C0006 Nicaragua

In June 2021, the IRM received a complaint relating to FP146. The complainant(s) alleged that the project would harm indigenous and Afro-descendant communities due to 1) alleged failure to conduct proper consultation, including FPIC; 2) a likelihood of increased environmental degradation and attacks by armed non-indigenous settlers; 3) likely non-compliance or inability of the Accredited Entity and Executing Entity to comply with GCF Policies and Procedures and the Conditions placed by the Board of the GCF during approval of this project. The complainant(s) requested confidentiality, and the IRM granted confidentiality in accordance with its TOR and PGs and as a result of its retaliation risk assessment.

The complaint was declared eligible on 21 July 2021, and the case proceeded with the Initial Steps phase, where the IRM explored the options of problem solving and compliance review, with the complainant(s) and other stakeholders. At the conclusion of this phase (extended to 180 days from the original 60 days), parties were unable to reach an agreement on substantive matters relating to the framework and process design of a dialogue before the deadline. In these circumstances, on 17 January 2022, the IRM referred the complaint to compliance review for further processing. The IRM undertook its compliance appraisal process culminating in a compliance appraisal report, published on 24 March 2022.

Subsequently, the IRM commenced a compliance investigation to further assess the three issues set out at the end of the compliance report and reach a final finding on the issues. As part of the investigation, the IRM conducted in-person and virtual interviews with relevant parties and stakeholders, including but not limited to, the complainant(s), AE, GCF Secretariat, EE and experts on relevant issues. After concluding its investigation, the IRM submitted the final compliance report, with factual findings and recommendations, to the Board on 31 August 2022. During meetings of the Board held in October 2022 (B.34), March 2023 (B.35), and July 2023 (B.36) the Board considered the IRM Compliance Review Report. On 21 July 2023, the GCF Secretariat released a summary of the final Board decision on C-0006, the reasons for the decision and the management response to the report. Pursuant to Board Decision B.36/17,  the IRM case is now closed.

The GCF Secretariat has published an update on the the FP146, available here.