Subject: Independent Consultation and Investigation Mechanism. Terms of Reference of

Executive Secretary, Project Ombudsperson, and Panel Members and Selection

Process. New revised version

Inquiries to: Guillermo Miranda (extension 1242) or Claudia De Colstoun Werebe (extension

2673)

Remarks: This revised version contains the modifications requested by the Organization,

Human Resources, and Board Matters Committee at its meeting on 3 May 2010. The

changes are marked with a line on the right margin.

Supersedes: GN-1830-54(4/10)

Reference: GN-1830-49(2/10), GN-1830-52(4/10)

Independent Consultation and Investigation Mechanism (ICIM):

Terms of Reference of Executive Secretary, Project Ombudsperson, and Panel Members

and Selection Process

Following a technical briefing presented to the Board of Executive Directors on April 22, 2010

regarding the Independent Consultation and Investigation Mechanism positions and staffing

processes, the Human Resources Department (HRD) was requested to present to the Board the

terms of reference for these positions and the selection process to be carried out.

The ICIM Policy provides that the Board of Directors must name two full-time staff members

(Executive Secretary and Project Ombudsperson) and identify five consultants to complete the

Compliance Review Panel.

The Legal Department has considered the references in sections 74 and 85 of the ICIM Policy

(GN-1830-49) to the ICIM key staff selection process. As the Board was advised at the April 22

technical briefing, the Legal Department is of the view that the references to "a selection process

similar to the one used for the Director of the Office of Evaluation and Oversight" on their face

imply a process "having common characteristics" to that used for the OVE Director, but not

necessarily "identical". Such language does not preclude the Board from adopting a selection

process that is not identical to the process prescribed for the OVE Director.

Management’s recommendation regarding the conduct of the staffing process is set forth in

Annex 4.

Management recommends that, by its approval of this document, the Board:

a. Approve the terms of reference for the Executive Secretary (Annex 1), Project

Ombudsperson (Annex 2), and Panel Chair and Members (Annex 3).

b. Approve the guidelines for the selection process of the Executive Secretary, Project

Ombudsperson, Panel Chair and Panel members set forth in Annex 4.

2

Annex 1

Independent Consultation and Investigation Mechanism (ICIM)

Terms of Reference for EXECUTIVE SECRETARY

Background

Established in 1959 and based in Washington, D.C., the Inter-American Development Bank

(IDB) is today the main source of multilateral financing for economic, social, and institutional

development in Latin America and the Caribbean. It provides loans, grants, guarantees, policy

advice and technical assistance to the public and private sectors of its borrowing member

countries.

The Board of Executive Directors of the IDB recently approved a policy establishing a new

Independent Consultation and Investigation Mechanism (ICIM or the Mechanism). The ICIM

provides a forum and a process to address complaints from parties that allege that they are or

might be adversely affected by IDB operations.

The ICIM includes an initial Consultation Phase, which provides an opportunity, applying

consensual and flexible approaches, to address the concerns of a party that believes it has been or

could reasonably be expected to be directly, materially adversely affected by the failure of the

IDB to follow its Relevant Operational Policies in a Bank-financed operation. A Project

Ombudsperson leads the Consultation Phase and reports to the Board of Executive Directors.

The ICIM also has a second Compliance Review Phase. A Compliance Review comprises an

investigation of whether any Bank action or omission, in respect of a Bank-Financed Operation,

has resulted in non-compliance with a Relevant Operational Policy and direct, material adverse

effects (potential or actual) to a Requester. The Compliance Review Phase is handled by a Panel

of independent experts that report to the IDB Board of Executive Directors.

An Executive Secretary appointed by the IDB Board of Executive Directors will manage the

ICIM Office and its day-to-day activities.

Detailed information about the ICIM is available at www.iadb.org/mechanism.

Description

The Executive Secretary will lead the ICIM’s stakeholder engagement, outreach,

communications, and knowledge strategies. He/she will interact with Requesters and others

involved in complaints, promote access to the ICIM, and provide guidance on the ICIM policy.

The Executive Secretary will maintain the public Registry; carry out information and

dissemination activities; conduct public outreach; and produce publications, materials and

reports regarding the ICIM and its activities, including the ICIM Annual Report. The Executive

3

Secretary will lead all knowledge-sharing and training activities regarding the ICIM, including

the preparation of materials and sessions to train various stakeholders about the ICIM and

convey lessons learned. The Executive Secretary will lead the ICIM’s working relationships and

partnerships with relevant institutions and stakeholders, including governments, international

organizations, regional agencies, the academic community, and civil society, contribute to the

dialogue on accountability mechanisms, and promote harmonization, coordination of efforts in

co-financings, and development and dissemination of best practices. The incumbent will support

and advise the Project Ombudsperson and Panel on key planning, strategic and communications

issues.

The incumbent will serve as liaison between the ICIM and the Board of Executive Directors, the

Office of the President, the Office of the Secretary of the Bank and other Bank Group units.

The Executive Secretary will have overall responsibility for the day-to-day activities of the ICIM

Office, the operation and administration of the ICIM Secretariat, and organization of staff and

support. He/she will establish the Office’s vision; lead the planning, implementation and

supervision of the ICIM Office’s work programs; manage an inter-disciplinary and multi-cultural

staff; anticipate ICIM and Office resource requirements; prepare and manage the budget; and

establish and assure the adequacy of systems and controls to facilitate the work of the ICIM. The

Executive Secretary will provide support for administrative tasks for the Project Ombudsperson

and Panel, and support and advise them regarding the ICIM processes, reports and

documentation.

As the first Executive Secretary under the ICIM, he/she will prepare administrative procedures

and other guidelines necessary to operationalize the ICIM.

Key responsibilities

• Receiving and acknowledging Requests. Interacting with Requesters and others involved in

complaints. Promoting access to the ICIM and providing guidance on the ICIM policy.

• Creating and maintaining the Registry.

• Supporting and advising the Project Ombudsperson on key planning, strategic and

communications issues, specifically in connection with the Consultation Phase and other

Project Ombudsperson activities, including contracting, travel, and any training for Bank

units.

• Supporting and advising the Panel on key planning, strategic and communications issues,

specifically in connection with the Compliance Review Phase and other Panel activities,

including contracting, travel, and coordinating training for the Panel with the appropriate

Bank units.

• Leading the planning, implementation, and supervision of the ICIM’s Office’s work

program. Managing an inter-disciplinary and multi-cultural staff. Establishing and assuring

the adequacy of systems and controls to facilitate the work of the ICIM.

4

• Preparing, in consultation with the Project Ombudsperson and the Panel Chairperson, an

annual budget indicating the level of resources required for the forecasted activities of the

ICIM Office, the Consultation Phase and the Compliance Review Phase for the coming year.

• Coordinating with peer institutions concerning potential harmonization of accountability

mechanisms and sharing of experiences.

• Leading all training activities regarding the ICIM, including the preparation of materials and

sessions to train various stakeholders about the ICIM and convey lessons learned.

• Leading the ICIM’s outreach and communications activities. In coordination with the

Project Ombudsperson and the Panel, undertaking contacts with the public, publishing

reports and materials regarding the ICIM and its activities, including the ICIM Annual

Report, and disseminating lessons learned.

• Coordinating with the Board of Executive Directors, the Office of the President, the Office of

the Secretary of the Bank, and other Bank units to facilitate communications, document

distribution and reporting to/from the Panel and the Project Ombudsperson.

• Adopting administrative procedures, in conjunction with the Project Ombudsperson and the

Panel Chairperson, as appropriate, for the operation of the Mechanism and the ICIM Office.

• Undertaking any other tasks that may be necessary or incidental to the administration of the

Mechanism or the ICIM Office.

Conditions of appointment

The Executive Secretary reports directly to the IDB Board of Executive Directors. He/she will be

a full-time Bank employee, appointed at an executive level (E5) with a term of three (3) years

under a fixed-term contract. The Executive Secretary will be subject to the IDB Code of Ethics

and Professional Conduct, Disclosure of Information Policy and other Bank policies and shall

protect against conflicts of interest that could weaken the objectivity and integrity of the ICIM

Office and the Mechanism.

Qualifications

� Education: Relevant advanced degree (Master’s degree or Licenciatura) in a relevant

discipline (environmental, social, economic, engineering, legal and/or private sector

fields related to international development).

� Experience:

o Extensive knowledge of and/or experience with independent accountability

mechanisms of the IDB and/or comparators, as well as knowledge of IDB policies

and programs or those of other multilateral institutions.

o Demonstrated knowledge of and experience with environmental sustainability and

social issues, international development organizations, and civil society,

preferably in Latin America and the Caribbean. An experienced executive

5

(minimum 12+ years of relevant experience) with a proven record in managing

and delivering best practices for large, complex organizations.

o Demonstrated integrity.

o Knowledge of and experience with the operations of multilateral development

organizations and/or private sector experience in developing countries also

valuable.

o Ability and willingness to travel frequently and on reasonably short notice to

Latin America and the Caribbean, including rural areas and difficult

environments.

o Independence from operations departments of the IDB, IIC and MIF.

o Excellent interpersonal skills; good exposure to international and multicultural

environment.

� Languages: Command of Spanish and English. Portuguese desirable. French is a plus.

Competencies

Technical expertise: Knowledge and experience in civil society engagement and

communication techniques and strategies.

Leadership: Proven ability to develop and communicate a strategic vision. Ability to

lead the planning, implementation, and supervision of the work program, and to manage

resources effectively. Enhances the credibility and transparency of the ICIM.

Analysis and Problem-Solving: Ability to make critical decisions based on systematic

analysis and sound judgment.

Negotiation Skills: Ability to acknowledge and manage conflicts in a timely and

constructive manner, as well work through resistance and objections by providing

proposals and negotiating compromises that take into account the key needs of all parties.

Strategic Thinking/Drive for Results: Proven ability to formulate objectives, set

priorities, identify and optimize the use of resources, and implement plans consistent with

the long-term interest of the institution in a global environment.

Communication and Knowledge-Sharing: Highly developed communication and

diplomatic skills. Well-developed writing and editing skills; advanced presentation skills

sufficient to convey complex information on issues requiring specific, fact-based

reporting. Promotes effective sharing of knowledge within and outside the organization,

in particular with strategic stakeholders, contributing to a continuous learning

environment.

Building Coalitions: Able to engage effectively with a variety of individuals and

organizations such as civil society, non government organizations, clients, member

governments, other international organizations and comparable institutions, Board,

Management and staff.

6

Annex 2


Terms of Reference for PROJECT OMBUDSPERSON

Background





countries.

The Board of Executive Directors of the IDB recently approved a policy establishing a new

Independent Consultation and Investigation Mechanism (ICIM or the Mechanism). The ICIM

provides a forum and a process to address complaints from parties that allege that they are or

might be adversely affected by IDB operations.








has resulted in non compliance with a Relevant Operational Policy and direct, material adverse


of independent experts that report to the IDB Board of Executive Directors.




Description

The Project Ombudsperson will lead the ICIM’s response to the problems of locally affected

people in Bank projects, applying a range of consensual and flexible approaches. The Project

Ombudsperson will interact with the Requester, identify and gather information from other

stakeholders, and develop a range of responsible options to help determine whether a resolution

to the issues raised can be reached and what is the best process for doing so. The Project

Ombudsperson may use fact-finding, promote further discussion and negotiation, retain experts,

7

and lead facilitation, conciliation or mediation exercises during the Consultation Phase. The

Project Ombudsperson will prepare a report on each Consultation Phase exercise and its results

and will be in charge of the monitoring of any resulting agreements.

As the first Project Ombudsperson under the ICIM, he/she will prepare administrative

procedures and other guidelines necessary to operationalize the Consultation Phase.


• Assessing eligibility for the Consultation Phase and processing Requests thereunder.

• Conducting assessments and the Consultation Phase, including contracting outside experts, as

appropriate, and providing information to prospective Requesters.

• Conducting, in coordination with the appropriate Bank units, training and providing advice to

operational units in their problem-solving activities, but not for specific cases under review

or that may reasonably be expected to come under review by the Mechanism.

• Undertaking contacts with the public, publishing periodic reports, disseminating lessons

learned, and conducting outreach activities.

• Adopting administrative procedures for the operation of the Consultation Phase.

• Undertaking any other tasks that may be necessary or incidental to the Consultation Phase.


The Project Ombudsperson reports directly to the IDB Board of Executive Directors. The Project

Ombudsperson will be independent of any unit or official of the Bank and shall act on his or her

own initiative. He/she will be a full-time Bank employee, appointed at a level equivalent to an

executive level (E5). The term of the appointment shall be three (3) to five (5) years, renewable

by mutual consent. The Project Ombudsperson will be subject to the IDB Code of Ethics and

Professional Conduct, Disclosure of Information Policy and other Bank policies and shall protect

against conflicts of interest that could weaken the objectivity and integrity of the ICIM Office

and the Mechanism.

Qualifications

� Education: Relevant advanced degree (Master’s or Licenciatura) in a relevant discipline

(environmental, social, economic, engineering, legal and/or private sector fields related to

international development).

� Experience:

o Strong record of experience in the conflict resolution/mediation field and/or

strong knowledge of conflicts that may arise in development projects.

8

o Demonstrated knowledge of and experience with environmental sustainability and

social issues, international development organizations, and civil society,

preferably in Latin America and the Caribbean, and flexible dispute resolution

methods. An experienced executive (minimum 12+ years of relevant experience)

with a proven record in managing and delivering best practices for large, complex

organizations.




valuable.

o Proven ability to engage effectively with a wide range of individuals and

institutions in the resolution of disputes that might arise in development projects.



environments.

o Independence from operations departments and Management of the IDB, IIC and

MIF.


environment.


Competencies

Technical expertise: Knowledge and experience in techniques, strategies and

methodologies to address conflicts and issues in development projects.

Leadership: Manages and leads a consensual problem-solving exercise with multiple

stakeholders. Enhances the credibility of the ICIM.




constructive manner, as well as work through resistance and objections by providing

proposals and negotiating compromises that take into account the key needs of all parties.




Communication and Knowledge-Sharing: Highly developed communication and

diplomatic skills. Well-developed writing and editing skills; advanced presentation skills

sufficient to convey complex information on issues requiring specific, fact-based

reporting. Promotes effective sharing of knowledge within and outside the organization,

in particular with strategic stakeholders, contributing to a continuous learning

environment.

Building Coalitions: Able to build coalitions effectively with a variety of individuals and

organizations such as civil society, non-government organizations, clients, member



9

Annex 3


Terms of Reference for PANEL CHAIR AND MEMBERS

Background





countries.

The Board of Executive Directors of the Inter-American Development Bank (IDB or the Bank)

recently approved a policy establishing a new Independent Consultation and Investigation

Mechanism (ICIM or the Mechanism). The ICIM provides a forum and a process to address

complaints from parties that allege that they are or might be adversely affected by IDB

operations.








has resulted in non compliance with a Relevant Operational Policy and direct, material adverse


of independent experts that report to the Board.




Description

The role of the ICIM Panel is to carry out an independent investigation of a complaint by a

Requester that asserts that its rights or interests have been, or could be expected to be directly,

materially adversely affected by the failure of the IDB to follow its relevant operational policies

in a Bank-Financed Operation. The objective of a Compliance Review is to establish whether

(and if so, how and why) any Bank action or omission in respect of a Bank-financed operation

10

has resulted in non-compliance with a Relevant Operational Policy and direct, material adverse

effects (potential or actual) to the Requester. A Request is triggered when a Requester has

expressed a desire for Compliance Review at the outset or after either termination of the ICIM’s

initial Consultation Phase or a determination that a Request is ineligible under the Consultation

Phase.

The Panel includes a Chairperson who initially will be selected by the IDB’s Board of Executive

Directors; thereafter, the Panel members will select the Panel Chair. The Panel Chair shall serve

as Panel Chair for each Compliance Review during his/ her term. The Chairperson determines

eligibility of Requests with respect to the Compliance Review Phase. If the Panel Chair

determines that a Request is eligible so that proceeding with an investigation is recommended,

the Panel Chair identifies two (2) other members of the Panel to serve on the investigative team,

based on their expertise and availability. The Panel Chair and two (2) other members then act as

an investigative Panel and conduct the Compliance Review. The Panel activities pursuant to a

Compliance Review include preparing terms of reference regarding the proposed investigation,

conducting the investigation, researching and fact-finding and preparing a report for the Board.

In preparing its report, the Panel shall take into account all relevant facts that may have an

impact on the case at hand.

As the first Panel under the new ICIM, the Panel Chair and other members will prepare

administrative procedures and other guidelines necessary to operationalize the Compliance

Review Phase.


• Carrying out the Compliance Reviews, including determining eligibility; investigating

Requests in an independent, thorough and objective manner; consulting with Requesters,

Management and others as appropriate, issuing final reports to the Board, and monitoring

implementation of Board decisions, if requested.

• Coordinating with any other independent accountability mechanism conducting a compliance

review or similar investigation of the same project.

• Issuing annual and other reports based on lessons learned from past cases.

• Identifying and contracting outside experts, as necessary.

• Undertaking contacts with the public, publishing periodic reports, disseminating lessons

learned, and conducting outreach activities.

• Adopting administrative procedures for the operation of the Compliance Review Phase.

• Undertaking any other tasks that may be necessary or incidental to the Compliance Review

Phase.

11


The Panel reports directly to the IDB Board of Executive Directors. The Panel will be

independent of any unit or official of the Bank and shall act on its own initiative. The Panel shall

be composed of five (5) individuals appointed by the Board.

Panel members will be nationals from different member countries of the Bank. Due

consideration will be given to aim for a balanced gender representation. The IDB Board of

Directors will appoint the initial Panel Chairperson and thereafter the Panel members will select

the Chairperson. The Chairperson will serve in such capacity for the duration of his/her

appointment.

The Panel members shall be appointed for a non-renewable term of five (5) years, with the

exception of the first panel, the members of which shall be appointed for staggered non-

renewable terms of three (3) or four (4) years. The first Panel Chairperson will be appointed for a

non-renewable term of three (3) years.

Executive Directors, Alternate Executive Directors, Counselors, Board assistants, or any IDB

staff or contractual employee of the Bank shall not serve on the Panel until two (2) years have

elapsed from the end of their service to the Bank. If a Panel member is called to work for the

Mechanism during his or her term, the Panel member shall not entitled to work for the Bank

(either as IDB staff member or contractual employee or contractual through an agency,

Executive Director, Alternate Executive Director, Counselor, or Board assistant) in any capacity

for five (5) years after the expiry of his or her term.

In the performance of their functions, Panel members shall be considered officials of the Bank

entitled to enjoy the privileges and immunities accorded to Bank employees under the

Agreement Establishing the Inter-American Development Bank. Panel members will be subject

to the IDB Code of Ethics and Professional Conduct, Disclosure of Information Policy and other

Bank policies and shall protect against conflicts of interest that could weaken the objectivity and

integrity of the ICIM Office and the Mechanism.

Panel members render their services as needed. Panel members are expected to work on a part-

time basis or on a full-time basis when their workload justifies such an arrangement.

Panel members shall be paid an honorarium for work performed on the Panel at levels to be

determined by the Board. They shall be reimbursed for their travel and expenses on the same

basis as the judges of the Bank’s Administrative Tribunal.

Panel members shall be required to attend meetings for at least five (5) calendar days in each

calendar year to enhance their knowledge of the Relevant Operational Policies and discuss the

functioning of the Mechanism.

Members of the Panel may resign or be removed for cause by the Board, without cost or liability

to the Bank.

12

Qualifications

� Education: Relevant advanced degree (Master’s degree or Licenciatura) in a relevant

discipline (environmental, social, economic, engineering, legal and/or private sector

fields related to international development). Experience:

o Proven ability to interpret and apply rules and policies and knowledge of

investigative and evaluation strategies, methodologies and techniques.

o Demonstrated knowledge of economic, social and sustainable development,

preferably in Latin America and the Caribbean. At least 15 years of experience

and demonstrated competence in a relevant discipline are preferred.

o Awareness of conflict resolution/mediation field and/or conflicts that may arise in

development projects is beneficial.




valuable.

o Proven strong ability gathering, analyzing and synthesizing information from

multiple sources and presenting it concisely and clearly.

o Highly developed communication and diplomatic skills, including the ability to

engage effectively with civil society, non-government organizations, clients,

member governments, other international organizations and comparable

institutions, Board of Executive Directors, Management and staff.



environments.

o Independence from operations departments and Management of the IDB, IIC and

MIF.


environment.


Competencies

Technical expertise: Knowledge and experience in investigative and evaluation

strategies, methodologies, and techniques. Ability to manage a thorough and systematic

investigative process.




constructive manner, working through resistance and objections by providing proposals

and negotiating compromises that take into account the key needs of all parties.




Communication and Knowledge-Sharing: Well-developed writing and editing skills;

advanced presentation skills sufficient to convey complex information on issues requiring

13

specific fact-based reporting. Promotes effective sharing of knowledge within and outside

the organization, in particular with strategic stakeholders, contributing to a continuous

learning environment.

Building Coalitions: Able to build coalitions effectively with a variety of individuals and

organizations such as civil society, non-government organizations, clients, member



Annex 4

Guidelines for the selection of the ICIM Executive Secretary, Project

Ombudsperson, and Panel Members

1. The selection process for the ICIM Executive Secretary, Project Ombudsperson,

Panel Chair and Panel members shall be as set forth herein, unless the Board of Executive

Directors agrees otherwise.

2. Guiding principles. The selection of the ICIM Executive Secretary, Project

Ombudsperson, Panel Chair and members requires application of the highest professional

standards. Selections will be made on the basis of merit and the requirements of the ICIM

Policy (GN 1830-49), and due regard will be paid to the importance of having diverse

representation.

3. Identification of candidates. At the request of the Board of Executive Directors, the

Human Resources Department (HRD) will publicize the postings for the positions, which

will indicate how to access the terms of reference and apply. Members of the Board of

Executive Directors, Bank staff and civil society organizations and individuals will be

encouraged to submit nominations of qualified and interested individuals.

4. Screening. The Human Resources Department will establish a deadline for

submission of applications in accordance with current IDB recruitment practices. HRD

will review the applications received against the qualifications required in the Terms of

Reference approved by the Board for each position and will identify those candidates that

meet the basic requirements of member country nationality and of academic and

professional credentials (education, languages, and years of relevant experience). Each

applicant will receive a confirmation that his/her application has been received and that

final decisions will be communicated as soon as possible.

5. Selection Committee. A Selection Committee will be established to evaluate

candidates. The Selection Committee, consisting of Board members, shall be selected by

the Board with due regard for balanced representation among member countries and

gender. The ICIM Executive Secretary will be asked to participate ex officio in the

selection process for the position of Ombudsperson and for the selection of the Panel

members. An Executive of the IDB may be asked to serve as a Committee member. The

HRD General Manager will participate in the Selection Committee as an observer.

6. Selection process. The Selection Committee will review the applications of the

candidates who have passed the initial basic screening, which may include telephone

interviews to ascertain qualifications, and will participate in a technical screening review

to select a short list of candidates for interview by the Selection Committee.

7. Recommendation. The Selection Committee will identify the most qualified

candidates for recommendation to the Board (the “finalists”). It is advisable, but not

required, that the Selection Committee recommend at least two (2) but not more than

15

three (3) finalists for each position. In the case of the initial Panel, the Selection

Committee shall indicate its recommendation(s) for Panel Chair among the recommended

Panel members and the proposed term for each Panel member (three or four years). HRD

will verify credentials of finalists. The Selection Committee may wish to recommend

clearing candidates for future vacancies with similar functions for a period of 24 months

from the date of the Selection Committee’s recommendation; this is particularly useful

for potential future Panel members. A cleared candidate may be considered by the Board

of Executive Directors for future opportunities of similar functions and level without the

need for further competitive process

8. If no applicant possesses the desired level of competence, the Selection

Committee and/or the Board may direct HRD to undertake additional recruitment efforts.

9. Presentation and Appointment. The Board of Executive Directors will consider

and approve the recruitment of suitable candidates for the positions of ICIM Executive

Secretary, Ombudsperson, and Panel Members, on the recommendation of the members

of the Selection Committee. Appropriate consultations will also be maintained with the

President to seek his views about the process and its results. The President and the Chair

of the Selection Committee shall present the final recommendation of selected candidates

for the positions of Executive Secretary, Ombudsperson, and Panel members to the

Committee of the Whole and the Board of Executive Directors for the Board’s approval.

The Board of Executive Directors shall appoint the individuals it selects to serve as ICIM

Executive Secretary, Project Ombudsperson, and as Panel Members. The Board of

Executive Directors shall instruct HRD to extend offers and complete the hiring process,

as pertinent.

10. Calendar. In consultation with HRD, the Board of Executive Directors shall

decide a timeframe for completion of the selection process.

11. Budget. Budgetary funds shall be provided for the purpose of covering costs

associated with the travel of candidates invited for interviews (where video conferences

are not deemed suitable or practicable), ads, etc. in accordance with the budgetary

process for the ICIM.

12. Selection of the First ICIM Executive Secretary: Given the role of the Executive

Secretary to operationalize the ICIM and the tight schedule for the establishment of this

initiative, the Board of Executive Directors may directly appoint a first ICIM Executive

Secretary who successfully meets the qualifications defined in the terms of reference of

the position. After the pilot period of three years, this position will be subject to the

process described above.